Blue Press Journal

Tag: finance

  • Tariff Uncertainty Proves Fatal for New York North Country Chocolate Company

    Blue Press Journal – Apothecary Chocolates, a specialty chocolate company based in Colton, NY, has closed its doors due to the uncertainty surrounding tariffs and their impact on the global cocoa market. The company’s owner, Shelby Connelly, cited the fear of impending tariffs as a major factor in her decision to shutter the business.

    Connelly founded Apothecary Chocolates in 2017, using European chocolate product Callebaut to create unique chocolate bars and truffles. However, the cost of Callebaut skyrocketed from $90 per 22-pound bag in 2017 to $250 per bag this spring, following President Trump’s announcement of tariffs on cocoa-bean producing countries. Despite efforts to find alternative suppliers, Connelly was unable to mitigate the price increases, which ultimately made it impossible for the business to operate.

    The price hikes were not only caused by tariffs, but also by market uncertainty and fear. Suppliers hesitated to produce and distribute cocoa beans, leading to shortages and price increases, which were too much for the small business to overcome.

    Connelly is quick to acknowledge that other factors, such as COVID-19-related price hikes and increasing packaging costs, also contributed to the company’s demise. However, the tariff-induced panic was the final nail in the coffin. The fact that the issue was not related to cocoa bean production, but rather a global trade situation, made it particularly difficult for Connelly to accept.

    The closure of Apothecary Chocolates has not only affected Connelly but also her three full-time chocolatiers, who have lost their jobs. Connelly, who also works as an acupuncturist, is particularly concerned about the impact on her former employees, who relied on the company as their sole source of income.

  • Bad Job Numbers Point to Trump’s Failed Economy Policies

    Blue Press Journal (DC) – The latest jobs report from the Labor Department has revealed a worrying trend in the US economy, with hiring decelerating to 79,000 in July, down from previous months. The unemployment rate has also ticked up to 4.3%, its highest level since 2021, exceeding expectations. This slump in job growth is a clear indication that President Donald Trump’s policies, including his trade wars, are creating uncertainty that is leaving managers reluctant to make hiring decisions.

    So far in 2025, the economy has generated a mere 85,000 new jobs per month, a significant drop from the 168,000 jobs created last year under Biden and a far cry from the average 400,000 jobs per month during the hiring boom of 2021-2023. This boom was a result of the US economy recovering from COVID-19 lockdowns, but Trump’s policies seem to be reversing this progress.

    According to Heather Long, chief economist at Navy Federal Credit Union, “The labor market is showing signs of cracking. It’s not a red siren alarm yet, but the signs keep growing that businesses are starting to cut workers.” The Labor Department’s report on Thursday also showed that the number of Americans applying for unemployment benefits rose to the highest level since June, although the number of claims remained within a healthy range.

    In a surprising move, President Trump fired Erika McEntarfer, head of the Bureau of Labor Statistics, following the weak July jobs report. Trump claimed the report was rigged against him, a statement that faced widespread criticism. This decision has raised concerns about the Bureau’s independence and the integrity of its data.

    The latest jobs report indicates that Trump’s economic policies are failing. His trade wars and uncertain decisions are causing businesses to hesitate, slowing job growth.

  • It’s Time for California to Seize the Tax Leverage

    Blue Press Journal (Opinion) – As the fifth-largest economy in the world, California is an economic powerhouse and a leader in national policy. However, despite its significant contribution to the nation’s wealth, the state receives only a fraction of its tax dollars back in funding for essential priorities such as healthcare, housing, climate resilience, and infrastructure. It’s time for California to take a bold step and establish the California Federal Tax Administration (CFTA) to collect and remit federal taxes, thereby gaining control over its own wealth and leveraging its economic power.

