The Full Belmonte, 3/18/2024
Russia's Putin wins his rubber-stamp election by a landslide
READ FULL STORY→ USA Today
“At a news conference in Moscow hours after polls closed, Russian President Vladimir Putin thanked his country for its support following a three-day election. He also commented on the death of the opposition leader Alexei Navalny for the first time. Partial results show Putin easily winning a fifth term. Western countries are saying the vote was neither free nor fair.
Alexander Zemlianichenko/AP
The U.S. condemned the vote, noting that Putin has imprisoned political opponents and prevented others, including anti-war candidates, from running. NPR's Charles Maynes reports on Up First that election monitoring groups have raised concerns about vote rigging. Putin rejected charges that the elections were undemocratic and said Russians had rallied behind him when confronted by threats from Ukraine. Still, Maynes notes there are international divisions. Powerful nations like China congratulated Putin, as did North Korea.” [NPR]
“Former President Donald Trump is making headlines again for comments he made about Jan. 6 rioters, immigrants, asylum seekers and the U.S. auto industry at a campaign rally in Ohio this weekend. Trump warned that ‘it's going to be a bloodbath for the country’ if he's not elected — referring to the auto industry and his plans to increase tariffs on foreign-made cars.
‘This is what Trump does,’ NPR's Domenico Montanaro says. ‘He throws out this kind of violent, graphic language’ because he knows it will get a rise out of people and make headlines. Then, he can ‘wave his hand and blame the media for creating a false narrative.’ Montanaro adds that while many are litigating what Trump meant by his ‘bloodbath’ comment, his praise for the Jan. 6 rioters, whom he called ‘hostages’ and ‘patriots,’ is going less noticed.” [NPR]
“The Supreme Court is set to hear arguments today on a case focused on the federal government's ability to combat what it sees as false, misleading, or dangerous information online. The case will be a test of First Amendment rights in the internet age. An appeals court ruled last September that key government officials, including officials in the White House, CDC and FBI, could not communicate with social media companies. The court said these officials likely violated First Amendment rights by pressuring the companies to moderate or change content about the COVID pandemic, election interference and more. The court is also expected to hear a case about government influence and First Amendment rights related to the National Rifle Association after it finishes arguments on the social media case.” [NPR]
Former President Donald Trump at a campaign rally in Vandalia, Ohio. (Jeff Dean/AP)
2024 race
“President Joe Biden and former President Donald Trump are making their appeals to voters ahead of another round of primaries on Tuesday. During a rally in Ohio on Saturday, Trump warned that if he were to lose the 2024 election, it would be a ‘bloodbath’ for the US auto industry and the country. The remark came as Trump promised a ‘100% tariff’ on cars made outside the US, arguing that domestic auto manufacturing would be protected only if he is elected. Meanwhile, Biden's campaign said it brought in $53 million in February, a sign of accelerating donor interest. Fundraising has been a bright spot for Biden's reelection effort, even as he battles low approval ratings and some polls showing him trailing Trump in key battleground states.” [CNN]
Migrants are taken into custody by officials at the Texas-Mexico border in Eagle Pass, Texas. (AP Photo/Eric Gay)
IMMIGRATION
The Supreme Court will decide if Texas can arrest migrants for illegal entry
“Texas’ plan to arrest migrants who cross the U.S.-Mexico border illegally is on hold while the nation’s highest court considers a challenge led by the Justice Department to Republican Gov. Greg Abbott’s latest move over immigration. Justice Samuel Alito has ordered a stay until Monday at 5 p.m. EDT, when the law could potentially take effect. Read more.
Things to know:
Who can be arrested? The law Gov. Abbott signed in December allows Texas' enforcement to arrest people suspected of entering the country illegally. Although officers must have probable cause, critics have said it could lead to racial profiling and family separation.
Where will the law be enforced? In any of Texas’ 254 counties, including those hundreds of miles from the border. Some places are off-limits, like in public and private schools; places of worship; or hospitals and other health care facilities.
