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Westlake Legal Group > News Corporation (Page 367)

Is Your Retirement Fund Ruining Our Economy?

Westlake Legal Group investment-3247252_1920-ebdf21d8fe3ac33d8670fa140efa97cf9884bf9d-s1100-c15 Is Your Retirement Fund Ruining Our Economy?
Westlake Legal Group  Is Your Retirement Fund Ruining Our Economy?

Editor’s note: This is an excerpt of Planet Money’s newsletter. You can sign up here.

In the mid-2000s, Michael Burry smelled trouble in the housing market, realizing that big banks were packaging shady subprime mortgages and reselling them as surefire investments. He concluded that it would lead to a spectacular collapse, made a huge bet against the market and, ultimately, tons of money. His story was dramatized in the book The Big Short by Michael Lewis and in a Hollywood movie in which he was played by Christian Bale.

Burry recently told Bloomberg that he sees another massive bubble happening. This time, he says, it’s in index funds. Instead of relying on financial experts to actively pick winners and losers, index funds buy everything in a market, passively going up and down as the entire market goes up and down. If you’re saving for retirement, there’s a good chance you’re invested in at least one of them.

In 1995, index funds represented only 4% of the total assets invested in equity mutual funds. By 2015, that had jumped to 34%. There is now over $4 trillion in passive funds indexed to the U.S. stock market, more than the market cap of Microsoft, Apple, Amazon, and Google combined.

Westlake Legal Group gettyimages-504967844-8df3a6e81b34cff5cabe7d90644afe075172e838-s800-c15 Is Your Retirement Fund Ruining Our Economy?
Kevin Winter/Getty Images
Westlake Legal Group  Is Your Retirement Fund Ruining Our Economy?

Kevin Winter/Getty Images

Index funds make a persuasive offer. Don’t pursue the expensive and risky strategy of buying and selling individual stocks. Don’t pay brokers or mutual funds big fees to move money around for you. Instead, just park your money in these passive moneymakers, which offer lower fees, diversified risk, and — as the data has made clear — better returns over the long run.

It sounds almost too good to be true, and Burry is arguing it is. And he’s not alone in expressing concerns about the astonishing rise of index funds.

The Price Isn’t Right

Actively buying and selling stocks and bonds provides a service to the market: It’s called “price discovery.” If something is overvalued, traders sell it. If it’s undervalued, they buy it. That moves the price of the asset — and it is the crucial mechanism to make sure the price is right, signaling its true value.

But index funds don’t really discover prices. Investors just dump money into these investments, which mindlessly hold stock in companies whether they’re doing well or not. Burry believes the fall of active buying and selling has led to overvaluations, and he’s predicting a crash in the value of the large companies held in index funds. “I just don’t know what the timeline will be. Like most bubbles, the longer it goes on, the worse the crash will be,” he told Bloomberg. He’s now investing in small companies, which he says are often ignored by index funds.

Burry has not disclosed much about his data or methodology. And like any trader, he could be wrong. But, even if he is, concerns about index funds go well beyond bubbles.

A Specter

Legal scholars Lucian A. Bebchuk and Scott Hirst recently published a working paper called “The Specter of the Giant Three.” The vast majority of money flowing into index funds are run by three companies: Vanguard, BlackRock, and State Street Global Advisors. Their combined average stake in each of the top 500 American corporations (the S&P 500) has gone from 5.2% in 1998 to 20.5% in 2017.

The market for index funds, Bebchuk and Hirst argue, naturally favors bigness. Managing a trillion dollar fund is not dramatically more expensive than managing a billion dollar firm. This means the big firms can use their larger revenue streams to offer consumers lower fees, giving them a competitive advantage. Innovations in types of index funds are also easy to copy, meaning that it’s especially hard for small companies to disrupt the big ones.

As more and more people put their money in index funds, Bebchuk and Hirst believe these companies will just continue getting bigger and bigger. And, unlike many other investors, Vanguard, BlackRock, and State Street reliably vote at shareholder meetings, which makes them even more influential when it comes to company decision-making. If trends continue, Bebhcuk and Hirst project these three companies could cast over 40% of the votes in every single one of the 500 largest American corporations within the next couple decades.

“In this Giant Three scenario, three investment managers would largely dominate shareholder voting in practically all significant U.S. companies that do not have a controlling shareholder,” Bebchuk and Hirst warn. They fear this could have drastic implications for corporate governance and competition.

Another group of scholars, Eric A. Posner, Fiona Scott Morton, and E. Glen Weyl, argue these gigantic institutional investors are already posing a threat to a healthy marketplace. And they urge the federal government to adopt new rules that limit institutional investors from owning large stakes in multiple companies in the same industry.

We now look back at the housing bubble with an astonishment at the mass delusion behind the idea that home prices could always go up, and that more people like Michael Burry didn’t see it coming. It’s possible that someday, we’ll look at the promise that everyone can just buy and hold pieces of an entire market and nothing will go wrong the same way.

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This Town Is Desperately Fighting For Its Drinking Water

Photos by Lauren Justice

On a hot midsummer morning in 2012, Rhonda Carrell received a mailer from the Wysocki Family of Companies announcing its intention to build a mega-dairy and farm – Golden Sands – just a stone’s throw from her driveway in Saratoga, Wisconsin.

Carrell’s small town was a convenient location for the big agriculture firm. Twenty miles east of its headquarters, Saratoga is a midpoint between the company’s farm fields, another of its mega-dairies, and its offices. 

The day before Carrell got the mailer, a Wysocki delegate had come through Saratoga to drop off permit applications for Golden Sands Dairy. Its proposal included 5,300 cows and more than 6,000 acres of farmland scattered throughout the community. If the plan moved forward, the rural town of 5,000 residents would have more cows than people.

It was a prospect that frightened the Carrells. Wisconsin, known as the dairy capital of the U.S., is no stranger to mega-dairies. The proposed Golden Sands would join around 300 already operating in the state. Known as CAFOs, or concentrated animal feeding operations, these giant factory farms hold upwards of 1,000 animals that are kept mostly in confined conditions.

Their sheer scale makes them cost-efficient, but efficiency comes at a heavy price. Not only can they knock smaller farms out of business by outpacing them on price, but the waste they churn out can carry a heavy environmental toll – especially when it comes to water. And Rhonda Carrell was aware of what was at stake.

The big problem with CAFOs, such as Wysocki’s, is what comes out of the cows: manure.

Westlake Legal Group 5d8a2bd02200005900fb916d This Town Is Desperately Fighting For Its Drinking Water

Carrell looks out over a portion of the proposed site of Golden Sands Dairy in Saratoga, Wisconsin, on Sept. 20.

A dairy cow can produce up to 80 pounds of manure per day. A site like Golden Sands could have more than 150 million pounds of manure on its hands each year. To dispose of this waste, CAFOs often buy up thousands of acres nearby for vegetable production. These fields are known as manure application fields. While manure is a commonly used crop fertilizer – and, if managed properly, can return nutrients to the soil – the amounts produced by CAFOs are often vastly more than what can be absorbed in the soil, meaning animal waste can end up leaching into water supplies, contaminating them.

