Category: economy

  • The increased price tag is a result of US President Donald Trump’s imposed tariffs on auto imports.

    This post was originally published on Al Jazeera – Breaking News, World News and Video from Al Jazeera.

  • While state officials and legislators have positioned Texas to be “the bitcoin mining capital of the world,” in small towns like Granbury, working-class residents living next to giant, loud, environmentally destructive data centers are the ones paying the price for Texas’s crypto boom. “None of us are sleeping,” Cheryl Shadden, a Granbury resident who lives across the street from a 300-megawatt bitcoin mining data center owned by Marathon Digital, tells TRNN. “We can’t get rid of this alien invasion in our homes…This is like being a prisoner of war. It’s like being tortured with loud sounds and bright lights and being sleep deprived.”

    In this episode of Working People, we dive deeper into the reality of living next to crypto mining data centers like the one in Granbury, the unseen threats they pose to human and nonhuman life, and what residents in Granbury are doing to fight back. TRNN Editor-in-Chief Maximillian Alvarez speaks with: Cheryl Shadden, a registered nurse anesthetist and resident of Granbury, who lives right next to the site of the Marathon bitcoin mining operation; Dr. Shannon Wolf, Precinct Chair in Hood County, who lives about 3 miles from the bitcoin mine; and Nannette Samuelson, County Commissioner for Precinct 2 in Hood County.

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    Featured Music…

    • Jules Taylor, “Working People” Theme Song

    Studio Production: Maximillian Alvarez
    Post-Production: Jules Taylor


    Transcript

    The following is a rushed transcript and may contain errors. A proofread version will be made available as soon as possible.

    Maximillian Alvarez:

    Alright. Welcome everyone to Working People, a podcast about the lives, jobs, dreams, and struggles of the working class today. Working People is a proud member of the Labor Radio Podcast Network and is brought to you in partnership within these Times Magazine and the Real News Network. This show is produced by Jules Taylor and made possible by the support of listeners like you. My name is Maximillian Alvarez and today we are diving back into a new sacrifice zone investigation that we began two weeks ago, and we’re returning to the small rural town of Granbury, Texas, which is about an hour southwest of Fort Worth. In the first episode that we did on this, I spoke with Danny Lakey, Karen Pearson, and Karen’s parents, Nick and Virginia Browning, four residents of Granbury who all lived near the site of a giant 300 megawatt Bitcoin mining operation.

    I mean, Danny, Nick, and Virginia literally live right across the street from that thing. And the Bitcoin mine itself, which is owned by Marathon Digital, a Florida based cryptocurrency company uses a mix of liquid immersion and industrial fans to prevent the over 20,000 computers there from overheating on a daily basis. And many residents say that it’s the constant sound from those fans that has made life increasingly unbearable in their town, that they are developing negative health effects like hypertension, heart palpitations, tinnitus, migraines and more. And they say that their concerns are going ignored by the company and government officials. And speaking of government officials, let’s not forget that Republican Texas Senator Ted Cruz said in 2021, I would like to see Texas become the center of the universe for Bitcoin and crypto and quote, and it was Republican governor Greg Abbott who said in 2024 that Texas wears the crown as the Bitcoin mining capital of the world.

    But in small towns like Granbury residents are the ones paying the price for Texas’s crypto boom. In today’s episode, we dive deeper into the reality of living next door to crypto mining data centers like the one in Granbury, Texas, and the unseen but not unheard threats that they pose to human and non-human life and what residents in Granbury are doing to fight back. I was extremely grateful to get a chance to sit down and talk with Cheryl Shadden, a registered nurse anesthetist and resident of Granbury who lives right next to the site of the Marathon Bitcoin Mining operation, Dr. Shannon Wolf, precinct chair in Hood County, who lives about three miles from the Bitcoin mine and Nannette Samuelson County Commissioner for Precinct two in Hood County. Here’s our conversation recorded on April 27th, 2025.

    Well, Cheryl, Dr. Wolf, Nannette, thank you all so much for joining us today. And as I told your neighbors in our last episode, it’s really great to connect with you, but I really truly wish we were connecting under les horrifying circumstances, but I’m really grateful to y’all for joining us today to help us and our listeners understand this situation on a deeper level and to show how it’s not even just the marathon Bitcoin mine that we’re talking about here. So we’ve got a lot to dig into here. And Cheryl, I wanted to start by asking if we could first get just a little introduction to you. You live right across the street from this Bitcoin mine, like the folks we talked to in the last episode. So could you tell us just a little more about yourself, where you live, what you do, and how your life has changed since this Bitcoin mining operation moved in right next door to you?

    Cheryl Shadden:

    Absolutely. Thank you, max. We really appreciate this opportunity. My name is Cheryl Shadden. I’m a certified registered nurse anesthetist. So I work in healthcare when I’ve been here for over 30 years. My home was here long before crypto. Mine came in long before the power plants that they’re plugged into came in. So I’m living out here in the country with my horses and my dogs, and I just want a peaceful life. I want to be able to do my job, take care of patients, have my horses, ride them around and have a peaceful country life. In the fall of 23, I hear all of this noise. This isn’t just a little bit of the power plant noise. This is standing on the edge of Niagara Falls. This is sleeping with a vacuum cleaner. This is laying on a flight deck where jets are taking off, but the jets don’t take off.

    They stay there and they keep running. And so when we first started hearing this noise, we thought, well, they’re just building onto the power plant here. That’s what all of this humming is. And it was just a slight hum in the background. And then the hum got worse and worse and worse. It felt like an airline invasion. None of us in this area knew what a crypto mine is. Nobody knew what a data center was. Nobody had any idea. And then as the initial owners sold out to somebody else and then sold out to somebody else, the noise got worse and worse and worse. Finally, by the fall of 23, we didn’t know what this was. Now the sound is invading our homes. It’s inside of my house with ceiling fans on and TVs on. You can’t think you’re motion’s sick, nauseated, you’re dizzy. You have a hard time getting out of bed.

    You feel like you’ve got a concussion. And so then we realized that this is a crypto mine. Well, we didn’t know what that was, so we started looking it up and the process of all of that, I had family come to visit and they asked me their mom, what is this? And I said, well, it’s a crypto mine. They’re like, why are you living like this? What’s going on? How can you live this way? And I thought, well, how can my family come and see me from out of state and be appalled? Why am I not more appalled? Why am I not doing anything about this? So I started calling my commissioner and I talked to my constable and I said, what can I do? I don’t know what to do. I don’t know what this is. What do we do? And so my constable said, you’re going to have to get community involvement.

    If you want anybody to be aware of this, you’re going to have to get the community involved. I thought, well, I have no idea how to do that. So I started reaching out on social media and I was telling everybody what’s going on and posting videos and asking if everybody was sick or if anybody was ill. Next thing you know, neighbor, after neighbor, after neighbor in our county and the county south of it is telling me the same things that are going on with me and some are sicker and some are less sick and children are sick. And I thought, oh my God, it’s not just me. It’s so many people in this area. So I started reaching out and collecting health information on everybody. And when this happened in the fall, commissioner Samuelson said Yes, she’d already started getting complaints about all of this.

    She was planning on having a town hall in January. And so I thought, well, I dunno how many people in this area are on social media. So I started driving house to house, house to house and knocking on doors and telling people, this is what’s going on. We have to do something. We’re having a town hall. Please come. I’m Cheryl. I’m standing up. I’m here. We have to do something. Oh my God. And so then Commissioner Samuelson had a town hall. It was well attended. There was standing room only and story after story of community member after community member after community member of the horrific things that they’re having to live with on a daily basis. Wildlife that’s gone, dogs that are having seizures, people that can’t sleep. One person said he lives near Shannon and the noise was so bad in his driveway at night, he said it would drop him to his knees.

    None of us are sleeping. We have sleep disturbances. We can’t get rid of this alien invasion in our homes. We didn’t know what to do about it. And so it was a pretty heated town hall meeting. We had media there and we started reaching and from connection to connection to connection, I got in touch with Texas Coalition Against Crypto Mining and they got me in touch with Andrew Chow with Time Magazine. He did the first article we had here and got us some national interest and people are shocked that we’re living this way. And then with all of the media coming out and doing videos and interviews, it was horrific what we’re living through. This is like being a prisoner of war. It’s like being tortured with loud sounds and bright lights and being sleep deprived until you crack and you talk. It feels like being a prisoner of war, but I get the feeling that prisoners of war are treated better than we are here. This is not Okay.

