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Economy U.S.

Trump’s lie to Canada’s prime minister about trade suggests disregard for the U.S. economy

At a fundraising dinner last Wednesday, President Trump boasted to supporters that he told Prime Minister Justin Trudeau of Canada that the U.S. ran a trade deficit with his country without knowing whether the assertion was true.

It’s not. Though news coverage of the incident focused on the fabrication, the lie, which by now one expects from Trump, also shows that the president cherry picks the trade that he recognizes. And in the calculus of Trump, goods trump services.

As it happens, the U.S. runs a trade surplus with Canada. On the whole, Canadians buy more from us than we buy from them. Though Americans  purchase more goods – think vehicles, machinery and plastics – from Canadians than they buy from us, they buy more services, including software, movies and travel, than Americans buy from them.

Our goods trade deficit with Canada was $12.1 billion in 2016, but our trade surplus with our neighbor to the north was $24.6 billion, according to the Office of the U.S. Trade Representative.

A similar dynamic holds for China, which Trump also likes to jawbone about trade. As I’ve noted previously, the U.S. imports more goods from China than it exports, but it exports more services to China than it imports. The difference was $37 billion in 2016, up 12.3% from year earlier.

To be sure, the deficits in goods are real. But for Trump, the hammering on trade deficits – regardless of facts – plays to a political base in the Rust Belt, where, apparently, the president has concluded he needs to shore up his base in the hope of reelection.

But the focus disregards the economic well-being of millions of Americans elsewhere. And it’s not just in the so-called blue states such as California or New York that house many of the software, entertainment and financial firms that trade in services.

Canada represents the largest export market for U.S. agriculture. Senator Pat Roberts, a Kansas Republican who chairs the Senate Agriculture Committee, says Trump’s proposed tariffs and threats to abrogate the North American Free Trade Agreement show a preference for the Rust Belt over the Farm Belt. “I think he’s looking at the Rust Belt primarily,” Roberts told Bloomberg.

Categories
Law

Kmart customer injured in fight with store employee cannot sue security company, appeals court rules

A Kmart customer who was injured in a fight with a store employee inside the store cannot sue a company that Kmart hired to provide security, a New York appeals court has ruled in a case that highlights when a contract provides a third party with legal rights.

In addition to suing Kmart, Abel Santiago, the customer, sought to sue U.S. Security Aviation Services, which Kmart hired for “the protection of… customers… in the premises” at a store in the Bronx.

At trial, Santiago obtained permission from the court to sue both Kmart and U.S. Security, which he argued that he relied on, to his detriment, to secure the premises. The appeals court in Manhattan disagreed, reasoning that by law the contract between Kmart and U.S. Security afforded no legal rights to Santiago.

In general, a contract does not give rights to someone who is not a party to the agreement. Though a third party can obtain legal rights under a contract, those rights generally vest only when the third party learns of the contract and relies on it. Such rights also can arise if the agreement is so comprehensive that it displaces the obligation of the store, in this case Kmart, to secure its premises.

Santiago testified when the fight occurred he knew nothing of the contract between Kmart and U.S. Security. He further said he did not rely on the agreement, which in practice limited the role of U.S. Security to deterring shoplifting.

Nor did the contract displace the obligation of Kmart, which Santiago could sue, to secure its store “because Kmart retained supervisory authority over the security guards and required U.S. Security’s staff to complete training in accordance with its (Kmart’s) safety policies and procedures,” Justice Peter Moulton wrote for a unanimous court in a ruling dated Feb. 27.

By its terms, the contract also excluded third parties from obtaining legal rights as part of the agreement.

That distinguishes the facts of Santiago’s case from, for example, a 1994 ruling by the Court of Appeals involving a nurse who was injured when a wall-mounted fan at the hospital in Schenectady where she worked fell on her as she tended to a patient.

In that case, the court allowed the nurse to sue the company that the hospital had hired to inspect, maintain and repair the facilities as part of an agreement that also required the maintenance company to train and supervise all service personnel.

“We hold that when a party contracts to inspect and repair and possesses the exclusive management and control of real or personal property which results in negligent infliction of injury, its assumed duty extends to non-contracting individuals reasonably within the zone and contemplation of the intended safety services,” the court wrote.

