Category Archives: Business

Economy and business news. Business is the practice of making one’s living or making money by producing or buying and selling products (such as goods and services). It is also “any activity or enterprise entered into for profit.” A business entity is not necessarily separate from the owner and the creditors can hold the owner liable for debts the business has acquired

Trump Wants to End Welfare of Clinton Era

Overhauling welfare was one of the defining goals of Bill Clinton’s presidency, starting with a campaign promise to “end welfare as we know it,” continuing with a bitter policy fight and producing change that remains hotly debated 20 years later.

Now, President Donald Trump wants to put his stamp on the welfare system, apparently in favor of a more restrictive policy. He says “people are taking advantage of the system.”

Trump, who has been signaling interest in the issue for some time, said this past week that he wants to tackle the issue after the tax overhaul he is seeking by the end of the year. He said changes were “desperately needed in our country” and that his administration would soon offer plans.

​Work on new policy begins

For now, the president has not offered details. Spokeswoman Sarah Huckabee Sanders said more specifics were likely early next year. But the groundwork has begun at the White House and Trump has made his interest known to Republican lawmakers.

Paul Winfree, director of budget policy and deputy director of Trump’s Domestic Policy Council, told a recent gathering at the conservative Heritage Foundation that he and another staffer had been charged with “working on a major welfare reform proposal.” He said they have drafted an executive order on the topic that would outline administration principles and direct agencies to come up with recommendations.

“The president really wants to lead on this,” Winfree said. “He has delivered that message loud and clear to us. We’ve opened conversations with leadership in Congress to let them know that that is the direction we are heading.”

Trump said in October that welfare was “becoming a very, very big subject, and people are taking advantage of the system.”

​Clinton’s campaign promise

Clinton ran in 1992 on a promise to change the system but struggled to get consensus on a bill, with Democrats divided and Republicans pushing aggressive changes. Four years later, he signed a law that replaced a federal entitlement with grants to the states, placed a time limit on how long families could get aid and required recipients to go to work eventually.

It has drawn criticism from some liberal quarters ever since. During her presidential campaign last year, Democrat Hillary Clinton faced activists who argued that the law fought for by her husband punished poor people.

No evidence of fraud

Kathryn Edin, a professor at Johns Hopkins University who has been studying welfare since the 1990s, said the law’s legacy has been to limit the cash assistance available to the very poor and has never become a “springboard to work.” She questioned what kinds of changes could be made, arguing that welfare benefits are minimal in many states and there is little evidence of fraud in other anti-poverty programs.

Still, Edin said that welfare has “never been popular even from its inception. It doesn’t sit well with Americans in general.”

Robert Rector, a senior research fellow at Heritage, said he would like to see more work requirements for a range of anti-poverty programs and stronger marriage incentives, as well as strategies to improve results for social programs and to limit waste. He said while the administration could make some adjustments through executive order, legislation would be required for any major change.

“This is a good system,” he said. “We just need to make this system better.”

Administration officials have suggested they are eyeing anti-poverty programs. Trump’s initial 2018 budget proposal, outlined in March, sought to sharply reduce spending for Medicaid, food stamps and student loan subsidies, among other programs.

Budget director Mick Mulvaney said this year, “If you are on food stamps and you are able-bodied, we need you to go to work.”

Even in Amazon Era, Black Friday Shows Stores Are Alive

Retailers worked hard to attract shoppers to stores on Black Friday, offering in-person deals meant to counter the ease of shopping online.

A better economy helped, to be sure, but stores have also tried to improve the store experience and offer better service. They’ve also made a big push toward offering store pickup for online orders.

But online leader Amazon is still the first and only stop for many shoppers. So stores are getting creative with the deals.

Victor Moore said he arrived about two hours ahead of Best Buy’s 8 a.m. opening in Nashville and scored one of the about 14 “doorbuster” deals on a 55-inch Toshiba smart TV for $280, a $220 savings. Moore said he’s done some online shopping, but the allure of in-store-only deals drew him out from behind the computer.

“This is the first successful doorbuster that I’ve ever been a part of,” Moore said. “I’ve been in lines before, but never actually got the items that I was waiting for.”

Annette Peluffo usually avoids Black Friday and buys online. But a $250 gift card reward for buying an iPhone 8 plus at a Target store in Miami was hard to resist. She plans to use the money to buy toys for her nephews and nieces in the coming weeks. “I just came here for the iPhone. I am not going to any other store,” she said.

Not just one day

Still, Black Friday isn’t what it used to be. It has morphed from a single day when people got up early to score doorbusters into a whole month of deals. That has thinned out the crowds. And brick-and-mortar stores face plenty of challenges.

With the jobless rate at a 17-year-low of 4.1 percent and consumer confidence stronger than a year ago, analysts project healthy sales increases for November and December. The National Retail Federation trade group expects sales for that period to at least match last year’s rise of 3.6 percent and estimates online spending and other nonstore sales will rise 11 to 15 percent.

But analysts at management consultancy Bain & Company say Amazon is expected to take half of the holiday season’s sales growth.

Amazon said Friday that Thanksgiving continued to be one of its busiest shopping days, with orders through its app up over 50 percent from a year ago. Overall, online sales on Black Friday rose 18.4 percent to $640 million, from a year ago, as of Friday morning, said Adobe Analytics. Thanksgiving generated a total of $2.87 billion in online spending, up 18.3 percent from a year ago, the data firm said.

About 69 percent of Americans, or 164 million people, intend to shop at some point during the five-day period from Thanksgiving to Cyber Monday, according to a survey released by the NRF. It expected Black Friday to remain the busiest day, with about 115 million people planning to shop then.

“The consumer still likes to go to the stores,” said Charles O’Shea, Moody’s lead retail analyst. “I’ve seen a lot of traffic. Yes, there’s going to be a lot of online shopping. But I think the brick-and-mortar stores have done a nice job so far in attracting shoppers.”

That’s true of Karre Wagner, 20, a University of Minnesota student from St. Paul who was shopping at Mall of America in Bloomington with her boyfriend. She bought a Blu-ray player at the mall’s Best Buy store. She says she started holiday shopping on Black Friday, but she likes to go to the mall to shop.

Hands-on experience

“I like to see what I’m buying. I like to touch it, feel it, know exactly what I’m getting, and part of it is the experience,” she said. “I mean, sitting online is fine, but there’s just something about starting the holiday season with Black Friday.”

The shift to online buying is a major factor as industry analysts watch how the nation’s malls fare this holiday shopping season. The Mall of America in Minnesota says that 2,500 people were in line at the 5 a.m. opening Friday, in line with a year ago. Shoppers started queuing up as early as 5:45 p.m. on Thanksgiving. Jill Renslow, Mall of America’s executive vice president of business development, said stores like Nordstrom, Macy’s and Best Buy were crowded. She said the items that caught shoppers’ attention included voice-activated devices like Amazon Echo, nostalgic toys, clothing and shoes.

Macy’s CEO Jeff Gennette said customer counts were higher and business was better in the North and Northeast, even with fewer promotions from a year ago.

But much depends on whether people are buying or just looking, and if they’re buying things that aren’t on sale as well.

