Maine tries to shift the cost of recycling onto companies instead of taxpayers #SootinClaimon.Com

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https://www.nationthailand.com/business/40001990

Maine tries to shift the cost of recycling onto companies instead of taxpayers


TRENTON, Maine – At the height of tourist season, the recycling bins at this coastal town used to swell with glass and plastic, office paper and piles of cardboard from the local boatyard. But the bins are gone, and their contents now join the trash, destined either for an incinerator to generate electricity or a landfill.

Maine tries to shift the cost of recycling onto companies instead of taxpayers

Trenton is one of many Maine towns that had to cut back or close their recycling operations after events both global and local. In 2018 China, which used to take much of America’s plastic waste, banned most of those imports. Last year, a plant in Hampden, Maine, that promised to provide state-of-the-art recycling for more than 100 municipalities shut down.

With mountains of boxes and bubble wrap from online pandemic shopping now going in the trash, lawmakers are trying to make Maine the first state to shift some of the costs of its recycling onto companies – not taxpayers. If the bipartisan bill passes, Maine will join several Canadian provinces, including neighboring Quebec, and all European countries, which have for decades relied on so-called extended producer responsibility programs, or EPR, for packaging.

“It’s good that the bottom fell out,” said Rep. Nicole Grohoski, D-Ellsworth, the bill’s Democratic sponsor, whose district includes Trenton. She doesn’t believe the old system of shipping products halfway around the world to China made sense as countries try to reduce their carbon footprints.

“We have to face this problem and use our own ingenuity to solve it,” Grohoski said.

The proposed legislation, which is vehemently opposed by representatives for Maine’s retail and food producing industries, would charge large packaging producers for collecting and recycling materials as well as for disposing of non-recyclable packaging. The income generated would be reimbursed to communities like Trenton to support their recycling efforts. EPR programs already exist in many states for a variety of toxic and bulky products including pharmaceuticals, batteries, paint, carpet and mattresses. At least a dozen states, from New York to California and Hawaii, have been working on similar bills for packaging.

“Ten years ago, this would have been unthinkable,” said Dylan de Thomas, vice president of external affairs at the Recycling Partnership, who said he is seeing far more openness to EPR bills from such corporate giants as Coca-Cola and Unilever than in the past.

“It’s a reflection of the pressure they are seeing from corporate investors,” said de Thomas, who anticipates there may be similar shifts in national policies.

“That’s the big enchilada,” he said.

EPR programs for packaging, which accounts for about 40 percent of the municipal waste stream, have worked well in other countries, said Scott Cassel, CEO of the Product Stewardship Institute, who said benefits include new jobs as well as reinforcing the circular economy – or continual reuse of resources.

“These are tried-and-true strategies,” he said. None of these first bills will be perfect. But this is a path that we need to start down in the U.S.”

In Maine, the bill’s opponents raise concerns about the logistics retailers may face policing the new policies and the potential for food costs to rise for consumers who are just emerging from the pandemic. They cite a study from Toronto’s York University, which analyzed New York’s EPR bill and estimated an additional $36 to $57 per month in grocery costs for the average family of four. EPR advocates contest those findings, saying there is little evidence of significant costs ending up with consumers in other countries.

For many rural Mainers who don’t enjoy the benefits of free curbside waste collection, the debate over recycling seems irrelevant. They haul their own trash to transfer stations to avoid the $6 weekly charge for having it collected.

“I’ve never been one to recycle,” said Penny Lyons, a Trenton resident, although her family has a stash of bottles and other beverage containers on a flatbed trailer that can be turned in for cash. Her husband, who works in car sales, is able to dispose of their solid waste at work, she said.

Chocolate maker Kate McAleer, who owns chocolate maker Bixby &. Co, said that to follow federal food safety guidelines her company uses metalized film that is a challenge to recycle but protects against pests, air, sunlight and tampering. Changing that would have an impact on her products’ shelf life.

She doesn’t believe legislators understand the complexity of food safety. “I think they think there are solutions that there aren’t,” Bixby said.

Christine Cummings, executive director of the Maine Grocers and Food Producers Association, said her primary concern is “the unknowns” for businesses in a state that sits at the end of distribution routes and relies heavily on incoming goods.

“What is this going to do on our supply chain?” she asked.

Grohoski dismisses such concerns.

“We won’t be out on a limb for long,” she said, anticipating that if her bill passes, other states will soon follow suit.

In the meantime, some communities are paying a premium to continue recycling programs by shipping materials south to Portland, the state’s biggest city. Others are devising ways to process and sell recyclable materials.

In Unity, Maine, about 90 miles north of Portland, Steve Wright and Jeff Reynolds are running an eight-town sorting operation, feeding paper and plastics into giant green balers and glass into a machine that grinds bottles into a glistening powder that can be used for insulating boxes around lithium batteries or with aggregate to make driveways.

Each of the surrounding towns pays in according to its population – Unity has 2,000 residents – and individuals from further away can join for an annual fee of $30.

The pandemic has increased the piles of cardboard, particularly from pet owners leery of going inside stores, Wright sad..

The operation is powered by 40 solar panels and has room to expand – particularly if the EPR goes through.

“We have to move now,” said Rep Stanley Paige Ziegler, D-Montville, whose district includes Unity and who has worked alongside Grohoski to advance the EPR bill.

Sarah Nichols, Sustainable Maine director at the Natural Resources Council of Maine, sees the bill as the logical next step for a state that has led the way in environmental policies. Maine passed one of the first bottle bills in the 1970s and in 2004 the first laws requiring manufacturers to pay the entire cost of recycling computers and televisions. In 2019, the legislature passed the nation’s first statewide ban on Styrofoam food containers that will soon go into effect.

“Maine is seen as a national leader in environmental policy,” Nichols said. “That’s why people move here and visit. It’s part of our state’s personality.”

