Sunday, May 9, 2021

Corporate Leaders Urged to Wade Into Debate Over Voting Laws: Live Updates


Credit…Mike Cohen for The New York Times

More than 100 corporate leaders held a conference call over the weekend to discuss what they should do, if anything, to shape the debate around restrictive voting laws under discussion across the United States. Snap polls during the call suggested that most of the participants favor doing something, though what that would be isn’t yet clear, the DealBook newsletter reports.

The voting-rights debate is fraught for companies, putting them at the center of an increasingly heated partisan battle. Ken Chenault, the former American Express chief, and Ken Frazier, the Merck chief executive, urged the executives on the call to publicly state their support for broader ballot access. The two had gathered 70 fellow Black leaders to sign a letter last month calling on companies to fight bills that restrict voting rights, like the one that recently passed in Georgia.

A survey this month of 1,221 Americans shows support for companies wading into politics. The data, provided by the market research firm Morning Consult, was presented to the business leaders on the call, which was convened by Jeffrey Sonnenfeld, a professor at Yale. Here are some highlights:

  • Fifty-seven percent of Americans think companies should cut back on donations to elected officials who are working to limit voting rights. Nearly three-quarters of respondents said that the government should ensure equitable access to voting locations.

  • More than half of Americans said they were more likely to buy from companies that promote certain social causes, including racial equality and civil rights, although support among Democrats was stronger than among Republicans on many of these issues. Among the handful of issues that would make Republicans less likely to buy from a company were support for the Black Lives Matter movement, abortion rights, stricter gun control and L.G.B.T. rights.

In a separate survey of 2,200 Americans by Morning Consult, 62 percent of “avid” fans said they supported Major League Baseball’s decision to move the All-Star Game from Georgia in response to the state’s new voting restrictions. Support was lower among all adults (39 percent), but if the league was worried about the effect on its most dedicated fans, this is an important finding.

“We’re not talking about how the caregiving crisis is impacting the learning loss for kids and how it’s disproportionately impacting girls and girls of color,” said Reshma Saujani, the founder of the nonprofit group Girls Who Code.
Credit…Amr Alfiky/The New York Times

A year into the pandemic, there are signs that the American economy is stirring back to life, with a falling unemployment rate and a growing number of people back at work. Even mothers — who left their jobs in droves in the last year in large part because of increased caregiving duties — are slowly re-entering the work force.

But young Americans — particularly women between the ages of 16 and 24 — are living an altogether different reality, with higher rates of unemployment than older adults. And many thousands, possibly even millions, are postponing their education, which can delay their entry into the work force.

New research suggests that the number of “disconnected” young people — defined as those who are in neither school nor the work force — is growing. For young women, experts said, the caregiving crisis may be a major reason many have delayed their education or careers.

Last year, unemployment among young adults jumped to 27.4 percent in April from 7.8 percent in February. The rate was almost double the 14 percent overall unemployment rate in April and was the highest for that age group in the last two decades, according to the Bureau of Labor Statistics.

At its peak in April, the unemployment rate for young women over all hit 30 percent — with a 22 percent rate for white women in that age group, 30 percent for Black women and 31 percent for Latina women.

Those numbers are starting to improve as many female-dominated industries that shed jobs at the start of the pandemic, like leisure, retail and education, are adding them back. But roughly 18 percent of the 1.9 million women who left the work force since last February — or about 360,000 — were 16 to 24, according to an analysis of seasonally unadjusted numbers by the National Women’s Law Center.

At the same time, the number of women who have dropped out of some form of education or plan to is on the rise. During the pandemic, more women than men consistently reported that they had canceled plans to take postsecondary classes or planned to take fewer classes, according to a series of surveys by the U.S. Census Bureau since last April.

“We’ve focused in particular on the digital divide and the impact of that on the learning loss for kids,” said Reshma Saujani, founder of the nonprofit group Girls Who Code. “But we’re not talking about how the caregiving crisis is impacting the learning loss for kids and how it’s disproportionately impacting girls and girls of color.”

All of this can have long-term knock-on effects. Even temporary unemployment or an education setback at a young age can drag down someone’s potential for earnings, job stability and even homeownership years down the line, according to a 2018 study by Measure of America that tracked disconnected youth over the course of 15 years.

Decorating a restaurant before its reopening on April 12.
Credit…Andrew Testa for The New York Times

For the past year, the British economy has yo-yoed with the government’s pandemic restrictions. On Monday, as shops, outdoor dining, gyms and hairdressers reopened across England, the next bounce began.

The pandemic has left Britain with deep economic wounds that have shattered historical records: the worst recession in three centuries and record levels of government borrowing outside wartime.

Last March and April, there was an economic slump unlike anything ever seen before when schools, workplaces and businesses abruptly shut. Then a summertime boom, when restrictions eased and the government helped usher people out of their homes with a popular meal-discount initiative called “Eat Out to Help Out.”