Categories
News

News quiz, week ending March 16

1. Marine Le Pen, the leader of the far-right National Front party in France, announced that the party now has a new name that officials hope will broaden its appeal. What is the new name of the party?

a. Union Nationale
b. Rassemblement National
c. Front Nationale

2. This designer, who dressed the likes of Audrey Hepburn, Grace Kelly and Jacqueline Kennedy Onassis, died at the age of 91.

a. Cristobal Balenciaga
b. Hubert de Givenchy
c. Riccardo Tisci

3. Why did the Metropolitan Opera in New York fire James Levine, its conductor?

a. An investigation found that he had engaged in sexually abusive and harassing conduct
b. As part of a move to reverse a falloff in attendance
c. To make way for a successor after four decades with Levine at the helm

4. President Trump blocked the purchase of which U.S.-based maker of semiconductors, citing national security concerns?

a. Broadcom
b. Intel
c. Qualcomm

5. Who did President Trump name to head of the Central Intelligence Agency?

a. Mike Pompeo
b. Gina Haspel
c. David Shulkin

6. Stephen Hawking will be remembered for which one or more of the following?

a. The properties of black holes
b. The nature of gravity
c. Advocacy for space exploration

7. What prompted United Airlines to apologize?

a. A dog died on a flight during which it was stored in a passenger’s overhead compartment
b. The airline cancelled flights in and out of Boston ahead of a storm that failed to materialize
c. A computer glitch led the airline to overbook passengers

8. Which of the following  did Prime Minister Theresa May announce in return for Russian allegedly poisoning a former Russian spy who lives in Britain?

a. That the U.K. would withdraw from the soccer World Cup in Russia
b. That no members of the royal family would attend the World Cup
c. That the U.K. would lobby the United Nations to adopt economic sanctions against Russia

9. Why did thousands of students walk out of their schools on Wednesday?

a. To protest gun violence
b. To advocate for action to halt climate change
c. To affirm their support for the #metoo movement

10. What is the happiest country in the world, according to a United Nations report?

a. Norway
b. Canada
c. Finland

11. Angela Merkel began her latest term as German chancellor. How many terms does this make?

a. Four
b. Three
c. Two

12. Rihanna denounced an ad from which social network that joked about domestic violence between the singer and her ex-boyfriend Chris Brown.

a. Twitter
b. Snapchat
c. Instagram

13. The founder of which once high-flying startup was charged by U.S. authorities with massive securities fraud?

a. Uber
b. Theranos
c. Jawbone

14. Google announced it would ban advertisements for which products?

a. Cryptocurrencies and initial coin offerings
b. Automobile safety restraints
c. Drones

15. This week marked 10 years since the collapse of which Wall Street financial firm?

a. Washington Mutual
b. Lehman Brothers
c. Bear Stearns

 

 

 

 

 

 

 

 

Answers

1. b
2. b
3. a
4. c
5. b
6. a, b and c
7. a
8. b
9. a
10. c
11. a
12. b
13. b
14. a
15. c

Categories
News

News quiz, week ending March 9

1. Russia denied involvement in the attempted murder of a double agent and his daughter in which country?

2. Sir Roger Bannister died on Sunday. What milestone did he achieve?

3. Italy held an election to choose members of its two houses of parliament. Which of the following statements about the outcome is true?

– The voting produced a surge of support for populist and far-right parties.
– Italians voted largely for parties that are skeptical of Italy’s membership in the European Union.
– No single party won a majority.

4. The U.S. is likely to overtake which nation to become the world’s largest producer of oil by 2023, according to the International Energy Agency?

5. The Trump administration on Tuesday sued the state of California, alleging which of the following:

– That California’s laws governing vehicle emissions contravene federal law
– That California’s sanctuary laws violate the Constitution
– That California’s laws implementing Medicaid violate federal law

6. What did the adult film actress Stormy Daniels ask a Los Angeles judge to do in a lawsuit against President Trump that she filed on Tuesday?

– Declare that an agreement that obligated her to remain silent about a sexual relationship with Trump is void
– Stop the president’s lawyers from contending that her alleged decade-old affair with Trump did not happen
– Order Trump to  pay Daniels $130,000 that he allegedly promise to pay her

7. Who led the team of researchers that found the wreckage of the USS Lexington, which sank in 1942 after being attacked by the Japanese navy off the coast of Australia?