Chuck Boyd said he and his son arrived at 4 a.m. to be among the first five or six in line at Best Buy in Nashville to get one each of about 14 “doorbuster” deals. He said he prefers online shopping, but his son wanted a TV for his apartment at school, so Boyd came along to get one, too.

“I’d much rather do online,” Boyd said. “But this was the deal you could only do in the store.”

Amazon Workers in Germany, Italy Stage Black Friday Strike

Workers at a half dozen Amazon distribution centers in Germany and one in Italy walked off the job Friday, in a protest timed to coincide with Black Friday to demand better wages from the American online giant.

In Germany, Ver.di union spokesman Thomas Voss said some 2,500 workers were on strike at Amazon facilities in Bad Hersfeld, Leipzig, Rheinberg, Werne, Graben and Koblenz. In a warehouse near Piacenza, in northern Italy, some workers walked off the job to demand “dignified salaries.”

The German union has been leading a push since 2013 for higher pay for some 12,000 workers in Germany, arguing Amazon employees receive lower wages than others in retail and mail-order jobs. Amazon says its distribution warehouses in Germany are logistics centers and employees earn relatively high wages for that industry.

The strikes in Germany are expected to end Saturday.

The Italian action, a one-day strike, was hailed by one of the nation’s umbrella union leaders, the UIL’s Carmelo Barbagallo, as having “enormous symbolic value because it’s clear that progress, innovation and modernity can’t come at the expense and the interests of workers.”

The chief of the CISL umbrella labor syndicate, Annamaria Furlan, called on Amazon to work with unions for “proper industrial relations, employment stability and dignified salaries.”

The Italian strike was called for permanent workers. The unions advised workers who are on short-term, work-on-demand contracts to stay on the job, so they wouldn’t risk losing future gigs.

Amazon says it has created 2,000 full-time jobs in Italy, where unemployment remains stubbornly high.

Black Friday Kicks Off Holiday Shopping  Season

Black Friday, the day after Thanksgiving, traditionally has started the holiday shopping season in the United States. It refers to the day when retailers hope to turn a profit — go from “being in the red,” or being in debt, to being “in the black,” or making money.

Many stores opened in the early hours of Friday morning to lure shoppers with big bargains. Some stores even opened on Thanksgiving Day to get a head start on the season.

Black Friday is usually the busiest shopping day of the year in the U.S. 

 

WATCH: US Retailers Look to Profitable Black Friday Weekend

The National Retail Federation estimates that 69 percent of Americans, or 164 million, people will take advantage of the deals retailers offer on a vast variety of goods in stores and online.

A recent study said Amazon is the top destination for people beginning their holiday shopping.

“I buy pretty much what I can on Amazon,” Lam Huynh told the Associated Press news agency.

Analysts say online giant Amazon is expected to capture half of the holiday season’s sales growth.

Trappers ask Court to Throw out Lawsuit Over US fur Exports

Fur trappers are asking a federal judge to throw out a lawsuit from wildlife advocates who want to block the export of bobcat pelts from the United States.

Attorneys for trapping organizations said in recent court filings that the lawsuit against the U.S. Fish and Wildlife Service infringes on the authority of state and tribal governments to manage their wildlife.

The plaintiffs in the case allege the government’s export program doesn’t protect against the accidental trapping of imperiled species such as Canada lynx.

More than 30,000 bobcat pelts were exported in 2015, the most recent year for which data was available, according to wildlife officials. The pelts typically are used to make fur garments and accessories. Russia, China, Canada and Greece are top destinations, according to a trapping industry representative and government reports.

Federal officials in February concluded trapping bobcats and other animals did not have a significant impact on lynx populations.

The Fish and Wildlife Service regulates trade in animal and plant parts according to the Convention on International Trade in Endangered Species, or CITES, which the U.S. ratified in 1975.

The advocates’ lawsuit would “do away with the CITES export program,” according to attorneys for the Fur Information Council of America, Montana Trappers Association and National Trappers Association.

“They are seeking to interfere with the way the States and Tribes manage their wildlife, by forcing them to limit, if not eliminate, the harvesting of the Furbearers and at the very least restrict the means by which trapping is conducted,” attorneys Ira Kasdan and Gary Leistico wrote in their motion to dismiss the case.

Bobcats are not considered an endangered species. But the international trade in their pelts is regulated because they are “look-alikes” for other wildlife populations that are protected under U.S. law.

Critics of the government export program argue the government review completed in February did not look closely enough at how many lynx trappers inadvertently catch in traps set for bobcats or other furbearing species.

Pete Frost, an attorney for the plaintiffs, said the fur industry’s move to throw out the case “seeks to deprive citizens of their right to court review of the federal pelt export program.”

Between 2.3 million and 3.6 million bobcats lived in the U.S., with populations that were stable or increasing in at least 40 states, according to a 2010 study from researchers at Cornell University and the University of Montana.

 

Soup Restaurant Teams With Family Farm to Serve Farm-to-table Freshness

Pumpkins, squash, beets and collard greens are just a few of the more than 50 different crops that Garner’s Produce in Virginia grows and sells at farmers markets about two hours away in Washington, D.C.

At a small soup shop in the northwest section of the District of Columbia, cooks are chopping Garner’s fresh squash and sweet potatoes for Soupergirl! vegan and kosher soups.

“We are trying to save the world one bowl of soup at a time,” said Sara Polon, a Soupergirl! founder.

Polon’s farm-to-table business model means that she buys produce to use in her soups from farmers markets around D.C. or wholesale from local growers like Garner’s Produce in Warsaw, Virginia.

“We need to think more about where our food comes from,” Polon said. “Where it was grown, who grew it, how it was picked, how it was prepared.”

Much of the produce that is sold in grocery stores is grown in other parts of the world and spends days in a shipping container before reaching a table.

“I didn’t know how corrupted our food system had become,” Polon said, adding that she thinks food should come from just a few miles away. “Why do we need to get apples from New Zealand, if they grow in Virginia?”

Bernard Boyle, farm manager for Garner’s Produce, agrees.

“You don’t know exactly” how farmers elsewhere are producing their crops, Boyle said. If the food is grown by a neighbor, “you know you’re going to get what you’re supposed to get.”

Polon’s mission is to make vegan and kosher soups using local produce to promote a healthful lifestyle. This model has sustained her business for over nine years. Sarah uses only vegetables that are in season, and she says that soup is always in season.

“Soup is not a fad, it’s not a trend. It’s classic, it’s not going anywhere,” she said.

Soupergirl! sells chilled soups in the summer using ingredients like Garner’s Produce watermelons and tomatoes. In the fall, the menu features fall-harvested produce such as lentils, butternut squash, collard greens, kale and potatoes from farms in Maryland, Virginia and West Virginia.

Polon embraced her Soupergirl! alter ego nine years ago, when she and her mother started delivering soups they had made with local produce to individuals and businesses. She and her mom, whom she calls “the chief anxiety officer,” were making about 10 gallons of soup a day at that time.

Now, Soupergirl! produces 300 to 500 gallons of soup a day for its two D.C. locations, as well as grocery stores across several states and at farmers markets. Polon has even started a soup “cleanse” — a three-day or five-day healthful-eating plan to eat four Soupergirl! soups a day.

“It’s basically everything every doctor says you should be eating delivered right to your door,” she said.

