Business
Column: A farewell to James G. Watt, environmental vandal and proto-Trumpian
Last week was so chock full o’ news, what with the Trump indictment and the deaths of religious right-winger Pat Robertson and the Unabomber Ted Kaczynski, that I’m concerned that another significant passing has received far less attention than it deserved.
That’s the death of James G. Watt at 85, which occurred on May 27 but was announced by his family last Thursday. Most leading newspapers granted Watt an obituary, proper for someone who was Ronald Reagan’s Interior secretary for just under three years.
The New York Times called him “polarizing,” the Washington Post “combative,” this newspaper “sharp-tongued and pro-development.” Did those adjectives do justice to Watt, however?
My concept of stewardship is to invest in it. … Do we have to buy enough land so that you can go backpacking and never see anyone else?
— James G. Watt, former Interior secretary
I think not. They focused on his actions while in office from 1981 to 1983. What they missed, however, is his legacy as a Republican ideologue on environmental policy.
That’s important, because much of what he attempted to do under Reagan became orthodoxy under subsequent Republican presidents. His approach to congressional oversight, moreover, presaged the arrogance of successors such as Ryan Zinke and David Bernhardt, Trump’s Interior secretaries.
Watt also should be remembered for his malign approach to California’s environmental concerns, particularly those related to offshore oil drilling. In 1982, he proposed to lease the entire outer continental shelf of 1 billion acres to oil and gas drillers.
The sheer audacity of the proposal stunned environmental organizations and coastal state governors, coming as it did when the 1969 Santa Barbara oil spill was still very fresh in the public memory; Congress had responded to the disaster by mandating that Interior “take more account of environmental factors in granting leases,” according to a 1990 legal analysis of Watt’s tenure. (Reagan, remember, was governor of California at the time of the oil spill.)
Even the oil and gas industry was displeased, since expanding production on the scale Watt envisioned would drive prices down.
Watt came to office flaunting a born-again religious persona that he often exploited to justify treating political and environmental opponents with contempt, prefiguring the rise of the evangelical right wing in American politics. Asked at a House committee hearing in 1981 to give his view of his agency’s statutory responsibility to act as a steward of natural resources for future generations, he replied, “I do not know how many future generations we can count on before the Lord returns.”
Nor was he shy about promoting a narrow view of American culture and history, as in 1982, when he banned musical acts from Fourth of July celebrations on the National Mall in Washington, which came under Interior’s jurisdiction. He ordered the National Parks Service to see that future Fourth of July celebrations “point to the glories of America in a patriotic and inspirational way that will attract the family.”
As he acknowledged in his 1985 memoir, “The Courage of a Conservative,” his concern was that musical acts such as the Beach Boys, who had appeared at previous Mall events, attracted drug and alcohol use — the “wrong element,” he said at the time of the ban. His approach finds an echo in the fixation by right-wing Republicans such as Florida Gov. Ron DeSantis, a candidate for president, on eradicating “woke” policies and suppressing educational curricula that acknowledge America’s complicated racial history.
Watt, a Wyoming native, consistently took the side of ranchers and growers who resented federal regulation of their access to public lands in the West. He proclaimed himself a partisan of the Sagebrush Rebellion, a political movement that had backed Reagan’s presidential campaign.
Prior to joining the Cabinet, he had been the original president of the Mountain States Legal Foundation, which was founded in 1976 by the reactionary beer brewer Joseph Coors to fight the environmental movement. In that role, Watt oversaw the filing of numerous lawsuits challenging federal regulations that, as Interior secretary, he inherited the responsibility to defend.
Watt dodged the obvious conflict of interest stemming from the legal foundation’s lawsuits by promising to recuse himself from decisions relating to the litigation, but not from “policy questions that might be related to the cases,” as Elizabeth Drew of the New Yorker reported in 1981. His promise, in other words, was conveniently narrow, and didn’t prevent him from pursuing policies that his Mountain States clientele would find extremely advantageous.
Perhaps David Bernhardt, Trump’s second Interior secretary, examined the Watt archives when facing similar conflicts — in his case, those arising from his pre-Cabinet work as a lawyer and lobbyist for farmers and water firms with matters before the agency.
Interior’s ethics officials finessed the issue by categorizing some loosely as “matters” on which Bernhardt could weigh in, rather than “particular matters” involving former clients, from which he had pledged to recuse himself.