Nichols points out that Department of Environmental Protection estimates show it can cost 67 percent more to recycle than dispose of packaging. Taxpayers pay at least $16 million annually to manage packaging material through recycling or disposal – costs they have no control over.

Nichols argues the EPR bill would give manufacturers an incentive to reduce packaging and design packaging that is more easily recycled.

Old recycling habits die-hard at the transfer station in Southwest Harbor, with its stunning views toward the forested slopes of Acadia National Park.

Residents drive up to pitch their waste into bays still bearing green signs reminding them of the old days when they sorted their waste: Glass, tin, aluminum and plastic in one; magazines, catalogues and other paper goods in another.

The baler that used to package up paper hasn’t been used for a couple of years, according to the site’s owner, Mark Worcester. Instead, Worcester is sending out a 25-30 ton container of trash – sometimes two – every day, usually to be incinerated for electricity.

“We get tons and tons of cardboard,” Worcester said.

On a busy Saturday morning, car after car pulled up loaded with packaging materials, folded ready for the recycling that would not happen.

“It’s a reflex,” said Jon Zeitler, as he broke down a box and chucked it into the bay that used to be for paper goods.

“Mentally, I have to,” said Jonathan Quebben as he, in turn, pitched his cardboard in.

Susan Raven, a third-grade teacher, said she has made a point of telling her students how to be responsible custodians of the earth. But it’s hard for them to put that into practice, she said, as she pulled out of her car’s trunk the plastic boxes her family of four always used to sort their recycling and then pitched it all into the trash.

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“We can’t break the habit,” she said.

Published : June 14, 2021

By : The Washington Post · Frances Stead Sellers

U.S. water and power are shockingly vulnerable to cyberhacks #SootinClaimon.Com

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https://www.nationthailand.com/business/40001958

U.S. water and power are shockingly vulnerable to cyberhacks


When the Los Angeles Department of Water and Power was hacked in 2018, it took a mere six hours. Early this year, an intruder lurked in hundreds of computers related to water systems across the U.S. In Portland, Oregon, burglars installed malicious computers onto a grid providing power to a chunk of the Northwest.

U.S. water and power are shockingly vulnerable to cyberhacks

Two of those cases — L.A. and Portland — were tests. The water threat was real, discovered by cybersecurity firm Dragos.

All three drive home a point long known but, until recently, little appreciated: the digital security of U.S. computer networks controlling the machines that produce and distribute water and power is woefully inadequate, a low priority for operators and regulators, posing a terrifying national threat.

“If we have a new world war tomorrow and have to worry about protecting infrastructure against a cyberattack from Russia or China, then no, I don’t think we’re where we’d like to be,” said Andrea Carcano, co-founder of Nozomi Networks, a control system security company.

Hackers working for profit and espionage have long threatened American information systems. But in the last six months, they’ve targeted companies running operational networks like the Colonial Pipeline fuel system, with greater persistence. These are the systems where water can be contaminated, a gas line can spring a leak or a substation can explode.

The threat has been around for at least a decade — and fears about it for a generation — but cost and indifference posed obstacles to action.

It isn’t entirely clear why ransomware hackers — those who use malicious software to block access to a computer system until a sum of money has been paid — have recently moved from small-scale universities, banks and local governments to energy companies, meatpacking plants and utilities. Experts suspect increased competition and bigger payouts as well as foreign government involvement. The shift is finally drawing serious attention to the problem.

The U.S. government began taking small steps to defend cybersecurity in 1998 when the Clinton administration identified 14 private sectors as critical infrastructure, including chemicals, defense, energy and financial services. This triggered regulation in finance and power. Other industries were slower to protect their computers, including the oil and gas sector, said Rob Lee, the founder of Dragos.

One of the reasons is the operational and financial burden of pausing production and installing new tools.

Much of the infrastructure running technology systems is too old for sophisticated cybersecurity tools. Ripping and replacing hardware is costly as are service outages. Network administrators fear doing the job piecemeal may be worse because it can increase a network’s exposure to hackers, said Nozomi’s Carcano.

Although the Biden administration’s budget includes $20 billion to upgrade the country’s grid, this comes after a history of shoulder shrugging from federal and local authorities. Even where companies in under-regulated sectors like oil and gas have prioritized cybersecurity, they’ve been met with little support.

Take the case of ONE Gas Inc. in Tulsa, Oklahoma.

Niyo Little Thunder Pearson was overseeing cybersecurity there in January 2020 when his team was alerted to malware trying to enter its operational system — the side that controls natural gas traffic across Oklahoma, Kansas and Texas.

For two days, his team was in a dogfight with the hackers who moved laterally across the network. Ultimately, Pearson’s team managed to expel the intruders.

When Richard Robinson at Cynalytica fed the corrupted files into his own identification program, ONE Gas learned it was dealing with malware capable of executing ransomware, exploiting industrial control systems and harvesting user credentials. At its core were digital footprints found in some of the most malicious code of the last decade.

Pearson tried to bring the data to the Federal Bureau of Investigation but it would only accept it on a compact disc, he said. His system couldn’t burn the data onto a CD. When he alerted the Department of Homeland Security and sent it through a secure portal, he never heard back.

Robinson of Cynalytica was convinced a nation-state operator had just attacked a regional natural gas provider. So he gave a presentation to DHS, the Departments of Energy and Defense and the intelligence community on a conference call. He never heard back either.”We got zero, and that was what was really surprising,” he said. “Not a single individual reached back out to find out more about what happened to ONE Gas.”

The agencies didn’t respond to requests for comment.

Such official indifference — even hostility — hasn’t been uncommon.

The 2018 break-in to the L.A. water and power system is another example.

These weren’t criminals but hackers-for-hire paid to break into the system to help it improve security.

After the initial intrusion, the city’s security team asked the hackers to assume the original source of compromise had been fixed (it hadn’t) while hunting for a new one. They found many.