    Maximillian Alvarez:

    Well, and Commissioner Samuelson, I’d love to bring you in here and ask like what the hell this was all looking like from your side, both as a resident and elected official. Could you help our audience understand a bit more where this crypto came from and I guess what the regulation situation is over there that has allowed such loud operation to operate so close to residents homes?

    Nannette Samuelson:

    Right. Thank you again for getting us all together. And again, I’m Nannette Samuelson. I’m the commissioner for Precinct two, which includes the unincorporated area that Shannon, Dr. Wolf and Cheryl and all the people that you’ve mentioned live in as well as the cryptocurrency data center. So I took office in January of 23 and almost immediately started getting phone calls about what is this noise I’m hearing out here? And I asked the person, well, tell me more about it. Do you have a decibel meter? What are the decibels? And so we just started collecting information. I started researching what the noise regulations were in the state of Texas and what we could do about it. And so the state of Texas does not give counties very much regulatory authority at all. If you live in a city, you can have a noise ordinance, you can have zoning for residential or commercial.

    But in unincorporated parts of the counties in Texas, you have very little, we don’t regulate zoning. We don’t regulate noise. So all we have is to rely on is what the state calls a noise nuisance, which is 85 decibels or higher. That is industrial level noise. That’s not something that someone should be subjected to 24 hours a day, seven days a week without hearing protection. And that’s what I tell people that ask about this. I said, it’s like putting a leaf blower next to your bed and never turning it off and trying to live with that 24 hours a day, seven days a week, people go, if you go to NASCAR or something loud, you wear hearing protection and you know that in a little while you’re going to leave and go home to peace and quiet. These people cannot do that. They are subjected to this 24 hours a day, seven days a week.

    So I started looking into it. So back to the history, and Constable Shirley and I, he bought a what I’d call an industrial grade decibel meter because there are decibel meters that you can download on your phone with an app, but those aren’t necessarily that scientific. So we bought an industrial grade commercial decibel meter and started taking readings all over this area all the way six miles away to right across the street right next door, Cheryl’s house, the neighborhood that’s right next door. And we contacted the owners at that time was generate capital, and then it was operated by us Bitcoin, so we started contacting them. So maybe I should back up and talk to you about how it started. You asked me that. That was before I took office, but let me go back to that. So as I mentioned, the county does have platting authority, but unless something is infringing on us, I’m sorry, a TDOT road, not us, but a TDOT road or it’s in a floodplain, there’s really not anything that the county can do to deny it as long as they have proper sewage and water.

    So if you’re going to build a housing addition, you have to provide sewage and water, but this isn’t a housing. So as long as they have enough water for the two or three workers that are there and sewage for the two or three workers that are there, and it’s not in a floodplain, there was nothing that the county could do to deny it from being built. That’s how it got there. But when it came it, I was sitting in court, not a member of the court, but I was there as an audience member. And when they brought that to court, it was just Compute North, which is out of North Dakota where the original owners, and it was just called a data center and it was just going to have nine containers. And then they brought back the second development and it had more containers, but it was still called a data center.

    The commissioners at the time didn’t really know what a data center was or cryptocurrency. What they said was they were going to harvest unused power to power a data center is what they were telling the court. So when I got there, it had already been well on the way actually Compute North went bankrupt in 2022, I believe, early 2022, and then generate capital, bought it out of bankruptcy, hired us Bitcoin to operate it and complete the development of it. And they went live in either late 2022 or early 2023, but it wasn’t totally built out. But that’s when I started getting the complaints. So we started working with US Bitcoin and they were actually very wanting to be good neighbors. They met with us. They came down here several times. Constable Shirley and I drove them around with our decibel meter and said, look how we’re six miles away and look at the readings that we’re getting.

    And they were very open to whatever it is that we have to do to be good neighbors, we want to do it. They did build a wall, but as Cheryl knows, that wall ended up, it wasn’t a wall all the way around. It was a partial wall on the southeast side of the building of the plant right next to the neighborhood there. But all it did was cause the sound to ricochet off that wall and head straight to Cheryl’s house, and it just really amplified it. So I called, this is still US Bitcoin. I emailed or called him back and I said, did you get a performance bond on that or a performance requirement on that wall? Because if whatever they told you it was going to do to the sound, it’s not working, you need to get your money back because I’m getting more complaints now than I did before you built the wall.

    And so they actually came back out, we drove around again, and then they said, okay, we’re committed to getting a new sound study. We’re going to do whatever it is we need to do. About two weeks later, he emailed me back and said, well, this was December of 23. We just found out we’re being put up for sale. So I really can’t do anything until I know who the new owners are. So it kind of just drug out until January. The sale closed, really kind of coincidentally, right before I had that town hall. So the new owners marathon, a couple of the people from Marathon actually came to our town hall and listened to heart wrenching Heart, heart-wrenching stories from all of these residents about what it’s like to live with this noise and the illness that they’re going. I don’t know if anyone’s brought up from the previous discussions that you had, but the doctor out of Portugal, Dr. Marina Alvez. Have you heard that name yet?

    I have not. Okay. She is an expert in infrasound, which is sound waves that your ear can’t hear, but your body can. Your body is absorbing these sound waves, but your ear cannot detect them. So when you think about the 85 decibels, the 85 decibels is what your ear can hear. It’s not taking any measurement about what your body is absorbing that your ear can’t hear. So we started listening to getting more information from her studies and marathon after that town hall pretty much. That’s really the last conversations that I’ve had with them. They pretty much went radio silent. They did hire PR person. They said, here’s what we’re going to do. We’re going to first hire a PR person, then we’re going to put all these containers in dielectric fluid, which should decrease the noise and two or three other things. Well, they hired the PR person and that person has never called me, has never emailed me, has never even tried to get in touch with me, and they had an open house last Good Friday.

    So that’s another story is they decided to have a town hall in April and they last year they announced it on Wednesday on social media for Friday, which was Good Friday, which didn’t give people very much notice. Plus it’s on Good Friday. So we all went because we were not going to miss an opportunity to speak to the marathon people. And I met the PR person and I asked her, I said, I’m the commissioner for precinct too. I’m kind of surprised that you haven’t tried to call me or contact me. And she said, well, no one told me I was supposed to, and she still hasn’t since then. My phone number’s on the county website, I don’t remember for sure, but I’m sure I gave her my card. I always do when I introduce myself, but still nothing. But so that’s been kind of the history of what’s happened.

    And we tried. So one of the things that we did, because the counties don’t have regulatory authority, we started working with our two legislators, our Senator Birdwell and Shelby Slawson about getting something changed in the Texas law that would allow us more ability to put sound, noise, regulation, noise wouldn’t be called an ordinance because that’s what cities do. Counties don’t have ordinances in Texas. But some ability to allow our constable or our sheriff’s department to do something to monitor this noise level for the people that live there. Even if it was like at airports where it’s after eight o’clock at night and before eight o’clock morning, which doesn’t help Cheryl that much. She gets up at like three in the morning. But something that we could do, and we started last summer, we drafted a resolution at Commissioner’s Court, passed five zero. I took it down to a hearing last summer about the grid because the other thing that these cryptocurrency, as you probably know, the cryptocurrency data centers are a huge draw on the grid.

    And so that was what the hearing was about. But I used that opportunity to say, in addition to the draw on the grid, this is what it’s doing to people’s lives. And I talked about the illnesses, but I said, which I don’t know if anybody’s mentioned yet, but I said, the people that live around here, their property is not just worth less. It’s worthless. They cannot sell their property even if they wanted to because nobody wants to live next to this constant noise. So we started working with our legislatures. I was on the phone with other senators, Senator Cole Kirst, who’s on the Health and Human Services Committee, Senator May Middleton, again, Brian Birdwell, they are just now here. We are almost at the end of the legislative session and nothing has been changed. So all of our efforts to work with the senator and the legislature and our representative, I don’t think that any bill is going to see the light of day that’s going to give us any more ability to help the people that live here live around this cryptocurrency data center. I don’t have a good feeling for it at all.

    Dr. Shannon Wolf:

    Well, I want to pick up on the Good Friday meeting. As Nanette said, we were all there and the first thing that happened was they demanded that we all sign in, give our email addresses and our phone number. So they were gathering information from all of us, and I refused to sign. And I was telling people, you don’t have to do that. And the marathon folks were saying, oh, yes you do. And I just walked in without signing. And a couple of other people did. But the other thing they did was they had plants that were standing in line as people were kind of waiting for others to sign in to get into the town hall. So they had planted attorneys and other that were officials at Marathon were all in line without telling us that that’s who they were. I just happened to recognize an attorney that I knew represented Marathon in line, and then they demanded that we sit at tables where one of their representatives was at.

