The Morning SixPack - October 30, 2024
In a hurry? Eat these 6 nuggets for breakfast.
Read the Bites at the top of each story to get the skinny. Then dig in if you want to read more.
1. Economy shows continued strength
Bite: The U.S. economy grew at an annual rate of 2.8% in the third quarter of 2024, showing resilience with strong consumer spending, surging exports, and increased government spending. Business investments remained robust, though rising imports and a struggling housing sector partly offset the gains. This solid performance provides a favorable economic outlook before Election Day, with analysts watching for potential Federal Reserve action on interest rates next week.
The U.S. economy demonstrated solid growth in the third quarter of 2024, expanding at an annual rate of 2.8%, according to a report from the Commerce Department released on Wednesday. This figure provides a crucial economic snapshot just days before the upcoming Election Day, suggesting that the country remains on stable ground without signs of an imminent recession.
The third-quarter growth reflects a slight slowdown from the previous quarter's 3% growth rate but is largely driven by strong consumer spending, which increased at a robust 3.7% annual rate. Exports surged as well, rising at an impressive 8.9%, significantly up from 1% in the second quarter. Federal government spending also contributed positively, climbing at a 9.7% annualized rate. Business investment showed strong performance, with spending on equipment increasing by 11.1%. However, these gains were somewhat offset by rising imports, which, while indicating strong demand, typically exert a negative impact on GDP calculations.
Despite this positive economic data, the housing sector struggled, with activity decreasing at a 5.1% annual rate, a more pronounced decline compared to the 2.8% drop observed in the prior quarter. As the Federal Reserve prepares for its policy decision next week, analysts speculate that the strong economic indicators may lead to a quarter-point interest rate cut, although recent data and inflation trends have introduced some uncertainty regarding this trajectory. Overall, the report highlights an economy that continues to defy expectations of a slowdown, providing a potential talking point for the Harris campaign just before voters head to the polls.
Source: https://www.axios.com/2024/10/30/gdp-report-q3-release-economy-inflation
2. U.S. Supreme Court rules in favor of Virginia effort to purge voter rolls right before a presidential election
Bite: The U.S. Supreme Court has allowed Virginia’s Republican administration to resume purging voter registrations based on citizenship status claims, despite previous findings that over 1,600 legal registrations had been improperly removed. The ruling, which has stirred debate on voter access, may inspire similar actions in other states, potentially affecting minority and low-income communities disproportionately. As voting rights advocates raise legal challenges, this decision could influence state-level policies on voter roll maintenance nationwide.
In a contentious ruling, the U.S. Supreme Court has granted Virginia's Republican administration, led by Governor Glenn Youngkin, permission to resume purging voter registrations. This decision, which was made without providing an explanation, allows officials to remove individuals from the voter rolls based on claims that they are not U.S. citizens. The ruling comes after a federal judge found that Virginia had illegally purged over 1,600 voter registrations in recent months, a move that had been temporarily blocked by a federal appeals court.
The issue of voter registration purges has become increasingly polarized, particularly as former President Donald Trump has made allegations of illegal voting by immigrants a key part of his political messaging. In response to the earlier ruling blocking the purges, Trump called it "a totally unacceptable travesty," emphasizing that only U.S. citizens should be permitted to vote. The Justice Department, alongside various advocacy groups, has filed lawsuits against Virginia, arguing that the state’s actions are in violation of federal election laws designed to protect legitimate voters.
Governor Youngkin defended the Supreme Court's decision as a step towards "election fairness," asserting that maintaining clean voter rolls is crucial for the electoral process. Critics, however, warn that such purges disproportionately affect eligible voters, particularly in minority communities. One affected voter, Nadra Wilson, shared her experience of being erroneously purged despite being a U.S. citizen, highlighting concerns that legitimate voters could be caught up in the aggressive clean-up efforts.
As Virginia prepares for the upcoming elections, voting advocates remind residents that they can still register during early voting or on Election Day and are eligible to cast provisional ballots. The state has nearly 6 million registered voters, and the impact of this decision could be significant as the election approaches.
The Supreme Court's recent decision to allow Virginia to resume its voter registration purges could set a significant precedent for similar efforts in other states. With the ruling reinforcing the legality of purging voters based on citizenship status claims, it may embolden Republican-led states to adopt or intensify their own voter roll maintenance practices, particularly in the lead-up to elections.