Between the end of 2018 and most of 2019, the hired hackers discovered 33 compromised paths, according to a person familiar with the test who wasn’t authorized to speak publicly. Bloomberg News reviewed a report produced by the hackers for Mayor Eric Garcetti’s office.

It described 10 vulnerabilities found during their own test, along with 23 problems researchers had discovered as early as 2008. (Bloomberg News won’t publish information that hackers could use to attack the utility.) The person familiar with the operation discovered that few, if any, of the 33 security gaps have been fixed since the report’s submission in September 2019.

It gets worse.

Soon after the hackers produced the report, Mayor Garcetti terminated their contract, according to a preliminary legal claim filed by the hackers hired from Ardent Technology Solutions in March 2020. The company alleges the mayor fired the hackers as a “retaliatory measure” for the scathing report.

Ellen Cheng, a utility spokeswoman, acknowledged that Ardent’s contract was terminated but said it had nothing to do with the report’s substance. She said the utility frequently partners with public agencies to improve security, including scanning for potential cyber threats.”We want to assure our customers and stakeholders that cybersecurity is of the utmost importance to LADWP and that appropriate steps have been taken to ensure that our cybersecurity is compliant with all applicable laws and security standards,” Cheng said in a statement.

Garcetti’s office didn’t respond to a request for comment.

The case of the Oregon network — the Bonneville Power Administration — is no more encouraging.

The testing went on for years beginning in 2014 and involved an almost shocking level of intrusion followed by a pair of public reports. One published in 2017 admonished the agency for repeatedly failing to take action.

By 2020, two-thirds of the more than 100 flaws identified by the Department of Energy and the utility’s own security team hadn’t been resolved, according to interviews with more than a dozen former and current Bonneville security personnel and contractors and former members of the Department of Energy cyber team, in addition to documents, some accessed via Freedom of Information Act request.

Doug Johnson, a spokesperson for Bonneville, didn’t respond to requests for comment on whether the vulnerabilities have been resolved, including some detailed in documents reviewed by Bloomberg in 2020.

Dragos estimated in its 2020 cybersecurity report that 90% of its new customers had “extremely limited to no visibility” inside their industrial control systems. That means that once inside, hackers have free rein to collect sensitive data, investigate system configurations and choose the right time to wage an attack.

The industry is finally focused on fighting back.

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“If the bad guys come after us, there has to be an eye-for-an-eye, or better,” observed Tom Fanning, chief executive officer of Southern Co., at a conference this week. “We’ve got to make sure the bad guys understand there will be consequences.”

Published : June 13, 2021

By : Syndication Washington Post, Bloomberg · Kartikay Mehrotra

Thai stock market exceeds expectations with 11-point rise #SootinClaimon.Com

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https://www.nationthailand.com/business/40001930

Thai stock market exceeds expectations with 11-point rise


The Stock Exchange of Thailand (SET) Index closed at 1,636.56 on Friday, up 11.29 points or 0.69 per cent. Transactions totalled THB106.11 billion with an index high of 1,636.92 and a low of 1,628.14.

Thai stock market exceeds expectations with 11-point rise

In the morning session, Krungsri Securities expected the SET Index on Friday to fluctuate between 1,615 and 1,635 points amid hopes of a Thai economic recovery after mass vaccination launched nationwide.

The index also gained positive sentiment from expectations that the US Federal Reserve will not raise the interest rate at its June 15-16 meeting despite inflation worries after the US Consumer Price Index rose in May.

“The index, however, will be under pressure due to volatility in foreign fund flows and signs of overbought stocks,” Krungsri Securities said.

The 10 stocks with the highest trade value today were AOT, RCL, BANPU, TIDLOR, KBANK, GUNKUL, TTA, HANA, KCE and CPF.

Other Asian indices were mixed:

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Japan’s Nikkei Index closed at 28,948.73, down 9.83 points or 0.034 per cent.

China’s Shanghai SE Composite Index closed at 3,589.75, down 21.11 points or 0.58 per cent, while the Shenzhen SE Component Index closed at 14,801.24, down 92.35 points or 0.62 per cent.

Hong Kong’s Hang Seng Index closed at 28,842.13, up 103.25 points or 0.36 per cent.

South Korea’s KOSPI closed at 3,249.32, up 24.68 points or 0.77 per cent.

Taiwan’s TAIEX closed at 17,213.52, up 54.30 points or 0.32 per cent.

Published : June 11, 2021

By : The Nation

Volatile foreign funds likely to temper positive sentiment in Thai bourse #SootinClaimon.Com

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https://www.nationthailand.com/business/40001915

Volatile foreign funds likely to temper positive sentiment in Thai bourse


The Stock Exchange of Thailand (SET) Index rose by 7.06 points, or 0.43 per cent, to 1,632.33 on Friday morning. The volume of total transactions was THB14.42 billion with an index high of 1,635.22 and a low of 1,631.17.

Volatile foreign funds likely to temper positive sentiment in Thai bourse

The SET Index had closed at 1,625.27 on Thursday, down a point or 0.06 per cent. Transactions totalled THB105.96 billion with an index high of 1,636.22 and a low of 1,623.57.

Krungsri Securities predicted that the SET Index on Friday would fluctuate between 1,615 and 1,635 points amid hopes of a Thai economic revival after the mass vaccination drive took off nationwide.

The index also gained positive sentiment from wide expectations that the US Federal Reserve would not raise its interest rate during the meeting on June 15-16 despite the rise in the country’s Consumer Price Index in May.

“The index, however, would be under pressure due to the volatility in foreign funds flow and signs of overbought stocks,” Krungsri Securities said.

It recommended that investors buy:

▪︎ PTT, PTTEP, PTTGC, TOP, IVL, BANPU, PSL and TTA, which benefit from a global economic recovery.

▪︎ BCH, CHG, BDMS, MINT, CENTEL, ERW, AOT, CPALL, HMPRO, CPN, CRC, AAV, AMATA and WHA, which would benefit from the country’s reopening.