In Wisconsin, this is a dire problem. The state is plagued with contaminants from animal waste — particularly nitrate, which has been linked to birth defects and cancer. Nitrates can concentrate in groundwater from a variety of sources, including bad septic systems, but here, 90% of them come from agriculture. About 40% of Wisconsinites rely on private well water, and at least 10% of all private wells in Wisconsin contain unsafe levels of nitrates. 

The day the mailer fell onto the Carrells’ doormat was the start of an epic battle – one that is still ongoing and has pitched the tiny community of Saratoga, terrified of losing its pristine drinking water, against a big agricultural company determined to build another mega-diary. 

Saratoga citizens’ fight against Golden Sands represents a battle for clean water across the region.

“I’ve given up a lot of my life because of this fight,” Carrell told HuffPost over the phone in late January. She admitted she was exhausted. The fight was almost at its seven-year mark, and she still couldn’t see the finish line.

Westlake Legal Group 5d8a2c5a2200005a00fb9290 This Town Is Desperately Fighting For Its Drinking Water

Carrell at her home hair salon in Saratoga, Wisconsin, on Sept. 20.

Carrell moved to Saratoga more than 12 years ago to open a hair salon. She set up shop just beyond her back porch. She and her husband planned on a quiet life with walks among the red pine plantations, weekends fishing in pristine trout streams and eventual retirement. She didn’t expect to sacrifice so much of her income, time and mental health on a battle to preserve clean drinking water in the town. 

The Carrells are among a growing number of residents in a tricounty agricultural corridor — comprised of Juneau County, Adams County and Wood County, where Saratoga is located — who are concerned about high levels of nitrates in their drinking water. 

One of the most well-known health effects from nitrates is blue baby syndrome, a decrease in the blood’s oxygen levels which can lead to infant death, but new studies have also found links to birth defects, thyroid disease and cancer

It’s a particular problem in the middle of the state where Golden Sands has been proposed. The region, called Central Sands, was formed by a glacial lake, leaving behind the Wisconsin River as a souvenir. A quarter of this flat, broad landscape is now devoted to agriculture. 

The soil is made of about 100 feet of pure sand and gravel, making it highly permeable, according to George Kraft, a hydrogeologist and professor of water resources at the University of Wisconsin-Stevens Point. The soil doesn’t hold water or pollutants well, and nitrates can easily slip into the groundwater. And because the water table is shallow, the wells most residents rely on for their water are shallow, too. 

Many big farms try to circumvent pollution problems with state-approved nutrient management plans that set out strategies for what farms will do with the manure produced by their animals. But Kraft believes these plans often simply provide a legal loophole for farmers to maximize their use of fertilizer and waste disposal systems. The plans do not include regulations around ground or surface water contamination. 

“They’re not water protection tools,” Kraft said.

Once they learned of Wysocki’s plans, Carrell and other concerned Saratoga residents quickly formed a citizens group — Protect Wood County — to conduct water testing and monitor their nitrate levels.  Since 2012, Saratoga has created one of the most comprehensive baseline water testing databases in the state. The town’s water is essentially pristine, with a nitrate level of around 0.2 milligrams per liter.

Criste Sullivan-Greening, a member of Protect Wood County, grew up behind Saratoga’s town hall and raised her three kids along one of the town’s clear streams. 

Westlake Legal Group 5d8a2d1e2200005a00fb937c This Town Is Desperately Fighting For Its Drinking Water

Criste Sullivan-Greening, an active member of Protect Wood County, at her home in Saratoga, Wisconsin, on Sept. 20, 2019.

“We didn’t want the CAFO,” Sullivan-Greening said. “We knew we had to organize, and that’s what the citizens did. Within 30 days, we had multiple committees formed to study potential impacts to roads, air quality, and quality of life. We had hundreds of community members teaming together to do research on what it could do to our township.” 

Along with water testing and community organizing, the town also contested Wysocki’s permit in 2012 on the basis that agricultural zoning laws prevented the company from using the 6,000 acres as farmland. 

This kicked off a series of lawsuits between the town and the mega-dairy that eventually reached Wisconsin’s Supreme Court. In 2018, after six years of legal battles, the court delivered a blow to Saratoga’s hope of seeing off Golden Sands, ruling that the dairy could farm on the land, as long as it built the dairy first.

Westlake Legal Group 5d8a2de62200003300fb94ad This Town Is Desperately Fighting For Its Drinking Water

Signs protesting Wysocki and water contamination along Highway 73 in Saratoga, Wisconsin, on Sept. 20.

HuffPost contacted Wysocki Family of Companies multiple times via email and phone. A spokesperson for the company emailed, saying they would endeavor to provide information, but did not respond to any questions.

Sullivan-Greening remains hopeful that given some of the challenges Wysocki faces, including historically low milk prices, the company won’t move forward with the controversial CAFO. She even sees a silver living to the struggle.

“Back in 2012, our community was a community of strangers,” she said. “Now, years later, we’re a family. What Wyscoki’s done to our community has made us stronger.”

For a sense of the potential impact of the proposed Golden Sands Dairy, one need only look across the Wisconsin River to Juneau County, where Wysocki opened its Central Sands mega-dairy in 2007.

Pam Murray and her husband, Scott, spent 20 years raising their kids in the town of Armenia in Juneau County. After Wysocki opened the Central Sands CAFO in 2007, their house, about 300 feet away from manure application fields, was in the line of fire. According to Murray, manure overspray covered their home, pool and cars, and began to permeate their inner walls, their carpet and even their clothes. 

In 2011, the couple agreed to be bought out by Wyoscki. Scott died five years later at just 55. Their neighbor, Diane Miller, also agreed to be bought out after her husband, Ray, passed away from cancer. Miller said the overspray became so bad that her husband, who used a wheelchair, was unable to go outside unassisted because the ramp was too slick. Miller died in 2014. Of the two couples bought out by Wysocki, only Pam Murray is still alive.

Westlake Legal Group 5d8a304123000059006d4e8b This Town Is Desperately Fighting For Its Drinking Water

Pam Murray at her home in October 2018.

Then, in 2016, the death of a baby girl further galvanized neighbors against the CAFO. 

Celina Stewart, who lives 2 miles east of the Central Sands Dairy and downstream from its farm fields, believes nitrates in her water led to the death of her baby at 23 weeks due to serious birth defects. When the Department of Agriculture tested her water after she lost her daughter, results showed nitrate levels of 35 milligrams per liter, Stewart said. However, a privately commissioned test showed nitrate levels of 42.5 milligrams per liter. The federal safe drinking water level is 10 milligrams per liter

Two years later, Nancy Eggleston, environmental health supervisor for the Wood County Health Department, organized a community-wide water test of residential wells near Armenia. She was shocked when 41% of the 104 private wells tested had nitrates above the safe drinking water level – 4.5 times the statewide average for nitrate contamination. The Wood and Juneau County Health Departments issued a warning to residents not to drink their well water if it had high nitrate levels.