Polon met the family in charge of Garner’s Produce at a Washington farmers market about five years ago, and they have been growing together ever since.

“She’s like family,” said Bernard Boyle. His wife, Dana Boyle, is the daughter of the man who started Garner’s Produce. She now runs the family farm.

Because Polon won’t use produce that’s out of season, she relies on her relationship with the Boyles to build her menu.

“I know that I have a farmer I can count on to get me the high-quality seasonal ingredients and I can rely on to deliver on time,” Polon said.

Polon also wants to know who is picking her produce and that they’re being treated fairly.

Garner’s Produce has the ability to grow produce throughout the winter, not only to help supply Soupergirl! but also to create work for their employees. They use heated tents to grow produce into February, whereas in the past they were done harvesting by late November.

“We treat everybody like family who works with us,” Bernard Boyle said. “We want them to make it through the winter.”

Last year, Garner’s Produce was able to produce 2,000 to 4,000 pounds of butternut squash and sweet potatoes per month. In the past couple of months, Polon has received 300 to 400 pounds of collard greens per week.

Arash Arabasadi contributed to this story.

Nigeria Oil Spills Double Risk of Infant Mortality, Research Shows

Babies are much more likely to die in their first few weeks of life if their mothers live close to the site of an oil spill, according to new research. Scientists studied data on infant mortality and oil spills in Nigeria’s Niger delta region – and describe their results as ‘shocking’. Henry Ridgwell reports.

Kenyan Fashion Designers Struggle to Grow Business

The fashion and textile industry could generate nearly half a million jobs in sub-Saharan Africa over the next decade. That’s according to the African Development Bank, which launched its “Fashionomics” initiative in 2015 to revitalize the industry. However, designers in the region still struggle to grow their businesses. Lenny Ruvaga reports for VOA from Nairobi.

Local "Souper-Hero" Serves Seasonal Soup with Help from Local Family Farm

Each year in America, when summer ends and fall begins, it’s a safe bet you’ll find pumpkins and sweet potatoes flavoring everything from coffee to pie. It’s seasonal food that makes its way from farms to tables around the country from Thanksgiving to Christmas time. VOA’s Arash Arabasadi reports from a local farm feeding local produce to a local business stewing seasonal sensations.

Venezuela Arrests Top Citgo Executives

Venezuelan authorities arrested the acting president of Citgo, the U.S. subsidiary of state-owned Petroleos de Venezuela SA (PDVSA), along with five other senior executives Tuesday for alleged corruption.

Attorney General Tarek William Saab told a press conference that interim president Jose Pereira and other managers allegedly arranged contracts that put Citgo at a disadvantage. The company operates refineries in Illinois, Texas and Louisiana with a capacity of 749,000 barrels per day.

“They did it with total discretion, without even coordinating with the competent authorities,” Saab said. “This is corruption, corruption of the most rotten kind.”

The six were accused of misappropriation of public funds, association to commit crimes and legitimation of capital, among other crimes.

The other five detainees were identified as Tomeu Vadell, vice president of Refining Operations; Alirio Zambrano, vice president and general manager of the Corpus Christi Refinery; Jorge Toledo, Vice President of Supply and Marketing; Gustavo Cardenas, Vice President of Strategic Relations with Shareholders and Government, and Jose Luis Zambrano; Vice President of Shared Services.

Last month, a senior executive of PDVSA and a dozen officials were arrested for alleged embezzlement.

But members of the Venezuelan opposition argue that recent investigations do not demonstrate a genuine intention of the government to eradicate corruption, but only reflect internal struggles of PDVSA.

VOA Latin America contributed to this report.

US Sues to Stop AT&T’s Takeover of Time Warner

The U.S. Justice Department is suing to stop AT&T’s multi-billion dollar bid to take over another communications giant, Time Warner, calling it illegal and likening it to extortion.

“The $108 billion acquisition would substantially lessen competition, resulting in higher prices and less innovation for millions of Americans,” a Justice Department statement said Monday.

“The combined company would use its control over Time Warner’s valuable and highly popular networks to hinder its rivals by forcing them to pay hundreds of millions of dollars more per year for the right to distribute those networks.”

CNN, HBO top Time Warner products

Time Warner’s products include CNN, HBO, TNT, The Cartoon Network, and Cinemax — these networks broadcast highly popular newscasts, movies, comedy and drama series, and sports.

AT&T and its subsidiary DirectTV distribute these programs, as well as others, thorough cable and satellite.

The Justice Department decries the possibility of AT&T not just controlling television productions, but also the means of bringing them into people’s homes.

In its lawsuit, it threw AT&T’s words right back at the communications giant, noting that AT&T recognizes that distributors with control over the shows “have the incentive and ability to use … that control as a weapon to hinder competition.”

It also cited a DirectTV statement saying distributors can withhold programs from their rivals and “use such threats to demand higher prices and more favorable terms.”

Assured transaction would be approved

AT&T’s CEO Randall Stephenson told reporters the Justice Department’s lawsuit “stretches the reach of anti-trust law to the breaking point.”

He said the “best legal minds in the country” assured AT&T that the transaction would be approved and said the government is discarding decades of legal precedent.

AT&T and Time Warner are not direct competitors, and AT&T says government regulators have routinely approved such mergers.

President Donald Trump has made no secret of his contempt for one of Time Warner’s crown jewels — CNN, the Cable News Network — because of his perception of CNN being a liberal biased provider of “fake news,” including direct attacks against his administration.

Trump vowed during last year’s presidential campaign to block the merger.

Stephenson called the matter “the elephant in the room,” saying he said he “frankly does not know” if the White House disdain for CNN is at the heart of the Justice Department lawsuit.

But he said a proposal that Time Warner sell-off CNN as part of a settlement with the Trump Justice Department would be a “non-starter.”

Technology Companies, Retailers Send US Stock Indexes Higher

U.S. stocks are higher Monday as technology and industrial companies, banks and retailers all make modest gains. Drugmakers and other health care companies are trading lower. Companies that make opioid pain medications are down sharply after the government released a much higher estimate of the costs of the ongoing addiction crisis.

Keeping score

The Standard & Poor’s 500 index picked up 5 points, or 0.2 percent, to 2,584 as of 2:15 p.m. Eastern time. The Dow Jones industrial average gained 94 points, or 0.4 percent, to 23,452. The Nasdaq composite advanced 7 points, or 0.1 percent, to 6,789. The Russell 2000 index of smaller-company stocks edged up 6 points, or 0.4 percent, to 1,499.

Tech tie-up

Chipmaker Marvell Technology Group said it will buy competitor Cavium for $6 billion in the latest deal in the semiconductor industry. Cavium climbed $7.48, or 9.9 percent, to $83.31 and it is up 22 percent over the last two weeks on reports Marvell would make a bid. Marvell rose $1.02, or 5 percent, to $21.31.

Other technology companies climbed as well. IBM added $2.01, or 1.3 percent, to $150.98 and Applied Materials picked up $1.12, or 2 percent, to $57.61. Cisco Systems gained 55 cents, or 1.5 percent, to $36.45.