– Sir Richard Branson
– Microsoft co-founder Paul Allen
– Amazon.com founder Jeff Bezos

8. Florida’s legislature passed a gun control bill. Which of the following provisions does the bill not contain:

– Raise the minimum age for gun purchases to 21 from 18
– Allow superintendents to arm counselors, coaches and librarians
– Ban assault weapons
– Allow police to temporarily confiscate guns from anyone subject to involuntary psychiatric evaluation
– Ban bump stocks

9. Senior officials from which nation announced the news that President Trump has agreed to meet with North Korean leader Kim Jong-un?

– South Korea
– Japan
– China
– Australia

10. President Trump said tariffs on steel and aluminum may not apply to which two nations?

 

 

 

 

 

Answers

1. England

2. He was the first athlete to break the four-minute mile.

3. All are true.

4. Russia

5. That California’s sanctuary laws violate the Constitution

6. That an agreement that obligated her to remain silent about a sexual relationship with Trump is void

7. Microsoft co-founder Paul Allen

8. Ban assault weapons

9. South Korea

10. Canada and Mexico

Categories
Law

Trump lawsuit against California over immigration may rely on Obama era precedent

In charging the the state of California with interfering with  immigration enforcement, the Trump administration may rely in part on a ruling by the Supreme Court during the Obama administration that upheld the power of the federal government to regulate immigration

In 2010, the state of Arizona passed a law that aimed to ease the ability of officials there to identify, prosecute and deport immigrants who were in the country unlawfully. The Obama administration sued to block enforcement of the measure, which the administration contended interfered with federal enforcement.

A majority of the court agreed. Federal law trumped the Arizona measure, which required that aliens carry proof of registration with the federal government, barred unauthorized immigrants from seeking employment in the state, and allowed state police to arrest someone without a warrant based on suspicion they should be deported.

All conflicted with federal law, the court found. Writing for the majority, Justice Kennedy noted that the federal government has broad authority over immigration.

“With power comes responsibility, and the sound exercise of national power over immigration depends on the nation’s meeting its responsibility to base its laws on a political will informed by searching, thoughtful, rational civic discourse,” he wrote. “Arizona may have understandable frustrations with the problems caused by illegal immigration while that process continues, but the state may not pursue policies that undermine federal law.”

In a lawsuit filed on Tuesday, the Trump administration accused California of undermining federal immigration enforcement by enacting a series of laws that promote so-called sanctuary policies.

In a speech on Wednesday, Attorney General Jeff Sessions accused the state of intentionally using “every power the legislature has to undermine the duly established immigration laws of America.”

California officials responded that the state’s legislation does not interfere with federal law enforcement. Governor Jerry Brown accused the administration of attempting “to further divide and polarize America.”

He pointed to a statement he made last October when he signed the measures. “In enshrining these new protections, it is important to note what the bill does not do,” he wrote. “This bill does not prevent or prohibit Immigration and Customs Enforcement or the Department of Homeland Security from doing their own work in any way.  They are free to use their own considerable resources to enforce federal immigration law in California.”

Legal experts agreed. The laws in Arizona and California differ, with the legislation in the Golden State unlikely to interfere with federal enforcement, Pratheepan Gulasekaram, a professor of law at Santa Clara University who studies state regulation of immigration, told the Associated Press.

Arizona created a “parallel immigration enforcement system” with its own laws, while California is setting standards for cooperation with federal immigration officials,”  Gulasekaram said.

Categories
Law

Trump administration sues California over immigration enforcement

The Trump administration is suing the state of California, charging the state with undermining the ability of the federal government to enforce immigration laws.

At issue in the lawsuit filed Tuesday are three laws enacted last year by California that reinforce so-called sanctuary policies, which aim to protect immigrants who are in the state without documentation from deportation.

One statute bars employers in California from cooperating voluntarily with immigration agents. The second authorizes the state’s attorney general to monitor immigration enforcement by federal agents. A third relieves local officials of an obligation to inform federal agents about immigrants who may be living in the country illegally.

Taken together, the laws “violate the Supremacy Clause, by, among other things, constitution an obstacle to the United States’ enforcement of the immigration laws and discriminating against federal immigration enforcement,” the Justice Department charged in court papers filed in the U.S. District Court in Sacramento.

The lawsuit comes amid a crackdown by the Trump administration on sanctuary policies and follows the arrests by federal agents of 232 people in Northern California as part of the administration’s intensifying  enforcement in the region.