Several states have been contemplating or implementing aggressive voter roll purges under the guise of maintaining election integrity. The Supreme Court's endorsement of Virginia's actions may give these states the legal cover they need to proceed with similar initiatives, potentially impacting millions of voters. The ruling could signal to state legislatures that they can push for laws that streamline voter registration processes while still pursuing aggressive purging tactics, even as legal challenges are raised.
Critics warn that this trend could disproportionately affect minority communities and low-income voters, who are often the most vulnerable to errors in the purging process. The fear is that, as states adopt similar measures, eligible voters may be removed without proper notification or due process, resulting in disenfranchisement. Additionally, the decision could escalate political tensions surrounding voting rights, prompting advocacy groups to intensify their legal challenges against such practices nationwide.
Overall, the Supreme Court's ruling not only impacts Virginia but also holds the potential to reshape the landscape of voter registration and purging policies across the United States. As more states look to Virginia's example, the implications for voter access and election integrity could resonate widely, influencing both public opinion and policy decisions leading up to critical elections.
Check your voter registration status here.
3. Bezos gets trolled by his own newspaper
Bite: In a surprising outreach, Amazon CEO Andy Jassy contacted former President Donald Trump, marking a shift in their previously contentious relationship. While Trump suggested a campaign contribution that Jassy declined, the call—along with recent interactions involving Jeff Bezos—signals a possible thaw between Trump and Bezos’s business empire, highlighting evolving dynamics as the 2024 campaign unfolds.
In a surprising turn of events, Amazon's CEO Andy Jassy reached out to former President Donald Trump this August, marking a shift in the historically contentious relationship between the e-commerce giant and the Trump administration. Trump, who has long criticized Amazon and its founder Jeff Bezos, reportedly suggested during their phone call that the company should make a financial contribution to his presidential campaign, asserting that it would be in Amazon's best interest if he secured a second term. Jassy declined the request, but the call indicates a potential thaw in relations between Trump and Bezos’s business empire, with Bezos remaining the executive chairman of Amazon.
The conversation between Trump and Jassy followed a series of events that illustrated the complex dynamics between the two entities. After Trump narrowly escaped an assassination attempt at a campaign rally in July, Bezos reportedly called Trump to commend his bravery. Additionally, executives from Bezos’s space venture, Blue Origin, had a brief interaction with Trump during a recent campaign stop in Texas. These meetings come on the heels of a significant announcement from The Washington Post, which revealed it would not endorse any candidates in the upcoming presidential race, further complicating the relationship between Trump and Bezos, especially given Trump's previous hostility towards the newspaper.
A Trump campaign spokesperson stated, "Business leaders across the country support President Trump because they know he’s a businessman with a proven track record of economic success from his first term in the White House." Despite the increasing engagement, both Amazon and Bezos's representatives have remained tight-lipped regarding the details of their interactions with Trump, reflecting the ongoing tension and unpredictability of the political and corporate landscape.
Source: https://www.washingtonpost.com/nation/2024/10/30/bezos-business-federal-government/
4. Former California Governor Arnold Schwarzenegger endorses Harris/Walz
Bite: A former Republican governor, frustrated with both parties, shared their decision to vote for Kamala Harris and Tim Walz, condemning divisive politics and election denial as un-American. Reflecting on their experience prioritizing policy over partisanship, they emphasized the need to reject candidates who undermine democratic values. Calling for Americans to vote and move forward, the governor urged the country to turn the page on what they see as a destructive chapter in U.S. history.
Full quote from Shitter. Bolding done by me.
I don’t really do endorsements. I’m not shy about sharing my views, but I hate politics and don’t trust most politicians.
I also understand that people want to hear from me because I am not just a celebrity, I am a former Republican Governor.
My time as Governor taught me to love policy and ignore politics. I’m proud of the work I did to help clean up our air, create jobs, balance the budget, make the biggest infrastructure investment in state history, and take power from the politicians and give it back to the people when it comes to our redistricting process and our primaries in California.