    And so they were wanting to gain information without telling us that they were trying to gain information from us. They wanted to know what the symptoms were. They wanted us to tell them what exactly our grievances were, but not for the purpose of helping us. It was for the purpose of just gaining information, probably to try to lessen the impact of the community’s outcry. That’s my belief from that town hall. They have done nothing. They presented information that could have been pulled, and actually I think it was pulled right off the internet. It was nothing that was thought out, but they made all these promises, this is what we’re doing. We’re in the process of doing this. Fill in the blank, whatever that was. And I don’t think they have done any of that. I might be wrong, Nanette and Cheryl, correct me if I’m wrong on that one, but it did not foster goodwill.

    It actually made the majority of us highly suspicious of them. And remember, this is a multi-billion dollar company, and the folks that live out here in this precinct, they are good people, but they are really normal working class kinds of people. So we cannot fight in the court system, these kinds of these problems because they’re drowning us in all kinds of paperwork, all kinds of demands, and they refuse to give information, but they demand it from us. It is just a mess out here. But I have walked with Cheryl and Annette and others that are living out here since what, January of 23? Is that right? Cheryl? January of 24 was when I first became aware of what was going on out there. And I just remember standing outside. My husband and I drove out there and I stood across the street and it gave me an immediate headache.

    My head was just pounding. And I had been out there maybe just a few seconds. I stood outside my car. My husband was also feeling it. He said that it was pounding on his chest, he said, and so we ended up leaving and my thought was, surely if somebody knew about this, they would be able to correct it, whoever this somebody was. And as I talked to people, our Constable, Shirley, Nanette, other people, Nanette, and I sat down in a meeting with our representative, Shelby Slauson, and I thought, okay, yes, now, now something’s going to happen. And nothing did, nothing did. And I think for people to understand Texas, Texas is really a live and let live kind of a place. We’re not going to tell somebody else how to live their lives. We just don’t want them to tell us how to live ours.

    And so people really like to live in rural areas so that if we want to raise chickens or if we want to ride horses, or if we want to do whatever we want to do, it’s an okay thing as long as we’re not bothering other people. So I understand why people move into the rural areas. It’s a beautiful place out here. I also saw, just skipping a little bit, I also saw an interview, I think it was a B, C news where Marathon said, this is a well-established industrial zone. And that is a lie. That is a lie. This is not an industrial zone. This area out here, we’ve got all kinds of wildlife. We have bald eagles, we have golden eagles, we have endangered species out here. We’ve got horses and cows and farms and orchards and all kinds of stuff. It is a wonderful place to be out here. And as Cheryl said, they moved in on top of us. This is not an industrial zone, but they’re lying to people to justify them being out here. The other thing that I would say that your listeners probably would find interesting, the energy plant that owns the property that Marathon sits on was not running at full capacity when Marathon moved in. Cheryl, correct me if I’m wrong, they were running at two thirds capacity. Is that right?

    Cheryl Shadden:

    Correct. 66% capacity,

    Dr. Shannon Wolf:

    66% capacity. And when Marathon moved in, all of a sudden they are running at full capacity. And so Constellation Energy has petitioned our state to build a new energy plant out here. So yet again, they are wanting to buy up ranches and other places in order to build more industry that the community does not want. And quite frankly, it’s making us sicker.

    Maximillian Alvarez:

    Cheryl Nanette, Dr. Wolf, I wanted to ask about, this is something that high up politicians in Texas have been championing for years. I mean, Ted Cruz said in 2021 that he wanted to see Texas become the center of the universe for Bitcoin and crypto, and Governor Abbott said that wears the crown as the Bitcoin mining capital of the world last year. I wanted to ask y’all, when they were saying stuff like that, were regular working folks around the state, you all, did they give you any sense of what that was going to look like? Did they tell you that this is going to be the reality of making Texas a Bitcoin mining capital of the world, the things that you and your neighbors are going through? Is that something people want? I mean, this isn’t like it’s a manufacturing operation providing jobs. This is a massive data center like creating massive amounts of noise and using massive amounts of water for something that’s harder to grab your hands around than a bigger industrial operation. So I just wanted to ask if you could just say a little bit more from your vantage points about the promise versus the reality of making Texas this crypto capital of the world.

    Cheryl Shadden:

    For me personally, living this life and living with this barrage of problems here, I feel like I’ve been sold out. So I notice that these crypto mines aren’t next door to probably Ted Cruz’s home or next door to Governor Abbott’s home. And when we started this initial battle and we’re emailing all of the regulatory agencies here in the Texas legislature and state, they’re like, well, nobody could help us. Nobody cared. Nobody wanted to listen. And so when you stop and think about it, technically we’re subsidizing this. Taxpayers are subsidizing this. The infrastructure that it takes to build electric lines to all of these crypto mines that’s subsidized by taxpayers and by you paying your electric bill, all of our electricity out here has gone up.

    Now here in the state of Texas, crypto Mars don’t have to rate back when we’re struggling with excessive heat or excessive cold, or when a hurricane comes up through the Gulf of Mexico, they don’t have to regulate back. They don’t have to ramp back. But if they do, they buy their electricity on the cheap bargain, basement, bulk pricing, not what I pay, not what Commissioner Samuelson pays or Shannon or anybody in this area. So they buy their electricity on the cheap. Now if they sell it back to the grid by their own choosing, they don’t have to. This mine here is behind the meter so they can do whatever they want. They sell it back to the grid at inflated prices. And so who takes that in? The fanny is me, taxpayers and people that are paying their electric bills every day, consumers. So we’re actually paying the state of Texas to torture us.

    That’s not okay. That’s not remotely, okay, come out here, stay the night at my house, sleep in my house, listen to this noise through shut doors and windows camp out in my backyard. I’d love to have you come stay with me and see what it’s like. It’s not just me, it’s everybody in this area. So you can tell us that this is going to be the crypto mine capital mecca of the United States, but the reality is they don’t care. This is big business in Texas. So that’s all they care about. And reality here, they’re taking a third of the power from this 1200 megawatt power plant, which is Constellation Energy’s Willo two, it’s a gas steam plant constellation doesn’t own the other power plant, which is Willo one, which is a gas turbine plant. So now that they’re drawing all of this power off of Constellation energies, Willo two, now they’re running at 99 6% capacity.

    So since this has happened, now we experience valve blows on a regular basis. We had a valve blow that happened last week that went on for three days. And it’s not just extreme noise, honest to God makes you feel like you’ve lost their mind. So everybody in this area has hearing loss. One family had a child that was having seizures. They took a second mortgage and moved out. And so they’re struggling. People here have cardiovascular disease. One of my neighbors, the electrical system in his ventricle shorted out. He had to be resuscitated multiple times. Now he’s in the hospital right now having had a stroke. So it’s not just the noise, it’s the damage to our soft tissues, the damage to our blood vessels. Like Dr. Alvarez says, there’s so much damage here. And Governor Abbott doesn’t care. Ted Cruz doesn’t care. It’s big business in Texas.

    Who cares if working class people like me get mowed over? It’s not next to their home. And so the reality is how do we fight that? So we’ve tried everything. We have a lawsuit with Earth Justice right now. That’s an injunctive lawsuit. Some of the people in this area have hired personal attorneys to fight for all of the detriment that’s occurred. My property values have decreased. So going through the checklist, I’ve gone to the Hood County Appraisal District and I’m contesting my property taxes again this year. So my property taxes were dropped 25% and a previous year they were dropped 25%. You’re going, wow, that’s great. Your property taxes have dropped 50%. The reality is that’s drop in the bucket of my property. I have absolutely no value at all. So people say, go ahead and move. You can move. How can I move? I’ve been here for 30 years. My home and my property are paid off. Nobody would buy this property. Nobody.

    Nannette Samuelson:

    And that just puts an exclamation point on what I told the Senate committee last summer is their property is not just worth less. It’s worthless. So one of the things that the reason that Senate committee had a meeting in summer, so in Texas, the legislature only once every two years. So they went into session in January of 25, and they’re about to be finished unless they call special sessions, they’ll be finished at end of May. But to get prepare for the legislative session, they had hearings last summer. And the hearing that this one was regarding was the grid because the head of the PUC had made a statement last June saying that the demand for electricity in Texas is going to double by 2030 due to data centers and Bitcoin. And so they started having meetings with the legislature to figure out, okay, how do we address this?