▪︎ KCE, IRPC, STA and STGT, expected to be listed on the SET50 Index in mid-June.

▪︎ AAV, BLA, ICHI, PSL, PTL, SINGER, STARK, STGT and SYNEX, expected to be listed on the SET100 Index in mid-June.

Published : June 11, 2021

By : The Nation

Gold soars by THB200 as Fed expected to maintain interest rate #SootinClaimon.Com

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https://www.nationthailand.com/business/40001913

Gold soars by THB200 as Fed expected to maintain interest rate


The price of gold in Thailand surged by THB200 per baht weight in morning trade on Friday, amid expectations that the US Federal Reserve would not raise its policy interest rate despite rise in inflation.

Gold soars by THB200 as Fed expected to maintain interest rate

The Gold Traders Association report at 9.24am showed the buying price of a gold bar at THB27,850 per baht weight and selling price at THB27,950, while gold ornaments were priced at THB27,348.64 and THB28,450, respectively.

At close on Thursday, the buying price of a gold bar was THB27,650 per baht weight and selling price THB27,750, while gold ornaments were priced at THB27,151.56 and THB28,250, respectively.

Spot gold price on Friday was US$1,900 (THB59,085) per ounce compared to Thursday when it rose by 90 cents to $1,896.4 per ounce.

Hong Kong gold price on Friday rose by HK$170 to $17,570 (THB70,432) per tael, the Chinese Gold and Silver Exchange Society reported.

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Published : June 11, 2021

By : The Nation

These businesses found a way around the worker shortage: Raising wages to $15 an hour or more #SootinClaimon.Com

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https://www.nationthailand.com/business/40001903

These businesses found a way around the worker shortage: Raising wages to $15 an hour or more


The owners of Klavons Ice Cream Parlor had hit a wall.

These businesses found a way around the worker shortage: Raising wages to $15 an hour or more

For months, the 98-year-old confectionary in Pittsburgh couldn’t find applicants for the open positions it needed to fill ahead of warmer weather and, hopefully, sunnier times for the business after a rough year.

The job posting for scoopers – $7.25 an hour plus tips – did not produce a single application between January and March.

So owner Jacob Hanchar decided to more than double the starting wage to $15 an hour, plus tips, “just to see what would happen.”

The shop was suddenly flooded with applications. More than 1,000 piled in over the course of a week.

“It was like a dam broke,” Hanchar said. Media coverage that followed his decision soon pushed other candidates his way.

Across the country, businesses in sectors such as food service and manufacturing that are trying to staff up have been reporting an obstacle to their success – a scarcity of workers interested in applying for low-wage positions.

The issue has raised concerns about the strength of the country’s recovery as coronavirus cases abate, with the economy still down more than 7.5 million jobs compared with before the pandemic.

Republicans have blamed enhanced unemployment benefits for the shortage; Democrats and most labor economists say the issue is the result of a complicated mix of factors, including many schools having yet to fully reopen, lingering concerns about workplace safety and other ways the workforce has shifted during the pandemic.

The experience of 12 business operators interviewed by The Washington Post who raised their minimum wage in the last year points to another element of the equation: the central role that pay – specifically a $15-an-hour minimum starting wage – plays in attracting or dissuading workers right now.

Nine of the businesses had increased pay to at least $15 an hour since March, amid struggles to hire in the face the tight labor market. The other three increased wages last year.

The business operators spoke about the challenges associated with increased labor costs, with three saying they had to raise prices for consumers. One of those, as well as two that did not raise prices, said they had to reduce some seasonal staffing or staff hours to make up the cost.

Enrique Lopezlira, a labor economist at the University of California at Berkeley and an expert on the low-wage workforce, said the stories were a sign, albeit anecdotal, that the market was functioning as it should in the face of excessive demand for workers.

“The more employers improve the quality of the jobs and the more they think of workers as an asset that needs to be maximized, the better they’re going to be able to find and retain workers long term,” he said.

– – –

For Patrick Whalen, co-owner of the 5th Street Group, comprising five restaurants in Charleston and Charlotte, the breaking point came in late March. The restaurants were getting busier as more people started venturing out to eat. But applicants for the dozens of positions the company was trying to hire for were scarce. Understaffed and busy, the company was starting to get shredded with negative reviews online.

After one of his managers told him that a line cook needed to borrow money to get groceries, Whalen was moved to reconsider wages at the company.

“It was just one of those moments where you just kind of stop and you say, ‘Is there a real problem in our industry?'” he said. “We always kind of knew it was there, but we didn’t really know what to do with it.”

The company raised the starting wage for all of its staff to $15 an hour, up from $12 to $13. And it created a “tip the kitchen” program, adding a second line to table checks for gratuity for the back-of-the-house staff, which the restaurant matches up to $500 per night. That move has increased wages for non-tipped employees such as line cooks and dishwashers to an average of $23.80 an hour, Whalen said.

Applicants began pouring in nearly overnight, Whalen said. A manager at one of his restaurants, Tempest, told him that 10 people walked in to drop off résumés over the course of one week after the policy change, compared with just 15 people over the four previous months.

Within three weeks, the restaurant group went from about 50 to 60% staffed to nearly fully staffed.

“There is no one in Charleston or Charlotte that can compete with what my guys are making,” Whalen said.

Aaron Dearing, a sous chef at Whalen’s 5Church Charlotte, said the tipping initiative had raised his pay by about $1,000 a month – the biggest raise he has received in 20 years in the industry.

“It puts everybody in a better position in their home life, so they come to work a lot happier,” he said.

John Puckett, one of the owners of Punch Pizza, a fast-casual restaurant group with about a dozen locations in the Twin Cities area, said the company experienced a similar boom when it made the decision in April to raise the minimum wage to $15 an hour from $11 as the company sought to fill 30 to 40 positions.