That’s policy. It requires working with the other side, not insulting them to win your next election, and I know it isn’t sexy to most people, but I love it when I can help make people’s lives better with policies, like I still do through my institute at USC, where we fight for clean air and stripping the power from the politicians who rig the system against the people.
Let me be honest with you: I don’t like either party right now. My Republicans have forgotten the beauty of the free market, driven up deficits, and rejected election results. Democrats aren’t any better at dealing with deficits, and I worry about their local policies hurting our cities with increased crime.
It is probably not a surprise that I hate politics more than ever, which, if you are a normal person who isn’t addicted to this crap, you probably understand.
I want to tune out.
But I can’t. Because rejecting the results of an election is as un-American as it gets. To someone like me who talks to people all over the world and still knows America is the shining city on a hill, calling America is a trash can for the world is so unpatriotic, it makes me furious.
And I will always be an American before I am a Republican.
That’s why, this week, I am voting for Kamala Harris and Tim Walz.
I’m sharing it with all of you because I think there are a lot of you who feel like I do. You don’t recognize our country. And you are right to be furious.
For decades, we’ve talked about the national debt. For decades, we’ve talked about comprehensive immigration reform that secures the border while fixing our broken immigration system. And Washington does nothing.
The problems just keep rolling, and we all keep getting angrier, because the only people that benefit from problems aren’t you, the people. The only people that benefit from this crap are the politicians who prefer having talking points to win elections to the public service that will make Americans’ lives better.
It is a just game to them. But it is life for my fellow Americans. We should be pissed!
But a candidate who won’t respect your vote unless it is for him, a candidate who will send his followers to storm the Capitol while he watches with a Diet Coke, a candidate who has shown no ability to work to pass any policy besides a tax cut that helped his donors and other rich people like me but helped no one else else (sic), a candidate who thinks Americans who disagree with him are the bigger enemies than China, Russia, or North Korea - that won’t solve our problems.
It will just be four more years of bullshit with no results that makes us angrier and angrier, more divided, and more hateful.
We need to close the door on this chapter of American history, and I know that former President Trump won’t do that. He will divide, he will insult, he will find new ways to be more un-American than he already has been, and we, the people, will get nothing but more anger.
That’s enough reason for me to share my vote with all of you. I want to move forward as a country, and even though I have plenty of disagreements with their platform, I think the only way to do that is with Harris and Walz.
Vote this week. Turn the page and put this junk behind us.
And even if you disagree with me, vote, because that’s what we do as Americans.
5. Trump to campaign with welfare queen Brett Favre
Bite: Former President Trump ramped up his 2024 campaign with a rally in Wisconsin, where he encouraged supporters to contribute for a chance to dine with NFL legend Brett Favre, aiming to energize voters in this key swing state. Favre’s endorsement, despite his involvement in a high-profile welfare fraud scandal in Mississippi, highlights Trump’s strategy to attract sports fans and conservatives. This partnership is part of Trump’s broader effort to secure pivotal swing states as the election approaches.
Former President Donald Trump is mobilizing his base as he heads into critical states ahead of the 2024 election. On Saturday, he hosted a rally in Wisconsin, where he made headlines by urging supporters to contribute to his campaign in exchange for a chance to attend a private dinner with NFL legend Brett Favre. This high-profile endorsement from the former Green Bay Packers quarterback is seen as a strategic move to energize Trump’s supporters in a state that has been pivotal in previous elections.
During the rally, Trump highlighted his past accomplishments and criticized President Joe Biden’s policies, claiming they have negatively impacted Wisconsin’s economy and security. He framed the upcoming election as a referendum on America’s future, emphasizing the importance of voter turnout in swing states like Wisconsin and North Carolina, where he is also expected to campaign. “We have to win,” Trump told the crowd, insisting that a strong turnout could secure a Republican victory in the 2024 race.
Favre, who attended the rally, expressed his support for Trump, praising his leadership and vision for the country. This collaboration between Trump and Favre reflects a broader strategy to attract sports fans and conservative voters alike, potentially increasing Trump's appeal in battleground states.
As Trump continues to ramp up his campaign efforts, the 2024 election landscape appears to be shaping up as a fierce battle for key swing states, with both parties vying for the support of undecided voters. The endorsement of popular figures like Favre could prove crucial in mobilizing voter engagement as the election draws nearer.