Libby Schaaf, the Democratic mayor of Oakland, warned of imminent raids by federal immigration agents in the San Francisco Bay area. The warning helped about 800 people avoid arrest, said federal officials, who blasted the mayor and said they would investigate her for obstructing justice.

“I do not regret sharing this information,” Schaaf said. “It is Oakland’s legal right to be a sanctuary city and we have not broken any laws.”

Categories
News

News quiz, week ending March 2

1. Why did President Xi of China make headlines on Sunday?

2. The United Nations Secretary General demanded on Monday that a cease-fire resolution adopted for which country take effect immediately?

3. Under a proposal by the European Union, how long will social media networks such as Twitter and Facebook have to remove posts and videos that have been flagged as “terrorist” by police or law enforcement?

4. Republican lawmakers in Georgia approved a bill that would repeal a tax break that benefits which airline, in retaliation for the airline’s announcing it would eliminate discounts for members of the National Rifle Association?

5. The U.S. cable giant Comcast is considering an offer of $22 billion to buy which UK-based broadcaster?

6. Which of the following measures did Dick’s, the largest U.S. retailer of sporting goods, announce on Wednesday?
– That it was ending sales of all assault-style rifles in its stores
– That it will no longer sell firearms to anyone under 21 years of age
– That it will no longer sell high-capacity magazines
– That it never has nor ever will sell bump stocks that allow semi-automatic weapons to fire more rapidly

7. President Trump said Thursday said he would impose tariffs on imports of what metals?

8. What was the “Beast of the East”?

9. Which leader said on Thursday that his nation has developed nuclear weapons that could overcome any U.S. missile defenses?

10. Which of the following movies is not nominated for Best Picture at the 90th Academy Awards?
– Lady Bird
– Darkest Hour
– The Post
– Mudbound
– The Shape of Water

 

 

 

 

 

 

 

Answers

1. The Communist Party that he heads announced that its central committee had recommended repealing a limit of two terms for the president and vice-president.

2. Syria

3. One hour

4. Delta

5. Sky

6. All of them

7. Steel and aluminum

8. A storm that brought as much as 20 inches of snow and bitter cold to the United Kingdom

9. Russian President Vladimir Putin

10. Mudbound

Categories
Law

The Trump administration sabotaged a deal on immigration

In my last post, I noted the inability of the Trump administration and Congress to agree on changes to the nation’s immigration laws.

One of four measures – which came closest to passages failed by seven votes in the Senate last Thursday – would have protected hundreds of thousands of young immigrants (a priority of Democrats and some Republicans), provided funds to bolster security along the border with Mexico (a priority of the president), and curbed family-based migration (but not to the extent sought by the administration).

Now thanks to the Washington Post, we know that the administration “worked frantically into the night” to defeat the bill. “We’re going to bury it,” a senior administration official told a reporter on Wednesday night.

According to the Post:

“The assault was relentless — a flurry of attacks on the bill from DHS officials and the Justice Department, and a veto threat from the White House — and hours later, the measure died on the Senate floor.

The Trump administration’s extraordinary 11th-hour strategy to sabotage the bill showed how, after weeks of intense bipartisan negotiations on Capitol Hill, it was the White House that emerged as a key obstacle preventing a deal to help the dreamers.”

The attack on the measure killed what might have been a path to a deal that would have provided relief for so-called Dreamers and a wall along the border that the president has championed.

Meanwhile, a measure backed by the White House that would have slashed legal immigration garnered just 39 votes in the Senate.  “That’s a telling total, one that mirrors the percentage of Americans who still support [the president],” the Post editorialized. “Of the four immigration measures voted on in the Senate last week, the Trump bill had the least support.”

Categories
Law

How not to address immigration

Senators from both parties came together on Thursday to reject a series of proposals to overhaul the nation’s policies on immigration amid signs that a deal that Republicans and Democrats can agree on remains far off for now.

A proposal put forth by a bipartisan group of senators that fell six votes short of passage would have granted legal status to young immigrants, provided $25 billion over the next decade for security at the border with Mexico and curbed family-based migration but not to the extent sought by the Trump administration.

Before voting began, the administration attacked Senator Lindsay Graham, a Republican who helped to craft the measure.  Speaking on the condition of anonymity, a White House official accused Graham of being “an obstacle” for immigration reforms and charged him with “being part of the problem.”

