Playbook PM: Biden’s next economic message: Bigger isn’t better

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Jun 03, 2022 View in browser
 
Playbook PM

By Eli Okun

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BULLETIN — The Justice Department indicted former Trump trade adviser PETER NAVARRO today and took him into custody on charges of contempt of Congress, after he sloughed off a House Jan. 6 committee subpoena. He's expected in court at 2:30 p.m. Navarro's indictment follows STEVE BANNON's similar one in November.

The charges against Navarro would together carry a maximum sentence of two years behind bars. As one of the most vigorous advocates in the Trump administration for attempts to overturn the 2020 election, Navarro became one of many focuses for the House panel probing Jan. 6. But after he was subpoenaed in February, he cited DONALD TRUMP's claims of executive privilege in refusing to comply. (Navarro has also separately been subpoenaed as part of the DOJ's Jan. 6 investigation. He's suing his various investigators.) More from CNN

JUST POSTED — MARC SHORT called then-VP MIKE PENCE's lead Secret Service agent on Jan. 5, 2021, to warn that Pence could be in danger when Trump turned on the VP the following day, NYT's Maggie Haberman reports, from her forthcoming book, "Confidence Man."

WASHINGTON, DC - JUNE 02: U.S. President Joe Biden delivers remarks on the recent mass shootings from the White House on June 02, 2022 in Washington, DC. In a prime-time address Biden spoke on the need for Congress to pass gun control legislation following a wave of mass shootings including the killing of 19 students and two teachers at an elementary school in Uvalde, Texas and a racially-motivated shooting in Buffalo, New York that left 10 dead. (Photo by Kevin Dietsch/Getty Images)

President Joe Biden's word of the day was "steady," as he tries to prepare Americans for more moderation and fewer blockbuster numbers in future jobs reports. | Kevin Dietsch/Getty Images

RECESSION? WHAT RECESSION? — The U.S. jobs market is still looking robust in this morning's May jobs report, which reported 390,000 jobs created last month and a continuing low unemployment rate of 3.6%. That was actually the slowest pace of job growth in the past year, but the ongoing strength of U.S. hiring (beating expectations of about 300,000 jobs) is still helping to shore up the economy, even as the Fed begins raising interest rates to try to tamp down inflation.

The gains were spread widely over many sectors, including construction (though retail was a black eye). More Americans reentered the labor force, including rising numbers of older people who may be "unretiring."

On the flip side, a 10-cent increase in average hourly wage was still insufficient to keep pace with rising prices, meaning workers' real income declined again. WSJ breaks down the latest numbers

President JOE BIDEN celebrated the good hiring news this morning from Rehoboth Beach, Del., where he touted the economy's gains under his tenure while emphasizing that inflation remains a major drag on Americans. "We've laid an economic foundation that's historically strong," he said. "And now we're moving forward to a new moment, where we can build on that foundation, build a future of stable, steady growth, so we can bring down inflation without sacrificing all the historic gains we've made."

Biden's word of the day (other than the now-obligatory RICK SCOTT boogeyman name-check) was "steady." As the May report is starting to show, job growth is expected to settle into smaller gains than we've been seeing lately in the post-pandemic recovery. And Biden advised Americans that more moderation and fewer blockbuster numbers will actually be a good thing.

He's right, but it's a tough line to sell. That's the takeaway from our colleagues Ben White and Kate Davidson, who reported today on this very dynamic: If hiring numbers and wages rise more slowly, they could actually help control red-hot inflation and force fewer dramatic interest rate hikes. This morning's report was "close to the ideal scenario for many economists and Wall Street traders," they write. It raised hopes that the Fed's task of calming inflation without inciting recession might be feasible.

But policymakers don't have much room for error: Not only is this a subtle, complex scenario to message politically, it could also be difficult to ensure that the economy doesn't end up slowing too much.

Happy Friday afternoon.