Retail rising again

Retailers continued to move higher. They climbed last week following solid quarterly reports from Wal-Mart, Gap and Ross Stores. That’s given investors hope that shoppers are ready to spend more money. Home improvement retailer Home Depot rose $2.68, or 1.6 percent, to $170.42 and clothing company PVH rose $2.90, or 2.2 percent, to $136.02. Sporting goods retailer Hibbett Sports, after a 15-percent surge Friday, added $1.85, or 10.8 percent, to $18.95.

General electric slide

Industrial companies rose, as 3M gained $2.56, or 1.1 percent, to $231.92 and Boeing added $2.39 to $264.65.

General Electric missed out on those gains as investors continued to wonder about the company’s direction. On Sunday, the Wall Street Journal said that directors with energy and financial backgrounds, as well as GE’s two longest-tenured directors, are likely to leave the board as it shifts its focus away from those industries. The company said earlier this month that it will reduce the number of directors to 12 from the current 18.

GE lost 24 cents, or 1.3 percent, to $17.97.

Drugmaker downturn

A White House group said the opioid drug epidemic cost the U.S. $504 billion in 2016, far larger than other recent estimates, and companies that make those pain medications traded sharply lower.

Last year a separate estimate said the crisis cost the country $78.5 billion in 2013, including lost productivity and health care and criminal justice spending. The Council of Economic Advisers said the new figure reflects the worsening crisis and that earlier figures didn’t calculate deaths or include the use of illegal drugs.

Teva Pharmaceutical Industries fell 77 cents, or 5.6 percent, to $13.07 and Allergan gave up $3.78, or 2.2 percent, to $171.10. Endo International lost 26 cents, or 3.5 percent, to $7.28. Insys Therapeutics shed 20 cents, or 3.6 percent, to $6.18. Executives including Insys’ founder and its former CEO have been charged with offering kickbacks to doctors to get them to prescribe its fentanyl spray Subsys. Its stock traded above $40 in mid-2015.

Merck-y future?

Merck stumbled after Genentech, a unit of Swiss drugmaker Roche, reported positive results from a study of its drug Tecentriq as a primary treatment for lung cancer. Genentech said patients who were given Tecentriq as part of their treatment regimen were less likely to die or see their cancer get worse.

The results could affect sales of Merck’s drug Keytruda and Bristol-Myers Squibb’s Opdivo. Merck fell $1.10, or 2 percent, to $54.10 and Bristol-Myers Squibb lost 66 cents, or 1.1 percent, to $60.63.

Energy

Benchmark U.S. crude fell 50 cents to $56.05 a barrel in New York. Brent crude, which is used to price international oils, dropped 67 cents, or 1.1 percent, to $62.05 a barrel in London.

Currencies

The dollar rose to 112.64 yen from 112.13 yen late Friday. The euro slipped to $1.1737 from $1.1796 after a group of German political parties couldn’t agree to form a government, which might mean new elections are on the way. A weaker euro is good for companies that export a lot of products, and the German DAX was up 0.7 percent while France’s CAC 40 rose 0.5 percent. The FTSE 100 in Britain added 0.2 percent. In Japan, the Nikkei 225 index lost 0.6 percent and South Korea’s Kospi shed 0.3 percent. Hong Kong’s Hang Seng index added 0.2 percent.

Bonds

Bond prices edged lower. The yield on the 10-year Treasury note rose to 2.37 percent from 2.35 percent.

Metals

Gold slumped $21.20, or 1.6 percent, to $1,275.30 an ounce. Silver sank 53 cents, or 3.1 percent, to $16.84 an ounce. Copper gained 3 cents to $3.09 a pound.

Yellen to Leave Fed Board When New Leader Sworn In

Fed Chair Janet Yellen says she will leave the U.S. central bank’s board when her successor is sworn in early next year.

Jerome Powell was chosen by President Donald Trump to head the Federal Reserve when Yellen’s term expires. Powell must be confirmed by the U.S. Senate before he can take office, but analysts say his approach to managing interest rates is similar to Yellen’s. She is credited with managing the economy in ways that boosted recovery from the 2007 recession and cut unemployment in half.

In her resignation letter to Trump, Yellen said she is “gratified that the financial system is much stronger than a decade ago.” She also noted “substantial improvement in the economy since the crisis.”

Yellen is the first woman to lead the Fed, and was a member of its board of governors before taking the leadership role. Her term on the board does not officially expire until 2024, and she could have stayed on if she wished to do so.

Candidate Trump criticized Yellen during his campaign, but praised her work after he became president.

Yellen has served as vice chair of the Fed, president of the Federal Reserve Bank of San Francisco, and head of President Bill Clinton’s Council of Economic Advisers. She has researched and taught economics at the University of California at Berkeley.

Amsterdam, Paris Picked to Host EU Agencies After Brexit

The European Union went back to its roots Monday by picking cities from two of its founding nations — France and the Netherlands — to host key agencies that will have move once Britain leaves the bloc in 2019.

During voting so tight they were both decided by a lucky draw, EU members except Britain chose Amsterdam over Italy’s Milan as the new home of the European Medicines Agency and Paris over Dublin to host the European Banking Authority. Both currently are located in London.

“We needed to draw lots in both cases,” Estonian EU Affairs Minister Matti Maasikas, who chaired the meeting and in both cases made the decisive selection from a big transparent bowl.

Frankfurt, home of the European Central Bank, surprisingly failed to become one of the two finalists competing for the banking agency.

The relocations made necessary by the referendum to take Britain out of the EU are expected to cost the country over 1,000 jobs directly and more in secondary employment.

The outcomes of the votes also left newer EU member states in eastern and southern Europe with some bitterness. Several had hoped to be tapped for a lucrative prize that would be a sign the bloc was truly committed to outreach.

Some 890 top jobs will leave Britain for Amsterdam with the European Medicines Agency, giving the Dutch a welcome economic boost and more prestige. The EMA is responsible for the evaluation, supervision and monitoring of medicines. The Paris-bound European Banking Authority, which has around 180 staff members, monitors the regulation and supervision of Europe’s banking sector.

After a heated battle for the medicines agency, Amsterdam and Milan both had 13 votes Monday. That left Estonia, which currently holds the rotating EU presidency, to break the tie with a draw from the bowl. Copenhagen finished third, ahead of Slovakian capital Bratislava in the vote involving EU nations excluding Britain. One country abstained in the vote.

“A solid bid that was defeated only by a draw. What a mockery,” Italian Prime Minister Paolo Gentiloni said on Twitter.

Dutch Foreign Minister Halbe Zijlstra was elated.

“It is a fantastic result,” he said. “It shows that we can deal with the impact of Brexit”

The European Medicines Agency has less than 17 months to complete the move, but Amsterdam was considered ideally suited because of its location, the building it had on offer and other facilities.

Even though rules were set up to make it a fair decision, the process turned into a deeply political contest.

Zijlstra said that “in the end, it is a very strategic game of chess.”

White House: Opioid Crisis Cost US Economy $504 Billion in 2015

Opioid drug abuse, which has ravaged parts of the United States in recent years, cost the economy as much as $504 billion in 2015, White House economists said in a report made public on Sunday.

The White House Council of Economic Advisers (CEA) said the toll from the opioid crisis represented 2.8 percent of gross domestic product that year.