Beginning in the fall, a second wave of the pandemic stalled the recovery, though the economic impact wasn’t as severe as it had been last spring. Still, the government has spent about 344 billion pounds, or $471 billion, on its pandemic response. To pay for it, the government has borrowed a record sum and is planning the first increase in corporate taxes since 1974 to help rebalance its budget.

By the end of the year, the size of Britain’s economy will be back where it was at the end of 2019, the Bank of England predicts. “The economy is poised like a coiled spring,” Andy Haldane, the central bank’s chief economist said in February. “As its energies are released, the recovery should be one to remember after a year to forget.”

Even though a lot of retail spending has shifted online, reopening shop doors will make a huge difference to many businesses.

Daunt Books, a small chain of independent bookstores, was busy preparing to reopen for the past week, including offering a click-and-collect service in all of its stores. Throughout the lockdown, a skeleton crew “worked harder than they’ve ever worked before, just to keep a trickle” of revenue coming in from online and telephone orders, said Brett Wolstencroft, the bookseller’s manager.

“The worst moment for us was December,” Mr. Wolstencroft said, when shops were shut in large parts of the country beginning on Dec. 20. “Realizing you’re losing your last bit of Christmas is exceptionally tough.”

He says he is looking forward to having customers return to browse the shelves and talk to the sellers. “We’d sort of turned ourselves into a warehouse” during the lockdown, he said, “but that doesn’t work for a good bookshop.”

With the likes of pubs, hairdressers, cinemas and hotels shut for months on end, Brits have built up more than £180 billion in excess savings, according to government estimates. That money, once people can get out more, is expected to be the engine of this recovery — even though economists are debating how much of this windfall will end up in the tills of these businesses.

Monday is just one phase of the reopening. Pubs can serve customers only in outdoor seating areas, and less than half, about 15,000, have such facilities. Hotels will also remain closed for at least another month alongside indoor dining, museums and theaters. The next reopening phase is scheduled for May 17.

Over all, two-fifths of hospitality businesses have outside space, said Kate Nicholls, the chief executive of U.K. Hospitality, a trade group.

“Monday is a really positive start,” she said. “It helps us to get businesses gradually back open, get staff gradually back off furlough and build up toward the real reopening of hospitality that will be May 17.”

Part of Saudi Aramco’s giant Ras Tanura oil terminal. The company said it would raise $12.4 billion from selling a minority stake in its oil pipeline business.
Credit…Ahmed Jadallah/Reuters

Saudi Aramco, the national oil company of Saudi Arabia, has reached a deal to raise $12.4 billion from the sale of a 49 percent stake in a pipeline-rights company.

The money will come from a consortium led by EIG Global Energy Partners, a Washington-based investor in pipelines and other energy infrastructure.

Under the arrangement announced on Friday, the investor group will buy 49 percent of a new company called Aramco Oil Pipelines, which will have the rights to 25 years of payments from Aramco for transporting oil through Saudi Arabia’s pipeline networks.

Aramco is under pressure from its main owner, the Saudi government, to generate cash to finance state operations as well as investments like new cities to diversify the economy away from oil.

The company has pledged to pay $75 billion in annual dividends, nearly all to the government, as well as other taxes.

Last year, the dividends came to well in excess of the company’s net income of $49 billion. Recently, Aramco was tapped by Crown Prince Mohammed bin Salman, the kingdom’s main policymaker, to lead a new domestic investment drive to build up the Saudi economy.

The pipeline sale “reinforces Aramco’s role as a catalyst for attracting significant foreign investment into the Kingdom,” Aramco said in a statement.

From Saudi Arabia’s perspective, the deal has the virtue of raising money up front without giving up control. Aramco will own a 51 percent majority share in the pipeline company and “retain full ownership and operational control” of the pipes the company said.

Aramco said Saudi Arabia would retain control over how much oil the company produces.

Abu Dhabi, Saudi Arabia’s oil-rich neighbor, has struck similar oil and gas deals with outside investors.

Jerome Powell, the Federal Reserve chair, said the economy was at an “inflection point.”
Credit…Pool photo by [PLEASE FILL IN]

Global stocks drifted lower from recent highs on Monday ahead of a batch of first-quarter earnings reports. The S&P 500 was set to open 0.4 percent lower, futures indicated, after reaching a record high on Friday.

Most European stocks indexes fell. The Stoxx Europe 600 also declined from a high reached on Friday. The index was 0.2 percent lower on Monday, with energy and airline stocks among the companies that fell the most. The FTSE 100 in Britain was down 0.2 percent.

Stocks have recently been propelled higher by expectations that the global economy will recover strongly from the pandemic this year. Much of the impetus is expected to come from the United States, where trillions of dollars are being spent on various economic recovery packages. On Sunday, Federal Reserve chair, Jerome H. Powell, said the economy was at an “inflection point” and on the cusp of growing more quickly.