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ALL POLITICS

AD WARS — The NRSC independent expenditure is going up with its first TV ad against JOHN FETTERMAN in the Pennsylvania Senate race, leaning into his BERNIE SANDERS ties to call him a far-left socialist ally, Holly Otterbein scoops. The $1.5 million ad buy will cover TV for the next couple of weeks, plus a shorter digital version. Watch the 30-second spot

— Meanwhile, Democratic Rep. TIM RYAN's Ohio Senate campaign gave Fox News' Paul Steinhauser the exclusive on his new ad hammering J.D. VANCE from a populist stance. The ad "highlights a five-year-old interview from Vance where the then-venture capitalist appeared to deflect blame away from free trade deals with countries like China for the loss of American manufacturing jobs," and aligns Ryan with Trump's positions on trade. Watch here

THE POLITICS OF CRIME — There's a new wrinkle in the urgency for Democrats to get tougher on crime: A lot of the pressure now is coming from Democratic voters themselves, especially people of color in big cities where rising violent crime has taken a toll, NYT's Alexander Burns reports from Baltimore. Now, from the Maryland gubernatorial race to Seattle, several Dem leaders/candidates are "casting aside the timidity that characterized Democratic arguments during the 2020 election, when much of the party was focused on root-and-branch reform of the criminal justice system in the aftermath of George Floyd's murder."

WHAT THEY'RE READING IN MIAMI — The Democratic-led Latino Media Network is buying more than a dozen Spanish-language radio stations across the country, including Miami's very conservative Radio Mambi, "[c]reating a beachhead in a broadcast market often dominated by conservative or right-wing programming," reports WLRN's Tim Padgett.

PRIMARY COLORS — Rep. DUSTY JOHNSON's (R-S.D.) vote in favor of creating an independent panel to investigate the Jan. 6 insurrection is the subject of a new attack ad against him from a MAGA super PAC ahead of next week's primary, per WaPo's Eugene Scott.

EMPIRE STATE CHAOS — N.Y. Mag's David Freedlander has a fun story on Democrats' intraparty scrambling in the wake of their state's new congressional map: "Almost as soon as the lines were announced, a war of all against all broke out. Congressional members who had dutifully stood aside for one another at press conferences where they were referred to as 'my friend' and had co-signed statements and issued joint press releases were revealed to be barely able to contain their rivalries."

CONGRESS

MARK YOUR CALENDARS — At a House Oversight hearing next week in the wake of the country's recent mass shootings, witnesses will include survivors and victims' parents from the recent massacres in Buffalo, N.Y., and Uvalde, Texas, NBC's Ali Vitali scoops.

FOR YOUR RADAR — "A U.S. Capitol Police officer has been indicted for his role in a 2020 on-duty crash in Georgetown," via Anthony Adragna.

 

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POLICY CORNER

CLIMATE OF UNCERTAINTY — The climate hawks' knives are out for an unusual object of ire: the Biden administration's own Climate Policy Office, headed by GINA MCCARTHY. Advocates and Democrats both inside and outside the administration tell Zack Colman that the office has gotten in the way of progress on a clean energy transition by prioritizing political considerations, micromanaging other agencies and shying away from legal battles. Critics "said the climate office's modest accomplishments and seeming lack of urgency are failing to fill the gap" in congressional action, though the administration defended the office on the record as pushing hard on climate.

BEYOND THE BELTWAY

THE NEW GOP — The Special Olympics USA Games, happening next week in Orlando, rescinded its Covid-19 vaccine requirement for the competition after Florida Gov. RON DESANTIS' administration warned they could face $27.5 million in fines, ABC's Jay O'Brien scoops.

ABORTION FALLOUT

AFTERNOON READ — From Hialeah, Fla., Kathy Gilsinan and Arek Sarkissian have a revealing POLITICO Magazine dispatch about a Sunshine State paradox: restrictive abortion policies in the state with the nation's third-highest abortion rate. "This makes Florida an especially vivid laboratory to study the limits of the GOP's push to restrict abortion," they write. "At what point does the Republican-dominated legislature in Tallahassee, unaccustomed recently to negative consequences at the polls, discover it has awakened a constituency that had come to rely on abortion as an important option in navigating their lives?"

WAR IN UKRAINE

ON THE GROUND — In the eastern Ukrainian areas now being bombarded by Russia, every evacuation effort is a risk. Much of the population has already fled. "But tens of thousands of people remain caught in the crossfire with nowhere to go as the battle for the Donbas grinds on," our colleague Christopher Miller reports from Raihorodok, with photographs by Anatolii Stepanov. "And they are paying a heavy price." Trapped in basements for weeks or months, many of them have to decide whether to attempt a mad dash out in the open — if they're even strong enough to go.