    CategoryAmount
    Annual Tax Revenue$400 billion
    Federal Funding Received$30 billion
    Net Outflow$370 billion

    The CFTA would be a new state agency responsible for collecting all federal personal and corporate income taxes from California residents and businesses and then remitting the funds to the federal government. This move would not only simplify the tax collection process but also provide California with a level of autonomy and bargaining power in its dealings with Washington. As noted by Governor Gavin Newsom, “California is not just a state, it’s an economic engine that drives the nation. It’s time we take control of our own destiny and ensure that our tax dollars are being used to benefit our own citizens.“

    By instituting the CFTA, California would be able to highlight the significant outflow of its wealth to the federal government, making it clear that the state is subsidizing the rest of the nation. This would be a powerful statement, as Kamala Harris has noted, “California is a donor state, meaning we give more to the federal government than we receive in return. It’s time we change that dynamic and ensure that our tax dollars are being used to benefit our own state and its residents.”

    The benefits of establishing the CFTA extend beyond political leverage. The state would have a system to ensure government continuity and preserve revenue, offering an advantage during economic downturns or funding uncertainties. As former Governor Jerry Brown stated, “California has always been a leader in innovation and progressive policy. Establishing the CFTA would be a bold step toward controlling our economic destiny and ensuring our state’s long-term prosperity.“

    It’s time for California to seize the tax leverage and establish the CFTA. This move would empower the state to negotiate with Washington from a position of strength. Californians must unite to demand that their elected officials take action, ensuring our state’s wealth benefits our citizens instead of subsidizing underperforming RED STATES. As Governor Newsom has said, “It’s time for California to take control of its own destiny and become the economic powerhouse it was meant to be.”

  • The Importance of an Independent Federal Reserve: Why Trump’s Politicization is a Recipe for Disaster

    Blue Press Journal – The Federal Reserve Bank, the central bank of the United States, has long been a bastion of independence, making decisions based on economic data and expertise rather than political considerations. However, with recent attempts by President Donald Trump to politicize the Fed, there are growing concerns about the potential consequences of such a move. In this blog post, we will explore the dangers of politicizing the Federal Reserve and why other countries that have taken this path have faced significant economic challenges.

    The Risks of Politicization

    Politicizing the Federal Reserve would undermine its independence and potentially lead to a range of negative consequences, including increased inflation and economic instability. As former Federal Reserve Chairman, Ben Bernanke, once stated, “The independence of the Federal Reserve is essential to its ability to make decisions based on its mandate to promote maximum employment and price stability, rather than based on short-term political considerations.”

    CountryCentral BankOutcome
    TurkeyCentral Bank of the Republic of TurkeyHigh inflation, economic instability
    ArgentinaCentral Bank of ArgentinaHyperinflation, economic crisis
    VenezuelaCentral Bank of VenezuelaHyperinflation, economic collapse

    As the table above illustrates, countries that have politicized their central banks have faced significant economic challenges. In Turkey, for example, the government’s interference in the central bank’s decisions led to a sharp increase in inflation and economic instability. Similarly, in Argentina and Venezuela, the politicization of their central banks resulted in hyperinflation and economic crisis.

    Why Trump’s Plan is Flawed

    President Trump’s desire to politicize the Federal Reserve is particularly concerning given his own history of financial mismanagement. As a businessman, Trump has filed for bankruptcy multiple times, raising questions about his ability to make sound economic decisions. As Nobel Prize-winning economist, Joseph Stiglitz, noted, “The idea of putting the Federal Reserve under political control, particularly with someone like Donald Trump who has a history of bankruptcy, is a recipe for disaster.”

    The Federal Reserve’s politicization would risk far-reaching consequences for the US economy. Its independence is crucial for decisions based on economic data rather than political pressures. History shows that politicizing central banks can lead to inflation, instability, and crisis. We must protect the Fed’s independence from political interference.

    As former Federal Reserve Chairman, Alan Greenspan, once stated, “The Federal Reserve’s independence is a cornerstone of its ability to maintain price stability and promote economic growth.” Let us hope that policymakers will heed this warning and reject any attempts to politicize the Federal Reserve. The future of the US economy depends on it.