“We’ve seen an explosion of interest,” Puckett said. Job applications increased fivefold on its website and were 10 to 15 times higher on the jobs portal Indeed, he said.

Lexington Co-Op, which operates two grocery stores in Buffalo, is another business that found success by raising wages, from $13 an hour to $15, after having trouble filling about 15 positions in February and March.

Applications had been scarce. New hires who had accepted job offers then ghosted, failing to show for orientation or leaving the job after a few days. The company had begun leaning on high-schoolers to fill the positions.

“We’ve definitely been seeing a lot more candidates show up in their application pool and in orientation every week,” general manager Tim Bartlett said.

– – –

Many of the business operators interviewed said that the decision to raise their employees’ starting wage was not motivated primarily by altruism or a desire to do right: It just made good business sense.

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They said wage increases would help attract stronger candidates, reduce turnover and elevate company morale and culture – important for customer-facing businesses such as restaurants.

“We’re going to see savings in retention and turnover, which is so expensive,” said Nicole Marquis, the founder and chief executive of HipCityVeg, a group of fast-casual vegan eateries with locations in Philadelphia and D.C. that recently announced a $15 starting wage. “And this is going to help with recruiting, which will help with our culture – and is really what drives profit at the end of the day and creates a long-lasting brand.”

Other business owners said that they had raised wages to out-compete other companies for the best workers.

“We said let’s get way out ahead of this,” said Carl Segal, chief enterprise success officer at the “ghost kitchen” and technology company Reef, which raised its starting wage for its kitchen and grocery workers to $20 an hour in June, up from an average of around $16 to $18. “Let’s take care of the people that are on our team and really take them to the next level – just like they’re helping to take Reef to the next level – and do something amazing for them and their families.”

Most employers The Post spoke with acknowledged the challenges that came from increased labor costs, which already make up an outsize portion of the budget in restaurants and bars compared with other industries.

Three of the 12 businesses interviewed said that they had raised prices for consumers to help offset the wage increase. White Castle increased menu prices in the Detroit area after increasing its minimum wage there to $15 an hour, as did another restaurant that raised wages, Brown Sugar Kitchen in Oakland, Calif. The Midwest-based clothing and design store Raygun increased prices by about 1% after raising wages to an average of $15 last year, owner Mike Draper said.

Marquis said that HipCityVeg had not raised prices but that she thought customers would be willing to pay a bit more – 25 cents extra for a burger, for example – knowing employees were paid better.

One of the business owners, Gina Schaefer, who runs A Few Cool Hardware Stores, which has 13 locations in D.C., Maryland and Virginia, said that the wage increases led her company to trim some hours from the staffing schedule – some seasonal positions were left unfilled longer after workers left.

But she credited increasing wages at her stores to $15 an hour with helping her fill 71 positions since March.

“We’re having pretty good success,” she said.

Puckett, of Punch Pizza, said that raising wages had increased labor costs by 10%. Those costs eat up about 40% of sales revenue during normal times, and with a weakened bottom line during the pandemic, that meant that it had wiped out nearly 100% of the company’s profits.

But Puckett said the decision was not about short-term gains, even though the company was operating at a loss for the year.

“We are doing this for long-term competitive advantage through delivering more customer delight through engaged employees doing a great job,” he said. “Our business model to focus on the highest quality and service also makes a best-in-class wage structure for employees a good fit.”

For other businesses, increased costs from rising wages did not mean less profit.

While the staffing costs have gone up for the restaurants in 5th Street Group, overall sales also increased, and by a larger proportion, Whalen said. Customer reviews on sites such as OpenTable have gone up by nearly a half a point, too. Better service has translated to more sales and happier customers.

“Our top line is impacted dramatically because people come back and they talk about us,” Whalen said. “All these restaurants that are trying to figure out how to save money? The best way to save money is to make more, just have a better top line. The way you do that is by investing in your people first.”

Len Morris, owner of the Indiana-based staircase manufacturers Viewrail and StairSupplies, which recently raised starting wages to $25 an hour, said that material shortages – certain steels, aluminum extrusions, molds for plastic and rubber – were a much bigger concern for the company than worker availability.

“Wage increases aren’t necessarily driving price increases. Raw-material shortages are driving price increases,” he said. “It’s absolutely the greatest threat to our business.”

– – –

Most business owners emphasized that money was just one component of creating an appealing work environment for prospective employees, after a brutal year in which workers in sectors such as retail and hospitality faced high levels of job loss, the constant threat of coronavirus infection and other stressors.

“It’s tough if you have a family crisis and you need to deal with that and you have an employer that says, ‘If you leave to deal with that, you’re fired,'” Raygun’s Draper said. His company has emphasized leniency for workers, in addition to policies such as guaranteed sick time and paid time off. “We provide an environment where people don’t find themselves in that situation,” he said. “Work doesn’t have to be intractable.”

After White Castle had trouble hiring at its 37 stores in the Detroit area, its wage increase helped bring in more applicants. That also relieved pressure on its longtime staffers, who had picked up shifts to cover gaps amid shortages and turnover, Vice President Jamie Richardson said.

White Castle, with 362 locations nationwide, has opened only about 50 of its restaurants for dining, sticking instead with drive-through service, after employees reported in internal surveys that they felt safer that way.

“Employees are going to judge the places they worked based on what people did when times were toughest. Did that employer stick to the words they put on a poster in the backroom?” Richardson said. “That compact is always changing because times change, but I think the pressure of a pandemic really accelerated that time frame.”

Most of the owners said the political debate in Washington about the labor shortage seemed to present a simplistic view of business challenges – none said that they believed unemployment insurance was solely to blame for hiring hurdles.

“There’s a shaming that’s happening to working-class people,” said Schaefer, the owner of the D.C.-area hardware stores. “Nobody talks about the fact that the economy is going to fall apart when a tech guy gets a $195,000-a-year salary with a 5% raise every year, or when lawyers are making $300,000. This conversation only happens when you’re talking about the people who make the lowest wages. And I think as a society, that’s just really insulting.”

