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Small Businesses Still Aren't Impressed by the Republican Tax CutCEPR / March 13, 2018
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CPI Rises 0.2 Percent in February, Core Up 1.8 Percent Over Last YearMarch 13, 2018 (Prices Byte)
Dean Baker / March 13, 2018
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CPI Excluding Food, Energy and Shelter Up Just 0.9 Percent Over Last YearThe big jump in the price of energy commodities in January was partially reversed in February with a 0.9 percent drop. This brought the overall inflation rate for the month to 0.2 percent, the same as the core rate. Over the last year, the overall CPI has risen by 2.2 percent, while the core rate has risen by 1.8 percent.
Dean Baker / March 13, 2018
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Reuters Says German Employers Don't Understand Labor Markets, Don't Raise Wages In Spite of Labor ShortageCEPR / March 13, 2018
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ADP Gives More Evidence of a Pickup in Wage Growth at the BottomCEPR / March 12, 2018
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Steel Tariffs and Doctors: A Teachable Moment?Dean Baker
Truthout, March 12, 2018
Dean Baker / March 12, 2018
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Neither Christopher Liddell or Microsoft Support Unbridled Free MarketsCEPR / March 12, 2018
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Down on the Farm: More Hysteria About Steel TariffsThe selective free traders (people who support protectionism that benefits high-income people, but oppose it when it can help ordinary workers) are pulling out all the stops in going after Trump's steel tariffs. Today, the NYT takes the show to rural America where it tells us how much agriculture can be hurt by a trade war.
We meet various farmers worried about the threat of a trade war and get a few random facts thrown in:
"Three out of every five rows of soybeans planted in the United States find their way out of the country; half of those, valued at $14 billion in 2016, go to China alone."
"Two weeks after the administration imposed a tariff on solar panels, China opened an anti-dumping investigation into American exports of sorghum, a grain used in livestock feed. The United States was virtually China’s sole foreign source of sorghum last year, with $1 billion in sales."
There are a few points worth making here. First, if our trading partners do impose barriers to US exports of agricultural goods, then we would see the price of these products fall somewhat in the domestic market. That is bad news for these farmers, but good news for the rest of us who will have lower priced food. The NYT apparently only thinks of consumers when it comes to tariffs raising prices.
The second point is that while the loss of a large market can have a substantial impact on the price of a relatively small volume crop like sorghum since it is a relatively small volume crop the number of farmers affected will be relatively few. Furthermore, most will be able to switch to crops that offer a better return.
CEPR / March 10, 2018
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Latin America and the Caribbean
The Threats, Real and Imagined, of Mexico’s ElectionMark Weisbrot / March 09, 2018
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Employment Rates by 10-Year Age Cohort and GenderKevin Cashman / March 09, 2018
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Job Growth Soars in February, Wage Growth SlowsMarch 9, 2018 (Jobs Byte)
Dean Baker / March 09, 2018
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Washington Post Says Stronger Patent and Copyright Protections Are "Free-Trade"CEPR / March 09, 2018
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Trade As a Percent of GDP: Deglobalization May Not Be All It Is Cracked Up to BeCEPR / March 08, 2018
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Latin America and the Caribbean
Administración de Trump trata de sabotear elecciones en Venezuela, al mismo tiempo que intensifica sus esfuerzos para “cambiar de régimen”Mark Weisbrot
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How to Reverse the Trump-Era Brain DrainJustin Talbot-Zorn
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CEPR and / March 07, 2018
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Latin America and the Caribbean
Haitian Government on the Defensive Following UN Welcoming of Corruption InvestigationWhen Donald Trump allegedly referred to Haiti as a “shithole” country earlier this year, the US Ambassador was called in to explain the comments, but the Haitian government stopped short of any type of retaliation. But since last week, the government has been up in arms after a UN mission with a mandate to support the Haitian justice system went so far as to welcome a judicial inquiry into corruption allegations. The government has recalled its ambassador to the UN in response.