    So yes, you want all this business to come here, but your infrastructure isn’t able to do that. Hold on, my husband is joining us. So the Texas legislature started trying to figure out how to address the impact to the grid from the Bitcoin and the data centers. One of the things that the legislature needs to do is, and I hope that some legislation will pass this legislative session that will put some type of, it’s called bring your own power kind of thing. But what that’s going to do is require battery energy storage systems to be installed with data centers and cryptocurrency, which those bring their own risks. Battery energy storage systems are at this point in time, lithium ion batteries. And just like with a Tesla or some other electric vehicle, if they start on fire, they cannot be put out with water. They have to just burn out.

    And if you have acres and acres and acres of battery energy storage systems with lithium ion batteries, if a fire starts, it’s called a thermal runaway and it just heats up and heats up and while it’s heating up, it’s putting off all kinds of toxins into the air. So one, as Cheryl said, they’re currently drawing from gas powered power plants energy, but the legislature possibly if this bill passes, is going to require crypto and data centers to bring their own power, which means battery energy storage systems, or they can have small gas powered power plants on property. One of the things that is unique, sadly unique about our little precinct is that we have gas pipelines running through our precinct and we have access to the grid very close together. So that is why these projects are coming to our little part of Hood County is because of the gas pipelines and the grid, and so they can get the energy and they can dispatch the energy very quickly. I think that when Governor Abbott and Ted Cruz and all of the legislators that are talking about Texas becoming the crypto and the data center capital of the United States, I don’t think they realize the impact to people’s lives. And if this data center was out surrounded by 500 acres of industrial area or non-residential area, we wouldn’t be having this conversation. But that’s not what’s happening. Texas in enjoys businesses. We are a pro business state, but not at the expense of people’s lives or their property. And that’s what is happening in this little community here.

    Cheryl Shadden:

    So here across the street from where I live, if you think about being on the streets south Baltimore, so Constellation Energy owns this property across the street. They’re the slumlord, the drug dealer on the street corners, marathon Digital. They own all that property there. They’re leasing their property to Marathon Digital, marathon Digital doesn’t own the property that they’re sitting on. So now you have Marathon Digital causing problems with the community, making us sick, dropped our property values, not allowing us to sleep at night. You have Constellation Energy who holds the lease, who is leasing this property. They don’t care that they have a harmful renter on their property. They don’t care. They haven’t done anything to mitigate the noise that it’s there. Now you have Constellation Energy wanting to put in eight turbine gas power plant right in the middle of all of this to cause more problems. So you start looking at all of the air pollution, sulfuric acid, sulfur, hexa, fluoride, ozone, greenhouse gases, and then you have the first power plant here, Wolf Hollow one wanting to extend their air permit and drop some more acid rain on us. So this is a huge problem here. This isn’t just a little bit of a noise problem. This is a huge industrial pollution problem that’s ruining people’s lives here.

    Dr. Shannon Wolf:

    I would also add to this, that regulation usually follows a problem. So regulation’s going to have to catch up with what’s going on out here. Now, as far as Bitcoin goes, I am pro-business as long as they’re not hurting people. I don’t really care if they have a Bitcoin plant, but they’re hurting people. So I’m not angry at Bitcoin itself. It could be any industry that’s doing this, and I would have a problem with ’em, Ted Cruz and Abbott. I’m with Cheryl. I’m frustrated with them, but I also agree with Nanette. I really want to believe that they have no clue the damage that they are encouraging out here. Now, perhaps they are aware, and if that’s the truth of that, then I have lost all respect for them. I do think that they need to hear people because we’re not quiet about this. They have to know that something’s going on out here, and I think that they need to come out here and talk to us.

    I think this is a big enough deal that they need to come out here. I want to talk about the valves that are blowing and explain for some of your listeners that may be unaware, and Cheryl, you jump into because you understand this really well. Those valves are a safety mechanism that takes a lot of the pollutants, those really dangerous kinds of things from getting into the air. So when that valve blows, that means that safety measure that is in that particular place is not working. So when a series of valves blow, that means that we are getting contaminants into our air and we’re breathing them. Our animals are breathing them, they’re in the ground. These things are really important to understand. It’s not just the sound, it’s what is being released and we’re breathing it and it’s on our skin. And this is dangerous. I also want to talk about,

    Maximillian Alvarez:

    Can I ask really quick, is that from the cooling operation that’s at the Bitcoin mine or is this from,

    Dr. Shannon Wolf:

    This is the plant power plant. Its the power plant. So as Marathon is demanding more and more power, in order for them to do whatever it is that they do, the power plant right next door to it cannot keep up with it. And so it’s blowing their valves, which is the safety mechanism that keeps the pollutants from reaching the air and the people around us. So we are having this more and more and more, and now they want to build Constellation Energy, wants to build another bigger power plant. And we’re talking about an area that, goodness, I don’t even think it’s a mile around this. So we’re going to have three power plants and a Bitcoin mine. And there is talk about moving in another data center within a mile. So I cannot even imagine what this area is going to look like if they are successful.

    Nannette Samuelson:

    Dr. Wolf, what is the name of the California Battery Energy storage system that

    Dr. Shannon Wolf:

    Was on fire? I looked that up today. And I want to say it was the one out of Monterey, but I don’t remember the actual name of it, but I think it was in Monterey, California, the one that caught on fire back in January of this year. Yes, hit that.

    Nannette Samuelson:

    Just look up battery energy storage system, fire California. And you’ll be able to see how the toxins that were in the air, the toxins that then were into the soil, the radius of the people that had to evacuate because of that. And that’s one thing, as I was saying, is snowballing into the other. The cryptocurrency is pulling and data centers are pulling so much power from the grid. One of the answers that the Texas legislature may do, or they may, the data centers themselves, may do it on their own. If their business model says this is cheaper or more cost effective is to bring those battery energy storage systems on their own property to how electricity markets work. When the demand goes up, the price goes up, demand goes down, the price goes down. So if I have a business that uses a lot of energy, then one of the things I can do to hedge that is to store my own power in these battery cells.

    And then when the demand goes up, when Wolf Hollow can make more money selling their energy to the grid than selling it to me cryptocurrency marathon, I can offset that by storing my own power on my own property. And now I can keep running at full capacity because I’ve stored my own power in batteries. So then we have the add onto that, the risk of the fires with the battery energy storage system. So one of the things we’re looking into as a county is implementing some national fire safety protocols called NFPA 8 85 or 8 55. I’m sorry, I have to look that up to be sure exactly which one it is. But our fire marshal is in the process of working on that because we see this coming next. First, we have the regulation really lack of any regulation to do with noise. And now we have really lack of any regulation to do with fighting the dangers of fires or other situations that are caused by the batteries that are going to start being used to store the energy

    Cheryl Shadden:

    Well. And then let’s put these battery systems right next to a gas power plant, really make the explosion great,

    Dr. Shannon Wolf:

    Right? Right. Talk about dangerous and then add that we have a volunteer fire department out here, the closest volunteer fire department to the existing best system that’s out here, battery energy storage system that’s already here. The closest fire department is 14 miles away. Their backup is 23 miles away. So imagine putting one of these right next to a gas powered electrical system or energy plant. Imagine what this is going to do to the community. This would be catastrophic. This is inhumane.

    Maximillian Alvarez:

    It is. I mean there’s so many other words that I have for it, but at base it is inhumane, it’s cruel. It is absurd. And the thing that is really just pummeling my heart right now is how often I hear stories like these around the country, and this should be an exception. This should be the kind of thing we write about in history books as a really awful accident that happened one time and we learned our lesson.

    Nannette Samuelson:

    Like Aaron Brockovich comes, right,

    Maximillian Alvarez:

    Right. Yeah. It should not be the kind of thing that I’m interviewing people about every week from all over the country, from Red Hill in Hawaii to Cancer Alley in Louisiana to South Baltimore, 20 minutes from where I am to East Palestinian, Ohio to Granbury, Texas. This crap is everywhere. And that goes to, I wanted to, we only have a few minutes left here with each other and we’re going to have to do more follows. There’s so much more to talk about here. But I wanted to, in the last 10 minutes that we have here, talk about a few of these larger connecting points. And we’re talking directly to the audience here and to people who may hear this because I hear the same refrain that y’all have heard all the time. People say, why don’t they just move first and foremost, most people can’t do that.