— As the war reaches its 100th day, heavy fighting is still raging in the key city of Sievierodonetsk. And a new British defense analysis assesses that Russia will likely capture all of Luhansk within a couple of weeks. More from the NYT

— Russia entrenches: "The ruble is now an official currency in the southern Kherson region, alongside the Ukrainian hryvnia," per the AP. "Residents there and in Russia-controlled parts of the Zaporizhzhia region are being offered expedited Russian passports. The Kremlin-installed administrations in both regions have talked about plans to become part of Russia."

RESPONSE FROM THE U.S. — In the month since the U.S. launched a private sponsorship program for regular Americans to help resettle Ukrainian refugees, 45,000 people have submitted applications to be sponsors, CBS' Camilo Montoya-Galvez scoops. Tens of thousands of Ukrainians have arrived here under the program, been authorized to come or crossed the southern border into the U.S. "The number of applications and case approvals indicate the Uniting for Ukraine program could quickly become the largest official private refugee sponsorship initiative in U.S. history."

THE VIEW FROM MOSCOW — Russian elites say President VLADIMIR PUTIN is playing the long game, betting he can outlast Western resolve in supporting Ukraine by deploying tools of economic warfare, like a grain blockade, Catherine Belton reports in WaPo.

 

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AMERICA AND THE WORLD

ANNALS OF INFLUENCE — "Former U.S. ambassador points finger in Qatar lobbying probe," by AP's Alan Suderman and Jim Mustian

DANCE OF THE SUPERPOWERS — After the U.S. made its preferences known, the U.K. is considering rolling back a deal that allowed a Chinese-owned company to buy a chip factory there, WSJ's Stu Woo and Yang Jie scoop . "Behind the scenes, a diplomat from the U.S. Embassy in London told British officials in recent weeks that the factory—if back in British hands—could help the U.K. become a hub for making chips crucial to electric vehicles."

PLAYBOOKERS

IN MEMORIAM — "Barry Sussman, Washington Post editor who oversaw Watergate reporting, dies at 87," by WaPo's Emily Langer: "If Mr. Sussman was deemed superfluous for the movie ['All the President's Men'] — a decision that deeply wounded him … — he was by all accounts the opposite in the actual events that inspired it."

SPOTTED at Buckingham Palace on Thursday for Queen Elizabeth II's Platinum Jubilee: Michael Bloomberg and Diane Taylor, Kevin Sheekey, Patti Harris, James Hooley, Adrienne Elrod, Phil Rucker, Sara Latham and Dennis Cheng.

FIRST IN PLAYBOOK — Adam Gagen has been named global head of government affairs for fintech company Revolut. He most recently was VP for Europe, the Middle East and Africa government affairs at American Express.

STATE DEPARTMENT DEPARTURE LOUNGE — John "J.T." Ice is leaving his role as deputy spokesperson at the State Department. Ice, a career foreign service officer, is heading to the U.S. Naval War College for a year, where he'll be a student in their national security and strategic studies master's program.

TRANSITION — Calley Hair is now press secretary for Sen. Maria Cantwell (D-Wash.). She covered government and politics for The Columbian in southwest Washington state until September and then worked as a freelance reporter in the Portland, Ore., metro area.

WELCOME TO THE WORLD — Melanie Lawhorn, comms director for Sen. Mike Crapo (R-Idaho), and Donovan Lawhorn, lead associate at Fannie Mae, welcomed Noah Lawhorn on May 21.

 

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California Today: Farmers’ markets in California

The state has some 700 markets featuring some of the world's best produce — but it took legislative changes in the 1970s to help them flourish.
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By Shawn Hubler

California Correspondent, National

It's Friday. Let's go to the farmers' market. Plus, mask mandates are coming back.

Jose Gallardo, left, bagging strawberries for customers at the Saturday farmers' market in Midtown Sacramento.Shawn Hubler/The New York Times

Fed up with bad news, I went the other day to the farmers' market, one of my favorite places in Sacramento. Sweet cherries were in season, for now.

