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In funeral remarks, Biden recalls how the late GOP Sen. John Warner "forged consensus"
"In the battle for the soul of America today, John Warner is a reminder of what we can do when we come together as one nation," President Biden said in remarks Wednesday at the funeral of former GOP Sen. John Warner, who endorsed Biden during the 2020 election.
The big picture: Biden has long been an advocate of bipartisanship and forging consensus in the U.S. Senate, which has been at the center of debate in recent weeks due to the Republican filibusters of a Jan. 6 commission and a sweeping voting rights bill spearheaded by Democrats.
- Biden is still pushing to strike bipartisan deals with Republican senators on infrastructure spending and police reform.
- Suggesting that "senators in Congress will understand this," Biden said that Warner's endorsement in June 2020 "gave me confidence not about winning, but about being able to do the job."
Background: Warner was Richard Nixon's Navy secretary and went on to serve with Biden in the Senate for three decades, before retiring in 2009. He died of a heart ailment at his home in Alexandria on May 25 at age 94.
What they're saying: "[Warner] understood that democracy is more than a form of government. Democracy is a way of being," Biden said. "He understood it begins and grows in an open heart and with a willingness to work across the aisle and come together in common cause."
- "And that empathy, empathy, is the fuel of democracy. The willingness to see each other as opponents, not as enemies. Above all, to see each other as fellow Americans even when we disagree," the president added.
- "That is how John forged consensus and made sure our system worked and delivered for the people."
Income inequality is primarily automation-driven, economists argue
Automation technology has been the primary driver in U.S. income inequality over the past 40 years, according to a new paper by two prominent economists in the field.
Why it matters: Offshoring, the decline of unions, and corporate concentration have all played a part in widening the gap between lower-skilled and higher-skilled workers, but automation is the single most significant factor, and will likely grow even more important in the years ahead.
By the numbers: The real wages of low-education workers have declined significantly over the past four decades, with the real earnings of men who lack a high-school degree now 15% lower than they were in 1980.
- Over the same time, real wages for workers with a post-graduate degree — and to a much lesser extent, those with a bachelor's degree — rose sharply.
The big picture: In their paper, MIT's Daron Acemoglu and Boston University's Pascual Restrepo calculate that 50 to 70% of the changes in the U.S. wage structure since 1980 can be accounted for by relative wage declines among workers who specialize in routine tasks in industries hit by rapid automation.
- Workers who perform tasks that can be increasingly automated — think manufacturing work done by robots or clerical work performed by software — lose out on labor share.
- They're then forced to compete with other lower-skilled workers for fewer remaining jobs, further bidding down wages.
- Higher-skilled workers have largely escaped this trap not so much because of a rising demand for those skills, but because they perform tasks that can't be — or haven't yet been — automated.
What's next: More of the same, barring major political changes.
- While automation has always caused job displacement in the past, it has also increased productivity and generated entirely new classes of jobs.
- But productivity has stagnated in recent decades, and despite the hype of many tech companies, automation and AI are increasingly focused on replacing human labor rather than augmenting it.
- The pandemic accelerated the adoption of automation, and newer forms of AI are set to increasingly automate higher-skilled tasks.
The bottom line: As Acemoglu wrote in a recent essay, "The only path out of our current predicament requires both robust regulation and a fundamental transformation in societal norms and priorities."
The national security risks hiding in Trump's debts
The blockbuster New York Times report on President Trump’s taxes reveals that the president is $421 million in debt, with more than $300 million coming due during Trump’s potential second term — and the identities of the president’s creditors remain unknown.
Why it matters: If some, or all, of this debt is held by foreign actors, it raises serious national security implications.
- "As an intelligence professional, the most important thing is the unknown source of significant loans," says Douglas Wise, a former senior CIA and Defense Intelligence Agency official, because they hold "the potential for blackmail, manipulation and extortion."
The big picture: Standard counterintelligence practices counsel against granting access to sensitive information to individuals with a history of financial instability, because these can provide acute leverage to predatory foreign governments. Senior intelligence officials are even required to disclose all stock transactions in a monthly report.
Between the lines: An average American with Trump's financial profile — massive debts and a history of bankruptcies — would likely not get a security clearance, say former intelligence officials.
