Politics
Column: The U.S. economy is doing very well. But don't give too much credit to Biden — or Trump
One of Donald Trump’s closing campaign arguments was that he would deliver a new “golden age” for America. This week, he announced that this Trump-powered golden age has already begun.
That’s fitting insofar as Trump has rapidly eclipsed the current president, Joe Biden, in setting expectations and even an agenda for America at home and abroad. It feels as if the clock on the second Trump administration has already started.
So has the usual fight over who should get the credit — or blame — for the economy the next president inherits. This happens to some extent with every new president, regardless of party and not just on the subject of the economy.
Ronald Reagan’s vice president, George H.W. Bush, inherited his economy, but Bush’s aides were quick to note that he also inherited an inevitable recession and a savings and loan crisis from the Gipper. In the closing days of this year’s election, Barack Obama complained that Trump had inherited his economic successes in 2017.
Trump has reason to jump the gun on taking credit for the economy now: It’s doing amazingly well.
That’s not to minimize the pain of many Americans or ignore economic problems such as skyrocketing debt, inflation and dislocations in some regions and industries. Even amid a macroeconomic boom, people live in microeconomic circumstances.
The U.S. economy is nevertheless the envy of the world. Don’t take my word for it: The cover of a special issue of the Economist in October described the American economy as just that, the “Envy of the World,” noting that the United States “has left other rich countries in the dust.” The Financial Times reached the same conclusion this month.
It’s a stark contrast to the 1990s, when many expected Europe’s economies to leave ours in the dust. In 2008, the European Union’s economy was 10% bigger than that of the United States. By 2022, it was 23% smaller. The EU grew 21% during this period, but the American economy grew 72%.
Today the U.S. economy generates about a quarter of global output. U.S. stocks account for 65% of global equities, while Japan, China and the United Kingdom combined account for just over 10%. If Britain were an American state, it would barely edge out Mississippi — our poorest state — in per capita gross domestic product.
There are many reasons for this. Americans simply work harder than citizens of other rich countries. Our productivity has outstripped the eurozone’s more than 3 to 1 since 2008. Our business culture is different too: We are the most entrepreneurial country in the world, and we regard business failure not as a cause for shame but as useful experience for the next attempt. America is also better at assimilating immigrants than most countries, and the immigrants we tend to attract generally work very hard.
I could go on. The point is that we have had different presidents with very different policies and even more different rhetoric over the last 30 years. But U.S. economic trends — with the usual dips and spikes — have been largely positive through all of those presidencies.
As the Manhattan Institute’s Brian Riedl put it in National Affairs, “The notion that there is a simple partisan pattern to the health of the economy is an extension of the exaggerated politicization of our understanding of contemporary American life.”
Recent dissatisfaction with the economy, spurred by inflation, fueled the idea that America was doing especially awful under Biden. Again, we live in microeconomies, so it’s understandable that many people had that view. But we’ve still been doing better than pretty much everyone else.
Trump’s focus on the economic downside was typical for a presidential challenger and fair enough. But he was wrong to suggest that our competitors were eating our lunch.
None of this is to suggest that presidents and their economic policies don’t matter. It’s just that they don’t matter as much as presidents and their partisans claim they do.
Politics
Hochul endorses legislation to allow New Yorkers to sue ICE agents: ‘Power does not justify abuse’
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New York Gov. Kathy Hochul is supporting legislation that would allow state residents to sue ICE agents for violating their constitutional rights.
The governor said on Tuesday during her State of the State address that she wants to allow New Yorkers to “hold ICE agents accountable in court when they act outside the scope of their duties.”
“This doesn’t interfere with lawful enforcement or public safety,” Hochul said. “It simply affirms a core truth: Power does not justify abuse. And if someone’s constitutional rights are violated here in the state of New York, I say they deserve their day in court.”
Last year, New York State Sen. Brad Hoylman-Sigal and Assemblymember Micah Lasher proposed measures to allow private citizens to file lawsuits against federal officials who violate their constitutional rights.
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New York Gov. Kathy Hochul is backing legislation that would allow state residents to sue ICE agents for violating their constitutional rights. (Julia Nikhinson/AP Photo)
Lasher’s version cites Title 42, Section 1983 of the U.S. Code, which allows people to sue state and local officials for violating their rights. The proposal highlights that New York does not have a law in place allowing citizens to sue federal officials.