The Environmental Protection Agency was also testing water near Central Sands, and its adjacent farm fields found that 65% of their groundwater samples down-gradient from Central Sands showed nitrate contamination. 

Ken Wade, a former hydrogeologist for the Department of Natural Resources, wasn’t surprised. In 2013, one well being monitored at Central Sands Dairy showed that groundwater nitrates had spiked to nearly four times the safe drinking water standard. The next year, another well was measured to have nitrate levels that were 7.7 times the standard. It was “the highest nitrate groundwater contamination I’ve seen anywhere in the state,” Wade said.

Following the testing by Eggleston and the EPA, Wysocki formed a coalition with two nearby industrial agriculture corporations. In a public letter from August 2018, the alliance — called the Armenia Growers Coalition — attributed the elevated nitrate levels in part to “legacy agricultural practices,” or farms that existed in the region decades before their own cattle and crop enterprises arrived.

But George Kraft, who has studied the area since the 1990s, doesn’t buy it.

“The connection that this group is making, that it’s a legacy problem dating back to the 1950s, doesn’t make sense,” Kraft said. Data shows that nitrate levels in the groundwater have become more severe over time, he added.

The Armenia Growers Coalition volunteered in August 2018 to provide bottled water to residents whose water had nitrate levels above 10 milligrams per liter, at least until a water treatment system was installed at the residents’ homes. According to Cameron Field, the coalition’s attorney, 36 reverse osmosis systems (which filter out nitrates) have been installed in residents’ homes, though 62 were requested.

But these efforts were not enough to stave off legal action against Wysocki. In November 2018, a lawsuit brought by 81 families who live near Central Sands Dairy claimed that Wysocki’s harmful practices caused medical problems — including cancer, thyroid disease, miscarriages and birth defects — and that Wysocki initially lied to residents about the potential environmental impact. The court case is ongoing, and according to Breanne Snapp, an attorney for the plaintiffs, the suit has now more than doubled to 174 plaintiffs. The bottled water and treatment systems provided by the Growers Coalition are “not a comprehensive solution to the problem,” Snapp said.

Wysocki did not respond to HuffPost’s requests for comment on the lawsuit. However, Tim Huffcutt, a spokesperson for Wysocki Family of Companies, sent a statement to the USA Today Network-Wisconsin in January, saying, “there are various sources of nitrates in the environment” and repeating suggestions that these could be linked to legacy farming practices. Huffcutt’s statement also said the Armenia Growers Coalition believes providing bottled water and treatment systems “is the best way forward.”

Agricultural runoff, such as manure and other fertilizers, is largely exempt from federal regulation under 1972’s Clean Water Act, which leaves agricultural supervision largely up to the states. Although large CAFOs have to get permits for their nutrient management planning, there’s little oversight in Wisconsin for how CAFOs dispose of waste.

“We haven’t been able to crack the agricultural pollution nut,” Kraft said. “Somehow, we have to get that done.” 

There’s some hope under Wisconsin’s new Democratic governor, Tony Evers. Evers announced in January that 2019 was the year of clean drinking water. Of the $125 million water quality budget he proposed, the state’s Republican-controlled legislature approved $48 million in new funding for pollution prevention. Evers also announced plans to limit the amount of nitrates in the groundwater by creating new statewide limits on agricultural runoff.  

But those plans will take at least 2½ years. As it stands, the only solution for residents fearing nitrate pollution throughout the state is Eggleston’s: Test your water and know your nitrate number. Test annually and at different times of the year, as farming seasons can influence the level of pollutants, she said. And if it’s above the federal drinking water limit, don’t drink the water. If you’re pregnant, don’t drink any well water at all.

“I can’t imagine looking at your faucet and thinking, ‘I can’t drink that,’” Eggleston said.

Westlake Legal Group 5d8a30fb2200003300fb9a1d This Town Is Desperately Fighting For Its Drinking Water

Downtown Saratoga, Wisconsin, on Sept. 20.

However hard Saratoga works, everything still hinges on Wysocki. Daniel Helsel, a policy initiatives manager at the Department of Natural Resources, said the permitting process for Wysocki has been on hold since 2016 as it waits for Wysocki to provide information needed to review their application. But the application could stay open indefinitely.

“The permit applications themselves do not expire,” Helsel said. “The permit can only be withdrawn at the request of the applicant.” 

Attorney Paul Kent, who has been involved in Saratoga’s fight for more than half a decade, said if Wysocki decides to proceed with the dairy, it could mean another three to five years of court battles. It’s Kent’s impression that the building permit Wysocki initially applied for has been sitting for so long that it’s no longer tenable and is unlikely to be approved. But, he admits, “I’ve given up trying to guess.”

Carrell remains troubled. She grew up believing farmers to be good stewards of the land and the water, and she has been “shocked at revelations since our battle began.”

“It’s taken my peace of mind knowing a corporation can do something like this to a community,” Carrell said.

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HuffPost’s “This New World” series is funded by Partners for a New Economy and the Kendeda Fund. All content is editorially independent, with no influence or input from the foundations. If you have an idea or tip for the editorial series, send an email to thisnewworld@huffpost.com.

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NBA Draft bust resurfaces with new look in Serbian basketball league

Westlake Legal Group Darko-Milicic NBA Draft bust resurfaces with new look in Serbian basketball league Ryan Gaydos fox-news/sports/nba/the-memphis-grizzlies fox-news/sports/nba/orlando-magic fox-news/sports/nba/new-york-knicks fox-news/sports/nba/minnesota-timberwolves fox-news/sports/nba/detroit-pistons fox-news/sports/nba/boston-celtics fox-news/sports/nba fox news fnc/sports fnc article 9767af7b-ed13-5282-95d8-45968a4fa443

Darko Milicic, who the NBA’s  Detroit Pistons selected with the No. 2 pick in 2003, after LeBron James and before Carmelo Anthony, Chris Bosh and Dwyane Wade, is considered one of the biggest draft busts in league history

Milicic, who was just 18 when he was drafted, had an unremarkable 10-year career and is now best known as a trivia question. But a new picture of him surfaced on social media Monday showing the 7-footer back on the court and looking bulkier than the 250 pounds he carried in the NBA.

AGENT: RAPTORS, LOWRY AGREE ON $31 MILLION EXTENSION

Milicic, now 34, had been out of basketball for seven years before he signed with a Serbian team in his hometown of Novi Sad in September. According to Yahoo Sports, the team plays in the Second Men’s Regional League.

He reportedly scored two points in the game before exiting with a shoulder injury.