Is it constitutional? The Justice Department, legal experts and rights groups have said the measure is a clear conflict with the U.S. government’s authority to regulate immigration. U.S. District Judge David Ezra agreed, and added that the law could hamper U.S. foreign relations and treaty obligations.” [AP News]
Trump ramps up dark rhetoric at a campaign rally for a Senate candidate
“Former President Donald Trump claimed that he — not President Joe Biden — will protect Social Security and warned of a ‘bloodbath’ if he loses in November as he campaigned for Senate candidate Bernie Moreno in Ohio. The winner of Tuesday’s GOP primary will face third-term Sen. Sherrod Brown, viewed as among the nation’s most vulnerable Democrats, in November. Read more.
Why this matters:
At Saturday’s rally backing Moreno’s candidacy, Trump used the stage to deliver a profanity-filled version of his usual rally speech that again painted an apocalyptic picture of the country if Biden wins a second term.
A Biden campaign spokesperson accused Trump of doubling ‘down on his threats of political violence.’ ‘He wants another January 6, but the American people are going to give him another electoral defeat this November because they continue to reject his extremism, his affection for violence, and his thirst for revenge,’ James Singer charged in a statement.
Trump’s decision to back Moreno marked a major blow to Secretary of State Frank LaRose, who had taken a number of steps to win his favor. LaRose and Moreno have aligned themselves with the pro-Trump faction of the party, while a third candidate, state Sen. Matt Dolan, is backed by more establishment Republicans.” [AP News]
Freeze watch
“Tuesday marks the official start of spring in the Northern Hemisphere after the warmest winter on record. However, more than half the US population this week will experience temperatures at or below freezing. The chilly weather will be a shock for many in the eastern half of the country that experienced warmer-than-average temperatures this past week. The cold system is expected to ultimately creep into the Midwest, progressing south and east with time, while New York is set to drop to 45 degrees Tuesday, forecasts show. Temperatures in the Southeast Tuesday morning will be 10 to 15 degrees below normal for this time of the year. Several major cities, including Atlanta, Charlotte, and Birmingham, Alabama, are all expected to see temperatures drop into the low 30s by Tuesday morning.” [CNN]
A Boeing plane landed with a missing external panel.
“What to know: The panel was discovered missing after a United flight from San Francisco to Oregon on Friday. An investigation is underway.
Zooming out: Boeing is facing scrutiny for recent issues with its planes, including a January midflight blowout, a lost wheel and a nosedive that injured 50 people last week.”
Read this story at Washington Post
Goldman Executive Joins Exodus of Top Female Staffers
“Stephanie Cohen, one of the most senior executives at Goldman Sachs, is joining an exodus of top female talent from the Wall Street firm.
Cohen has been tapped for the new role of chief strategy officer at cloud-services provider Cloudflare, according to people familiar with the matter.”
READ MORE at Wall Street Journal
“Elon Musk released the computer code behind his version of an A.I. chatbot, Grok. He has argued that such important technology shouldn’t be controlled solely by tech giants.” [New York Times]
“Homeland Security will be the first federal agency to incorporate generative A.I. in its work, including to help combat drug and human trafficking.” [New York Times]
Good morning. We’re covering the significance of a real estate industry settlement —
In New Jersey. Tony Cenicola/The New York Times
‘They laughed at me’
“Free-market economic theory suggests that the American real estate market should not have been able to exist as it has for decades.
Americans have long paid unusually high commissions to real estate agents. The typical commission in the U.S. has been almost 6 percent, compared with 4.5 percent in Germany, 2.5 percent in Australia and 1.3 percent in Britain. As a recent headline in The Wall Street Journal put it, ‘Almost no one pays a 6 percent real-estate commission — except Americans.’
If housing operated as an efficient economic market should, competition would have solved this problem. Some real estate brokers, recognizing the chance to win business by charging lower commissions, would have done so. Other brokers would have had to reduce their own commissions or lose customers. Eventually, commissions would have settled in a reasonable place, high enough for agents to make a profit but in line with the rest of the world.