    You listening to this, do you have the money to just pick up and move somewhere? What if the house that you live in, you couldn’t sell? Like the people in East Palestine not only have their property values plummeted, they don’t want to sell them because they can’t in good conscience pass off a toxic home to another family. So what are they supposed to do? How could Cheryl pass off her home to someone who’s going to have to live across from this massive power plant and data center? So that’s the kind of situation that folks are in in terms of why don’t people just move? First of all, it’s a real huge burden that most working people can’t take on, but if they have to flee and become refugees from their own hometowns to save their lives, like the people we’ve talked to in Conyers, Georgia who had to flee the Biolab fire in September, that’s what they’re going to have to do.

    But also as we’re pointing out here, where are you going to go? Because this stuff is everywhere. And if you’re fleeing one sacrifice zone, you may find yourself living next to a toxic landfill. You may find yourself living underneath the side of a mountaintop removal operation. And so when heavy rains come, you’re going to be getting flooded. Like the folks in Asheville, North Carolina we spoke to during Hurricane Helene. So there’s almost nowhere to escape to because we’ve let this stuff pervade our homes all around this country. But the other thing that I always hear that I wanted to give you all a chance to respond to, but I don’t want to make you responsible for it, so I want to really clarify that because it’s something that drives me nuts. As an admittedly, I am a lefty nut job. I grew up very conservative and it’s been a long road to the socialist that you see before you.

    But I don’t care about any of that. When I go to towns and talk to people who are suffering through things that they did not cause, they did not ask for whether they’re Trump voters, non voters, Biden voters, anybody and people on the internet will say, well, they deserved it. They voted for this. Or their Republicans, who cares. Or when the fires in my home of Southern California burn whole neighborhoods, people say, well, they’re Democrats. Who cares? We got to stop thinking like this or we’re going to keep dying and our communities are going to keep getting destroyed while the rich assholes, pardon my French, who are causing all this pain are getting off. So that’s my little tirade here. I wanted to ask y’all if you just had any thoughts on that or on how to correct the thinking for people listening to this, knowing that these are the times that we’re in, people are going to say stuff like this and we here are trying to get people to cut through that noise and just care about the fact that flesh and blood, fellow working people, red state, blue state, whatever it is, our people, our neighbors, our fellow workers are hurting and we are being hurt as well.

    That is what we should care about. If a car is on fire and someone’s inside you don’t go and ask who they voted for before you pull ’em out. If you guys could just talk to people out there who should be listening to what you’re saying, but are letting stuff like this get in the way, what would you say to them?

    Cheryl Shadden:

    Where is your humanity? If your family is hurt? Wouldn’t you want me to help take care of them? If you were broken down on the side of the road and you needed a hand, do you care who I vote for when I stopped to help you? When I’m doing your anesthesia and we’re taking your gallbladder out or your kid’s going to emergency surgery, I don’t check your voting status before I take care of you. We take care of people because we, that’s who we all are Now. I don’t care if my neighbors are pink with purple polka dots, I don’t care who they voted for. My community is suffering. I will do anything that I can to help the people in this area that are suffering. Some of these people can’t stand up. They are so sick. And you know what? Step up. Put your money where your mouth is, step up and be a human.

    Dr. Shannon Wolf:

    Yeah, I think for me it’s that you look at another human being and you have compassion for another human being. I don’t care where you go to church or if you go to church, you’re a human being. And I think that we need to be more mindful. I think the United States used to be like that some time ago. We just cared about people. And I think that we need to get back to that place where people are more important than industry. People are more important than your thoughts. People are just important and we need to stand up for each other, especially those who cannot stand up for themselves.

    Nannette Samuelson:

    Yeah, very well said. Both of you. There’s, I think Cheryl or Dr. Wolf said this early on is that the peaceful enjoyment of one’s property is a right that we have and that is not happening in this. They’re not able to peacefully enjoy their property and the respect business needs to respect individual’s rights as well as both of them said so. Well, we are humans. We all care about protecting each other and making sure that each other is safe. And when I became the commissioner, I had no idea that this was going to be part of what I was doing. I thought it was budget and making sure that the county offices are running smoothly and figuring ways to cut taxes and those types of things. And this became front and center right away. And like I said earlier, the stories that people told at that first town hall, what they’re dealing with, it’s just not right. I mean, industries should not be able to impact people’s health and their property without any consequences. Agreed.

    Maximillian Alvarez:

    Again, we’re going to have to have y’all back on. And to our listeners, we are going to continue our investigation into not just the Bitcoin mine in Granbury, Texas, but looking at the larger surrounds that includes other toxic polluters that folks are also dealing with. Just like here in South Baltimore, as you guys have heard listening to this show, it’s not just the CSX rail terminal that’s getting coal dust over everyone’s houses and in their lungs, they’re also breathing in the toxic pollutants from the medical waste incinerator and all the other toxic polluters concentrated in that part of the city. So we are going to do more follow-ups on and with folks from Granbury, but with the last minute or two that I have y’all, I just wanted to do a quick round around the table and ask if y’all could say, in terms of the struggle to hold marathon accountable and to protect people in Hood County, where do things stand now and what can folks listening do to help?

    Cheryl Shadden:

    For me personally, we thought we were battling. And so we have more and more battles every day. We thought we were fighting one arm of this octopus. No, there’s eight arms on this octopus that we’re fighting. Stand up for your next door neighbor, knock on their door, see how they’re doing. If you’re suffering from problems, your neighbors all are suffering as well. Stand up, take a stand. Tell them. No, it’s a shame you should have to fight for your life. But when I first started this, it was just a few of us standing here. Now I’m standing with a mighty, mighty group of warriors that actually care about one another. And so it’s not ideal. No, but now I’m not standing by myself.

    Nannette Samuelson:

    And Cheryl, did you talk about the incorporation already?

    Cheryl Shadden:

    I started off doing that. So one of the things that we’re trying to do is we’re trying to incorporate this area, this community, into a township so that we can develop statutes and taxation and environmental impact fees. So we’re giving this a really good, hard, strong try, trying to get control over our area. We need some control of our lives and what’s happening to all the people here.

    Nannette Samuelson:

    So what that will do, as I mentioned at the beginning, because cities have regulatory authority, zoning, ordinance, authority that counties don’t have, so that if they’re successful incorporating, they will be able to have ordinances and regulations, zoning because they will be a municipality inside of the county. So then that will take precedence over the lack of authority or ability that the county, we don’t have what, like I was saying earlier, it’s pretty much water, sewer, and that’s about it.

    Dr. Shannon Wolf:

    I think with the incorporation, just know that it’s not a done deal. I wish it was an easy thing, but we have a couple of hurdles and we have a person that can say no to us. So we’re a little nervous about that. That’s going to happen this coming week. And yeah, we could use prayer if you pray we could use your good thoughts. If you don’t, that’s okay. But one of the things that I do want to encourage everyone is if you see something coming in your neighborhood, tackle it early. Don’t let it get a foothold because then you’ve got a battle on your hands.

    Nannette Samuelson:

    And if you live in Texas, call your senator, your state senator, call your state representative, send them emails, call ours, call Senator Birdwell, call Representative Slauson and tell ’em you heard about this that’s happening in their area of responsibility and that their constituents are suffering and that they would support any change to the noise ordinance, regulation or setback requirements, things that would help the residents that live there. That’s what I would say. Call your state rep and your state senator. Call Shelby Slauson. Call Senator Birdwell. Tell him you heard about it. Here’s an ironic thing as Granberry just for what the third or fourth year in a row was, just voted the best historic small town in the United States we’re also the celebration capital of Texas.

    Cheryl Shadden:

    We’re celebrating air pollution.

    Nannette Samuelson:

    So that happened and here we are, this whole community of people that live around don’t live in the city limits of Granbury but live very close to in Hood County that are going through this struggle. And because like I said earlier, the proximity of gas lines, the proximity of the access to the grid, low property values, it’s coming. This isn’t the last project that we have in our little precinct.

    Maximillian Alvarez:

    Alright, gang, that’s going to wrap things up for us this week. Once again, I want to thank our guests from Granbury, Texas. Cheryl Shedden, hood County Precinct Chair, Dr. Shannon Wolf and Hood County Commissioner Nanette Samuelson. And I want to thank you all for listening and I want to thank you for caring. We’ll see y’all back here next week for another episode of Working People. And if you can’t wait that long, then go explore all the great work that we’re doing at the Real News Network where we do grassroots journalism that lifts up the voices and stories from the front lines of struggle. Sign up for the real newsletter so you never miss a story. And help us do more work like this by going to the real news.com/donate and becoming a supporter today. I promise you it really makes a difference. I’m Maximillian Alvarez. Take care of yourselves. Take care of each other. Solidarity forever.