Through his policies, Watt revived the old debate about “conservation” versus “preservation” that originated with John Muir’s battles to safeguard the Yosemite and Hetch Hetchy valleys around the turn of the last century. The issue is whether the wilderness should be exploited, albeit carefully, or preserved in pristine condition for the meditative contemplation of nature.
Muir advocated forcibly for the latter. He largely won on Yosemite, which remains a jewel among the national parks. But he lost decisively on Hetch Hetchy, which San Francisco was permitted to turn into a reservoir providing water for its residents. (Muir’s family maintained that the loss hastened his death in 1914.)
Watt stated bluntly, as was his style, that he would “always err on the side of public use versus preservation.” Reminded again that his department was entrusted with the stewardship of natural resources, he replied: “My concept of stewardship is to invest in it. … Do we have to buy enough land so that you can go backpacking and never see anyone else?”
Almost from the day he took office, Watt moved to eviscerate the Interior Department’s enforcement capabilities. He fired scores of veteran officials, depriving the agency of decades’ worth of expertise.
“We cleaned every one of them out and then we started appointing good people,” he told a pro-business journal in an interview. Among other effects, the firings “essentially destroyed” the division tasked with policing coal strip-mining operations, the 1990 analysis observed — damage that still had not been repaired a decade later, if ever.
Watt often defended his tolerant treatment of ranching and farming on federal lands as blows on behalf of “individual liberty and economic freedoms,” as he described his views for the Heritage Foundation, a conservative think tank originally co-funded by Coors.
Yet this claim was fundamentally a lie: The ranches and farms grazing and growing on federal lands were among the most generously subsidized businesses in the country, receiving federal water and federal pasturing rights at “a fraction of market value,” the 1990 analysis noted.
In the end, Watt was undone by the arrogance of the true believer. His critics often observed that he might have come much closer to his stated goals had he not expressed and pursued them with such ferocity and impatience, or treated his critics with such hauteur.
By provoking a concerted backlash in court, Watt’s crusade even made things rougher for his patrons. Legal challenges to his offshore drilling policy, for example, resulted in a Supreme Court ruling that strengthened the ability of states and the federal government to impose environmental regulations on offshore drillers even after they had obtained their leases — precisely the opposite outcome from what the drillers wished for.
It was Watt’s self-confident bluster that finally brought him down. In September 1983, in referring to a coal leasing commission in a speech to a business group, he remarked, “I have every kind of mix you can have … I have a Black, I have a woman, two Jews and a cripple.”
It was a shocking statement harking back to the casual bigotry of an earlier time — and foretelling the resurgence of a similar brand of malevolence toward minorities and the disadvantaged that reemerged during the Trump presidency. Eighteen days later, Watt was forced to resign.
His fortunes continued along a downward slope. An advisor to the Department of Housing and Urban Development after leaving the Cabinet, he was indicted in 1995 for lying about his work to Congress and the FBI, which were investigating corruption at HUD. He pleaded to a single misdemeanor and was sentenced to community service and charged a small fine.
We should not overlook James Watt’s acrid bequest to Republican Party politics. He may not have pioneered the blunderbuss technique of deregulation, but he provided a model. He portrayed almost all regulation as an infringement of business interests’ rights and freedoms.
The principle he followed in office was to dismantle every obligation with which Congress had invested his agency; those he could not dismantle by fiat he undermined by firing anyone with expertise and replacing them with a staff that was not up to the task — or even committed to the tasks — they were bound to perform. He behaved as though basic standards of ethics and morality didn’t apply to him.
In his memoir, he posed as a victim of an all-powerful “liberal establishment,” writing: “Whether one is talking about labor, education, business, the media, the arts or even government bureaucracy, liberalism reigns.” Conservatives, he wrote, “are the ones calling for change.”
Sound familiar?
Watt may not have achieved all he wished, but he provided a model for those who followed, in the administrations of George H.W. Bush, George W. Bush, and towering over them, Donald Trump.
Elements of his leadership, such as it was, persist among Republicans to this day. We are all poorer for James Watt’s time on Earth.
Business
China’s Population Declines for 3rd Straight Year
To get its citizens to have more children and stop its population from shrinking, China has tried it all, even declaring having babies an act of patriotism. And yet, for the third year in a row, its population got smaller.
Not even a surprise uptick in the number of babies born, a first in seven years, could reverse the course of an aging and declining population.