"Eight weeks," Missy Gotelli told me as shoppers jostled around bins of Bings, Rainiers and Brookses from her Gotelli Farms in Lodi. "We typically start in late April and end in late June. Forty-one markets a week. In, out, done."

Under his pop-up tent, Jose Gallardo offered Albion and Monterey strawberries, also fleeting. Each week, in the morning dark, he loads up in Watsonville and Salinas and drives some 175 miles to my local market, sleeping with his haul of berries and kale, cauliflower and broccoli in his Gallardo Organic Farms van.

"Albion is more sweet," he instructed, holding up a deep red one. "In March, it is cold and raining and the plant is sleeping. But in June — ooh, a lot of berries. Sweetest is this color. Some people don't like the green tops, but me? I eat everything."

Gotelli Farms cherries from Lodi at the Saturday farmers' market in Midtown Sacramento.Shawn Hubler/The New York Times

There are some 700 certified farmers' markets in the state, so many that it is easy to forget that as recently as the mid-1970s, farmers' markets were on their way out in California. Common in the 1930s, they were all but wiped out in the 1950s and '60s by the regulations that helped make California agriculture a phenomenon worldwide.

Sorting, packing, transportation and sales were so thoroughly geared to the mass market that it was all but impossible for farmers to bypass wholesale distributors and packing houses. Small growers were sacrificing much of their profit margins. Tree fruit was going to waste by the ton because it could not be sold unless it conformed to strict standards governing its size, color and ripeness, the better for shipping and supermarket display.

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That changed in the 1970s as small farmers, consumer activists and anti-hunger organizations lobbied to move agricultural policy, even if only a little, at the federal level and in California. The state's Direct Marketing Act of 1978 — signed by Jerry Brown, then in his first stint as governor — was a tipping point as public opinion shifted. Farmers' markets took root from San Francisco to Santa Monica.

"It was a two-year conversation with the agriculture industry," Ann M. Evans, a former mayor of Davis who worked at the time for the Brown administration, recently told me. "Even though it sounds obvious now."

That long conversation — and all that it altered — isn't top of mind for the crowds who flock on Saturdays to my usual midtown market, jamming the stalls and food trucks even if Covid has not passed.

Artisan bread from Camina Bakery in Chico at the Saturday farmers' market in midtown Sacramento.Shawn Hubler/The New York Times

They're there for the heirloom tomatoes Juan Islas hauls up from Jacobs Farm in Los Banos and for Eliana Carter's apricots and walnuts from Winters Fruit Tree. They're there for Bobby Mull's Zeal kombucha, fresh from the cooler. They're there for the artisan bread that Kenneth Curran and Tatton White bring down from their Camina Bakery in Chico — loaves so fragrant and fresh and steeped in the lineage of Northern California's artisanal food movement that I've seen people tear into them with their bare hands right there on the sidewalk.

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But the back story is there, too, humming behind the scenes like good news in a bad time: Things can change, it says, and a small change can make a big difference.

And in the meantime, sweet cherries are in season in California, people. Get 'em while they last.

Tell us more:

  • Summer is prime time for farmers' markets in California. Email us at CAtoday@nytimes.com with your favorite markets, vendors and agricultural memories.

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If you read one story, make it this

"Every time I type the word 'Hollywood,' I feel a twinge of anachronism, as if I were speaking a dead language or writing about a country in the process of being erased from the map," writes my colleague A.O. Scott, The New York Times's co-chief film critic. In a timely analysis that is powerful all the way to the last line, he asks whether Americans can still unite around the movies in these divided times.

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A kayaker fished in Lake Oroville last summer, when water levels were low because of drought conditions. The lake is the second largest reservoir in California, and is home to the Edward Hyatt power plant.Ethan Swope/Associated Press

