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Economy

Biden’s defense of the economy in his State of the Union deserves another listen

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Among President Joe Biden’s many swings at Donald Trump and MAGA Republicans in Thursday’s State of the Union address, Americans should relisten to his full-throated defense of his progressive economic agenda. While polls show voters trust Republicans more on the economy, the truth is Biden and his administration are most concerned about helping our wallets — unless, that is, your definition of a healthy financial environment is one in which the rich benefit and everyone else makes do with mere scraps.

Biden’s fight with Trump and the Republicans over all of our bottom lines acknowledges two truths: Not only has decades of trickle-down economics failed us, but a growing economy needs a financially healthy middle class. To achieve that security, most of us need a helping hand, whether through a subsidy or government policy and regulation. This agenda is enormously popular with the American people. It’s Donald Trump and Republicans who stand in the way of goals that even their own base often favors.

As Biden pointed out in his address, “Wall Street didn’t build America.” But that doesn’t stop Republican politicians from letting it effectively dictate policy.

As Biden pointed out in his address, “Wall Street didn’t build America.” But that doesn’t stop Republican politicians from letting it effectively dictate policy on everything from taxes to health care. This is how we got the Trump-era tax cuts, which showered benefits on the 1 percent and the largest and most powerful corporations. Biden wants to fix this imbalance: On Thursday, he proposed increasing the corporate tax rate to 21 percent and instituting a minimum 25 percent tax on billionaires. This would go not just a long way toward tackling budget deficits but would give us the funds to properly invest in education, health care and housing.

The business lobby’s control over the GOP is also why people in United States pay multiples more for prescription drugs than any other country, a gap that Biden — not the GOP — is tackling. It’s Biden’s administration that, beginning next year, will limit seniors’ out-of-pocket spending on needed medications to $2,000 — and it is Biden who announced Thursday night that he wants to expand that policy to all of us. It’s Biden who capped insulin prices for those on Medicare at $35 a month and pushed legislation that gave Medicare the power to negotiate lower prescription drug prices on high-cost drugs — something not one single Republican in Congress supported.

Meanwhile, corporate America and Wall Street — with an assist from Republicans — are fighting Biden’s attempts to stop junk fees, the practice of tacking hidden or impossible-to-avoid surcharges to basic transactions that bleeds American bank accounts while leaving us feeling like we’re being played for fools at the same time.

Democratic and Republican voters alike support these initiatives. A poll released earlier this week by Blueprint, a Democratic strategy group founded last year by LinkedIn founder Reid Hoffman, found an astonishing 84 percent of voters want to give the Medicare system the power to negotiate the prices of prescription drugs. And another poll, conducted by the American Economic Liberties Project with Lake Research Partners, shows nearly 8 out of 10 voters say they would be more likely to support state legislators who vote to end junk fees.

So why don’t Americans’ views of Biden reflect this? Well, people really hate inflation, and for a time that overwhelmed Biden’s record elsewhere. But it’s also likely that as people have tuned out of political news, they are simply less likely to know who is proposing what policies, even ones they strongly support. The Blueprint poll offers some evidence for this theory, finding, for example, that barely 4 in 10 even knew about Biden’s junk fee initiative.

Inflation is waning. The stock market is soaring. Unemployment is low. The racial wealth gap is falling. And consumer confidence is on an upswing.

Then there’s Republicans’ disingenuous attacks on the president’s record. Take Sen. Katie Britt’s (literally) breathless response to Biden’s address, in which she highlighted an Alabama retiree working at a gas station in his 70s because he couldn’t afford both food and medication. She did not mention that Biden — not her party — is supporting and passing legislation to help seniors with their medical bills. (Something else worth noting: It is mostly, though not exclusively, Republicans who support plans to raise the Social Security retirement age.)

Here’s the reality: Biden’s “middle out and bottom up” economy is working. Inflation is waning. The stock market is soaring. Unemployment is low. The racial wealth gap is falling. And consumer confidence is on an upswing.

Little wonder Republicans need to resort to stretching the truth and insinuating that the octogenarian Biden isn’t up to the job. As the State of the Union address proved, nothing could be further from the truth. Republicans may feel they were able to turn “Bidenomics” into a punchline, but it’s beginning to look like Biden will get the last laugh.

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Business

A timeline of events in the bread price-fixing scandal

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Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite up more than 250 points, U.S. stock markets also higher

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TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.

The S&P/TSX composite index was up 254.62 points at 23,847.22.

In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.

The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.

The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.

The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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