President Donald Trump last month declared the opioid crisis a public health emergency. While Republican lawmakers said that was an important step in fighting opioid abuse, some critics, including Democrats, said the move was meaningless without additional funding.

The report could be used by the Trump White House to urge Republicans in Congress – who historically have opposed increasing government spending – to provide more funding for fighting the opioid crisis by arguing that the economic losses far outweigh the cost of additional government funding.

Using a combination of statistical models, the CEA said the lost economic output stemming from 33,000 opioid-related deaths in 2015 could be between $221 billion and $431 billion, depending on the methodology used.

In addition, the report looked at the cost of non-fatal opioid usage, estimating a total of $72 billion for 2.4 million people with opioid addictions in 2015. Those costs included medical treatment, criminal justice system expenses and the decreased economic productivity of addicts.

The CEA said its estimate was larger than those of some prior studies because it took a broad look at the value of lives lost to overdoses. The CEA also said its methodology incorporated an adjustment to reflect the fact that opioids were underreported on death certificates.

“The crisis has worsened, especially in terms of overdose deaths which have doubled in the past ten years,” the CEA said.

“While previous studies have focused exclusively on prescription opioids, we consider illicit opioids including heroin as well.”

Opioids, primarily prescription painkillers, heroin and fentanyl, are fueling the drug overdoses. More than 100 Americans die daily from related overdoses, according to the U.S. Centers for Disease Control and Prevention.

With Little Movement, NAFTA Talks Said to Run Risk of Stalemate

Talks to update the North American Free Trade Agreement appeared to be in danger of grinding toward a stalemate amid complaints of U.S. negotiators’ inflexibility, people familiar with the process said on Sunday.

The United States, Canada and Mexico are holding the fifth of seven planned rounds of talks to modernize NAFTA, which U.S. President Donald Trump blames for job losses and big trade deficits for his country.

Time is running short to reach a deal before the March 2018 start of Mexico’s presidential elections, and lack of progress in the current round could put the schedule at risk.

“The talks are really not going anywhere,” Jerry Dias, president of Unifor, the largest Canadian private-sector union, told reporters after meeting with Canada’s chief negotiator on Sunday. “As long as the United States is taking the position they are, this is a colossal waste of time,” said Dias, who is advising the government and regularly meets the Canadian team.

Hanging over the negotiations is the very real threat that Trump could make good on a threat to scrap NAFTA.

Canada and Mexico object to a number of demands the U.S. side unveiled during the fourth round last month, including for a five-year sunset clause that would force frequent renegotiation of the trade pact, far more stringent automotive content rules and radical changes to dispute settlement mechanisms.

Calls for greater US flexibility

“Our internal view as of this morning is that if any progress is to be made, the United States needs to show some flexibility and a willingness to do a deal,” said a Canadian source with knowledge of the talks.

“We are seeing no signs of flexibility now,” added the source, who requested anonymity given the sensitivity of the situation. However, a NAFTA country official familiar with the talks said Canada had not yet submitted any counterproposals to the U.S. demands.

Dias said the United States was showing some signs of flexibility over its sunset clause proposal after Mexican officials floated a plan for a “rigorous evaluation” of the trade pact, but without an automatic expiration.

U.S. negotiating objectives that were updated on Friday appeared to accommodate the Mexican proposal, saying the revised NAFTA should “provide a mechanism for ensuring that the Parties assess the benefits of the Agreement on a periodic basis.”

Canada and Mexico are also unhappy about U.S. demands that half the content of North American-built autos come from the United States, coupled with a much higher 85 percent North American content threshold. Officials are due to discuss the issue from Sunday through the end of the fifth round on Tuesday, Flavio Volpe, president of the Canada’s Automotive Parts Manufacturers’ Association, said there was little chance of making substantial progress on autos in Mexico City, as the U.S. demands were still not fully understood.

“I don’t expect a heavy negotiation here,” he said in an interview on the sidelines of the talks.

Britain to Submit ‘Brexit Bill’ Proposal Before December EU Meeting

Britain will submit its proposals on how to settle its financial obligations to the European Union before an EU Council meeting next month, finance minister Philip Hammond said on Sunday.

British Prime Minister Theresa May was told on Friday that there was more work to be done to unlock Brexit talks, as the European Union repeated an early December deadline for her to move on the divorce bill.

“We will make our proposals to the European Union in time for the council,” Hammond told the BBC.

Last week, May met fellow leaders on the sidelines of an EU summit in Gothenburg, Sweden, to try to break the deadlock over how much Britain will pay on leaving the bloc in 16 months.

 

She signaled again that she would increase an initial offer that is estimated at some 20 billion euros ($24 billion), about a third of what Brussels wants.

European Cities Battle Fiercely for Top Agencies Leaving UK

Brexit is still well over year away but two European cities on Monday will already be celebrating Britain’s departure from the European Union.

 

Two major EU agencies now in London — the European Medicines Agency and the European Banking Authority — must move to a new EU city because Britain is leaving the bloc. The two prizes are being hotly fought over by most of the EU’s other 27 nations.

 

Despite all the rigid rules and conditions the bloc imposed to try to make it a fair, objective decision, the process has turned into a deeply political beauty contest — part Olympic host city bidding, part Eurovision Song Contest.

 

It will culminate in a secret vote Monday at EU headquarters in Brussels that some say could be tainted by vote trading.

 

The move involves tens of millions in annual funding, about 1,000 top jobs with many more indirectly linked, prestige around the world and plenty of bragging rights for whichever leader can bring home the agencies.

 

“I will throw my full weight behind this,” French President Emmanuel Macron said when he visited Lille, which is seeking to host the EMA once Britain leaves in the EU in March 2019. “Now is the final rush.”

 

At an EU summit Friday in Goteborg, Sweden, leaders were lobbying each other to get support for their bids.

 

The EMA is responsible for the scientific evaluation, supervision and safety monitoring of medicines in the EU. It has around 890 staff and hosts more than 500 scientific meetings every year, attracting about 36,000 experts.

 

The EBA, which has around 180 staff, monitors the regulation and supervision of Europe’s banking sector.

 

With bids coming in from everywhere — from the newest member states to the EU’s founding nations — who gets what agency will also give an indication of EU’s future outlook.

 

The EU was created as club of six founding nations some 60 years ago, so it’s logical that a great many key EU institutions are still in nations like Germany, France and Belgium. But as the bloc kept expanded east and south into the 21st century, these new member states see a prime opportunity now to claim one of these cherished EU headquarters, which cover everything from food safety to judicial cooperation to fisheries policy.

 

Romania and Bulgaria were the last to join the EU in 2007 and have no headquarters. Both now want the EMA — as does the tiny island nation of Malta.

 

“We deserve this. Because as we all know, Romania is an EU member with rights and obligations equal with all the rest of the member states,” said Rodica Nassar of Romania’s Healthcare Ministry.

 

But personnel at the EMA and EBA are highly skilled professionals, and many could be reluctant to move their careers and families from London to less prestigious locations.

 

“You have to imagine, for example, for the banking authority, which relies on basically 200 very high-level experts in banking regulatory matters to move to another place,” said Karel Lannoo of the CEPS think tank. “First of all, to motivate these people to move elsewhere. And then if you don’t manage to motivate these people, to find competent experts in another city.”