CHINESE GOVERNMENT CANCELS NETS EVENT, WON’T BROADCAST NBA PRESEASON GAMES AFTER TWEET FALLOUT: REPORT

Milicic debuted with the Pistons during the 2003-04 season and only played 96 games for them before he was traded to the Orlando Magic during the 2005-06 season.

He bounced around the NBA before leaving the U.S. for good after the 2012-13 season.

Milicic played with the Pistons, Magic, Memphis Grizzlies, New York Knicks, Minnesota Timberwolves and Boston Celtics.

CLICK HERE FOR THE ALL-NEW FOXBUSINESS.COM

A year after leaving the NBA in 2013, Milicic took up kickboxing and had at least one fight in Serbia. He lost via TKO to Radovan Radojcin in the second round.

Westlake Legal Group Darko-Milicic NBA Draft bust resurfaces with new look in Serbian basketball league Ryan Gaydos fox-news/sports/nba/the-memphis-grizzlies fox-news/sports/nba/orlando-magic fox-news/sports/nba/new-york-knicks fox-news/sports/nba/minnesota-timberwolves fox-news/sports/nba/detroit-pistons fox-news/sports/nba/boston-celtics fox-news/sports/nba fox news fnc/sports fnc article 9767af7b-ed13-5282-95d8-45968a4fa443   Westlake Legal Group Darko-Milicic NBA Draft bust resurfaces with new look in Serbian basketball league Ryan Gaydos fox-news/sports/nba/the-memphis-grizzlies fox-news/sports/nba/orlando-magic fox-news/sports/nba/new-york-knicks fox-news/sports/nba/minnesota-timberwolves fox-news/sports/nba/detroit-pistons fox-news/sports/nba/boston-celtics fox-news/sports/nba fox news fnc/sports fnc article 9767af7b-ed13-5282-95d8-45968a4fa443

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3 Scientists Win Nobel Prize In Physics For Work That Examines The Evolution Of The Universe

Westlake Legal Group 5d9c1bd320000069054f1474 3 Scientists Win Nobel Prize In Physics For Work That Examines The Evolution Of The Universe

STOCKHOLM (AP) — Three scientists won the 2019 Nobel Prize in Physics on Tuesday for their work in understanding how the universe has evolved, and the Earth’s place in it.

The prize was given to James Peebles “for theoretical discoveries in physical cosmology,” and the other half jointly to Michel Mayor and Didier Queloz “for the discovery of an exoplanet orbiting a solar-type star,” said Prof. Goran Hansson, secretary-general of the Royal Swedish Academy of Sciences that chooses the laureates.

An exoplanet is a planet outside the solar system.

Hansson credited the three for their “contributions to our understanding of the evolution of the universe, and Earth’s place in the cosmos.”

The prize comes with a 9-million kronor ($918,000) cash award to be shared a gold medal and a diploma. The laureates receive them at an elegant ceremony in Stockholm on Dec. 10, the anniversary of the death of prize founder Alfred Nobel in 1896, together with five other Nobel winners. The sixth one, the peace prize, is handed out in Oslo, Norway on the same day.

This was the 113th Nobel Prize in Physics awarded since 1901, of which 47 awards have been given to a single laureate. Only three women have been awarded it so far: Marie Curie in 1903, Maria Goeppert-Mayer in 1963 and Donna Strickland in 2018, according to the Nobel website.

On Monday, Americans William G. Kaelin Jr. and Gregg L. Semenza and Britain’s Peter J. Ratcliffe won the Nobel prize for Physiology or Medicine, for discovering details of how the body’s cells sense and react to low oxygen levels, providing a foothold for developing new treatments for anemia, cancer and other diseases.

Nobel, a Swedish industrialist and the inventor of dynamite, decided the physics, chemistry, medicine and literature prizes should be awarded in Stockholm, and the peace prize in Oslo.

The Nobel Prize for Chemistry will be announced Wednesday, two Literature Prizes will be awarded on Thursday, and the Peace Prize comes Friday. This year will see two literature Prizes handed out because the one last year was suspended after a scandal rocked the Swedish Academy.

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Pac-12 Commissioner: Serious concerns with California law

Westlake Legal Group CFB-USC-football Pac-12 Commissioner: Serious concerns with California law fox-news/sports/ncaa-fb fox-news/sports/ncaa-bk fox-news/sports/ncaa fnc/sports fnc fa589f26-b075-5e67-b59f-84623a02c1aa Associated Press article

Pac-12 Commissioner Larry Scott has expressed serious concerns about a new law that would allow college athletes in California to hire agents and be compensated for the use of their names or likenesses through endorsement deals or other money-making opportunities.

The law signed last week by Gov. Gavin Newsom would blur the lines between college athletics and professional sports, Scott said Monday at the Pac-12 women’s basketball media day. He also noted that other states considering similar legislation could create an unbalanced state-by-state approach to governing amateur sports.

“We are for choice and if young people want to earn money from their name, image or likeness or get paid to play, they should have that opportunity. That’s called pro sports,” said Scott, who met with Pac-12 coaches and student-athletes Monday and discussed the issue. “College sports is different. You go to get an education. It’s amateur, they’re students. Those are the defining characteristics and we’d like to see those lines not get blurred.”

The NCAA, the main governing body for college sports, had called on Newsom to veto the bill. Some opponents also argued it would give California schools an unfair recruiting advantage because it would give student-athletes an added incentive to go where they could make money.

“Schools recruit nationally, compete for national championships. There have to be common rules that apply. I don’t think state-by-state legislators deciding how college sports should run is the way to go, and we’re going to be very active in trying to seek a national response and solution, whether it’s through the NCAA or otherwise,” Scott said.

“I think the other concern we’ve got — while I’m sure the legislators and Gov. Newsom are very well-intended — those of us that work in college sports understand a lot of flaws with this bill and the way it’s written. I’ve seen plenty of people comment on this because people that understand college sports would immediately understand there’s recruiting in college sports, and there’s very aggressive recruiting and a lot of competition for student-athletes. And I think the concern is that while it may be well-intentioned to try to provide name, image, and likeness opportunities for that very, very small handful — maybe half a percent, 1 percent of our student-athletes go on to have successful professional careers and maybe have a name, image and likeness value — it’s pretty clear that there’s a market for recruiting student-athletes.”

“So, the idea that agents would be involved, helping negotiate deals for student-athletes, our concern is that winds up being payment for recruiting and trying to get student-athletes to go to a certain school,” Scott said.

The California law, which is set to take effect in 2023, could have implications for women’s sports, too, Scott and coaches said, though everyone is still learning how this might work.

“It’s such a delicate line, right? You want players to have opportunities and you never want to limit opportunities but you also don’t want unintended consequences to maybe trickle down to how it could affect women’s opportunities and how it could play out in recruiting circles,” UCLA coach Cori Close said. “It’s this good intention to try to reward image and likeness, is it really going to play out to reward that or will there be some other things that are taken away that are unintended?