  • Senior Citizens Face Financial Strain as 2026 COLA Increase May Fall Short

    The Senior Citizen’s League (TSCL) has released its estimate for the 2026 cost-of-living adjustment (COLA), predicting a 2.7% increase for retirees. While this marks a slight bump over the 2.5% increase seen in 2025, the organization believes it still fails to adequately address the rising costs of goods and services that seniors are facing.

    Trump administration, including tariffs that have led to increased costs for everyday goods. These costs are ultimately passed on to consumers, including seniors, who are already struggling to make ends meet.

    TSCL’s research indicates that many seniors believe the COLA fails to reflect their daily inflation. They argue that the metrics used, particularly the Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners, overlook unique expenses like rising costs for medicine, housing, and groceries.

    In light of this, TSCL is calling for a catch-up payment to restore lost Social Security benefits and relieve retirees on fixed incomes. The organization cites past government initiatives, like the 2009 Economic Recovery Payments and COVID-era Economic Impact Payments, as examples of financial assistance in times of need.

    The economic policies of the Trump administration and the Republican Party have contributed to financial strain on senior citizens. Tariffs and other policies have increased costs for goods and services, affecting consumers, including seniors. Consequently, many seniors struggle to meet essential expenses like medicine, housing, and food.

    The TSCL’s estimate of a 2.7% COLA increase for 2026 highlights the necessity for policymakers to examine the economic challenges faced by senior citizens. As living costs rise, the government must ensure that Social Security benefits match inflation, so seniors are not left behind.

  • US Economy Shows Signs of Strain as Service Industry Activity Slows: Trump Tariffs

    Blue Press Journal: A disappointing report on US business activity in the service sector has raised concerns that the ongoing trade tensions and tariffs imposed by President Donald Trump are taking a toll on the economy. The latest data has sparked a decline in US stock indexes, with investors growing increasingly anxious about the potential impact of the trade war on economic growth.

    According to the report, activity in service industries such as transportation and retail has slowed more than expected, adding to worries that the US economy is beginning to feel the effects of the trade tensions. The news sent US stock indexes sliding on Tuesday, with the S&P 500 falling 0.5% after a volatile stretch that saw it experience its worst day since May, followed by its best day since May.

    The Dow Jones Industrial Average also dropped, losing 61 points or 0.1%, while the Nasdaq composite fell 0.7%. The decline in stock prices reflects growing concerns among investors that the trade war is starting to have a negative impact on the US economy, which had previously shown signs of resilience.

    The service sector report is the latest in a series of discouraging economic signals, which have raised fears that the US economy may be heading for a slowdown. The Trump administration’s tariffs on imported goods have been blamed for the slowdown, as they have led to higher costs for businesses and consumers, and have disrupted global supply chains.

    The decline in US stock indexes is a sign that investors are becoming increasingly nervous about the potential consequences of the trade war, and are seeking safe-haven assets to protect their investments. As the trade tensions continue to escalate, it remains to be seen how the US economy will fare, and whether the Trump administration’s policies will ultimately lead to a recession.

    For now, investors are advised to exercise caution, as the economic outlook remains uncertain. As the situation continues to unfold, it is likely that the markets will remain volatile, with investors closely watching the latest economic data and trade developments for signs of what’s to come.

  • Why the Bureau of Labor Statistics Must Remain Above Trump Politics

    What it Mean to You!

    Blue Press Journal: Often operating behind the scenes, the U.S. Bureau of Labor Statistics (BLS) is one of the most vital yet least understood agencies in the federal government. Its name might sound dry, but its work is anything but. The data it collects and publishes—from unemployment rates to inflation figures and wage growth—forms the bedrock of economic understanding and directly impacts the financial well-being of every American. For this very reason, its independence from political influence is not merely a bureaucratic ideal but a cornerstone of economic stability and individual financial well-being.

