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The Economy Is Good, Actually – The Atlantic

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We are living through the best labor market in 50 years. The U.S. economy created 467,000 jobs in January, more than triple the 125,000 that economists had anticipated. According to the most recent data, the economy created 700,000 more jobs at the end of last year than previously believed. Workers are leaving their jobs for greener pastures at record levels, organized labor is enjoying a resurgence of worker power unseen in a generation, and pay for low-wage workers is up even after adjusting for inflation.

Compared with the federal government’s response to the 2008 financial crisis, the recovery from the COVID-19 crash has been an extraordinary success. It took more than a decade after the onset of the previous recession for the unemployment rate to fall back to 4 percent, the level where it stands today. Even this figure understates the gap between the Great Recession and the pandemic-era economy. Most of the jobs created after the 2008 crisis paid poverty wages, and the country never recovered all of the manufacturing jobs it lost. Today, manufacturing jobs have nearly returned to their pre-pandemic levels amid a burst of onshoring activity across different industries. The stunning jobs numbers over the past two months were secured as the Omicron variant damaged commercial activity across the country.

It remains difficult to find intellectuals or policy makers eager to take credit for these triumphs. This silence is especially noticeable on the left, which can reasonably claim much of the change in approach as its own. The federal government spent far more money over the course of the pandemic than it did in response to the 2008 crash, and spent more of that money on ordinary families. The child-tax-credit expansion unveiled by President Joe Biden in early 2021 cut child poverty in half all by itself, never mind the hardships averted by expanded unemployment benefits and stimulus checks.

The primary rationale for this reluctance to declare victory is not a secret: Many Americans are pretty miserable at the moment. The pandemic itself is a grief machine, and most of the efforts that households and governments can take to mitigate the coronavirus’s spread are extremely frustrating. Biden’s approval rating has been in the toilet since the summer, and reached new lows last month. The collapse of Biden’s Build Back Better agenda, which was sabotaged by two senators in the president’s own party, has not helped his cause, and neither has his administration’s clunky and at times bizarre response to the pandemic itself. (White House Press Secretary Jen Psaki mocking the very idea of sending out free COVID-19 tests to households was probably the low point.)

But most of the conversation about the economy today is not about manufacturing jobs, strike activity, or quit rates. It’s about inflation. And wage growth across the pandemic is much less impressive when you focus on the past six months or so of consumer-price data. Inflation-adjusted wages are actually up since the first quarter of 2020, but they were down 2.4 percent over the course of 2021. (Even this data point carries a silver lining, though: Workers in the bottom third of the income distribution still enjoyed modest wage gains last year, a break with recent trends in which wage growth has been concentrated at the top.) Polling consistently indicates that voters loathe inflation. In 2013, when inflation was nonexistent, a majority of Americans cited inflation as “a very big problem.” It is less popular today.

Just why inflation remains a problem is a matter of intense debate among economists, but virtually everyone accepts two premises. First, the pandemic is a major cause of rising prices. Shutting down whole sectors and then starting them up again creates all sorts of disruptions and bottlenecks that lead to shortages, which in turn lead to price increases. Second, the higher prices created by those shortages are exacerbated by robust consumer purchasing power. How much of either factor—high household demand or bad bottlenecks—is responsible for the problem remains under dispute, but it seems likely that inflation will not dissipate until the supply-chain issues are resolved. In the meantime, any good economic news—more jobs, better pay—will put at least some upward pressure on prices. People are reluctant to claim credit for the recovery because they are reluctant to accept blame for inflation.

They shouldn’t be. Highlighting the strength of the job market may or may not be a winning message for politicians, but it’s essential for understanding both the calamity we avoided and how to respond to inflation going forward. The conventional response to rising prices—higher interest rates from the Federal Reserve, withdrawing fiscal stimulus—may well bring prices down, but it will do so by attacking the incomes of ordinary Americans, particularly those at the edges of the labor market. Given Senate gridlock, this may well be the best that policy makers can do with the tools available to them. But it is not the only way to deal with rising prices. An excess-profits tax on businesses is one; rent control for families is another. Both have the advantage of avoiding a direct hit to consumer pocketbooks.