China is staring down a longer term baby bust that is rippling through the economy. Hospitals are shutting their obstetrics units, and companies that sold baby formula are idling factories. Thousands of kindergartens have closed and more than 170,000 preschool teachers lost their jobs in 2023.
The country’s birthrate, as one former kindergarten in the southern city of Chongqing put it, “is falling off a cliff.” Enrollments in China’s kindergartens plummeted by more than five million in 2023, according to the most recently available data.
On Friday, the National Bureau of Statistics reported that 9.54 million babies were born last year, up slightly from 9.02 million in 2023. Taken together with the number of people who died over 2024 — 10.93 million — China’s population shrank for a third straight year.
The small bump in newborns, in part because it was the auspicious Year of the Dragon in the Chinese zodiac, didn’t change the broader trajectory, experts said. China’s childbearing population is declining and young people are reluctant to have children.
“In the medium and long term, the annual number of births in my country will continue to decline,” said Ren Yuan, a professor at Fudan University’s Institute of Population Studies.
The lack of babies is adding to China’s economic challenges. A shrinking working-age population is straining an underfunded pension system, and an aging society is leaning on a creaking health care system. China also reported on Friday that the economy grew by 5 percent in 2024, a number that was in line with expectations but that many experts said did not fully reflect a crisis of confidence among households reeling from a multiyear property crisis.
To encourage people to have more babies, the authorities are offering tax benefits, cheaper housing and cash. Cities are promising to cover the cost of in vitro fertilization. In some parts of the country, they are even promising to get rid of restrictions that penalize single mothers.
The government has called on local officials to put in place early-warning systems to monitor big changes in population at the village and town levels around the country. Some officials are even knocking on doors and calling women to inquire about their menstrual cycles.
Companies are also getting involved. In 2023, the travel site Trip.com started paying employees nearly $1,400 a year for each newborn until the age of 5. Last week, the founder of electric vehicle maker XPeng said he would give employees nearly $4,100 if they had a third child.
“We want our employees to have more kids,” said He Xiaopeng, the founder, in a video posted on social media. “I think the company should take care of the money, so employees can have children.”
The problem is not unique to China, which in 2023 was passed by India as the world’s most populous nation. Falling birthrates are often a measure of a country’s move up the economic ladder because fertility rates tend to fall as incomes and education levels go up. But China’s sudden decline in population arrived much sooner than the government had expected. Many families are earning more money than they were a decade ago, but have lost income because of the housing crisis.
Officials have long feared the day when there will not be enough workers to support retirees. Now the government has less time to prepare. More than 400 million people will be 60 or older in the next decade.
China is facing two challenges on this front. Its public pension system is severely underfunded and many young people are reluctant — or are unable — to contribute. A low retirement age has made things worse. After years of deliberation, the government decided on a 15-year plan to gradually increase the official age to 63 for men, 58 for women in office jobs and 55 for women who work in factories. The changes took effect this month.
The party only loosened birth restrictions in 2015 to allow families to have two children, an easing that created a sudden boom. Hospitals had to add beds in the corridors because there weren’t enough.
But the moment was short-lived. By 2017, births started declining every year until last year.
In 2021, panicked officials loosened China’s birth policy again, allowing couples to have three children. It was too late. The next year, so few babies were born that the population began to shrink for the first time since the Great Leap Forward, Mao Zedong’s failed experiment that resulted in widespread famine and death in the 1960s.
China has one of the lowest fertility rates in the world, far below what demographers refer to as the replacement rate required for a population to grow. This threshold requires every couple, on average, to have two children.
Experts said the number of births would likely continue to fluctuate.
“For a country of 1.4 billion a half million more births is not much of a rebound at all,” Wang Feng, a professor of sociology at the University of California, Irvine. “This is in comparison to the lowest year, in 2023 when the pandemic certainly put a pause on childbearing.”
Many young Chinese people are quick to rattle off reasons not to have children: the rising cost of education, growing burdens of taking care of their aging parents and a desire to live a lifestyle known as “Double Income, No Kids.”
For women, the sentiment is especially strong. Daughters who were the only children in their families received education and employment opportunities their parents often did not. They have grown up to become empowered women who see Mr. Xi’s appeals to them to do their patriotic duty and bear children as one step too far. Many of these women have said that deep-seated inequality and insufficient legal protections have made them reluctant to get married.