 

As the vote nears, Milan and Bratislava are the favorites to win the EMA, with Frankfurt, and perhaps Dublin, leading the way for the EBA.

 

 

Post-Harvey Houston: Years Until Recovery, Plenty of Costs Unknown

When the heaviest rain of tropical storm Harvey had passed, Kathryn Clark’s west Houston neighborhood had escaped the worst. Then the dams were opened — a decision by the U.S. Army Corps of Engineers to prevent upstream flooding and potential dam failures by releasing water into Buffalo Bayou, just a few hundred feet from the end of Clark’s street.

When she and her husband returned to survey the damage later that week, they entered their two-story home by kayak in roughly three feet of water. In the kitchen, a snake slithered past.

Nothing like that had happened in the nearly 11 years the Clarks have lived there; it got Kathryn thinking about their long-term plans, including whether to rebuild.

“What if they decide to open the dams again?” she asked. “But if you don’t rebuild, you just walk away, and that is a big loss.”

The Clarks ultimately opted to reconstruct, a process that will take another half-year before they can move back in. Elsewhere in the city, the waiting will be longer.

​A sprawling concrete jungle

In early November, Texas Governor Greg Abbott told reporters that Texas will need more than $61 billion in federal aid, to help fund a reconstruction plan that he said would curtail damage from future coastal storms. However, he added, there will be more requests: “This is not a closed book.”

Hurricane Harvey, the costliest storm in U.S. history, will affect Houston for months, and years. Apart from tens of thousands of ongoing home rebuilding projects, civil construction is in the evaluation phase.

“With Katrina, it actually took them 12 years before FEMA [Federal Emergency Management Agency] made their final payment to the city of New Orleans,” said Jeff Nielsen, executive vice president of the Houston Contractors Association. “That’s how long it takes to really test and figure out where all the repairs and where all the damage occurred.”

Houston covers a landmass of 1,600 square kilometers, compared to New Orleans’ 900, and is much more densely populated. The impermeable concrete jungle experienced major runoff during the storm, and that translates to high civil construction costs in roads, bridges, water, sewage and utility lines that are difficult to determine.

WATCH: Post-Harvey Houston: Years Until Recovery, Unknown Costs

Nielsen explains to VOA the immensity of the task. 

“You may be driving down the road one day and, all of a sudden — boom — there is a 10-foot sinkhole underneath the road because there is a water line or a sewer line or a storm sewer line that runs underneath that road.

“There is no way to tell that that’s happening without going through and testing each and every line,” Nielsen said.

​Waiting, waiting

Rob Hellyer, owner of Premier Remodeling & Construction, says Houston has seen an uptick in inquiries for both flood and nonflood-related projects — good for business, but a challenge for clients.

“A lot of those people come to the realization that ‘If we want to get our project done in the next two or three years, we better get somebody lined up quick,’” Hellyer told VOA.

But industrywide, much of the workforce is dealing with flooding issues of their own, while simultaneously attempting to earn a living.

“It really has disbursed that labor pool that we have been using for all these years,” Hellyer said.

Labor shortages in construction-related jobs have long been a challenge despite competitive wages, according to Nielsen, who describes his field — civil construction — as less-than-glamorous.

“Outside, it’s hot. What could be more fun than pouring hot asphalt on a road?” he asked.

Networking barriers

With construction costs up and waiting periods long, the hands-on rebuilding effort is typically attractive for some lower-wage immigrant communities.

Among the city’s sizable Vietnamese population, though, that’s not exactly the case, said Jannette Diep, executive director of Boat People SOS Houston office (BPSOS), a community organization serving the area’s diaspora population.

“[Vietnamese construction workers] face not only a language barrier but that networking piece, because they’re not intertwined with a lot of the rules and regulations,” Diep said. “‘Well, how do I do the bid; what’s the process?’”

Overwhelmed with paperwork and often discouraged by limited communication skills in English, Diep says many within the industry opt to work only from within their own communities, despite more widespread opportunities across Greater Houston.

The same barriers apply to the Asian diaspora’s individual post-recovery efforts. BPSOS-Houston, according to Diep, remains focused on short-term needs — food, clothing, cleaning supplies — and expects the longer-term recovery to take two to three years, particularly in lower-income neighborhoods.

Love thy neighbor

Loc Ngo, a mother of seven and grandmother from Vietnam, has lived in Houston for 40 years, but speaks little English. In Fatima Village, a tightly knit single-street community of mobile homes — comprising 33 Vietnamese families — she hardly has to.

“They came to fix the home and it cost $11,000, but they’re not finished yet,” she explained, through her son’s translation. “The washer, dryer and refrigerator — I still haven’t bought them yet, and two beds!”

Across the street, the three-generation Le family levels heaps of dirt across a barren lot that’s lined by spare pipes and cinderblocks. They plan to install a new mobile home.

At the front end of the road is the village’s single-story church, baby blue and white, like the sky — the site of services, weddings, funerals and community gatherings.

Victor Ngo, a hardwood floor installer, typically organizes church events. But for now, his attention is turned to completing reconstruction of the altar and securing donations to replace 30 ruined benches.

“At first I had to spend two months to fix up my house, and now I finished my house, and I [have started] to fix up this church,” Ngo said. “So basically, I don’t go out there to work and make money. Not yet.”

In the village, made up largely of elders, Ngo stresses the importance of staying close to home to help with rebuilding, translation, and paperwork, at least for a while longer.

“We stick together as a community to survive,” he said.

Some Republicans Nervous NAFTA Talks Could Fail

Pro-trade Republicans in the U.S. Congress are growing worried that U.S. President Donald Trump may try to quit the NAFTA free trade deal entirely rather than negotiate a compromise that preserves its core benefits.

As a fifth round of talks to modernize the North American Free Trade Agreement kicked off in Mexico on Friday, several Republicans interviewed by Reuters expressed concerns that tough U.S. demands, including a five-year sunset clause and a U.S.-specific content rule, will sink the talks and lead to the deal’s collapse.

Business groups have warned of dire economic consequences, including millions of jobs lost as Mexican and Canadian tariffs snap back to their early 1990s levels.

“I think the administration is playing a pretty dangerous game with this sunset provision,” said Representative Charlie Dent, a moderate Republican from eastern Pennsylvania.

He said putting NAFTA under threat of extinction every five years would make it difficult for companies in his district, ranging from chocolate giant Hershey Co to small family owned manufacturing firms, to invest in supply chains and manage global operations.

Hershey operates candy plants in Monterrey and Guadalajara, Mexico.

Lawmakers’ letter

Nearly 75 House of Representatives members signed a letter this week opposing U.S. proposals on automotive rules of origin, which would require 50 percent U.S. content in NAFTA-built vehicles and 85 percent regional content.

They warned that this would “eliminate the competitive advantages” that NAFTA brings to U.S. automakers or lead to a collapse of the trade pact.

Representative Pete Sessions, a Texas Republican who has long been a supporter of free trade deals, said he disagreed with the Trump approach of “trying to beat someone” in the NAFTA talks. Texas is the largest U.S. exporting state with nearly half of its $231 billion in exports last year headed to Mexico and Canada, according to Commerce Department data.

“We need to offer Mexico a fair deal. If we want them to take our cattle, we need to take their avocados,” Sessions said.

