Economy
Jobs report reveals 140,000 new jobs in February
Payroll firm ADP has revealed that the American private sector added 140,000 new jobs during the month of February, an increase from January’s 111,000. This is important to President Biden’s rhetoric about the economy, which his campaign is trying to paint as stronger than ever due to ‘Bidenomics.’
The report was led by the construction and leisure industries, which added 28,000 and 41,000 jobs respectively. This report comes ahead of the official Labor Department report, which will be released on Friday. The ADP has come under the official number several times recently, most notably in January where the feds said 353,000 new jobs had been added. The Labor Department’s Bureau of Labor Statistics is expected to report a higher number this month as well.
Wages were also reported, with US wage growth increasing at its slowest pace since August 2021. But the bigger issue for Biden is beyond the numbers, because voters don’t seem to care what the numbers say. They are still feeling what many believe is a struggling economy, and polling shows Biden underwater on the economy.
Below are the results of two questions from the CBS/YouGov poll from last week, showing that Americans do not feel good about their financial situation. Concerningly for Biden, they also remember a stronger economy back when Trump was President.
The economy is one of the most important issues for many voters, who have traditionally seen Republicans as better at creating a strong economy. Unless Biden can find a way to change voters minds without trying to use statistics, it could seriously hurt him come November.
In a surprise move, the leader of the Teamsters will be speaking at the Republican National Convention this July. The announcement was made by Former President Donald Trump on social media, welcoming the opportunity to “demonstrate to the nation’s working families they come first.”
Sean O’Brien, who won his bid to be the general president of the Teamsters in 2021, has shifted the union right in recent months. The Teamsters have traditionally supported Democrats, including as recently as 2020 when they endorsed Joe Biden. The Teamsters are one of the largest unions in the United States, boasting over 1.3 million members, and are one of the most politically influential organizations in the labor movement.
The Republican Party has been courting the working class for years now, and Trump’s MAGA movement has made inroads with many union members. However they have still traditionally been shunned by union leadership, which has voted Democratic for decades.
The biggest issue facing many working class people right now is the economy, something Trump has been keen to turn into his top issue. This was clear in the announcement of O’Brien’s speech, in which Trump said, “When I am back in the White House, the hardworking Teamsters, and all working Americans, will once again have a country they can afford to live in…”
While this speech at the RNC is certainly a sign that things are changing, it is not an all out endorsement. O’Brien has made a similar request of the Democratic Party, although it is currently unclear if they plan to accommodate him.
8 major United States publishers controlled by Alden Global Capital announced on Tuesday that they are launching a lawsuit against OpenAI and Microsoft over copyright infringement. Other Alden papers could eventually join the suit, as the fund controls roughly 200 newspapers across the United States.
The lawsuit claims that OpenAI illegally used content published by the papers as training materials for an artificial intelligence engine which could now divert traffic and revenue from their companies.
The list of publications featured in the lawsuit covers several major media markets around the country, and feature some of the biggest names in print journalism. The New York Daily News, The Chicago Tribune, The Orlando Sentinel, The Sun Sentinel, The San Jose Mercury News, The Denver Post, The Orange County Register and The St. Paul Pioneer Press are all involved in the lawsuit.
They join the New York Times, who also filed a lawsuit claiming billions in damages against OpenAI and Microsoft.
Other major publications, including the Financial Times and Business Insider, have instead opted to broker annual compensation from OpenAI in exchange for using their publications for training data.
Major media sources are seen as an important piece of training data for Large Language Models like the ones created by OpenAI and Microsoft. Larger and more reputable publishers, like the Times and the Tribune, can be given extra weight as sources of definitive factual information.
These lawsuits could have a large impact on the future of both artificial intelligence development in the United States. Many AI companies believe that if the publishers win these lawsuits, it will make it almost impossible to train open-source LLM’s without fear of copyright infringement. Community projects cannot afford to pay the fees demanded by publishers, and they would be denied a valuable resource in the continuing development of AI.
Donald Trump’s social media company Truth Social’s shares plunged to new lows on Monday, as the volatile stock continues to find its place in the market. This comes as the social media platform disclosed $58 million in losses in 2023, on a shockingly small revenue number.
Shares have rebounded slightly on Tuesday, however it is unclear if the stock will recover to its post-IPO highs. The stock has been tracked online, similar to other meme stocks such as Gamestop, AMC, and Bed Bath and Beyond. This can add extra volatility, and will likely mean the stock does not reflect the true value of the company based on its performance.
Donald Trump is not allowed to sell any of his shares, which at current prices would be worth billions of dollars, until a six month period has elapsed. During this time it is possible that the stock falls even further, especially after the financial documents that were recently published.
Trump Media & Technology Group Corp. reported revenue of just $4.1 million in 2023. Some analysts have defended this number, placing the social media site alongside the likes of Facebook and Amazon, who were also unprofitable when they first went public.
However Truth Social is also not growing at nearly the same rate as those other platforms. It was likely severely affected by Elon Musk’s purchase of X, which helped many conservatives feel more comfortable with the platform again. Donald Trump was even unbanned on the platform, although he has not returned to the social media site.
It is unclear what the future of Truth Social, or it’s parent company’s shares, will be. However it will likely play an important role in Trump’s finances, which are currently at risk due to large penalties from various trials.