More on Favre:
Brett Favre, the former NFL quarterback, has found himself embroiled in a significant controversy regarding a welfare fraud scandal in Mississippi. The allegations center around Favre's involvement in a scheme to divert funds from a state welfare program, intended for some of the most vulnerable residents, to finance a new volleyball facility at the University of Southern Mississippi, where his daughter played the sport.
Key Points of the Scandal:
Misuse of Welfare Funds:
It was discovered that Favre received nearly $1.1 million in welfare funds through the Mississippi Community Education Center (MCEC), an organization tasked with providing services to low-income residents. The funds were intended to support impoverished families but were allegedly used to cover expenses for the volleyball facility.
Text Messages:
Text messages released during the investigation revealed conversations between Favre and various officials, including then-Governor Phil Bryant. In these messages, Favre expressed concern about the public backlash if it became known that welfare funds were being used for the volleyball project. He also sought assurances that the funds would not be traced back to him.
Legal Consequences:
Favre has not been charged criminally but has faced lawsuits and public backlash. In May 2023, he was named in a civil lawsuit filed by the Mississippi state welfare agency seeking to recover the misappropriated funds. Additionally, he has had to contend with significant media scrutiny and criticism from the public and advocates for the welfare of low-income families.
Denial of Wrongdoing:
Throughout the controversy, Favre has denied any wrongdoing. He has claimed that he did not know the funds were welfare money and stated that he would repay the money, although he has not done so as of now.
Broader Implications:
The scandal has highlighted systemic issues within Mississippi's welfare programs and has raised questions about how public funds are allocated and monitored. It has also drawn attention to the broader issue of celebrity influence in public affairs, particularly when it comes to the diversion of funds meant for the needy.
Overall, Brett Favre’s involvement in the welfare fraud scandal has not only tarnished his legacy as a sports icon but also shed light on significant issues related to welfare misuse and accountability in public funding. The investigation is ongoing, and the fallout from this controversy continues to evolve.
6. Bannon Re-Emerges from Prison into a Changed MAGA Movement Dominated by Elon Musk
Bite: After four months in prison, Steve Bannon returned to find Elon Musk now wielding significant influence within the MAGA movement he once helped shape. At a press conference, Bannon praised Musk’s support for the movement, reflecting shifting dynamics as Musk’s prominence rises and Bannon’s influence wanes in Trump’s campaign orbit.
Steve Bannon returned from a four-month stint in federal prison this week to find himself on the outside looking in at a MAGA movement transformed in his absence. A new figure now wields influence at Donald Trump's side and within the movement Bannon once shaped: Elon Musk. Musk’s ascent to MAGA prominence marks a stark turn for the political landscape and a twist of irony for Bannon, who not long ago lambasted Musk as “a war profiteer” and “globalist” with unsettling ties to the Chinese Communist Party.
At a press conference in New York’s Loews Regency Hotel mere hours after his release from FCI Danbury, Bannon was quick to reconcile his prior stance. In response to questions from reporters, Bannon praised Musk’s recent “awakening” as an ally of the MAGA cause, commending the Tesla CEO’s financial support for grassroots MAGA projects. Bannon’s about-face reflects the turbulent currents now animating the right-wing populist movement—a faction Bannon himself was instrumental in galvanizing.
The press conference took a theatrical turn as comedian Rob Potylo, in character as “Robby Roadsteamer,” interrupted to mock Bannon’s self-described status as a “political prisoner.” The incident highlighted Bannon’s mixed fortunes; his status and his show, War Room, have faltered during his absence. Meanwhile, Musk’s influence within the movement has surged, underscored by his high-profile appearance at a Trump rally in Madison Square Garden days prior.
Absent from Trump’s campaign events and largely distanced from its leadership—now helmed by Chris LaCivita and Susie Wiles—Bannon’s post-release activities are limited to campaign fieldwork rather than headlining appearances. He did, however, strike a familiar tone by reiterating his views on the 2020 election, which he claimed without evidence was stolen, and pivoted to economic populism, vowing to champion the “politics of money” as a defining force in MAGA’s future.
Bannon's next steps remain unclear as Musk’s control of the media landscape, including his platform X, casts a long shadow over Bannon's influence.