Still, congressional apprehension about Trump’s stance is far from unanimous. The signers were largely Republicans, with no Democrats from auto-intensive states such as Michigan and Ohio signing.

Democratic support

Some pro-labor Democrats have actually expressed support for U.S. Trade Representative Robert Lighthizer’s tough approach.

“Some of those demands are in tune,” said Representative Bill Pascrell of New Jersey, the top Democrat on the House Ways and Means trade subcommittee.

“We don’t want to blow it up, Republicans don’t want to blow it up. But we want substantial changes in the labor, the environmental, the currency, on how you come to an agreement when there’s a dispute, and on problems of origin.”

Farm state Republicans are especially concerned that a collapse of NAFTA would lead to the loss of crucial export markets in Mexico and Canada for corn, beef and other products.

Senator Chuck Grassley of Iowa said Lighthizer in a recent meeting agreed that a withdrawal from NAFTA would be hard on U.S. agriculture, which has largely benefited from the trade pact.

U.S. agricultural exports to Canada and Mexico quintupled to about $41 billion in 2016 from about $9 billion in 1993, the year before NAFTA went into effect, according to U.S. Commerce Department data.

Grassley said, however, that Lighthizer’s approach was “taking everybody to the brink on these talks.”

Other Republicans are taking a wait-and-see approach to the talks.

Representative Frank Lucas of Oklahoma said he was willing to give Trump “the benefit of the doubt” on NAFTA talks, adding that farmers and ranchers in his rural district were strong Trump supporters in the 2016 election.

“The president’s a practical fellow. When push comes to shove, he understands the base,” Lucas said.

Unions Take NAFTA Wage Fight to Mexican Senate

The head of Canada’s biggest private-sector union headed to Mexico’s Senate on Friday, promising to fight at the NAFTA trade pact talks for improved Mexican wages and free collective bargaining as a way of benefiting workers across North America.

The issue of tougher labor standards has emerged as a key sticking point in the talks to update the North American Free Trade Agreement, and has brought disparate groups of workers from across the region closer to U.S. populists.

“There will not be an agreement” until the Mexican team agrees to free collective bargaining, the elimination of so-called yellow unions that are dominated by employers, and fair wages for Mexican workers, Unifor President Jerry Dias said.

The event held in a side chamber of the Senate was organized by the umbrella organization Better Without Free Trade Agreements, which represents dozens of social organizations and unions.

Dias argued that low wages have not only hurt Mexican workers but have also prompted manufacturing jobs in Canada and the United States to leave for Mexico.

By including much tougher labor standards in an updated NAFTA, the issue could be dealt with head on, he said. “When you start talking about low wages, we can deal with that under the dispute mechanism as an unfair subsidy.”

The fifth round of talks NAFTA is being held in the upscale Camino Real hotel in Mexico City.

“What Mexico offers in this negotiation and to the rest of the world is cheap labor. That’s what Mexico puts on the table and how it presents itself as an attractive place for investments,” Senator Mario Delgado of the leftist Party of the Democratic Revolution told Reuters.

“It is a shame and it is unsustainable for Mexico. … Our salary policy is putting at risk the existence of the treaty,” said Delgado.

Mexican business leaders argue that integrating Mexico into North American supply chains has made the entire region more competitive. Recent studies have shown, however, that wages in Mexico have experienced significant downward pressure.

Given Mexico’s higher inflation rates, wages are now lower there in real terms than when NAFTA took effect, according to a report published in August by credit rating agency Moody’s.

While formally employed workers earn significantly more, the statutory minimum wage is a mere 80 pesos ($4.23) a day.

How Much Is a Life Worth, Ask Activists Fighting Slavery?

From $7 for a Rohingya refugee to $750 for a North Korean “slave wife,” human rights activists have voiced concerns that it is becoming increasingly easy to enslave another human being as the cost plummets.

The average modern-day slave is sold for $90-100 compared to the equivalent of $40,000 some 200 years ago, said Kevin Bales, Professor of Contemporary Slavery at Britain’s University of Nottingham.

“There has been a collapse in the price of slaves over the last 50 years,” he told the Thomson Reuters Foundation’s annual Trust Conference in London, which focuses on women’s empowerment and modern slavery.

‘Beasts of burden’

Pointing to a photo of boys hauling rocks in Nepal “like beasts of burden,” he said their parents would have sold them for $5-$10. Children are so cheap that if they get injured or fall in a ravine their slave master abandons them, Bales said.

“They understand it’s less expensive to acquire a new child than to call a doctor,” he added.

Bales attributed the fall in price to the population explosion which had “glutted the world with potentially enslavable people.”

40 million people trapped

Worldwide, about 40 million people were estimated to be trapped as slaves in 2016, mostly women and girls, in forced labor, sexual exploitation and forced marriages, with global trafficking estimated to raise $150 billion in profits a year.

North Korean defector Jihyun Park told how she was trafficked to China where she was sold for 5000 yuan ($750) to an alcoholic, violent farmer.

“He said I’ve paid for you so you must work. I spent six years as his slave,” Park said.

Thousands of North Korean women are believed to have been trafficked as wives and sex workers inside China where the one-child policy has skewed the gender ratio.

Natural disasters force issue

 In Bangladesh, Asif Saleh, of development agency BRAC, said Rohingya refugee women fleeing Myanmar and arriving in Bangladesh were being sold for as little as 5 pounds ($6.60).

Aid agencies say traffickers often exploit crises to prey on vulnerable people separated from their families and communities.

Nepalese nun and kung fu teacher Jigme Wangchuk Lhamo, who helps families displaced by the country’s 2015 earthquake, told the conference that people were selling their daughters, sisters and mothers to traffickers after the disaster in order to rebuild their homes.

“Some men just see girls as a bunch of money,” she said.

In northern Kenya’s pastoralist region, lawyer Fatuma Abdulkadir Adan said child brides as young as nine were sold for eight cows or eight camels — worth about $800.

“Girls become commodities and they have no voice, no one asks what the girl wants,” said Adan, who uses football to help tackle child marriage and female genital mutilation.

But it is not just rich countries where girls are sold off.

Sarah, forced into prostitution as a child in Britain, said the gang who groomed her said she would have to have sex every day until she had paid off a “debt” of 75,000 pounds.

“They told me I belonged to them and until my debt was cleared I had to work for them,” she said.

Experts: Puerto Rico May Struggle for More Than a Decade

Puerto Rico could face more than a decade of further economic stagnation and a steep drop in population as a result of Hurricane Maria, experts say.

The stark estimates were presented this wee to members of a federal control board overseeing finances of a U.S. territory that is already in the 11th year of a recession.

“The situation is dire to say the least, with destroyed infrastructure, lack of power and water, and an accelerated pace of migration,” economist Heidie Calero said.

She estimated that the hurricane caused $115 billion in damage, even without counting business losses.

“We believe that is very conservative,” she said.

The administration of Governor Ricardo Rossello said earlier in the week that it was seeking $94 billion in federal aid for an island where power generation remains at 40 percent and where nearly 10 percent of people are still without water almost two months after the storm. More than 20 of Puerto Rico’s 78 municipalities remain completely without power.