    The Power of the Numbers: What the BLS Determines

    The BLS is the nation’s premier source for labor market data, meticulously gathering and analyzing information that shapes our understanding of the economy. Here are just a few critical areas it directly influences:

    • Social Security Cost-of-Living Adjustments (COLA): The annual increase in Social Security benefits, which millions of retirees and beneficiaries rely on, is directly tied to the Consumer Price Index (CPI) as determined by the BLS. This ensures that benefits keep pace, at least partially, with the rising cost of living.
    • Job Numbers and Unemployment Rate: The monthly jobs report, including the unemployment rate, is a critical indicator of economic health. It informs businesses about labor market conditions, guides policymakers on employment strategies, and impacts public sentiment about the economy.
    • Inflation Percentages: The CPI, a measure of inflation, is a key economic barometer produced by the BLS. It helps us understand the purchasing power of our dollar, influencing everything from wage negotiations to the pricing of goods and services.

    The Peril of Political Interference: A House of Cards

    Now, imagine a scenario where these critical figures could be manipulated or slanted to serve a political agenda. The consequences would be devastating and widespread, directly disadvantaging citizens in profound ways:

    1. Undermining Social Security and Retirement Security: If inflation rates were artificially suppressed to make the economy “look better,” the annual Social Security COLA would be understated. This would mean retirees and beneficiaries receive smaller increases than they are truly entitled to, effectively eroding their purchasing power and forcing them into greater financial hardship.
    2. Distorting Economic Policy and Interest Rates: A politically skewed unemployment rate or inflation figure could lead the Federal Reserve to make misguided decisions on interest rates. If the economy is falsely portrayed as stronger or weaker than it is, the Fed might raise rates too quickly, stifling growth, or keep them too low, risking inflation. Both scenarios would ripple through the economy, impacting everything from mortgage rates and credit card interest to the returns on savings accounts.
    3. Misleading Investment Decisions: For individuals and institutional investors, accurate, unbiased data is essential for making sound financial decisions. If job numbers or economic growth figures are inflated for political gain, investors might pour money into markets based on false premises, leading to potential bubbles and significant losses when the true picture emerges. Conversely, underreported positive trends could lead to missed opportunities.
    4. Eroding Public Trust and Accountability: When economic numbers are perceived as politically motivated, public trust in government institutions shatters. Citizens lose faith in official reports, making it harder for policymakers to implement effective solutions and for the public to hold leaders accountable. A democracy cannot function effectively when its citizens cannot trust the fundamental data about their own economic reality.
    5. Building on False Premises: Every major economic policy decision—from government spending on infrastructure to tax cuts or adjustments to social programs—is built upon the foundation of BLS data. If that foundation is rotten with political bias, the policies built upon it will be flawed, ineffective, and potentially harmful, leading to misallocation of resources and unintended negative consequences.

    Protecting the Integrity of Data

    The BLS’s strength lies in its non-partisan, professional approach to data collection and analysis. Its credibility is built on decades of rigorous methodology, free from the pressures of electoral cycles or partisan narratives. While administrations change and political winds shift, the BLS must remain a beacon of objective truth, committed solely to presenting the most accurate picture of the American labor market and economy.

    Allowing politicians, regardless of their party, to control or influence the BLS would be akin to letting the fox guard the hen house, but with far graver consequences for every American citizen.

  • US Labor Market Takes a Hit in June as Trump’s Trade Wars Take Toll

    The US labor market showed signs of weakness in June, with employers adding a mere 73,000 jobs last month, according to the latest report from the Labor Department. This unexpected slowdown has raised concerns about the health of the job market and the economy, as President Donald Trump continues to push forward with his radical trade policies, imposing hefty tariffs on imports from almost every country.

    The unemployment rate ticked up to 4.2% in June, a slight increase from 4.1% the previous month. Furthermore, revisions to previous reports revealed that hiring was much weaker than initially thought in May and June, painting a gloomier picture of the labor market.

    One of the hardest-hit sectors was manufacturing, which cut 11,000 jobs in June, following a loss of 15,000 jobs in May and another 11,000 in April. This downturn is a far cry from the robust hiring seen just three years ago, during the “Biden boom,” when employers were desperate to attract and retain workers, offering signing bonuses, Fridays off, fertility benefits, and even pet insurance.