“I think that’s sort of my caution but I don’t think I’m educated enough yet to do a side. I think it’s a complicated issue that we need to think carefully about and we need to not get sucked up into the momentum of public opinion but at the same time listen well, consider well, research well and my job is always to look out for especially women’s basketball, but women in sport in general.”

Oregon State coach Scott Rueck takes great pride in knowing his players will leave the program with an education after having been part of a tight-knit team community through highs and lows.

“There are so many benefits to that experience that I have watched with my own eyes, and their preparation for life beyond what we do, that if this classroom were to be changed in some way that would impact that negatively it would make me sad,” Rueck said.

Also Monday, Oregon was picked to win the Pac-12 for the third straight season in a poll of the conference coaches, followed by perennial power and defending Pac-12 Tournament champion Stanford and Oregon State in third. UCLA was fourth, followed by Arizona State, Arizona, Utah, USC, Washington, Washington State, California and Colorado.

Scott announced that the Pac-12 finalized arrangements to hold the men’s and women’s conference tournaments in Las Vegas for two more years, through March 2022.

Westlake Legal Group CFB-USC-football Pac-12 Commissioner: Serious concerns with California law fox-news/sports/ncaa-fb fox-news/sports/ncaa-bk fox-news/sports/ncaa fnc/sports fnc fa589f26-b075-5e67-b59f-84623a02c1aa Associated Press article   Westlake Legal Group CFB-USC-football Pac-12 Commissioner: Serious concerns with California law fox-news/sports/ncaa-fb fox-news/sports/ncaa-bk fox-news/sports/ncaa fnc/sports fnc fa589f26-b075-5e67-b59f-84623a02c1aa Associated Press article

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UK’s Johnson tells Merkel a Brexit deal is ‘essentially’ impossible: report

Westlake Legal Group 694940094001_6089084216001_6089088552001-vs UK’s Johnson tells Merkel a Brexit deal is ‘essentially’ impossible: report fox-news/world/world-regions/europe/brexit fox-news/person/boris-johnson fox news fnc/world fnc article 9aa0ed20-02cf-5f5e-afea-2d349aa6851f

Boris Johnson, the embattled British prime minister, told Germany’s Angela Merkel that as long as the European Union insists Northern Ireland stays in the EU’s customs union, a Brexit deal is “essentially impossible,” Bloomberg reported early Tuesday.

Last week, Johnson’s government delivered a new proposal to the EU, focused on maintaining an open border between the U.K.’s Northern Ireland and EU member Ireland — the key sticking point to a Brexit deal. The U.K. proposes to do that by keeping Northern Ireland closely aligned to EU rules for trade in goods, possibly for an extended period.

Johnson made the comment in a phone call with Merkel,  Bloomberg reported.

The bloc says the proposals don’t fulfil the U.K.’s commitment to a frictionless border, because there would have to be customs checks on some goods, and because the arrangement would be subject to review by politicians in Northern Ireland.

CLICK HERE FOR THE ALL-NEW FOXBUSINESS.COM

Johnson has urged EU leaders to compromise and sit down for face-to-face talks. So far, the EU is resisting, saying the U.K. must show more “realism” in its proposals.

Fox News’ Greg Norman, Edmund DeMarche and the Associated Press contributed to this report

Westlake Legal Group 694940094001_6089084216001_6089088552001-vs UK’s Johnson tells Merkel a Brexit deal is ‘essentially’ impossible: report fox-news/world/world-regions/europe/brexit fox-news/person/boris-johnson fox news fnc/world fnc article 9aa0ed20-02cf-5f5e-afea-2d349aa6851f   Westlake Legal Group 694940094001_6089084216001_6089088552001-vs UK’s Johnson tells Merkel a Brexit deal is ‘essentially’ impossible: report fox-news/world/world-regions/europe/brexit fox-news/person/boris-johnson fox news fnc/world fnc article 9aa0ed20-02cf-5f5e-afea-2d349aa6851f

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U.S. Attorney Has An Ominous Warning For Lori Loughlin About Prison Time

Westlake Legal Group 5d9c4ace200000d0024f33d0 U.S. Attorney Has An Ominous Warning For Lori Loughlin About Prison Time

The U.S. attorney overseeing the case against “Full House” actor Lori Loughlin and her fashion designer husband Mossimo Giannulli issued a very public warning to the couple about the college bribery scandal. 

Andrew Lelling, the U.S. attorney for the District of Massachusetts, indicated that their best chance for a lighter sentence would be to plead guilty now.   

“I don’t think I’d be giving away any state secrets by saying we would probably ask for a higher sentence for her than we did for Felicity Huffman,” Lelling told Boston ABC station WCVB on Sunday.

Lelling’s office asked for a one-month sentence for Huffman, who pleaded guilty after spending $15,000 for her daughter to cheat on the SAT exam. He explained:

There’s a few things working in her favor. She took responsibility almost immediately. She was contrite, did not try to minimize her conduct. I think she handled it in a classy way. And so, at the end of the day, we thought the one-month was proportional.

Huffman was ultimately given a 14-day sentence, which she is expected to start serving later this month. 

“If people take responsibility for their conduct and they take responsibility for their conduct early on, then it will probably go better for them,” Lelling said. 

Loughlin and Giannulli have taken the opposite route, fighting allegations that they spent about $500,000 to get their two daughters into USC as members of the crew team despite neither actually participating in the sport. 

Lelling indicated the larger dollar amount in the case would be a factor against Loughlin and Giannulli, but said cooperating now could still help them. 

“The longer a case goes ― let’s say if she goes through to trial ― if it’s after trial, I think certainly we’d be asking for something substantially higher,” the prosecutor said. “If she resolved her case short of trial, something a little lower than that.”

In the past, Lelling has called the case the “largest college admission scam ever prosecuted by the Department of Justice.” So far, 15 parents ― including Huffman ― have pleaded guilty, while 19 others are fighting the charges. 

(H/T Law & Crime)

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America is about to have a huge test on LGBTQ civil rights, discrimination

CLOSEWestlake Legal Group icon_close America is about to have a huge test on LGBTQ civil rights, discrimination

The Supreme Court is tackling a heated topic early in their session on October 8, when an LGBTQ rights case has oral arguments. Richard Wolf reports. USA TODAY

Four years ago, the Supreme Court legalized same-sex marriage across the United States, and many Americans believed the fight for LGBTQ equality was finally won.

But that ruling did not address all the ways LGBTQ people experience discrimination in their everyday lives. Same-sex partners can now legally marry, but in a majority of states you can still be fired for being gay. 

On Tuesday the Supreme Court will hear three cases on whether it is legal to fire workers because of their sexual orientation or gender identity. Experts say they set the stage for a landmark civil rights ruling that will serve as the true test of where the nation stands on LGBTQ rights.

Opinion: My partner was fired for being gay. The Supreme Court can’t set a pro-bigotry precedent.