The steep drop in babies is having a drastic effect on health care, education and even the consumer market. Companies that once minted money selling baby formula to feed a baby boom are now making shakes with calcium and selenium for older adults with brittle bones.
Nestlé, the world’s largest food company, is shutting a factory for the China market that employs more than 500 people halfway across the world in Europe. The company will focus on selling premium baby products and expanding its offering in adult nutrition in China, a spokesman said.
The pressure on China’s health care system is even more pronounced. Dozens of hospitals and maternal health clinic chains have reported closing over the past two years.
On social media forums, nurses specializing in obstetrics have talked about low pay and lost jobs. One doctor told state media that being in obstetrics, once considered an “iron rice bowl” position with guaranteed job security, had become a “rusty iron rice bowl.”
And some smaller hospitals have stopped paying their staff, Han Zhonghou, a former official at a hospital in northern China, told a Chinese magazine.
“Life for maternal and child hospitals,” Mr. Han said, “is getting harder and harder by the year.”
Business
FTC refers Snap complaint alleging its chatbot harms young users
The Federal Trade Commission on Thursday announced it had referred a complaint against Snap Inc. to the Department of Justice, alleging the social media company’s AI-powered chatbot is harmful to young users.
The complaint isn’t public, but the commission made the unusual move of announcing its referral because it determined it’s in the public interest. Two of the commissioners released statements saying they were opposed to the commission’s decision, which was made behind closed doors. One of the commissioners, Andrew N. Ferguson, called the vote “farcical.”
“I did not participate in the farcical closed meeting at which this matter was approved, but I write to note my opposition to this complaint against Snap,” he said in a statement.
Ferguson said he couldn’t elaborate on his opposition because the complaint isn’t public.
The referral signals the federal government has child safety concerns surrounding AI chatbots that can generate text and images. The Santa Monica-based company released a chatbot called My AI that runs on OpenAI’s technology in 2023 that can recommend what to watch, suggest a dinner recipe, help plan a trip or do other tasks.
Ferguson, a Republican who President-elect Donald Trump tapped to lead the FTC, said in his statement the complaint against Snap had “many problems” and clashed with the 1st Amendment.
A Snap spokesperson said in a statement that the company has “rigorous safety and privacy processes” and the product “is also transparent and clear about its capabilities and limitations.”
“Unfortunately, on the last day of this Administration, a divided FTC decided to vote out a proposed complaint that does not consider any of these efforts, is based on inaccuracies, and lacks concrete evidence,” the statement said. “It also fails to identify any tangible harm and is subject to serious First Amendment concerns.”
The FTC declined to share the complaint, noting it’s not public at the moment.
Snap has faced concerns about child safety before, including over the use of its app by teens to purchase deadly fentanyl-laced pills.
About 443 million people on average use Snapchat every day and the service is popular among teens.
Business
Trump Is Said to Consider Executive Order to Circumvent TikTok Ban
President-elect Donald J. Trump is considering an executive order to allow TikTok to continue operating despite a pending legal ban until new owners are found, according to a person with knowledge of the matter.
The possible executive order, reported earlier by The Washington Post, is under discussion as TikTok faces a deadline on Sunday to be banned in the United States unless it finds a new owner. The popular video-sharing app is owned by ByteDance, a Chinese company. Republicans have said for years that they see the app, which has been downloaded to millions of smartphones, as a national security risk. It has become a rare issue that has united both parties in Congress.
If the Supreme Court upholds the law, which will ban the app unless ByteDance sells it to a non-Chinese company, special treatment from Mr. Trump might be the only way for TikTok to continue operating in the United States in the near term. The law requires app store operators like Apple and Google and cloud computing providers to stop distributing TikTok in the United States.
An executive order could try to direct the government not to enforce the law or to delay enforcement to complete a deal, a move that past presidents have used to challenge laws. It is unclear if an executive order would survive legal challenges or persuade the app stores and cloud computing companies to take steps that could expose them to huge penalties.
Alan Z. Rozenshtein, a former national security adviser to the Justice Department and a professor at the University of Minnesota Law School, said an executive order should be “taken with a medium-sized boulder of salt.” Such an order is not a law, he said, and legally would not change the legislation passed by Congress and signed by President Biden.