The rest of the news

  • Hydropower: Electricity generation from California's hydropower dams could be cut in half this summer, Grist reports.
  • Renewable energy: The Biden administration will halve the amount it charges companies to build wind and solar projects on federal lands, a move intended to encourage development of renewable energy.
  • Reformers curbed: In a decision prompted by progressive district attorney policies, a California appeals court ruled that prosecutors must follow the state's three-strikes law, though they can still seek dismissal of strikes "in the interests of justice," The San Francisco Chronicle reports.
  • Gun settlement: The California Highway Patrol has agreed to pay nearly $4 million to settle a lawsuit that blamed the agency after a patrol officer used his service firearm to kill his estranged wife, wound her lover and then kill himself in 2018, The Associated Press reports.
  • Mentally ill inmates: In four years, one mentally ill prison inmate was transferred 39 times, until the pandemic hit and the movement stopped. Seven months later, he was dead, CalMatters reports.
SOUTHERN CALIFORNIA
  • Covid surging: Indoor mask mandates could return this month in Los Angeles County if hospitalizations continue to rise, The Los Angeles Times reports.
  • Declared innocent: A Compton man who spent 21 years in prison for a gang murder he said he didn't commit has been declared factually innocent, The Associated Press reports.
  • Saddleback succession: The Rev. Rick Warren, who ministers to a global audience of more than 40,000 people and has offered spiritual guidance to multiple American presidents, said the Rev. Andy Wood of Echo Church in San Jose will take over at Saddleback Church when he retires this fall, The Orange County Register reports.
  • Basketball billionaire: LeBron James of the Lakers is officially the first active N.B.A. player to make the Forbes list of billionaires, Forbes reports.
CENTRAL CALIFORNIA
  • Methane leaks: More than 20 oil wells have been found to be leaking methane in or near two Bakersfield neighborhoods, and more than two dozen are being tested by state and regional air regulators, The Desert Sun reports.
  • God's Bath: A San Jose man who disappeared last month in a Sierra Nevada river after jumping into the Stanislaus National Forest swimming hole known as God's Bath has been found dead, Mother Lode News reports.
NORTHERN CALIFORNIA
  • Masks return: Alameda County is again requiring masks in most indoor public settings, as rising coronavirus cases drive a concerning increase in hospitalizations, The San Francisco Chronicle reports.
  • Wake and quake: A magnitude 4.1 earthquake shook the Bay Area before sunrise Thursday, rattling homes and waking many residents, SFGate reports.
  • Pride compromise: A contingent of San Francisco police officers will march after all in the city's Pride parade this month, KRON reports.
  • Warriors vs. Celtics: Boston stunned the Golden State Warriors, taking the opening game of the N.B.A. Finals, 120-108, with a late-breaking comeback.
Andrew Purcell for The New York Times. Food Stylist: Barrett Washburne.

What we're eating

Turkey pitas with cucumbers, chickpeas and tahini.

Hikers looking up at a large redwood on the James Irvine Trail in Prairie Creek Redwoods State Park.Zach Urness/Statesman-Journal, via Associated Press

Where we're traveling

Today's tip comes from Gayle Jensen, who recommends Prairie Creek Redwoods State Park in Humboldt County:

"The redwood parks are like heaven on earth, but Prairie Creek is the favorite — with Fern Canyon the best feature. Just watch out for the wild Roosevelt elk that the park call home. Be respectful and keep your distance."

Tell us about your favorite places to visit in California. Email your suggestions to CAtoday@nytimes.com. We'll be sharing more in upcoming editions of the newsletter.

What we're listening to

On "The Daily," we expanded on our California Today interview this week with Dr. Garen Wintemute, a gun violence policy researcher at the University of California, Davis Medical Center, who has found that California's approach to gun laws is making more of a difference than many Americans realize.

Vice President Kamala Harris spoke alongside Miguel Cardona, the education secretary, about Corinthian Colleges student loan forgiveness on Thursday.Kevin Dietsch/Getty Images

And before you go, some good news

In its largest student loan forgiveness action ever, the Education Department has said it will wipe out $5.8 billion owed by 560,000 borrowers who attended Corinthian Colleges, which was one of the nation's biggest for-profit college chains before it collapsed in 2015.

The payout is the culmination of a decade-long legal battle by the California Department of Justice, started by Vice President Kamala Harris when she was the state's attorney general, to hold the chain accountable for predatory practices that saddled thousands of low-income students with crippling student loan debt.

Thanks for reading. We'll be back on Monday.

P.S. Here's today's Mini Crossword, and a clue: "No need to wake me" (4 letters).

Soumya Karlamangla and Mariel Wamsley contributed to California Today. You can reach the team at CAtoday@nytimes.com.

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