The Background
In November, a Senate commission released a 650-page report on Petrocaribe-related corruption. The report implicated top officials from previous administrations in inflating government contracts, funneling money to ghost companies, no-bid contracts for projects that were never finished, and a host of other financial crimes. Even current president Jovenel Moïse was named, allegedly overbilling the government on a $100,000 contract to install solar lamps back in 2013 when he was a relatively unknown businessman.
Moïse has rejected the allegations as politically motivated, as have others implicated. And rather than follow up on their colleague’s report, the Senate has worked to bury it.
On February 8, four civil society organizations released a statement condemning the efforts to obstruct further investigation into the allegations contained in the Petrocaribe dossier. The organizations noted that the Senate had blocked a vote on the report for four months and then, in a “clandestine” session conducted once the opposition had left the building, passed a resolution condemning the report as politically motivated and sending the dossier to the Superior Court of Accounts ? a governmental body that had already signed off on the contracts in question at the time they were awarded. The civil society organizations wrote that these actions “expose the cowardice” of the Senate, and their desire to bury the report.
Anticipating the Senate’s lack of action, a private citizen, Johnson Colin ? backed by lawyer and government critic André Michel ? filed multiple cases at the Port-au-Prince Court of First Instance on January 29 and February 20. (The original filing is available here.)
The UN Statement
On February 25, the UN Mission for Justice Support in Haiti (MINUJUSTH) issued a press release welcoming “the assignment of investigating judges to pursue the Petrocaribe court cases filed by private citizens.” The mission noted that Haiti is ranked near the bottom of Transparency International’s corruption report.
“I welcome the initiative and the active role of Haitian citizens and civil society who are engaged in the fight against corruption and impunity. Their actions demonstrate that the population is standing up for accountability and justice,” said the Special Representative of the United Nations Secretary-General (SRSG) and Head of MINUJUSTH, Susan D. Page.
The UN also expressed its regret that no investigating judge had been assigned to two cases of alleged human rights violations on the part of the Haitian police; one in Lilavois on October 12, 2017 and one, the alleged summary execution of civilians, in Grand Ravine on November 13, 2017. (The Grand Ravine operation was planned in coordination with the UN mission).
The mandate of MINUJUSTH, which took over for the previous UN mission, MINUSTAH, this past October is to “help the Government of Haiti strengthen rule-of-law institutions, further develop and support the Haitian National Police and engage in human rights monitoring, reporting and analysis.”
Of course, as many observers have pointed out (including here on this blog), the UN has its own terrible track record in terms of avoiding accountability for its actions. The UN’s introduction of cholera has killed more than 10,000 and sickened a million while the UN continues to dodge legal accountability or properly fund eradication efforts. Hundreds, if not thousands, of cases of sexual exploitation and abuse involving UN personnel have been identified ? however in the overwhelming majority of those cases, the perpetrators were simply moved out of Haiti and avoided prosecution. How can the UN have the moral authority to call for justice in Haiti when the UN itself has yet to face justice for its crimes there?
Yet the UN statement was not so much surprising for its content, but for going against the Haitian government. Throughout its controversial history, the UN has rarely even hinted at criticism of the Haitian government. Then again, in this case the UN simply welcomed a judicial investigation.
Given its mandate to support anticorruption efforts and strengthen the judicial system, and its creation under Chapter 7 of the UN charter, the mission was within its rights to make those comments, argued university professor James Boyard.
The UN did not express an opinion on the content of the Petrocaribe dossier, and given the current state of Haiti’s judicial system, the likelihood of the current case leading to any meaningful accountability is slim. The statement posed little threat to those implicated in the dossier (who, if they believe they are innocent, should be welcoming an investigation into the allegations rather than letting the dossier be used by politicians for political reasons).
The Government’s Reaction
The first response to the UN statement came from Haitian foreign minister Antonio Rodrigue. Reuters reported that Rodrigue “said in a statement on Tuesday that Page had exceeded her authority and that her comments reflect an ‘attitude harmful to the political and institutional stability acquired during the past few years.’”
The Haitian government, rather than address the allegations in the Petrocaribe dossier, has doubled down on this response. “The country is fighting to defend its image,” President Moïse said. “People have to speak well of the country,” he added. (The Haitian government recently hired an international PR firm to help with “media relations services.”)
Jake Johnston / March 07, 2018