But there are still concerns about the uneven nature of the global recovery. For example, parts of Europe and South America are still struggling to contain outbreaks of the coronavirus and the vaccine rollout is slower than in the United States and Britain.

  • Oil futures rose. Futures of West Texas Intermediate, the U.S. crude benchmark, rose 0.4 percent to $59.53 a barrel.

  • Yields on 10-year U.S. Treasury notes were little changed at 1.66 percent.

  • Retail sales in the eurozone rose more than economists forecast, data published Monday shows. Sales jumped 3 percent in February from the previous month, compared with predictions of a 1.7 percent increase.

  • In England, nonessential retail stores opened on Monday for the first time in more than three months. Shares in JD Sports, a clothing retailer, rose in the morning and hit a record high. But by midmorning shares, were down 0.4 percent and fell alongside several other large British brands, including Marks & Spencer and Next. Foot traffic in shopping locations across Britain was three times greater than last week, according to data from Springboard.

The deadline to file a 2020 individual federal return and pay any tax owed has been extended to May 17. But some deadlines remain April 15, Ann Carrns reports for The New York Times. So it’s a good idea to double-check deadlines.

Most, but not all, states are following the extended federal deadlines, and a few have adopted even more generous extensions.

But the Internal Revenue Service has not postponed the deadline for making first-quarter 2021 estimated tax payments. This year, the first estimated tax deadline remains April 15. Some members of Congress are pushing for the I.R.S. to reconcile the deadlines, but it’s unclear whether that will happen, with April 15 less than a week away.

Most states have retained their usual deadlines for first-quarter estimated taxes. One exception is Maryland, which moved both its filing deadline and the deadline for first- and second-quarter estimated tax payments to July 15.

During the pandemic, Amazon workers around the country have joined groups and staged walkouts to amplify their concerns about safety and pay.
Credit…Elaine Cromie for The New York Times

Even as unionization elections, like the lopsided vote against a union at Amazon’s warehouse in Bessemer, Ala., have often proven futile, labor has enjoyed some success over the years with an alternative model — what sociologist of labor calls the “air war plus ground war.”

The idea is to combine workplace actions like walkouts (the ground war) with pressure on company executives through public relations campaigns that highlight labor conditions and enlist the support of public figures (the air war). The Service Employees International Union used the strategy to organize janitors beginning in the 1980s, and to win gains for fast-food workers in the past few years, including wage increases across the industry, Noam Scheiber reports for The New York Times.

“There are almost never any elections,” said Ruth Milkman, a sociologist of labor at the Graduate Center of the City University of New York. “It’s all about putting pressure on decision makers at the top.”

Labor leaders and progressive activists and politicians said they intended to escalate both the ground war and the air war against Amazon after the failed union election, though some skeptics within the labor movement are likely to resist spending more revenue, which is in the billions of dollars a year but declining.

Stuart Appelbaum, the president of the retail workers union, said in an interview that elections should remain an important part of labor’s Amazon strategy. “I think we opened the door,” he said. “If you want to build real power, you have to do it with a majority of workers.”

But other leaders said elections should be de-emphasized. Jesse Case, secretary-treasurer of a Teamsters local in Iowa, said the Teamsters were trying to organize Amazon workers in Iowa so they could take actions like labor stoppages and enlist members of the community — for example, by turning them out for rallies.

Unfair housing, zoning and lending policies have prevented generations of Black families from gathering assets.
Credit…Alyssa Schukar for The New York Times

President Biden’s sweeping pandemic relief bill and his multitrillion-dollar initiatives to rebuild infrastructure and increase wages for health care workers are intended to help ease the economic disadvantages facing racial minorities.

Yet academic experts and some policymakers say still more will be needed to repair a yawning racial wealth gap, in which Black households have a mere 12 cents for every dollar that a typical white household holds.

The disparity results in something of a rigged game for Black Americans, in which they start out behind in economic terms at birth and fall further behind during their lives, Patricia Cohen writes in The New York Times. Black graduates, for example, have to take out bigger loans to cover college costs, compelling them to start out in more debt — on average $25,000 more — than their white counterparts.

The persistence of the problem affects the entire economy: A study by McKinsey & Company found that consumption and investment lost because of the gap cost the U.S. economy $1 trillion to $1.5 trillion over 10 years.

It also has deep historical roots. African-Americans were left out of the Homestead Act, which distributed land to citizens in the 19th century, and largely excluded from federal mortgage loan support programs in the 20th century.

As a result, the gap is unlikely to shrink substantially without policies that specifically address it, such as government-funded accounts that provide children with assets at birth. Several states have experimented with these programs on a small scale.

“We have very clear evidence that if we create an account of birth for everyone and provide a little more resources to people at the bottom, then all these babies accumulate assets,” said Michael Sherraden, founding director of the Center for Social Development at Washington University in St. Louis, which is running an experimental program in Oklahoma. “Kids of color accumulate assets as fast as white kids.”



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