    This post was originally published on The Real News Network.

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    Is the West’s experiment with social democracy over? Is survival of the richest our fate? In this episode, sisters Laura and Stephanie Flanders hold their annual check-in, this time from St. James Park in London, to delve into the details of the many politico-economic issues dominating and driving the news. Stephanie Flanders, an economics expert of renown, is the Head of Economics and Government at Bloomberg and the host of “Trumponomics”, the weekly Stephanomics podcast that looks at the president’s economic policies and plans. Join Laura and Stephanie as they discuss how business impacts every aspect of our lives. Are we going backwards, or are there models like community wealth building that we can look to for economic transformation?

    “. . . There’s quite a lot of people who are saying, ‘Well, thank God we’ve actually got an America that’s not pretending . . . You are a rapacious, self-interested nation that’s out for yourself. We’ve always known you were that. But now, you’ve sort of admitted it.’” – Stephanie Flanders

    “[Social democracy] means lots of things to different people, but a kind of model of democracy that was at least nominally about raising people up, supporting the working class, allowing the rich to be rich, but only in the conjunction of also growing the economy for everybody else. That model, which has been pursued in lots of different ways, didn’t deliver for people . . .” – Stephanie Flanders

    Guest

    •  Stephanie Flanders: Head Economics & Government, Bloomberg

    Transcript

    Show full transcript

    LAURA FLANDERS & FRIENDS

    DEMOCRACY & CAPITALISM: A FAILED EXPERIMENT?

    Watch / Download Podcast – Full Conversation / Download Podcast – Episode

    LAURA FLANDERS: Is the West’s experiment with social democracy over? Is survival of the richest simply our fate? With tariffs, trade wars, and a looming recession rattling the markets and capturing public attention, we thought it was time for another conversation with my sister Stephanie Flanders, the Head of Economics and Government at Bloomberg News. Stephanie, as regular viewers of this program may remember, was previously Chief Market Strategist for Britain and Europe for JP Morgan Asset Management. And before that served as the Economics Editor for BBC News for five years. We have our differences, as you can imagine, but this annual conversation has become something of a viewer and listener favorite. And so we’ve brought it back. You can find our previous conversations in the archives at our website. And don’t forget, if you have favorite episodes or stories you’d like us to revisit, let us know via email. To switch things up, this year Stephanie and I sat down in a park in central London, surrounded by spring flowers in the city where we both grew up. Can capitalism and democracy mix, or are we at the end of that experiment? That’s where our conversation kicked off. Stephanie, this is such an exciting innovation. We are now doing our annual check-in here in St. James’ Park on the most gorgeous day in London. Of course, it’s always like this in spring, right?

    STEPHANIE FLANDERS: Always like this, yes. And we’re actually very close to where they had the beach volleyball during the Olympics. There were a lot of Olympics events that were just around here ’cause they were obviously playing up to all the great monuments. They wanted to get them all in.

    LAURA FLANDERS: And I remember that the lead up to the Olympics was nothing but rain for weeks and weeks, and then, suddenly, it all cleared up. So maybe that’s a good metaphor for where we are today, because I will say I’ve been feeling… You know, the slogan of our show is “The place where the people who say it can’t be done take a backseat to the people who are doing it.”

    STEPHANIE FLANDERS: How’s that doing?

    LAURA FLANDERS: Well, there was a little part of me after the Trump election that thought maybe we should rename it to the place where the people who say it can’t be done were right. Because sometimes it feels as if we’re going backwards. And I think that’s what I wanna talk to you about. In this gorgeous place that just sort of inevitably makes you think about history, I guess I want to ask you and have us think about whether the sort of social democracy model of the 20th century was just a blip. What do you think?

    STEPHANIE FLANDERS: One of the things that we should draw from the last couple of months, which is seen by any estimation, the most successful first couple of months of an administration, certainly of my lifetime. If you measure success by impact, by the methodical way that the administration has found out across different parts of government agencies, departments, key positions, and put in place people who will forward Donald Trump’s agenda with a real focus on the instruments of power, not just lots of executive orders that say we wanna do this, we wanna do that, but actually a focus on changing things, if you think about how effective that’s been, even if it’s been very worrying, and scary, and sometimes it seems like illegal, some of the things that they’re doing, you know, it should have at least one positive message for radical people that you can do a lot.

    LAURA FLANDERS: Yeah.

    STEPHANIE FLANDERS: You know, that there are things, that you can change more than you think.

    LAURA FLANDERS: Well, it certainly shows that if you spend four years between one administration and the next thinking deeply about each department, that you really can use government to your own ends, even if there ends, in the case of the Trump administration, in Project 2025 has been to sort of unravel government.

    STEPHANIE FLANDERS: So, and I think that speaks to, there’s a sort of whole agenda here, which lots of people, you know, I’ve heard talking about, whether it’s Ezra Klein or any of these people who are talking about a focus on the thing that Donald Trump has focused on, and has got him a lot of success, which is a focus on the failings of government, the things that people haven’t got out of government. So when you talk about, you know, is this the end of the social democratic model? I mean, there is one view of this which says no, it’s a reflection of the failure, after decades of very successful social democracy. And you might not even call it in a US context, social democracy, you know. That means lots of things to different people, but a kind of model of democracy that was, at least, nominally about raising people up, about supporting the working class, allowing the rich to be rich, but only in the conjunction of also growing the economy for everybody else. That model, which has been pursued in lots of different ways, you know, progressively didn’t deliver for people in lots of different ways from the sort of late ’80s, ’90s, onwards. And that one of the things that we are living with with Donald Trump is a response to that.

    LAURA FLANDERS: Yeah, absolutely.

    STEPHANIE FLANDERS: So it’s sort of like we can sort of, you know, bemoan the fact that things don’t seem to be going in the right direction. But actually things have been going in, you know… If you are sitting on the ground, things have been going… Well, voting for Brexit in the UK. Things have been going in the wrong direction for quite a long time.

    LAURA FLANDERS: We should probably start with defining terms. So how do you define social democracy? I think of it as the idea that we can allow there to be a role… That government will play a role in kind of evening out some of the social imbalances in the economy, helping basic needs get met through taxation, through basically redistribution.

    STEPHANIE FLANDERS: I think what I’m talking about is not even social democracy. I think it’s about having, you know, the balance between democracy and capitalism, which, you know, if taken to natural extremes, the one can undermine the other. And what was kind of magical, what happened after World War II because of these big international and domestic institutions that were created, in part, in response to the collapse of the global trading system in the ’30s and everything else that happened in the ’30s and the war, which no one wanted to repeat, the institutional framework kind of allowed democracy and capitalism to be in balance. But then something’s gone out of kilter from the ’80s onwards.

    LAURA FLANDERS: Would you say that’s neoliberalism?

    STEPHANIE FLANDERS: Well, I think, so there was a view that democracy or what had developed in terms of democratic institutions was actually stifling the economy in certain ways. We’d fallen into bad habits in terms of inflation, in terms of some of the sort of paralysis of some industries by unionization. You and I would probably disagree on some of that, but there was a response to that on the Right and the Left, which is to say, okay, we actually do need to open up markets, we need to have a more capitalist version of what we had. So maybe social democracy was kind of more tightly woven into the market, and we brought the market into lots of things that we’d previously thought of as kind of progressive objectives. But I would say, you know, I was in the Clinton administration, the sort of new Democrat view that in retrospect went too far.

    LAURA FLANDERS: Yeah.

    STEPHANIE FLANDERS: And certainly in some areas we had the kind of imbalances build up the global financial crisis, all of those things. So I think, for me, it’s more about there was a space for social democracy, but also for some other things in that balance. And then the balance has been out of kilter.

    LAURA FLANDERS: I mean, people look to the 1950s, and talk about taxation in the United States, which was a huge proportion of very wealthy people’s income. And yet, at the time, it was a time of great growth and a time of great sort of development. And you could say there was enough kind of surplus swirling around to be taxed and plowed back into national services. In the UK, you have a National Health Service. In the US you start programs, like the Great Society, and Medicare, and Medicaid. In, as you say, the ’80s and ’90s, I would say we saw, like, massive tax cuts and the idea that wealth would trickle down, and it hasn’t. And it didn’t. And in fact, much of it got sort of siphoned off into the financial sector, which became sort of an economy of itself on its own, not even making things, not necessarily plowing back into wages or quality of life for most people. So that’s all I would add is that there is this kind of financial sector of the economy today that wasn’t even imagined at the beginning of the century, I would say.