    The current situation is a stark reversal of the job market’s previous trajectory, and experts warn that the uncertainty surrounding Trump’s trade policies is paralyzing businesses and stifling growth. The imposition of tariffs on imports from almost every country has created a climate of uncertainty, making it difficult for companies to make informed decisions about hiring and investment.

    As the trade wars escalate, concerns are growing that the US economy may be headed for a slowdown, or even a recession. The weak job report has raised questions about the wisdom of Trump’s trade policies and their impact on American businesses and workers.

    The Labor Department’s report has sparked widespread concern among economists and policymakers, who are urging the administration to reassess its trade strategy and work towards a more stable and predictable economic environment. As the US economy navigates these uncertain times, one thing is clear: the labor market is sending a warning signal that cannot be ignored.

  • Inflation Rises More Than Expected in June Due to Trump Tariffs

    The latest inflation data from the Federal Reserve’s preferred gauge showed a surprising uptick in June, with the annual increase rising to 2.6 percent from 2.3 percent in the previous month. The increase was largely driven by the effects of President Trump’s tariffs, which have begun to make their way into the economy.

    The core personal consumption expenditures (PCE) index, which excludes the more volatile categories of food and energy, also saw a significant increase, rising to a 2.8 percent annual growth rate. This was above consensus estimates of 2.7 percent, indicating that the impact of tariffs on prices is more substantial than anticipated.

    Economists had been expecting some price growth as a result of the tariffs, but the extent of the increase has been notable. Certain categories, such as household furnishings and equipment, recreational goods, apparel, and motor vehicle parts, have been particularly affected, with prices rising sharply due to the tariffs.

    The Federal Reserve opted to hold short-term interest rates steady at a range of 4.25 percent to 4.5 percent after its meeting this week. The decision reflects the fact that while tariffs are driving up prices.

    The rise in inflation is likely to be closely watched by policymakers and economists, as it could have implications for future interest rate decisions. However, for now, the Fed appears to be taking a wait-and-see approach, monitoring the impact of the tariffs and other economic factors before making any further moves.

    The increase in inflation is also likely to have implications for consumers, who may see higher prices for a range of goods and services.

  • Tariff-Induced Inflation Begins to Take Hold: Economists Expect Further Price Increases

    The latest Consumer Price Index (CPI) report from the Labor Department’s Bureau of Labor Statistics has shown the first signs of tariff pass-through, with inflation rising 0.3% in June. This increase, the largest since January, is likely to be the starting point of a long-anticipated uptick in inflation driven by the sweeping import duties announced by President Donald Trump in April.

    Economists have been warning that the effects of the tariffs would take time to materialize, and the June CPI report appears to confirm this expectation. Businesses had been selling merchandise accumulated before the tariffs were announced, which helped to keep prices stable in the short term. However, as these inventories are depleted, the full impact of the tariffs is expected to become more evident in the July and August CPI reports.

    The experience with tariffs on washing machines in 2018 provides a precedent for this delayed effect. At that time, it took several months for the duties to show up in the inflation data, and economists are expecting a similar pattern to emerge this time around.

    The June CPI report showed increases in various categories, including food prices, which rose 0.3% to match the increase in May. Grocery store prices also advanced 0.3%, driven by a 1.4% increase in the costs of nonalcoholic beverages and a 2.2% jump in coffee prices. These price increases are likely due to higher import duties, which are being passed on to consumers.

    Other categories that saw significant price increases include fruits and vegetables, which cost 0.9% more, and beef prices, which jumped 2.0%. The cost of food consumed away from home rose 0.4%, while gasoline prices rebounded 1.0% after four straight monthly declines.

    Rental costs also contributed to the overall increase in inflation, with the cost of shelter rising 0.3%. This reflects the ongoing trend of rising housing costs, which has been driven by a combination of factors, including limited supply and strong demand.

    The tariff-exposed goods, which saw significant price increases in June, are likely to be the first of greater price pressures to come. As the effects of the tariffs continue to ripple through the economy, economists expect to see further increases in inflation, which could have implications for consumer spending and economic growth.