The Great Recession was a generational cataclysm for the American middle class. The COVID-19 recession has not been, because policy makers have prioritized the benefits of a high-demand economy over the risk of moderately rising prices. They should not be ashamed of their success.

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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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N.B. election: Parties’ answers on treaty rights, taxes, Indigenous participation

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FREDERICTON – The six chiefs of the Wolastoqey Nation in New Brunswick distributed a survey on Indigenous issues to political parties ahead of the provincial election, which is scheduled to kick off Thursday. Here are some of the answers from the Progressive Conservative, Liberal and Green parties.

Q: How does your party plan to demonstrate a renewed commitment to recognizing our joint treaty responsibilities and acknowledging that the lands and waters of this territory remain unceded?

Progressive Conservative: The party respectfully disagrees with the assertion that land title has been unceded. This is a legal question that has not been determined by the courts.

Liberal: When we form government, the first conversations the premier-designate will have is with First Nations leaders. We will publicly and explicitly acknowledge your treaty rights, and our joint responsibility as treaty people.

Green: The Green Party acknowledges that New Brunswick is situated on the unceded and unsurrendered territories of the Wolastoqiyik, Mi’kmaq and Peskotomuhkati peoples, covered by the Treaties of Peace and Friendship. Our party is committed to establishing true nation-to-nation relationships with First Nations, grounded in mutual respect and co-operation as the treaties intended.

Q: How does your party propose to approach the issue of provincial tax agreements with First Nations?

Progressive Conservative: The government of New Brunswick operates in a balanced and fair manner with all organizations, institutions and local governments that represent the citizens of this province, including First Nations. Therefore, we cannot offer tax agreements that do not demonstrate a benefit to all citizens.

Liberal: Recent discussions with First Nations chiefs shed light on the gaps that existed in the previous provincial tax agreements with First Nations. Our party is committed to negotiating and establishing new tax agreements with First Nations that address the local needs and priorities and ensure all parties have a fair deal.

Green: The Green Party is committed to fostering a respectful relationship with First Nations in New Brunswick and strongly opposes Premier Blaine Higgs’s decision to end tax-sharing agreements. We believe reinstating these agreements is crucial for supporting the economic development and job creation in First Nation communities.

Q: How will your party ensure more meaningful participation of Indigenous communities in provincial land use and resource management decision-making?

Progressive Conservative: The government of New Brunswick has invested significant resources in developing a robust duty to consult and engagement process. We are interested in fully involving First Nations in the development of natural resources, including natural gas development. We believe that the development of natural gas is better for the environment — because it allows for the shutdown of coal-fired power plants all over the globe — and it allows for a meaningful step along the path to reconciliation.

Liberal: Our party is focused on building strong relations with First Nations and their representatives based on mutual respect and a nation-to-nation relationship, with a shared understanding of treaty obligations and a recognition of your rights. This includes having First Nations at the table and engaged on all files, including land-use and resource management.

Green: We will develop a new Crown lands management framework with First Nations, focusing on shared management that respects the Peace and Friendship Treaties. We will enhance consultation by developing parameters for meaningful consultation with First Nations that will include a dispute resolution mechanism, so the courts become the last resort, not the default in the face of disagreements.

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

The Canadian Press. All rights reserved.

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Canadian Coast Guard crew member lost at sea off Newfoundland

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ST. JOHN’S, N.L. – A crew member of a Canadian Coast Guard ship has been lost at sea off southern Newfoundland.

The agency said in a release Wednesday that an extensive search and rescue effort for the man was ended Tuesday evening.

He was reported missing on Monday morning when the CCGS Vincent Massey arrived in St. John’s, N.L.

The coast guard says there was an “immediate” search on the vessel for the crew member and when he wasn’t located the sea and air search began.

Wednesday’s announcement said the agency was “devastated to confirm” the crew member had been lost at sea, adding that decisions to end searches are “never taken lightly.”

The coast guard says the employee was last seen on board Sunday evening as the vessel sailed along the northeast coast of Newfoundland.

Spokeswoman Kariane Charron says no other details are being provided at this time and that the RCMP will be investigating the matter as a missing person case.

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

The Canadian Press. All rights reserved.

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