The world begins to push back
The Short Version
With the chaos and confusion caused by the ban on refugees, a number of people around the world are beginning to visibly and loudly push back against the ban and against the immigration policies of the 45th president’s administration. At the same time, the ban has also created a level of uncertainty caused global stock markets to decline.
A Little More Detail
By now, the chaos resulting from Friday’s presidential order banning the immigration of refugees as well as anyone traveling from seven predominantly Muslim countries is well known. We’ve all seen the pictures and the videos of protests that are ongoing at airports across the country. We’re angered by the firing of Sally Yates, the acting attorney general. But what is anyone doing about it?
A lot, actually. Let’s start with the Washington state attorney general, Bob Ferguson filing a lawsuit against the administration. “It’s my responsibility as attorney general to defend the rule of law, to uphold the Constitution on behalf of the people of this state. And that’s what we’re doing,” he said.
That lawsuit is likely to be enjoined by other state’s Attorneys General. This is a familiar move that was used frequently by Republican-dominated states during the Obama administration. It tends to be effective.
New York Attorney General Eric Schneiderman is providing cities in his state with the legislation templates they need in order to declare their cities as Sanctuary Cities in direct defiance of the President and the ban.
On Sunday, 17 Democratic attorneys general signed a letter vowing to “use all of the tools of our offices to fight this unconstitutional order.” One might think that all those would come from states where the president lost the electoral vote. That thinking would be wrong. The attorneys general from Iowa and Pennsylvania, which voted for the president, and Maine, where the vote was split, were among those signing the letter.
That level of resistance is important because states attorneys general tend to know the law at a rather detailed level that most of the rest of us don’t have. They can get down to the nitty-gritty of a matter and speak to legal documents in a legal way that actually has some impact.
They’re not the only ones pushing back hard, though. If the president thought he would have the support of the corporate community, he is wrong. CEOs who normally are quiet have been speaking up in defiance and condemning the ban. The following companies are among those who are actively taking steps to support their employees and speaking up in opposition:
- Coca-Cola
- Goldman Sachs
- Apple
- Microsoft
- Ford
- GM
- Lyft
- Amazon
- eBay
- Etsy
- General Electric
- Merk & Co.
- Ikea
- Starbucks
In some ways, the industrial sector’s push back may be stronger than that of the attorneys general because they can leverage their entire company’s workforce and capital should they decide to do so. While the means of resistance have, so far, been largely financial, such as Lyft donating to the American Civil Liberties Union or Starbucks hiring 10,000 refugees, should the ban continue to impact corporations in a negative manner, their response is likely to become stronger as well.
The ban isn’t doing good things for global markets, either. Not only did US markets close down yesterday in response to the ban, markets in India and Asia are both down this morning.
Oh, and did I mention that the ban received harsh condemnation from Britain’s members of Parliament yesterday, with several members taking to the floor to denounce the policy. Several are even going so far as proposing a state visit to the UK by the US president be canceled.
This is in addition to legal actions by the ACLU and Southern Poverty Law Center that were initiated yesterday.
Resistance against the ban is strong and the fallout looks to be severe. However, the administration is holding on to its out-of-touch views and illegal policies. This may well just be the beginning of a long battle.
Retail Resistance
Stores desperately try to prevent huge price increases
The Short Version
Your favorite retail store has your back as every major retail trade group opposes the so-called Border Adjusted Tax proposed by House Speaker Paul Ryan. Retailers say the tax would result in price increases of 20% or more and could make many products completely unavailable to American consumers.
Avoiding Sticker Shock
Almost everything you buy, even if it comes with a “Made in America” label, has some parts of pieces imported from outside the United States. This division of manufacturing and labor has become standard operating procedure for almost every American-owned company. That practice is under attack, however, as the Republican members of Congress and the 45th president vow to use taxes as a means of encouraging domestic production.
Retailers, however, say the plan is severely flawed and would not only result in higher prices for consumers but would likely cost several thousand jobs across the country—the exact opposite effect from what Republicans claim the tax will do.
Complicating the whole matter is the fact that Republican leadership in Congress and the 45th president are not on the same page. While the Republican proposal would increase import taxes 10-15%. the president has been pushing an import tax as high as 35%. The president has also criticized the Republican plan as being too complicated.
The National Retail Federation, along with the American International Automobile Dealers Association, and the National Grocers Association have joined forces with smaller trade groups and independent retailers such as the LVMH luxury group to form Americans for Affordable Products. The purpose of the new group is to present a unified front in educating the public of the potentially negative results of the import tax as well as lobbying Congress on behalf of the retailers. They’re not waiting until a final bill is proposed. They want to stop any increased taxes before they ever get started.
Who all is involved? Everyone. Nike. Target. Wal-Mart. Best Buy. LVMH-owned brands Donna Karan, Fendi, Givenchy, and Kenzo. Dollar General. Pretty much every store you ever shop, regardless of whether you shop bargain basements or the luxury mall, is against the import tax being raised.
Why? Because even things as simple as pencils and toilet paper have production pieces that are imported. Any rise in the import tax not only results in higher prices for consumers but in many cases would result in layoffs of American employees. The end result would almost certainly be an economic tailspin resulting in a recession larger than that of 2008.
While almost everyone is in favor of increased domestic production of products, the consensus among those who actually produce and sell those products is that increased import taxes is not the way to achieve that goal.
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