Published : June 11, 2021

By : The Washington Post · Eli Rosenberg

Cryptos outlook in Washington is darkened by ransomware attacks #SootinClaimon.Com

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Cryptos outlook in Washington is darkened by ransomware attacks


Just a few months ago, crypto enthusiasts were hopeful that Washington was warming to digital assets. But cyberattacks demanding bitcoin ransoms, wild trading and rebukes from regulators have eroded their optimism.

Cryptos outlook in Washington is darkened by ransomware attacks

The timing couldn’t be worse. Policymakers are poised to make a number of critical rulings on virtual tokens in the coming months — decisions that may reveal how deep of a hole the industry has to climb out of. Potentially under consideration are whether to approve a Bitcoin exchange-traded fund, allow crypto mutual funds and grant banking licenses to financial firms.

For advocates, the setbacks are fueling anxiety that some of their top priorities will be blocked by federal agencies, and that lawmakers will take take a tougher tack on oversight. Evidence is growing that Capitol Hill is moving in that direction. Sen. Mark Warner, a Virginia Democrat, said last month that cryptocurrencies are “crying out for some level of regulation.” Sen. Elizabeth Warren reiterated that view Wednesday.

“Our regulators, and frankly our Congress, are an hour late and a dollar short,” the Massachusetts Democrat said in a Bloomberg TV interview. “We need to catch up with where these cryptocurrencies are going.”

The rough patch started in May when Securities and Exchange Commission Chairman Gary Gensler urged lawmakers to pass a law regulating crypto exchanges, arguing that the lack of oversight posed a serious threat to U.S. investors. The comments shocked Bitcoin proponents who predicted Gensler would be an ally because, unlike most government officials, he’s well versed in virtual coins.

Then came the Colonial Pipeline Co. hack, which triggered fuel shortages across the Eastern U.S. As in previous breaches, the culprits demanded ransom payments in bitcoin — shining a spotlight on cryptocurrencies’ national security implications. Long gas lines predictably attracted the attention of lawmakers and the scrutiny could make some on Wall Street nervous about further embracing assets that are routinely linked to illicit transactions.

The Justice Department recovered most of the tokens that Colonial paid out by tracking transactions on the public ledger for Bitcoin, showing how the technology can aid law enforcement agencies. Still, Warren said a key feature of cryptocurrencies is that they allow people to secretly move money, making the coins a “haven for criminals.” A reminder of her point came Wednesday when JBS disclosed that it had paid $11 million to hackers who forced the world’s largest meat producer to shut down all its U.S. beef plants.

Another issue: Bitcoin has lost more than a third of its value since early May. A series of negative tweets from Elon Musk has contributed to the plunge, underscoring to crypto critics that token prices are too volatile and easily influenced by social media to be safe for unsophisticated investors. The frenzy tied to nonfungible tokens and dogecoin — a cryptocurrency created as a joke — has amplified those concerns.

“We can’t deny the potential impact that a negative media narrative might have on the regulatory and legislative conversations in D.C. in the short term,” said Kristin Smith, executive director of the Blockchain Association trade group.

Much of high finance’s focus is on Gensler, who previously taught courses on digital currencies at the Massachusetts Institute of Technology, because the SEC will determine whether a Bitcoin ETF can trade on U.S. exchanges.

The product is seen as a game-changer because it would let investors trade in-and-out of the world’s most popular cryptocurrency throughout the day without exposing them to the risks of having to store their tokens. Adding another layer of safety, consumers could buy ETFs from tightly policed brokers instead of purchasing Bitcoin from unregulated exchanges. And mutual funds and other institutional investors could pump a lot more money into crypto-related assets through ETFs.

An SEC spokeswoman declined to comment.

Under Gensler’s predecessor Jay Clayton, the SEC blocked multiple ETF applications, arguing that Bitcoin is too volatile and susceptible to manipulation. Gensler’s comments that crypto exchanges lack investor protections signals he may share some of those concerns, said Stephen Myrow, a former Treasury Department official during George W. Bush’s administration.

“It’s a big shift from four months ago when everyone said, ‘Gensler taught a crypto class at MIT so we’re going to get all our applications approved,”‘ said Myrow, managing partner of Beacon Policy Advisors, a Washington-based firm that tracks regulatory and legislative proposals.

The SEC faces a June 17 deadline on one proposal to list an ETF from VanEck Associates Corp., one of several applications it’s considering. The agency has previously delayed making a decision on VanEck’s plan, and amid Washington’s heightened attention on crypto, it may choose to kick the can down the road again. The regulator may also put off decisions on the five other applications, but the agency needs to respond to each of them by July 16.

The SEC has also expressed worries about mutual funds investing in Bitcoin futures, something that is allowed under existing rules. The agency warned in a May 11 statement that it would be scrutinizing funds’ crypto holdings.

In the next few months, the SEC will consider proposals for four mutual funds that would invest heavily in CME Group Inc.’s bitcoin futures contracts, according to documents filed with the regulator. One instrument, the Stone Ridge Trust NYDIG Bitcoin Strategy Fund II, would use the derivatives to seek an exposure to the cryptocurrency that’s worth as much as 125% of the fund’s net assets, according to its registration statement. The firm wants to start offering the product to investors in July but it could be delayed amid the SEC’s review process.

One impact of the government’s stepped-up focus on cryptocurrencies — largely spurred by the Colonial hack — is that it could prompt lawmakers to overcome gridlock that has thus far stymied legislation, said Patrick McCarty, a former general counsel at the Commodity Futures Trading Commission who now teaches a class on virtual coins at Georgetown University’s law school.

Whatever actions the government might take, the Blockchain Association’s Smith said she hopes regulators and Congress take into account the benefits of cryptocurrencies.