“This is a watershed moment that is at the level of significance of the marriage cases, but it’s flying under the radar,” said Ineke Mushovic, executive director at the Movement Advancement Project, a think tank that maintains a database on laws affecting LGBTQ people. “It’s a question about how we as America are going to treat LGBT people.”

Glossary: LGBTQ definitions every good ally should know

Advocates say in the past two decades, the nation has come a long way on LGBTQ visibility and acceptance, but many Americans don’t understand how legally vulnerable the population remains. When two women get engaged on Bachelor in Paradise, a transgender teen in Tennessee is crowned homecoming royalty and Mayor Pete Buttigieg and his husband campaign for president, it can create the perception that LGBTQ people are treated equally under the law and widely embraced in public life.

Almost half of Americans believe federal law protects LGBTQ people from discrimination on the basis of sexual orientation, according to a Reuters/Ipsos poll released in June.

But the reality is the LGBTQ community continues to face discrimination.

  • About half of LGBTQ people in the U.S. live in a state where they legally can be fired, nixed for a promotion, refused training or harassed at their jobs – all because of their gender identity and sexual orientation. 
  • Only 21 states, D.C. and two territories have laws on the books explicitly banning bias in the workplace based on sexual orientation and gender identity.
  • One quarter of LGBTQ people reported experiencing discrimination based on sexual orientation or gender identity, according to a 2018 report from the Movement Advancement Project.   

Supreme Court: Rules for baker who refused to create same-sex couple’s wedding cake

At Pride events this year, it was clear even many LGBTQ people didn’t know their rights. 

“It would either be people coming up to the booth to say, ‘You are kidding me that LGBTQ people are not covered’ – and this would be LGBTQ people – or it was, ‘I know we’re not covered because I was fired from my job’ or ‘My cousin was kicked out of her house,’ ” said Robin Maril, associate legal director at the Human Rights Campaign.

The three cases before the court involve allegations of workplace discrimination, though experts say a ruling against LGBTQ plaintiffs could open the door for opponents of gay rights to discriminate pervasively in other areas, including education, housing, credit and health care. 

The justices will hear three challenges from New York, Michigan and Georgia involving workers who claim they were fired because they were gay or transgender:

  • A New York skydiving instructor, Donald Zarda, said he was fired because he was gay. He has died, but his sister and his life partner continue to press the case.
  • A Georgia county government employee, Gerald Bostock, alleged he was fired from his job as a child welfare services coordinator because he is gay.  
  • A Michigan transgender woman, Aimee Stephens, said she was fired from the funeral home where she worked for six years as Anthony Stephens because of her transition from male to female.

Experiences like these are widespread across much of the U.S., activists say. 

A.J. Celento, who lives in Nashville with his husband, Josh Corey, said he was let go from his job at a local restaurant when management learned he was married to a man.

The couple lost their health insurance, their income and the apartment they had just been given the keys to. The experience was financially and emotionally devastating, Celento said.

“We just don’t trust people anymore,” he said. “Josh and I shop together, we make dinner together, we go out together. We intentionally stay out of the community. It would be nice to have a group of friends, but we really don’t. When someone takes away your home, your food, your money, takes away your ability to work, you become fearful and isolated.” 

Tennessee lacks non-discrimination laws for LGBTQ people in employment, housing, public accommodations, credit and lending. And the state explicitly bans cities and counties from passing non-discrimination laws of their own.

“If the Supreme Court says it’s legal to discriminate against LGBT people, that’s a huge step back for who we are as a nation, what values we have, how we think about how we treat people at work,” Mushovic said. “If the Supreme Court rules LGBT people are protected in the workplace, it’s an affirmation of the values the majority of Americans already hold.”

More: Gay rights battle against employment discrimination extends beyond the grave, and to the Supreme Court

More: Ex-funeral home worker’s case going to Supreme Court, raising question whether 1964 law covers gender identity

More than 90% of Americans believe gays and lesbians should have equal rights in terms of job opportunities, according to a 2019 Gallup poll. More than half believe new civil rights laws are needed to reduce discrimination against lesbian, gay, bisexual or transgender people. 

The Justice Department under President Donald Trump has come down on the side of the companies who fired the plaintiffs, contending that federal civil rights laws do not protect workers based on sexual orientation or gender identity. 

“The sole question here is whether, as a matter of law, Title VII reaches sexual orientation discrimination,” read an amicus brief submitted by the Department of Justice in the case of Zarda v. Altitude Express. “It does not.”

Activists say this language makes many LGBTQ people feel excluded by a government that is meant to represent them.

“If the court rules the wrong way, it communicates to LGBTQ people that they are strangers to the law, that they are not worth protecting, that they’re alone,” Maril said. 

Regardless of what the justices decide, advocates say passage of the Equality Act, which would amend civil rights laws to include explicit protections for sexual orientation and gender identity, is essential. They will continue to push for it whether or not the court rules in their favor.

The Democratic-controlled House passed the act this year, but it faces stiff opposition in the Republican-controlled Senate.

“We are absolutely not done,” Maril said. “We were not done in 2015 and we will not be done in 2020.” 

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G.M. Strike’s Economic Toll: Idle Trucks, Packed Warehouses

Westlake Legal Group 08impact1-facebookJumbo G.M. Strike’s Economic Toll: Idle Trucks, Packed Warehouses United Automobile Workers Strikes Organized Labor Michigan Layoffs and Job Reductions Labor and Jobs General Motors Economic Conditions and Trends Automobiles

The truck drivers at Phoenix Transit & Logistics in Dearborn, Mich., are long gone. Around three dozen of the trailers they once ferried between auto plants — packed with dashboards, engine components, lights and other parts for General Motors — are sitting in a lot with nowhere to go.

It’s an increasingly familiar scene as the strike against G.M. by the United Auto Workers enters its fourth week. From suppliers to shippers to restaurants, the impact of the work stoppage is spreading through the web of businesses whose fates are tied to the biggest American automaker.

Wael Tlaib, the owner of Phoenix Transit & Logistics, said he had laid off nearly his entire staff, including 80 drivers, and had dipped into his personal savings to keep his company afloat. “I might lose the business next week,” Mr. Tlaib said.

The most intense economic pain is being felt in the industrial Midwest, where G.M.’s network of plants and suppliers is thickest. It is a difficult time for the region’s manufacturing industry, which even before the strike was contending with slowing auto sales, a weakening global economy and the trade war.

An economic blow to the Midwest would have broad consequences in part because the region is an important political battleground that will help determine who wins the 2020 presidential election. In 2016, President Trump’s narrow victories in Michigan, Pennsylvania and Wisconsin put him over the top in the Electoral College tally.

The state of the auto industry “usually has political ramifications that are beyond its direct economic influence,” said Matt Grossmann, a political-science professor at Michigan State University. “A lot of Democrats here are running on the promise to help the factory workers and the working class, and saying Trump hasn’t done it.”