“Every day, ICE is terrorizing our communities & violating our civil rights. We must be able to hold them accountable,” Lasher, who is running for Congress, wrote on X, adding that he is glad Hochul is taking up his legislation.
Multiple states, including California, Massachusetts and New Jersey, have implemented similar laws allowing residents to sue federal officials.
Hochul also proposed other immigration guardrails, including a measure to require judicial warrants before ICE can conduct raids in sensitive locations like schools, churches and hospitals.
People march during a protest after the killing of Renee Nicole Good in Minneapolis, Minnesota. (Getty Images)
Earlier this year, the Trump administration reversed a Biden administration policy barring immigration arrests in these sensitive locations.
The governor also announced that New York “will not allow the use of state resources to assist in federal immigration raids on people who have not committed serious crimes.”
Department of Homeland Security spokeswoman Tricia McLaughlin alleged in a statement to The Hill that Hochul “continues to smear law enforcement who are simply enforcing the rule of law and are putting their lives on the line to remove violent criminals from New York.”
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Renee Nicole Good, a U.S. citizen, was fatally shot by ICE agent Jonathan Ross in Minnesota. (Getty Images)
McLaughlin also argued that there has been an increase in threats against federal law enforcement officers who she purports have shown “incredible restraint and professionalism in exhausting all options before any kind of non-lethal force is used.”
This debate has intensified after a recent incident in Minneapoliss, where Renee Nicole Good, a U.S. citizen, was fatally shot by an ICE agent during an enforcement action. Protests followed in multiple cities, and Democrats and local residents have condemned the shooting and urged charges against the agent.
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The Trump administration and Republican lawmakers have defended the incident by arguing that it was a justified shooting.
Officials are also investigating a second ICE-involved shooting that happened in Minneapolis on Wednesday, as the mayor continues to demand that the agency leave the city and state.
Politics
L.A. unions push new tax on companies with ‘overpaid’ CEOs
A group of Los Angeles labor unions is proposing a ballot measure they say would combat income inequality in the city by raising taxes on companies whose chief executive officers make at least 50 times more than their median-paid employee.
The so-called Overpaid CEO Tax initiative was announced Wednesday at a rally outside Elon Musk’s Tesla Diner in West Hollywood, and featured union workers holding signs that read “Taxing greed to pay for what we need,” and a cartoon cutout of a boss carrying money bags and puffing a fat cigar.
“It’s high time the rich paid more taxes,” said Kurt Petersen, the co-president of Unite Here Local 11, which represents airport and hotel employees.
Sister Diane Smith of Clergy and Laity United for Economic Justice joins the Fair Games Coalition at a rally in West Hollywood on Wednesday.
(Genaro Molina / Los Angeles Times)
The proposal is sponsored by the Fair Games Coalition, a collection of labor groups that includes the Los Angeles teachers union, and comes on the heels of a statewide ballot proposal for a one-time 5% wealth tax on California billionaires that would raise money for healthcare for the most vulnerable.
Revenues raised by the CEO tax would be earmarked for specific purposes and not go directly to the city’s general fund.
According to proponents, 70% would go to the Working Families Housing Fund; 20% would go to the Street and Sidewalk Repairs Programs and 5% would go both to the After-School Programs Fund and the Fresh Food Access Fund.
In order to place the measure on the November ballot, supporters must collect 140,000 signatures in the next 120 days.
Critics say the proposal is misguided and would drive business away from the city.
“It would encourage companies that have minimal contact and business in Los Angeles to completely pull out,” said Stuart Waldman, head of the Valley Industry & Commerce Assn. “You’ll never see another hotel built in Los Angeles. It’s just one more thing that will drive business away.”
He added that $350 million for affordable housing would create about 350 units of affordable housing per year, which would not do much to affect the city’s housing crisis.
“That does nothing to help people. But on the contrary, that tax would do more to hurt people by pushing businesses out of Los Angeles and pushing jobs out of Los Angeles,” he said.
United Teachers-Los Angeles President Cecily Myart-Cruz said teachers support the proposal because it would not only raise money for after-school programs, but also help teachers find housing in L.A.
“They can’t live where we teach, because the prices are out of reach,” Myart-Cruz said.
Supporters argue that the tax will not chase businesses out of Los Angeles.
Kurt Petersen, co-president of Unite Here Local 11, speaks in favor of a measure that would increase taxes on companies whose chief executive officers make at least 50 times more than their median paid employee.