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“Serious policy makers generally look to the underlying fundamentals of an industry when reviewing statutes, brainstorming new legislation or drafting new regulations,” she said. “It should be the same with the crypto industry, notwithstanding a recent perfect storm of negative headlines.”

Published : June 11, 2021

By : Syndication Washington Post, Bloomberg · Ben Bain, Robert Schmidt

ECB renews pledge on faster buying to ensure crisis rebound #SootinClaimon.Com

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ECB renews pledge on faster buying to ensure crisis rebound


The European Central Bank renewed its pledge to maintain faster emergency bond-buying despite significant upgrades to its outlook for growth and inflation, as it attempts to sustain the euro area after more than a year of debilitating economic crisis.

ECB renews pledge on faster buying to ensure crisis rebound

“Uncertainties remain as near-term economic output depends on the course of the pandemic, and how the economy responds after reopening,” President Christine Lagarde said Thursday after officials pledged to keep asset purchases at a “significantly higher” pace than in the first months of 2021.

The decision underscores the ECB’s determination to allow no let-up in stimulus even as the region’s vaccination campaign and looser lockdown restrictions pave the way for a rebound. Policymakers accelerated the pace of their 1.85 trillion-euro ($2.25 trillion) bond-buying program three months ago to rein in rising borrowing costs, and several have argued since then that the economy isn’t ready for a withdrawal of support.

While Lagarde also unveiled forecasts that showed faster growth an inflation both this year and next, she insisted that price pressures in the economy “remain subdued.”

The ECB’s continued emergency easing is likely to presage a similar move by the Federal Reserve next week not to start winding down stimulus, in a two-pronged policy push to ensure recoveries from the pandemic can be assured.

ECB purchases have been conducted at a pace of roughly 19 billion euros a week since March, up from 14 billion euros earlier in the year. Thursday’s decision suggests they are likely to continue at or close to that higher clip until the recovery firms. Most economists don’t expect a reduction until September.

The ECB’s decision was paired with a more optimistic outlook for growth in 2021 and 2022. Policy makers both in the euro zone and in the U.S. argue that prices are being driven by temporary factors including higher fuel costs and manufacturing bottlenecks that will be resolved before too long.

In the euro area, inflation climbed to 2% in May, technically above the ECB’s target. The institution’s last forecasts, however, showed it missing its goal both next year and in 2023.

Officials have repeatedly warned that it is too early for a debate around winding down pandemic measures. The ECB’s emergency program is currently set to run through March 2022, and most economists don’t expect it to be extended.

Alongside the decision on crisis purchases, officials left interest rates, long-term loans to banks, and an older bond-buying program unchanged.

Published : June 11, 2021

By : Syndication Washington Post, Bloomberg · Carolynn Look

Worlds richest face tax squeeze after 40% run-up in fortunes #SootinClaimon.Com

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Worlds richest face tax squeeze after 40% run-up in fortunes


Amazon.com founder Jeff Bezos has the resources to launch himself into space. Elon Musk does, too. In many ways, though, the worlds richest people left the rest of us behind long ago.

Worlds richest face tax squeeze after 40% run-up in fortunes

The world’s wealthiest 500 individuals are now worth $8.4 trillion, up more than 40% in the year and a half since the global pandemic began its devastation. Meanwhile, the economy’s biggest winners, the tech corporations that created many of these vast fortunes, pay lower tax rates than grocery clerks, and their mega-wealthy founders can exploit legal loopholes to pass huge windfalls onto heirs largely tax-free.

Now, a group powerful enough to challenge the supremacy of the tech titans is on the verge of taking action. The leaders of the Group of Seven, including U.S. President Joe Biden and U.K. Prime Minister Boris Johnson, meet in southwestern England this weekend, where they’re expected to endorse a plan to plug holes in the world’s leaky tax system.

While the changes still need approval from a larger group of nations, including China, before becoming reality, the agreement by the G-7 marks a historic turning point after decades of falling levies on multinational corporations.

“It is very easy for multinationals and the richest people to escape tax. What we are seeing with the G-7 is that the time has come for politicians to take back power,” said Philippe Martin, a former adviser to French President Emmanuel Macron who now heads the Conseil d’Analyse Economique. “There is a window of opportunity, a turning point at which they are realizing they need tax power and they need to spend more.”

The deal would bolster Biden’s own plans to boost taxes on corporations and the wealthy by raising rates, making heirs pay more, and equalizing rates between investors and workers.

The proposals are part of a global revival of initiatives to target the rich, from Buenos Aires to Stockholm to Washington, including new taxes on capital gains, inheritances, and wealth that have gained momentum since Covid-19 blew massive fiscal holes in government budgets around the world.

U.S. Treasury Secretary Janet Yellen framed the G-7 deal as a way for governments to protect their national sovereignty to set tax policy.

“For too long there has been a global race-to-the-bottom in corporate tax rates,” Yellen said following the G-7 finance ministers’ meeting in London last week, ahead of this weekend’s gathering.

Amazon and some other tech companies, meanwhile, have endorsed the agreement, believing the global regime will be more manageable than costly alternatives being pursued by individual countries. Bezos has also voiced support for higher U.S. corporate taxes to pay for infrastructure.

Advocates for higher taxes say the steps are necessary to stave off a rise in populism and even for the sustainability of capitalism.

“The most visible and prominent winners of globalization are these big multinationals whose effective tax rates have collapsed,” said University of California at Berkeley economics professor Gabriel Zucman, who tracks wealth and inequality. “That can only lead to a growing rejection of that form of globalization by the people.”

The World Economic Forum, the organizer of the annual conference for the rich and powerful in Davos, Switzerland, issued a white paper this month arguing “taxation systems must be redesigned efficiently to tax capital and multinationals.”

Governments need the revenue and “progressive taxation will be an essential mechanism to compensate for the uneven recovery already under way,” according to the report.

There remain plenty of defenders of low taxes.