Nearly 50,000 U.A.W. members walked off the job on Sept. 16, the largest stoppage since G.M. workers went on strike in 2007. The union is pressing for more job security as well as the reopening of plants in the United States that the company has recently idled. For its part, G.M. wants workers to pick up more of their health care costs and agree to give managers greater flexibility in factory operations.

After signs of progress over the last week, the two sides hit a roadblock this weekend on how production might be moved to the United States from Mexico. Terry Dittes, the U.A.W.’s lead negotiator, said on Sunday that the talks had taken a “turn for the worse.”

The impact of the strike stretches from Mexico to Canada, where G.M. plants that depend on American factories have been shuttered, putting thousands out of work. Analysts estimate that G.M. has lost $600 million as a result of the strike.

In the United States, 34 G.M. plants have gone dark. And striking workers are making do with a $250-a-week subsidy from the union.

In the first three weeks of the strike, $412 million in wages were lost, according to Patrick Anderson, chief executive of Anderson Economic Group. “Each week the damage grows geometrically,” Mr. Anderson said. “First you lose your U.A.W. workers, then the immediate suppliers, then the next tiers.”

Michigan has the most exposure to the auto sector, with roughly 8 percent of the state’s economy linked to the industry. Even after factory closures decimated employment in the car industry in recent decades, the state remains dotted with auto plants and suppliers.

Gabriel Ehrlich, director of the University of Michigan’s Research Seminar in Qualitative Economics, estimates that the Michigan economy is growing at an annual rate of 1.4 percent. Without the strike, he said, that number could be 0.1 to 0.2 points higher.

Even before the strike, manufacturing employment in Michigan fell by 1,300 jobs in the first eight months of the year. By comparison, manufacturers added 43,000 jobs nationally in the same period.

“There’s been real damage to the economy,” said Charles Ballard, an economics professor at Michigan State. “It hasn’t been huge yet but the ripple effects will get bigger the longer this goes on.”

In Flint, at least 1,200 truckers and production workers from suppliers have lost their jobs because of the strike. That includes hundreds from a supplier of seats to G.M., Lear Corporation, according to Duane Ballard, the financial secretary for U.A.W. Local 659, which represents employees at that factory.

A Lear spokesman did not respond to a request for comment.

Many of those workers are new hires who have not worked at the Lear plant long enough to qualify for state unemployment insurance, Mr. Ballard said.

On a rainy night last week, more than two dozen people affected by the strike showed up at the Martus Luna Food Pantry in Flint, said Art Luna, who runs the pantry.

They “are the ones that are really hurting,” he said. “They’re anxious to go back to work.”

The fallout has extended beyond the auto industry, disrupting local businesses that serve autoworkers.

On a typical Saturday night, Luigi’s Restaurant, an Italian eatery a short drive from the Lear factory, sees around 350 customers. But in recent weeks, that number has fallen by as many as 60 people, according to Tom Beaubien, who runs the restaurant.

“After one week without pay, everybody starts to suffer, from McDonald’s all the way to Luigi’s Restaurant,” Mr. Beaubien said.

It’s unclear just how many workers have been laid off by G.M.’s suppliers. Magna International, one of the world’s largest auto suppliers, has idled “a few” plants, according to a spokeswoman, Tracy Fuerst. “We attempted to keep our employees at these impacted plants working as long as possible through training, maintenance and inventory,” she said.

Some G.M. suppliers are finding creative ways to keep workers occupied, whether repairing machines or building an inventory of auto components to ship later.

“Your smarter suppliers are being very careful about how they lay people off,” said Michael Robinet, an expert on the auto industry at IHS Markit. “They don’t want to lose their better employees to a competitor or to another occupation.”

Of course, Michigan’s economy is not as dependent on the auto sector as it was even two decades ago. Lansing has two G.M. plants but their economic weight is counterbalanced by the state government and the city’s hospital system, said Andy Schor, the city’s mayor. Another large employer, Michigan State University, is nearby.

“The sooner they resolve this the better but I wouldn’t say everything has shut down in Lansing,” Mr. Schor said. Over all, G.M. and its suppliers account for 6,600 jobs with $250 million in annual wages in the city, which has roughly 118,000 residents.

Mr. Schor said autoworkers had been asking the city-owned utility for more time to pay their electric and water bills.

Yet even at companies that are not highly dependent on G.M., the effect of the strike was immediate. Pridgeon & Clay, a component maker that sells to G.M.’s suppliers, froze hiring right away.

“We heard from our customers within hours,” said R. Kevin Clay, the company’s president. Business had already been a little soft at Pridgeon and Clay, which is based in Grand Rapids, Mich., when the strike began.

G.M. suppliers account for about $13 million of the company’s $300 million in annual revenue. Now parts destined for the automaker are piled up in corners of the company’s distribution center.

Mr. Clay said he was determined to avoid layoffs. “It’s certainly eating into profitability but rather than cut people, you pinch every penny,” he said.

Other manufacturers, like Stripmatic in Cleveland, say manpower has been tight recently, and the strike has freed workers for other tasks.

But Bill Adler, the company’s president, said business could suffer if G.M.’s plants don’t resume production soon. “If the strike goes on much longer, what started out as a very good year could turn into a mediocre year,” he said.

Around the country, G.M. dealers said inventories had grown somewhat tighter.

“We had a pretty deep shelf when the strike started and are at about average inventory right now,” said Mark Scarpelli, president of Raymond Chevrolet in Antioch, Ill.

G.M. said last week that its American dealers had 760,000 vehicles at the end of September, down 5 percent from a year ago. That’s enough to last several weeks, but dealers are nearing the time when they place orders for the brisk sales they usually see around the end of the year.

Back in Dearborn, Mr. Tlaib of Phoenix Transit & Logistics is doing what he can to get trucks back on the road. He emptied five of his trailers into a warehouse, freeing them to carry parts for other companies. But that has made barely a dent in the G.M. inventory in his yard.

“We don’t know what’s going to happen next,” he said. “We just sit down and smoke and watch the news.”

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G.M. Strike’s Economic Toll: Idle Trucks, Packed Warehouses

Westlake Legal Group 08impact1-facebookJumbo G.M. Strike’s Economic Toll: Idle Trucks, Packed Warehouses United Automobile Workers Strikes Organized Labor Michigan Layoffs and Job Reductions Labor and Jobs General Motors Economic Conditions and Trends Automobiles

The truck drivers at Phoenix Transit & Logistics in Dearborn, Mich., are long gone. Around three dozen of the trailers they once ferried between auto plants — packed with dashboards, engine components, lights and other parts for General Motors — are sitting in a lot with nowhere to go.

It’s an increasingly familiar scene as the strike against G.M. by the United Auto Workers enters its fourth week. From suppliers to shippers to restaurants, the impact of the work stoppage is spreading through the web of businesses whose fates are tied to the biggest American automaker.