(Genaro Molina / Los Angeles Times)
“Sure if they want to leave the second largest market in the country, go for it. But no one’s leaving that,” Petersen said.
The ordinance, if passed by voters, would impose an additional tax of up to 10 times the company’s regular business tax, based on the pay difference between the highest-paid employee at the company and the lowest, the initiative said.
According to the coalition, the current city business tax is between 0.1% and 0.425% of gross receipts.
If a top manager at a company makes between 50 and 100 times the median employee, the company will pay an “Overpaid CEO tax” equal to the business tax otherwise paid by the company. If the top manager makes greater than 500 times the median employee, the business would be required to pay an additional tax of 10 times the business tax otherwise owed.
“The bigger the gap, the higher the tax,” Petersen said.
Politics
Republicans light cigars, cigarettes on burning photos of Khamenei to show support for Iranian protesters
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Republican lawmakers are jumping on a social media trend to show their support for the anti-regime protesters in Iran.
Sen. Tim Sheehy, R-Mont., and Rep. Claudia Tenney, R-N.Y., posted photos of themselves using burning photos of Ayatollah Ali Khamenei to light up a cigarette and a cigar respectively. Both lawmakers used the caption “Smoke ’em if you got ’em.”
The lawmaker’s images mirror a social media trend in which people are using burning photos of Khamenei to light cigarettes and cigars. The trend emerged as the people of Iran hold increasingly intense protests against the Islamic regime. The movement against the regime has seen increasing support from abroad as world leaders back the people of Iran.
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People gather during a protest on Jan. 8, 2026, in Tehran, Iran. (Anonymous/Getty Images)
Khamenei’s regime has started to crack down on protests and even instituted a sweeping internet blackout to try to quell the unrest. Some have posited that the internet blackout was also meant to impede the spreading of information about and visuals of abuses committed against protesters by regime-backed forces.
Recently, exiled Iranian crown prince Reza Pahlavi has publicly urged President Donald Trump and the U.S. to back protesters in Iran as they fight the decades-old regime.
Sheehy told Fox News Digital that he takes the issue personally, saying that Iran has participated in the torturing, kidnapping and killing of Americans across the globe, “including friends of mine.”
“The Iranian regime are a bunch of murderous b——- who have been chanting ‘death to America’ for the past 46 years. They have backed up this chant by kidnapping, torturing, and killing thousands of Americans all over the world, including friends of mine. For me, it’s personal; it’s time to take out the trash,” Sheehy said in a statement provided to Fox News Digital via email.
Sen. Tim Sheehy, R-Mont., showed his solidarity with the people of Iran by hopping on a social media trend in which she used a burning photo of Ayatollah Ali Khamenei to light a cigarette. (Courtesy of Sen. Tim Sheehy’s Office)
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The senator also expressed his solidarity with the people of Iran and encouraged them to keep fighting the regime.
“To the Iranian people — we applaud your courage, keep fighting, and know we fully support your brave efforts to topple this evil regime,” he added.
Tenney’s office also spoke with Fox News Digital about the congresswoman’s post, praising the bravery of the people of Iran for standing up to the regime. Additionally, Tenney’s office expressed the congresswoman’s solidarity with the Iranian people.
“The bravery of the Iranian people in the face of decades of oppression by a brutal, extremist regime is extraordinary. Men and women across Iran are risking their lives to stand up to authoritarian mullahs who have denied them basic freedoms for generations,” Tenney’s office said in a statement to Fox News Digital.
Rep. Claudia Tenney, R-N.Y., showed her solidarity with the people of Iran by hopping on a social media trend in which she used a burning photo of Ayatollah Ali Khamenei to light a cigar. (Courtesy of Rep. Claudia Tenney’s Office)
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“The congresswoman stands firmly with the Iranian people and their demand for dignity and self-determination, and believes their courage must be recognized and amplified. Today, the Iranian people finally have an ally in the White House, President Trump, who has made clear that the United States stands with those fighting for freedom against tyranny,” Tenney’s office added.
Trump has been vocal about his support for the people of Iran and has warned that the U.S. would be ready to step in if the regime used violence against protesters.
“Iran is looking at FREEDOM, perhaps like never before,” the president wrote in a Truth Social post on Jan. 10. “The USA stands ready to help!!!”
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