While there is some speculation that the app will still work if it has already been downloaded, the law also affects internet hosting companies like Oracle and other cloud computing providers, and it is unclear how video load times and the functionality of the app may respond.
One person close to Mr. Trump’s team said some of his allies had loose discussions about buying TikTok but provided no details. Mr. Biden, whose term ends on Monday, a day after the ban is set to go into effect, is also under pressure to find a way to save the app.
The New York Times reported late Wednesday that TikTok’s chief executive, Shou Chew, is expected to attend Mr. Trump’s inauguration on Monday and was offered a seat on the dais. TikTok declined to comment.
Mr. Chew is expected to be joined by other tech executives on the dais: Mark Zuckerberg, the co-founder of Meta; Jeff Bezos, the Amazon founder; Elon Musk, Mr. Trump’s megadonor; and Tim Cook, the chief executive of Apple, who personally donated $1 million to the inaugural committee.
Mr. Trump had previously backed a TikTok ban but publicly changed his stance last year, soon after meeting with Jeff Yass, a Republican megadonor who owns a large share of ByteDance.
Mr. Trump has said they did not discuss the company. But Mr. Yass helped found the trading firm Susquehanna International Group and is one of the biggest supporters of the conservative lobbying group Club for Growth. The group has hired people with ties to Mr. Trump, such as Kellyanne Conway, his former top adviser, and the Republican adviser David Urban, to lobby for TikTok in Washington.
TikTok has also worked to make inroads with the Trump team through Tony Sayegh, who was a Treasury official during Mr. Trump’s first administration and now leads public affairs for Susquehanna.
Mr. Sayegh has relationships with the Trump family and was a core part of the campaign’s decision to join TikTok this summer. Several members of the family, including Ivanka Trump, Donald Trump Jr. and Kai Trump, the president-elect’s granddaughter, have also joined the app.
Mr. Trump’s interest in TikTok is not entirely because of his advisers. He came to see how well videos about him performed on the platform, and his advisers credited it with helping him to expand his reach to a new type of voter during the campaign.
Any actions Mr. Trump might be able to take on TikTok are complicated. The law gives the president the ability to extend the deadline for a sale only if there is “significant progress” toward a deal that would put the company in the hands of a non-Chinese owner.
It also requires that the deal be possible to complete within 90 days of an extension. It is unclear exactly how an extension will work if Mr. Trump tries to deploy it after the ban takes effect.
TikTok has maintained throughout its court challenge to the law that such a sale is unworkable in part because of the prescribed time frame. A group led by the billionaire Frank McCourt has mounted a bid to buy the app — though without its mighty algorithm — in recent months.
Mr. Trump could also try to work around the law by instructing the government not to enforce it.
But app store operators and cloud computing providers could require more than a soft assurance from Mr. Trump that he will not punish them if they fail to execute the ban, said Ryan Calo, a professor at the University of Washington School of Law. The potential legal liability for companies that violate the law is significant: Penalties are as high as $5,000 per person who is able to use TikTok once the ban is in effect.
“You could have a policy not to enforce this ban,” said Mr. Calo, who was part of a group of professors who urged the Supreme Court to overturn the TikTok law. “But I think that maybe conservative companies would just be like: ‘OK, you’re not going to enforce it. But it is on the books, and you could enforce at any time.’”
Mr. Trump’s pick for attorney general, Pam Bondi, has declined to say whether she would enforce the law.
“I can’t discuss pending litigation,” she said at her Senate confirmation hearing on Wednesday. “But I will talk to all the career prosecutors who are handling the case.”
Mr. Trump has a third option: appealing to Congress to reverse a policy it overwhelmingly approved with broad bipartisan support last year.
“Congress can undo this anytime,” Mr. Calo said.
On Thursday, Senator Chuck Schumer of New York, the Democratic leader, said on the Senate floor that he was worried about the possibility of a ban on TikTok.
“It’s clear that more time is needed to find an American buyer and not disrupt the lives and livelihoods of millions of Americans, of so many influencers who have built up a good network of followers,” he said. He added that he had also made those views clear to the Biden administration and accused Republicans of blocking a bill that would have extended the deadline for a ban by 270 days.
A White House official said on Thursday that the administration’s clear view was that TikTok should operate with an American owner. Because of the timing of the potential ban — taking place over a holiday weekend before the inauguration — it would fall to the next administration to carry out the law, the official said.
Catie Edmondson contributed reporting.
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