So far, Congress has approved nearly $5 billion in aid for Puerto Rico.

Twin shocks

Economist Juan Lara told board members that the local economy could contract anywhere between 8 percent and 15 percent in fiscal 2018, depending on the restoration of power, with overall revenues falling by 30 percent.

“We are undergoing both a demand and supply shock,” he said, saying that 5,000 businesses could close permanently, representing 10 percent of membership of the island’s National Retail Federation.

Businesses that have reopened have been forced to reduce their hours or depend on costly generators.

“We need electric power to be back and to be reliable,” Lara said. “We need roads to be cleared. We need supermarkets to be able to replenish their inventories. … We need to restore basic operating infrastructure.”

Lack of power remains the biggest obstacle, with the island’s electric company struggling to maintain the 50 percent power generation it had reached Wednesday just as a major blackout occurred for the second time in a week.

Rossello has said the company will reach 80 percent generation by end of November and 95 percent by mid-December, goals that many have called ambitious. In contrast, the U.S. Corps of Engineers has said it expects 75 percent generation by end of January.

More migration

Before Hurricane Maria hit, Puerto Rico was trying to restructure a portion of its $73 billion public debt load amid a deep economic crisis that has prompted an exodus of nearly half a million people in the past decade. That migration will only accelerate because of post-hurricane conditions, with an estimated population of 2.8 million people by 2030, compared with the current 3.4 million, said economist Jose Villamil.

“What Maria has done in some ways is to exacerbate that situation, made it more intense,” he said.

The drop in population, coupled with a majority of young, talented people leaving, will hit Puerto Rico’s economy even harder, experts said.

Two more meetings remain as the board continues to gather information to revise a fiscal plan to adjust for the hurricane’s impact. It is unclear how much money, if any, will be set aside in the plan to pay off the island’s debt load.

Probe Finds Ongoing Radioactive Leaks at Illinois Nuclear Plants

Radioactive waste continues to pour from Exelon’s Illinois nuclear power plants more than a decade after the discovery of chronic leaks led to national outrage, a $1.2 million government settlement and a company vow to guard against future accidents, an investigation by a government watchdog group found.

Since 2007, there have been at least 35 reported leaks, spills or other accidental releases in Illinois of water contaminated with radioactive tritium, a byproduct of nuclear power production and a carcinogen at high levels, a Better Government Association review of federal and state records shows.

No fines were issued for the accidents, all of which were self-reported by the company.

The most recent leak of 35,000 gallons (132,000 liters) occurred over two weeks in May and June at Exelon’s Braidwood plant, southwest of Chicago. The same facility was the focus of a community panic in the mid-2000s after a series of accidents stirred debate over the safety of aging nuclear plants.

A 2014 incident at Exelon’s Dresden facility in Grundy County involved the release of about 500,000 gallons (1,900,000 liters) of highly radioactive water. Contamination was later found in the plant’s sewer lines and miles away in the Morris, Illinois, sewage treatment plant.

Another leak was discovered in 2007 at the Quad Cities plant in Cordova. It took eight months to plug and led to groundwater radiation readings up to 375 times of that allowed under federal safe drinking water standards.

Exelon had threatened to close the Quad Cities plant, but relented last year after Gov. Bruce Rauner signed bailout legislation authorizing big rate hikes.

Representatives of Exelon and its government overseers — the U.S. Nuclear Regulatory Commission, the Illinois Emergency Management Agency and the Illinois Environmental Protection Agency — say the leaks posed no public danger and did not contaminate drinking water. Exelon said to prevent leaks it has spent $100 million over the last decade on upgrades at all of its U.S. plants.

Michael Pacilio, chief operating officer of the power generating arm of Exelon, said no one in or around the plants was harmed by radioactivity from the leaks, which he described as minor compared with everyday exposures.

“We live in a radioactive world,” Pacilio said.

Critics say that’s little cause for relief.

“Best that we can tell, that’s more luck than skill,” said David Lochbaum, an analyst with the nonprofit Union of Concerned Scientists. “Leaks aren’t supposed to happen. Workers and the public could be harmed. There is a hazard there.”

Among the 61 nuclear power plants operating in the U.S., more than half have reactors that are at or near the end of their originally expected lifespans — including the Dresden and Quad Cities plants.

Industry watchdogs and government whistleblowers contend oversight is compromised by a cozy relationship between companies and the NRC.

Government regulators concede they must balance the safety needs of aging plants, which require more maintenance, versus ordering cost-prohibitive upgrades at facilities that inherently are just a slip-up away from catastrophe.

No player in the nuclear industry is bigger than Exelon, the Chicago-based energy company that last year reported $31 billion in revenue and operates 14 nuclear plants in Illinois, New York, New Jersey, Pennsylvania and Maryland.

Five of the six Illinois plants reported leaks over the last decade, records show. Clinton, in DeWitt County, had no leaks and Byron, in Ogle County, reported only one that contained low levels of radioactivity.

The accidents included in the BGA analysis are separate from government-approved releases into large bodies of water. The state allows Exelon to discharge controlled amounts of tritium into rivers and lakes, where radioactive material gets diluted.

Other releases of tritium, however, can be illegal and subject to fines and government lawsuits — though no accidents from the past decade resulted in either. Government officials say small amounts of tritium — a radioactive form of hydrogen and a potential marker for more dangerous nuclear contaminants — are not harmful to humans but exposure to higher levels may increase the risk of cancer.

At least seven of the 35 documented accidents since 2007 involved contamination of groundwater. Other contamination was found in sewers and other water systems where it isn’t supposed to be.

The recent leaks echo the controversy in 2006 when it was revealed that leaks at Braidwood over many years spilled 6 million gallons (23 million liters) of radioactive water, some of which found its way onto private properties and at least one private drinking well.

At the time, Exelon and state regulators assured the public radioactivity levels in the private well were far below limits deemed a danger. Neighbors of the Braidwood plant were skeptical then and remain so.

“The NRC gets all its numbers from the nuclear plant. How can NRC trust the numbers?” asked Monica Mack, who lives in Braceville near the Braidwood plant.

The BGA investigation also found:

  • Of the 35 documented incidents, 27 occurred at Dresden. Following the big 2014 leak, which emanated from an aboveground storage tank, Exelon asked a state inspector whether the public would have access to the incident report under open records laws, a state report showed.

  • An NRC report on the 2007 Quad Cities leak noted radiation levels went “well beyond that seen anywhere else in the industry” and that plant staff estimated the leak had been active for years before it was discovered.

  • In 2010, Exelon’s Marseilles generating plant in LaSalle County reported a spill from a storage tank, initially estimated at more than 150 gallons (570 liters) but later classified as “unknown.” Groundwater tritium tests later showed levels 59 times the EPA’s drinking water limit. Exelon said no tritium left the plant’s boundaries, but records show plant workers continued to monitor a body of highly contaminated groundwater sitting on plant property at least five years after the accident.

  • In 2009, Dresden reported another hole in a storage tank led to a leak of as much as 272,000 gallons (1 million liters) of radioactive water. Onsite groundwater testing showed levels of tritium 160 times higher than allowed under federal standards for drinking water.

 

This story was provided to The Associated Press by the nonprofit, nonpartisan Better Government Association of Chicago: www.bettergov.org