That didn’t happen. Instead, an average home sale in the U.S. has cost between $5,000 and $15,000 more than it would have without the inflated commissions. This money has been akin to a tax, collected by real estate agents instead of the government.
The situation finally seems to be ending, though. On Friday, the National Association of Realtors, the industry group that has enforced the rules that led to the 6 percent commission, agreed to change its behavior as part of an agreement to settle several lawsuits.
The settlement is important in its own right. Americans now spend about $100 billion a year on commissions. That number will probably decline by between $20 billion and $50 billion, Steve Brobeck, the former head of the Consumer Federation of America, told my colleague Debra Kamin.
There is also a broader significance to the settlement. It’s a case study of a central flaw in free-market economic theory. That theory suggests that capitalist competition can almost always protect consumers from businesses that charge too much.
To be clear, competition is indeed a powerful force that frequently makes both consumers and businesses better off. That’s why capitalist economies have such a better record than communist or socialist economies. Just look at South Korea and North Korea. (Are you familiar with the satellite images that compare the two Koreas at night?) Or consider the recent economic struggles of Venezuela.
Market competition, however, isn’t the panacea that free-market advocates claim. Sometimes, businesses can amass enough economic power to squash competition — as real estate brokers did.
Power meets power
Decades ago, the National Association of Realtors set the standard commission at 6 percent, to be split between an agent representing the seller and an agent representing the buyer. If a home seller tried to negotiate, an agent would often issue a veiled threat: You won’t find a good seller’s agent to work with you, and buyers’ agents won’t show your house to clients.
Joanne Cleaver, for instance, tried to negotiate with agents when selling her house last year in Mint Hill, N.C., a suburb of Charlotte. ‘They laughed at me,’ Cleaver told The Times.
The Realtors’ hardball tactics succeeded because they operate much of the network that’s crucial to the housing market, such as the database of listings. They could keep out agents who would have competed on price.
In Chicago. Jamie Kelter Davis for The New York Times
The solution to this concentration of economic power often requires political power — namely, antitrust enforcement by the government. After years of refusing to change their tactics, the Realtors’ agreed to a settlement now because they were vulnerable to government action.
A turning point was a federal trial last year in Kansas City. The jury found that the Realtors’ association and several large members had conspired to keep commissions high and ordered them to pay at least $1.8 billion to home sellers in the Midwest. The verdict quickly led to more than a dozen other lawsuits. The Justice Department has also been investigating the Realtors.
The new trustbusters
That investigation is part of Washington’s new focus on the problems with concentrated economic power.
Since the 1980s, antitrust enforcement has been unfashionable in the U.S. Free-market economic theory has been ascendant instead. But the results of this laissez-faire era have been disappointing for most Americans. Businesses have grown larger, and corporate profits have surged. Incomes and wealth for most Americans have grown only slowly.
In response, both liberals and conservatives have recently shown an interest in antitrust (as I described in a recent newsletter). The Biden administration has embarked on a competition agenda to reduce credit card fees, drug prices and more. The administration has become more aggressive about challenging mergers, too. Some Republicans also worry that big business has become too powerful.
This new movement remains in its early stages, and it’s too soon to know how successful it will be. But the real estate settlement looks like the movement’s biggest victory yet.” [New York Times]
SPORTS
“March Madness: UConn, last year’s champion, was named the No. 1 overall seed in the men’s N.C.A.A. tournament. In the women’s bracket, undefeated South Carolina is No. 1.
Women’s bracket: Iowa is a No. 1 seed, but experts say it has a particularly tough draw. Caitlin Clark’s squad may have to face L.S.U., which beat her team in last year’s championship, to reach the Final Four.
Stanford's Cameron Brink, center, and teammates Kiki Iriafen, left, and Brooke Demetre react to being named a No. 2 seed in the NCAA tournament, Sunday, March 17, 2024.
Scott Strazzante, AP
Go deeper: The Athletic broke down strengths and weaknesses for all 68 teams in the men’s field and the women’s field.” [New York Times]