    STEPHANIE FLANDERS: I met someone who embodied that. When I was working at JP Morgan, there was someone who was a bond trader, probably all the things that you would imagine if you think of a bond trader. And he was saying that his father in the ’60s had also been a bond trader in Wall Street. But in those days as a bond trader on Wall Street, it was hard enough to make a living for a family of four that he worked nights as a subway train driver. Can you imagine that now?

    LAURA FLANDERS: No, exactly.

    STEPHANIE FLANDERS: A bond trader having to do a second job as a train driver?

    LAURA FLANDERS: No, exactly. And I think when I started looking at any of these things, it was sort of shock, horror that the CEO is making 40 times what the lowest paid person is making in a company. And now it’s, at least in the US, over 400 times or even higher. So I guess my question is, once you have that kind of wealth, and we could sort of talk about Elon Musk, but, you know, he’s just a symbol, how do you reign that back in? How do we ever get back in any kind of kilter? Because they’re gonna have political influence, of course.

    STEPHANIE FLANDERS: It’s obviously a massive question. I do think that the read across from corporate power to political power is much more direct and much more obvious in the US than it is in most European countries and certainly in the UK. I would push back a bit on the idea that we are all in the same place.

    LAURA FLANDERS: Okay.

    STEPHANIE FLANDERS: And I think, actually, that what happens often in the debate in Europe is, because the discourse is completely dominated by what’s happening in the US, whether it’s income inequality, wealth inequality, what’s happened to wages, a lot of the things that have happened in the US have actually not happened to the same degree in Europe or even at all. Like, equality’s actually gone down in the last few years in Europe and the UK. I think wealth inequality has risen but nowhere near as much, in part because we haven’t produced all these massive tech firms. I would push back a little bit that, you know, there was a reason why progressive movement, you know, social Left, left of center parties, centrist parties continued to support a market-led model for all those years, because, actually, it was still delivering quite a lot. So the Blair years, you know, are a good example in the UK where you had… And I would say, you know, the last time you had, until very last few years, wages were growing for the bottom 30, 40% of US workers. That was under the Clinton administration when they ran the economy hot. Yes, he talked about reinventing government. He talked about the end of big government. But actually within that, there were programs, you know, for, you know, equivalent of SureStart programs in the US. So providing the space for a social democratic government to be in power for as long as the Blair government was was a valuable thing. And in the meantime, by the way, lots of cheap goods were coming in from China. The liberalization of trade was benefiting people in their pockets in terms of the cost of day-to-day things. But, the flip side of that, which you mentioned, is that the making of things and the kind of heart of the action in the global economy, people felt further and further away from, kind of culturally. People felt kind of the quality of their jobs had got worse, even if they were able to buy cheap toys. And they didn’t know, you know, that the things that they were buying were not things that were made near them, and they didn’t feel the same pride in their work. They felt more and more isolated from the sort of the world as seen by people, you know, sitting around here, sitting in London. So I think that sort of cultural piece of people feeling disaffected and not supported was a much bigger driver certainly in Europe than the sort of, you know, direct consequences of job loss.

    LAURA FLANDERS: I mean it should be said the Clinton years are a very interesting period to look at ’cause what you’ve said is true, but what’s also true during those years is you saw the deregulation of finance, you saw the deregulation of the internet, the Federal Communications Commission. You know, you’ve seen the deregulation in those days that led to a lot of the financial crisis, you could say, particularly around banks and trading, and then has also helped to unleash this extraordinary concentration of power in Silicon Valley, which potentially good, potentially now feels very frightening, leads us to this moment. And then would you be fair to say that Biden’s effort to raise wages, to put money back into infrastructure was just too little too late? People didn’t feel it?

    STEPHANIE FLANDERS: You know, I think there’s just, there’s so many ways in which the left of center parties had sort of got removed from their working class roots, you know, were no longer perceived to be working for that. And that’s also true in the attitude to immigration, whether you like it or not. You know, that is a universal thing. A lot of the economic models, a lot of the governments, Left or Right, of the last 10 or 15 years, underpinned their economic growth with mass immigration and not been sufficiently attuned to how that was being experienced by people. And the countries that were… Like, Denmark was actually very focused on what did it mean for demand in local schools? What is the infrastructure implications of having lots of immigration? They have actually managed to have a much smoother path on that. But the countries that just sort of let rip, you know, it has ended up really hurting those left of center parties.

    LAURA FLANDERS: So now we’re in a situation where, with the US, we have the reelection of Donald Trump, we have, you know, a new sort of geopolitical positioning on the part of the United States withdrawing, as it were, from… Well, actually withdrawing from Western Europe, specifically, putting up trading barriers even higher with China, expelling large numbers of experts, scientists, officials, all sorts from around the world, as well as maintaining, you know, launching this immigration detention program that has people scared at the grassroots. All of that feels from the United States as if, okay, we’re just on a path to removing ourselves from the world as China is growing, as AI is coming in. Europe will probably get itself together. It feels like a frightening time to be American.

    STEPHANIE FLANDERS: I think we are only just starting to see the consequences or sort of grapple with what does it mean to have the US step back from those things and also for the US to publicly renege on deals that it’s done and reject the kind of global order. Now, there’s plenty of people who would look at what Donald Trump’s doing. In fact, I was struck by this when he was elected. When you talk to people, you know, in emerging market economies, in India, in Russia, there’s quite a lot of people who are saying, well, thank God we’ve actually got an America that’s not pretending to be anything other than anyone else. You are no better than anyone else. You are a rapacious, self-interested nation that’s out for yourself. And we’ve always known you with that. But now, you know, you’ve sort of admitted it. You know, back to Donald Trump being a transactionalist. We can just do deals, and we don’t have to have this kind of insufferable lectures, hypocritical lectures. And there, you know, you would have to admit there’s something in there.

    LAURA FLANDERS: Well there is, and that takes me back to where we began. Again, we’re in this gorgeous garden. You could sort of trace human development perhaps, or the economic development from, you know, peasantry to monarchy to representative government, you know, right here. Are we going back to kind of feudo-fascism? Some kind of strong man rule? Is that where we’re at?

    STEPHANIE FLANDERS: I mean I think Donald Trump definitely seems to be quite fond of… He sees the advantages of strongman government for sure. And strong women. We’ve got a few strong women now in Europe either close to power or in power. There is, I think, again, something I was talking about with Martin Wolf for the Financial Times on my “Trumponomics” podcast only recently. That basic kind of question mark about the rule of law in the US, his transactionalism going so deep and involving such opaque or sort of non-transparent lines between corporate interest, personal interest, private interest. I think that does disturb people. It does disturb investors, even the ones who were terribly excited when he was elected. So I think even if you don’t think, you know… A lot of people thought that the democracy was pretty imperfect already. And then we are now kind of going on a further path towards that. But, you know, one thing you’d have to say is this guy was democratically elected, in fact more democratically elected than many people anticipated. They did not necessarily anticipate him to win the popular vote. And even if it’s not the amazing historic margin that he claims, you know, as with Brexit here, one of the keys to the Brexit vote here, because it wasn’t done by constituency or, you know, by particular district, because it was just you add up the votes on one side nationally and you add up the other, you had a lot of people voting who’d never voted before ’cause they didn’t think there was that much point because their area was solidly Labour or solidly conservative. And it was one of the more democratic results that we’ve had, you know, in terms of turnout, in terms of, yeah, people voting who hadn’t voted in decades. So what we can’t say is that this is not democratic.

    LAURA FLANDERS: Right. Those phenomena speaking exactly to the dissatisfaction that you talked about at the very beginning. I think we all agree about that. So I guess we go to what the heck do we do? I mean we are looking at massive shifts in the economy geographically, geopolitically, locally in any particular area. Technological change that’s gonna put a lot of people out of work. I think we can’t imagine what life will be like actually for your, you know, wonderful children just now going into college. How do we think we create society, maintain society when it isn’t a simple matter of trying to kind of even out the rough edges of capitalism through redistributive taxes and when there isn’t work for everyone, when there isn’t a sense of social purpose for everyone? Big question. Hope you’ve got the answer.

    STEPHANIE FLANDERS: We listen to the rhetoric of Viktor Orbán or sometimes things that come out of Donald Trump’s mouth, and you hear that sort of talk of special emergency. You know, we sort of know when governments start talking about emergency legislation and I’m taking emergency powers to do this, you know, often, certainly in the developing countries, that often doesn’t end well-

    LAURA FLANDERS: Bells go off.