A response by Graham suggested that the official was Stephen Miller, a White House aide and immigration hard-liner who has lobbied for strict limits on the number of people who can come to the U.S. “As long as the president allows Steve Miller and others to run the show down there, we’re never going to get anywhere,” Graham said.

Prospects for an immigration overhaul look no better in the House, where far-right Republicans are pressuring Speaker Paul Ryan to do no more than grant temporary work permits for so-called Dreamers. The conservatives also aim to clamp down on security at the border and restrict legal immigration beyond what the White House has proposed.

The difficulty of resolving differences over immigration by legislation ups the likelihood that the fate of Dreamers will be decided by the courts.

On Tuesday, a federal judge in Brooklyn blocked the Trump administration from ending Deferred Action for Childhood Arrivals (DACA), saying the government had not offered legally adequate reasons for doing so.

In a 55-page ruling, Judge Nicholas Garaufis noted the inconsistency between the administration’s decision to wind down the program with its “stated rationale for ending the program (namely, that DACA was unconstitutional).”

The ruling marked the second by a federal judge to order the administration to keep DACA in place as legal challenges to the rollback continue.

Categories
Law New York City

Archbishop’s remains to stay in New York City for now, appeals court rules

The body of an archbishop of the Archdiocese of New York will remain buried in St. Patrick’s Cathedral pending the outcome of a hearing to determine his wishes.

That’s the decision of a state appeals court in Manhattan, which overturned a ruling by a trial judge who granted a request by the niece of Archbishop Fulton J. Sheen to move his remains to Peoria, Illinois from beneath the cathedral’s high altar.

The dispute came before the courts in June 2016, when Joan Sheen Cunningham brought a proceeding under state law to disinter the remains of her uncle and transfer them to a crypt in St. Mary’s Cathedral in Peoria.

The request followed a decision by the archdiocese to refuse a request by the Diocese of Peoria to transfer the remains of Archbishop Sheen, whom the diocese in Illinois sought to canonize.

Church officials in New York alleged that Cunningham had previously agreed to her uncle’s burial in St. Patrick’s and that Sheen, in a will signed five days before his death in 1979, directed that his funeral service be celebrated at St. Patrick’s and that he be buried at Calvary Cemetery in Queens.

Following Sheen’s death, the archbishop of New York sought Cunningham’s consent, which she gave, to bury her uncle in St. Patrick’s.

At trial, Cunningham asserted that had her uncle known during his lifetime that he would be declared a saint, he would have wished to be interred at St. Mary’s, where he attended services with his family as a boy, received his first communion and was ordained a priest.

The church countered with an affidavit of Monsignor Hilary Franco, who served as Sheen’s assistant from 1962 to 1967 and remained his friend. According to Franco, Sheen expressed a desire – one that may resonate with some New Yorkers – to remain in the city “even after his death.” According to Franco, Sheen also “was fond of repeating” that the cardinal had offered that he be buried in the crypt at St. Patrick’s.

The trial court found that the failure to follow Sheen’s request that he be buried at Calvary Cemetery and the absence of conflicting accounts of his wishes provided “good and substantial reasons” to disinter his remains and rebury them in Peoria.

The Appellate Division disagreed. “A hearing is required because there are disputed issues of material fact as to Archbishop Sheen’s wishes,” Justice Rosalyn Richter wrote for the majority.

The trial court “failed to give appropriate consideration to the affidavit of Monsignor Franco, and too narrowly defined the inquiry into Archbishop Sheen’s wishes,” said Richter, noting both that Franco had stated Sheen’s desire to remain in New York after his death and testimony by Cunningham that there was “nobody in the world closer to my uncle than me” and that Sheen was “a second father” to her.

According to the majority, it also remained unclear whether a statement in Sheen’s will that he desired to be buried in “Calvary Cemetery, the official cemetery of the Archdiocese of New York” showed an intention to remain buried in the city or merely described the cemetery.

Though a dissent by two of her colleagues relied on Sheen’s will to conclude that he did not wish to be buried in St. Patrick’s, the state’s highest court has “rejected such a narrow approach,” said Richter.

After leaving Peoria, Sheen taught for 25 years in Washington, D.C. While there, he traveled regularly to New York City to host The Catholic Hour, a weekly radio show that aired from 1930 to 1950.

From 1952 to 1957, Sheen, who was consecrated as a bishop in New York, hosted “Life is Worth Living,” a weekly television series that earned him an Emmy Award.