- Large debts are a "glaring signal for any hostile intelligence service," says Marc Polymeropoulos, a former senior CIA official who retired in 2019. "Financial vulnerabilities are at the top of their list when pursuing targets for recruitment. ... That the president has such glaring vulnerabilities is jarring to see."
One key risk in President Trump's case is that "hostile intelligence services can quite easily penetrate foreign banks," says Polymeropoulos.
- That means foreign intelligence agencies may already know a great deal more than the American public about Trump's finances, offering the governments they serve another potential point of leverage over the president.
Some former U.S. intelligence officials worry about these vulnerabilities even after Trump leaves office. Ex-presidents can traditionally continue to receive intelligence briefings, including bespoke classified briefings before traveling to specific countries.
- "No one has ever questioned whether these individuals are vulnerable," says Larry Pfeiffer, who served as chief of staff to CIA director Michael Hayden. But, he notes, there is also no precedent for the "massive debt load that this president is holding."
- "All of a sudden you have a leveraged private citizen Trump who still has access to existentially valuable secrets," worries Wise.
Flashback: The question of whether Trump's businesses have relied on foreign financing — and particularly Russian money — has simmered for years.
- It’s been widely reported that after filing for business bankruptcy at least four times, Trump could no longer find U.S. banks to lend him money, so he went searching abroad for financing, including to Germany’s Deutsche Bank, which has lent the president hundreds of millions of dollars.
- Deutsche Bank has been embroiled in controversy involving Russian money laundering, but the Trump Organization has also been linked directly to Russian capital.
- At a 2008 realtor’s conference, Donald Trump Jr. said, "Russians make up a pretty disproportionate cross-section of a lot of our assets. ... We see a lot of money pouring in from Russia." Eric Trump reportedly said in 2013, "We don't rely on American banks. We have all the funding we need out of Russia" to finance the purchase of golf courses. (He subsequently denied making this statement.)
The Mueller probe declined to look deeply into the international money trail, according to senior investigator Andrew Weissmann — a key oversight, he believes.
Be smart: For Christopher Burgess, a 30-year CIA veteran who writes often on counterintelligence issues, the revelations about Trump’s indebtedness raise more questions than they answer.
- "Is there a side agreement? What caused the bank [that lent him money] to take this risk? What’s his credit score?" asks Burgess. "The risk of them signing the money away was very high. The track record is that he screws everybody he does business with."
The bottom line: If any portion of the vast sum Trump reportedly owes is derived from overseas financing, the issue of his debt becomes a matter of national security — and unprecedented in the history of the presidency.
Go deeper: Trump's business dealings raise security concerns, too
Rochester police chief, command staff retire after Daniel Prude's death
Rochester Police Chief La’Ron Singletary announced his retirement on Tuesday following protests and criticism over the police killing of Daniel Prude, a Black man who died seven days after being hooded and held down by local police.
Why it matters: Activists have called for Singletary's resignation after details of Prude's March death surfaced recently, the Democrat and Chronicle notes. Warren accused Singletary of failing to properly brief her on the killing.
Details: Mayor Lovely Warren made the announcement at a Rochester City Council meeting, noting that the police department's entire command staff submitted their resignations as well. It is unclear whether the retirements are effective immediately.
The state of play: New York’s third-largest city has been roiled by demonstrations calling for justice in response to Prude's death. The action has prompted an investigation by New York Attorney General Letitia James.
- Warren announced last week that seven police officers involved in Prude's case were suspended.
- Tuesday's retirements come as Tameshay Prude, Prude's sister, filed a lawsuit against the city of Rochester and various members of the police department, claiming that her brother died from "unlawful force" and the "deliberate disregard" for his health care needs, NBC reports.
What they're saying: "As a man of integrity, I will not sit idly by while outside entities attempt to destroy my character," Singletary said. "The events over the past week are an attempt to destroy my character and integrity ... The mischaracterization and the politicization of the actions that I took after being informed of Mr. Prude’s death is not based on facts, and is not what I stand for."
- "As you all know, this has been very challenging times for the city of Rochester," Warren said, "and the chief was not asked to give his resignation because I do believe that he’s given his very best, and with some information that was brought to light today that I had not previously seen before, and that the chief has felt that his career and integrity has been challenged."
- "He has dedicated 20 years to this city and the citizens of Rochester and feels that the events that have happened were not done in a way that, you know, could’ve been handled differently, but he didn’t, in any way, try to cover this up.”