    STEPHANIE FLANDERS: For democracy. So there’s a sort of fear that you are then in this kind of much extreme sort of ’30s-style scenario of different, extreme models of politics. And I think there is a concern for that, and I think there’s a concern on both sides, right? ‘Cause the reaction to Donald Trump or the reaction to other sort of strong man leaders could equally be extreme because, you know, in the face of this scary person, well, I have to do my own scary things. But I think your show and the focus that you’ve always had of local action and people making things better, building communities, and supplementing or pressuring government at the grassroots level, you know, that clearly has to be part of this. You know, people want communities. Part of what Donald Trump is playing to is people want communities. They wanna feel part of a gang. They also want to see government and see things happen. They want someone who does stuff. You remember he came to public notice, you know, New Yorkers first heard of him when he promised to fix that ice rink that had been closed for years and years. And there was a sign of kind of New York City not having its act together, and he got it done in a few months. That was the beginning of him as, you know, the get it done guy.

    LAURA FLANDERS: Well, get what done though is the question. And I guess I want to come back away from politics and democracy a little bit just to economics. Some of the experiments that we’ve looked at in this country of the UK as well as in the US have to do with building community wealth through democratizing local spending decisions and local investment. Towns may not have a lot, but they have some stuff. They have some people working. They have some assets. How can local taxation go back into local businesses in a way that engages people, in ways that gives them some sense of ownership and maybe sometimes actually a share in the business through a work around co-op or something. That it seems to me, some people call it community wealth building, is a kind of alternative to this, on the one hand, sort of state socialism, on the other, kind of out of control capitalism, I would say. But it hasn’t had a chance. I’m always like, it hasn’t had a chance to really be the kind of model that people can look to and say, okay, that’s the alternative. So one question I have for you is, do you see alternatives that could produce an economic basis for the kind of democratic climate that you’re talking about?

    STEPHANIE FLANDERS: One of the things that, it’s interesting in the UK has become sort of agreed by Right and Left is that the sort of one lever that we haven’t pulled yet is decentralization. You know, we are a really, relative to the US, super centralized state. All the money is just controlled by, you know, Whitehall. We’re in this one bit of the UK, one bit of London, and even for the city of London that’s bad because the central government controls a lot more of what the city can do than is true in New York, or LA, or any of these places. So, and if you seriously gave more decision making power over the resources that are already spent in their area, you know, whether it’s Manchester, or Preston, or Sheffield, there’s, you know, huge chunks of government money that are already spent there, but they have no control over because they flow in from these different pots, from these big buildings around here in Whitehall. I’m not identifying a single model, but I think models could come out of that where you’re just joining up. I’m less ambitious. I don’t need to create a whole different economic model or alternative to capitalism. I would like an alternative way of spending money in a local area where, you know, the person who’s spending on health and education, they’re all the same person, you know, that they’re able to work together. You know, you think about how you’re investing in a community, and you think, well, maybe if we give more primary care, or we have more house visits, and take from this pot of money, then there’ll be less needed in this pot of money, which is accident and emergency units in hospital because people haven’t had any home care. I’m just looking for that, Laura.

    LAURA FLANDERS: Alright.

    STEPHANIE FLANDERS: Could we just have that first?

    LAURA FLANDERS: I’ll let you have that. Finally, you know, how’s your job these days? You’ve got a very big one at Bloomberg. How are you even grappling with this moment?

    STEPHANIE FLANDERS: We are playing it straight. You know, I mean, I think this is a time when you’ve got, you would hate this phrase, resistance journalism.

    LAURA FLANDERS: That would be me, I guess?

    STEPHANIE FLANDERS: You know, you and maybe the New York Times quite often. You know, there’s a lot. It is a polarized time, and that means it’s very hard for people not to be on the polls. And we’re actually doubling down in terms of investment. We’re actually bringing more resources into Washington ’cause we’re not stepping back. We’re not sort of taking the knee as people say, or flinching at uncovering everything that’s happening. And actually to be fair, I think, you know, Bloomberg, because of our financial expertise, we kind of talk to the Trump administration in a way that sometimes they don’t have people talk to them because we actually understand that many of them come from finance, the people who work for Trump. But we also understand when things are underhand, are happening, when there’s kind of shady business deals happening. So we won’t flinch from that, but we are gonna try and stay absolutely straight down the line.

    LAURA FLANDERS: Alright, here you go. Good luck with that. I won’t try to do any of those things, but it is wonderful to be here with you in this place. And now, I’m feeling kind of good about all these, you know, plantings happening around us. Maybe something-

    STEPHANIE FLANDERS: There will be growth.

    LAURA FLANDERS: Great will grow. Stephanie Flanders with Laura Flanders. This has been Laura Flanders and family. ‘Till the next time. Stay kind, stay curious, and thanks for joining us.

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  • This content originally appeared on Laura Flanders & Friends and was authored by Laura Flanders & Friends.

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  • The US president incorrectly said that prices of petrol and eggs had dropped while home sales were good.

    This post was originally published on Al Jazeera – Breaking News, World News and Video from Al Jazeera.

  • Margins between CEO pay have long been a point of contention between workers and a rallying cry for progressives.

    This post was originally published on Al Jazeera – Breaking News, World News and Video from Al Jazeera.

  • From carmakers to restaurant chains, companies face financial setbacks amid tariff fears.

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  • This content originally appeared on Democracy Now! and was authored by Democracy Now!.

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  • Seg1 trade war

    President Trump is facing increasing criticism from big businesses over his decision to launch a global trade war. On Monday, CEOs of Walmart, Target and Home Depot met with Trump at the White House to warn about Trump’s trade policies. A day later, Trump signaled he is open to substantially lowering tariffs on China. Trump has also toned down his attacks on Federal Reserve Chair Jerome Powell, whom he had previously threatened to fire. This all comes as global stock markets remain in turmoil over Trump’s trade policies. The Wall Street Journal reports the Dow Jones Industrial Average is headed for its worst April performance since the Great Depression. “This is classic Trump,” says Robert Kuttner, co-founder and co-editor of The American Prospect. “You create a crisis. Then you say, 'Well, actually, I'm going to back off,’ and the crisis is over. And you end up with yourself and the country worse than before you started.”


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  • White House is considering cutting its tariffs on Chinese imports in a bid to de-escalate tensions, as per news reports.

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  • Tesla CEO says he will spend 'far more' of his time running carmaker after putting cost-cutting team in place.

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  • The company warns tariffs and weak oil prices will hit oilfield activity on the continent and hurt its revenues also.

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  • Tariffs are estimated to cost GE Aerospace more than $500m this year.

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  • Economists recently echoed concerns of global financial uncertainty and say a recession is more likely.

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  • After President Donald Trump announced sweeping new tariffs earlier this month, the White House released a list of more than a thousand products that would be exempted. One item that made the list is polyethylene terephthalate, more commonly known as PET resin, the thermoplastic used to make plastic bottles. Why it was spared is unclear, and even people in the industry are confused about…

    Source

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  • “The tariffs are stagflationary, so slower growth and higher inflation.”

  • The audio streaming giant denies allegations of a security breach

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  • Statistics agency says economy 'off to a good start' despite more 'complex and severe' external environment.

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  • Justin Wolfers teaches economics 101 at the University of Michigan. It’s an introductory course about supply, demand, and trade. The basics. He wishes President Donald Trump attended.

    Wolfers, an Australian known for his research on how happiness relates to income, is one of the more prominent economists speaking up about Trump’s sweeping tariff policies. He says that they not only betray the most basic laws of economics, but could very well tip the US into a recession unnecessarily.

    On this episode of More To The Story, Wolfers sits down with host Al Letson to discuss why today’s tariffs are markedly different from the ones Trump imposed in 2018 and why tariffs almost never produce the intended effects that are often promised.

    Producer: Josh Sanburn | Editor: Kara McGuirk-Allison | Theme music: Fernando Arruda and Jim Briggs | Fact checker: Serena Lin | Digital producers: Nikki Frick and Artis Curiskis | Interim executive producers: Taki Telonidis and Brett Myers | Executive editor: James West | Host: Al Letson 

    Read: Democrats Grill Officials on Insider Profits From Trump’s Tariff Reversal (Mother Jones)

    Read: Trump’s Trade War Is Here and Promises to Get Ugly (Mother Jones)

    Listen: Trump’s Deportation Black Hole (Reveal)

    Listen: Think Like an Economist

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  • Boeing’s setback boosts competitiveness for rivals Airbus and COMAC in China.

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