Conservative economists such as Douglas Holtz-Eakin, president of the American Action Forum, argue taxing the wealthy and corporations more heavily will damage the economy.

“Higher taxes on capital generally raises the possibility of a slowdown of productivity growth,” said Holtz-Eakin, who was an adviser to President George W. Bush.

That view is losing ground though as resentment grows over the ways that highly profitable corporations reduce their taxes.

Facebook, Apple, Amazon, Netflix, Google and Microsoft collectively skirted approximately $100 billion in U.S. taxes from 2010 to 2019, according to an analysis of regulatory filings from Fair Tax Mark, a progressive think tank. Many of those untaxed profits were shifted into tax havens like Bermuda, Ireland, Luxembourg and the Netherlands.

Amazon paid an effective corporate tax rate of 11.8% in 2020, according to a Bloomberg Economics analysis, and it’s hardly an outlier among highly successful tech companies. Facebook, founded by the world’s fifth-richest person, Mark Zuckerberg, paid 12.2% last year.

Asked to comment for this article, an Amazon spokesperson pointed to some of the company’s prior statements related to its tax bill, including, in part: “Amazon’s taxes, which are publicly reported, reflect our continued investments, employee compensation, and current U.S. tax laws.”

As a mix between a technology company and a retailer with massive physical infrastructure, Amazon is able to use a slew of long-standing, low-profile tax preferences for stock compensation, buildings, research and development. Bezos has pushed to re-invest profits into the company, a strategy that keeps taxable income low and tax breaks high.

Amazon completely avoided federal income taxes in 2017 and 2018 thanks to its savvy use of the tax code. Since then, the company has had to pay some income tax to the Internal Revenue Service, but it’s been far below the 21% headline rate installed under President Donald Trump.

Billionaire tech founders often pay even less personally than their corporations do.

Bezos, for example, got $77 billion richer in 2020, according to the Bloomberg Billionaires Index. But in the U.S., gains on stock are only taxed when they’re sold, at a far lower rate than well-off workers pay, meaning that Bezos owed at most a few billion dollars in taxes to the U.S. Treasury last year.

“This country’s wealthiest, who profited immensely during the pandemic, have not been paying their fair share,” Senate Finance Committee Chairman Ron Wyden said after ProPublica reported on Tuesday that several of the world’s billionaires, including Bezos, didn’t pay any federal income taxes in some years.

The media organization said it obtained confidential tax documents on thousands of the wealthiest Americans, including for Warren Buffett and Michael Bloomberg, owner of Bloomberg LP, the parent company of Bloomberg News. Bloomberg and others told ProPublica they had paid the taxes they owed.

To remove advantages in the U.S. tax code that benefit the ultra-wealthy, Biden has proposed taxing inherited assets that currently escape levies, and boosting the top rate on investment income so that well-paid workers and investors pay the same.

On an international scale, the administration is seeking a global minimum tax of at least 15% for the world’s most profitable companies — the deal expected to be pushed forward at the G-7 meeting this weekend.

The G-7 deal would change other rules for taxing multinationals, in order to undercut efforts to shift profits to low-tax countries. Biden is also advocating to increase the U.S. corporate rate to 28%, partly reversing Trump’s tax overhaul.

Tech companies could see their effective tax rates jump if a global tax deal is reached, according to research from Morgan Stanley. Facebook and Alphabet’s Google could both pay 28% on their profits worldwide, up from 18% and 17% respectively under current rules, the report found.

For all the talk of taxing the rich, Biden’s proposals, and the international tax deal, face serious hurdles before they’re adopted.

While some of his fellow Democrats, who narrowly control Congress, are pushing for more radical changes to the taxes of estates and wealth, others are hesitant.

The next step for the global tax negotiations, which were launched years ago by the Organization for Economic Cooperation and Development and have involved roughly 140 nations, is to win agreement among the Group of 20 countries. Finance ministers for the G-20, which collectively oversee about 90% of the world’s economy, will meet in July in Venice.

Stumbling blocks to reaching a deal by year-end include China, which may seek exemptions from the minimum tax.

Still, there are hopes the global effort “puts an end to the craziness,” said Pascal Saint-Amans, director of the center for tax policy at the OECD. “You had loopholes everywhere and nobody was taking care of that. It’s undermining the very goal of capitalism and a free-market economy.”

Published : June 11, 2021

By : Syndication Washington Post, Bloomberg · Ben Steverman, Laura Davison, William Horobin

Oil drops as sanctions lifted on former Iran official #SootinClaimon.Com

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Oil drops as sanctions lifted on former Iran official


Oil reversed gains after the U.S. lifted sanctions on a former Iranian oil official and two other Iranians involved in oil trading, potentially paving the way for a further return of the Persian Gulf countrys output.

Oil drops as sanctions lifted on former Iran official

Futures in New York slid as much as 1.8% on Thursday before paring losses. The market has been watching for signs of developments in talks between Iran and world powers to revive a 2015 nuclear agreement, which could spur more Iranian barrels returning to the market.

Still, prices remain higher this year amid recovering consumption, with the Organization of Petroleum Exporting Countries seeing the global demand recovery gathering steam in the second half of the year. Oil consumption will jump by about 5 million barrels a day — or roughly 5% — in the second half of 2021 versus the first as the world emerges from the pandemic slump, the OPEC forecast in a report.

West Texas Intermediate for July delivery rose 16 cents to $70.12 a barrel at 1:29 p.m. in New York. Brent for August settlement rose 20 cents to $72.42 a barrel.

While headline prices remain driven by the recovery in consumption, a longer-term debate continues to rage about the viability of oil investments. Group of Seven leaders are discussing plans to shift the balance of car-buying away from gasoline to greener vehicles by the end of the decade. That comes just a day after Shell said it would hasten its reduction in carbon emissions.

Published : June 11, 2021

By : Syndication Washington Post, Bloomberg · Andres Guerra Luz