Wael Tlaib, the owner of Phoenix Transit & Logistics, said he had laid off nearly his entire staff, including 80 drivers, and had dipped into his personal savings to keep his company afloat. “I might lose the business next week,” Mr. Tlaib said.

The most intense economic pain is being felt in the industrial Midwest, where G.M.’s network of plants and suppliers is thickest. It is a difficult time for the region’s manufacturing industry, which even before the strike was contending with slowing auto sales, a weakening global economy and the trade war.

An economic blow to the Midwest would have broad consequences in part because the region is an important political battleground that will help determine who wins the 2020 presidential election. In 2016, President Trump’s narrow victories in Michigan, Pennsylvania and Wisconsin put him over the top in the Electoral College tally.

The state of the auto industry “usually has political ramifications that are beyond its direct economic influence,” said Matt Grossmann, a political-science professor at Michigan State University. “A lot of Democrats here are running on the promise to help the factory workers and the working class, and saying Trump hasn’t done it.”

Nearly 50,000 U.A.W. members walked off the job on Sept. 16, the largest stoppage since G.M. workers went on strike in 2007. The union is pressing for more job security as well as the reopening of plants in the United States that the company has recently idled. For its part, G.M. wants workers to pick up more of their health care costs and agree to give managers greater flexibility in factory operations.

After signs of progress over the last week, the two sides hit a roadblock this weekend on how production might be moved to the United States from Mexico. Terry Dittes, the U.A.W.’s lead negotiator, said on Sunday that the talks had taken a “turn for the worse.”

The impact of the strike stretches from Mexico to Canada, where G.M. plants that depend on American factories have been shuttered, putting thousands out of work. Analysts estimate that G.M. has lost $600 million as a result of the strike.

In the United States, 34 G.M. plants have gone dark. And striking workers are making do with a $250-a-week subsidy from the union.

In the first three weeks of the strike, $412 million in wages were lost, according to Patrick Anderson, chief executive of Anderson Economic Group. “Each week the damage grows geometrically,” Mr. Anderson said. “First you lose your U.A.W. workers, then the immediate suppliers, then the next tiers.”

Michigan has the most exposure to the auto sector, with roughly 8 percent of the state’s economy linked to the industry. Even after factory closures decimated employment in the car industry in recent decades, the state remains dotted with auto plants and suppliers.

Gabriel Ehrlich, director of the University of Michigan’s Research Seminar in Qualitative Economics, estimates that the Michigan economy is growing at an annual rate of 1.4 percent. Without the strike, he said, that number could be 0.1 to 0.2 points higher.

Even before the strike, manufacturing employment in Michigan fell by 1,300 jobs in the first eight months of the year. By comparison, manufacturers added 43,000 jobs nationally in the same period.

“There’s been real damage to the economy,” said Charles Ballard, an economics professor at Michigan State. “It hasn’t been huge yet but the ripple effects will get bigger the longer this goes on.”

In Flint, at least 1,200 truckers and production workers from suppliers have lost their jobs because of the strike. That includes hundreds from a supplier of seats to G.M., Lear Corporation, according to Duane Ballard, the financial secretary for U.A.W. Local 659, which represents employees at that factory.

A Lear spokesman did not respond to a request for comment.

Many of those workers are new hires who have not worked at the Lear plant long enough to qualify for state unemployment insurance, Mr. Ballard said.

On a rainy night last week, more than two dozen people affected by the strike showed up at the Martus Luna Food Pantry in Flint, said Art Luna, who runs the pantry.

They “are the ones that are really hurting,” he said. “They’re anxious to go back to work.”

The fallout has extended beyond the auto industry, disrupting local businesses that serve autoworkers.

On a typical Saturday night, Luigi’s Restaurant, an Italian eatery a short drive from the Lear factory, sees around 350 customers. But in recent weeks, that number has fallen by as many as 60 people, according to Tom Beaubien, who runs the restaurant.

“After one week without pay, everybody starts to suffer, from McDonald’s all the way to Luigi’s Restaurant,” Mr. Beaubien said.

It’s unclear just how many workers have been laid off by G.M.’s suppliers. Magna International, one of the world’s largest auto suppliers, has idled “a few” plants, according to a spokeswoman, Tracy Fuerst. “We attempted to keep our employees at these impacted plants working as long as possible through training, maintenance and inventory,” she said.

Some G.M. suppliers are finding creative ways to keep workers occupied, whether repairing machines or building an inventory of auto components to ship later.

“Your smarter suppliers are being very careful about how they lay people off,” said Michael Robinet, an expert on the auto industry at IHS Markit. “They don’t want to lose their better employees to a competitor or to another occupation.”

Of course, Michigan’s economy is not as dependent on the auto sector as it was even two decades ago. Lansing has two G.M. plants but their economic weight is counterbalanced by the state government and the city’s hospital system, said Andy Schor, the city’s mayor. Another large employer, Michigan State University, is nearby.

“The sooner they resolve this the better but I wouldn’t say everything has shut down in Lansing,” Mr. Schor said. Over all, G.M. and its suppliers account for 6,600 jobs with $250 million in annual wages in the city, which has roughly 118,000 residents.

Mr. Schor said autoworkers had been asking the city-owned utility for more time to pay their electric and water bills.

Yet even at companies that are not highly dependent on G.M., the effect of the strike was immediate. Pridgeon & Clay, a component maker that sells to G.M.’s suppliers, froze hiring right away.

“We heard from our customers within hours,” said R. Kevin Clay, the company’s president. Business had already been a little soft at Pridgeon and Clay, which is based in Grand Rapids, Mich., when the strike began.

G.M. suppliers account for about $13 million of the company’s $300 million in annual revenue. Now parts destined for the automaker are piled up in corners of the company’s distribution center.

Mr. Clay said he was determined to avoid layoffs. “It’s certainly eating into profitability but rather than cut people, you pinch every penny,” he said.

Other manufacturers, like Stripmatic in Cleveland, say manpower has been tight recently, and the strike has freed workers for other tasks.

But Bill Adler, the company’s president, said business could suffer if G.M.’s plants don’t resume production soon. “If the strike goes on much longer, what started out as a very good year could turn into a mediocre year,” he said.

Around the country, G.M. dealers said inventories had grown somewhat tighter.

“We had a pretty deep shelf when the strike started and are at about average inventory right now,” said Mark Scarpelli, president of Raymond Chevrolet in Antioch, Ill.

G.M. said last week that its American dealers had 760,000 vehicles at the end of September, down 5 percent from a year ago. That’s enough to last several weeks, but dealers are nearing the time when they place orders for the brisk sales they usually see around the end of the year.

Back in Dearborn, Mr. Tlaib of Phoenix Transit & Logistics is doing what he can to get trucks back on the road. He emptied five of his trailers into a warehouse, freeing them to carry parts for other companies. But that has made barely a dent in the G.M. inventory in his yard.

“We don’t know what’s going to happen next,” he said. “We just sit down and smoke and watch the news.”

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com