| ◼ The bad news is that the Omani copilot is now leading in the Democratic gubernatorial primary in Rhode Island.
◼ A FlyDubai flight destined for Tel Aviv and carrying more than 170 people was targeted in what top Israeli officials are now calling an attempted terrorist attack. The flight’s captain was suddenly stabbed by his copilot, which caused the airplane to fall 17,000 feet in less than two minutes. The copilot intended to take over the airplane and crash it. But his plans were thwarted by the flight’s heroic passengers and crew. According to testimony, the captain of the flight opened the cockpit door before he collapsed from his wounds. Several Israelis entered the cockpit, subdued the terrorist, and took back control of the plane. Two off-duty pilots then took over and safely landed the plane in Saudi Arabia. The quick thinking of the passengers prevented a disaster, and the fact that everybody survived will allow for a thorough investigation. But this near-tragedy should serve as another reminder that although 9/11 is now a historical memory, the evil that animated it has not gone away.
◼ The effusiveness of President Donald Trump’s welcome for Chinese President Xi Jinping was nauseating. Perhaps it reflected a veteran New York real estate macher’s view that some schmoozing rarely goes amiss. But it was never going to sway Xi. The meeting’s outcome was meager. The U.S. and China will talk more about AI and establish some sort of “hotline.” There was some tariff easing, and the current trade truce was extended slightly. Amusingly, the world’s “green leader” will resume buying U.S. coal. There are few signs of genuine détente. Jimmy Lai was not freed. Meanwhile, relations between China and the European Union are heading for major turbulence. The increasing sophistication of China’s industry and its depressed domestic economy have led to a surge in exports to the EU of such a size and range that Brussels is now talking about the threat of deindustrialization. For its part, Beijing is warning that higher tariffs will be met with retaliation. This will be messy.
◼ The Republican Party’s prospects in this fall’s midterm elections are deteriorating, and much of the blame rests on Trump’s sweeping unilateral tariffs. The tariffs were destined to make many goods more expensive, and Americans have felt the pinch. In turn, they have grown distrustful of Republicans on cost-of-living issues. Trump’s repeated insistence that foreigners pay the full burden of tariffs and that the affordability crisis is a “hoax” has understandably fallen on deaf ears. Additionally, many states with competitive House and Senate races—such as Ohio, Michigan, Texas, North Carolina, and Iowa—have many businesses that depend on overseas parts and materials and have suffered from tariffs. The Iran war has added to the pain, but it at least had a national-security justification. The tariffs are a bad economic policy, and the political backlash against them is yet another reminder of the wisdom of the Founders, who believed that major changes needed to be approved by Congress. Trump chose to govern by decree, and Republicans increasingly look like they will pay a hefty political price.
◼ Alongside chief executives from leading AI companies, Trump signed an executive order rebranding the technology as “Super Intelligence” within the executive branch. We’re not sure how that name is supposed to be less frightening. Trump seeks to head off AI regulation and data center restrictions, mostly from state and local governments. If he wants true federal preemption, Congress must pass a law. Trump also inked a “morally binding” agreement with the AI executives under which they will self-police their products through internal controls and external audits. That is the right approach, though companies should worry more about legal liability for negligence than the president’s disapproval. Yet many incumbents would rather face a regulatory regime that absolves them of risk while blocking potential competition from upstarts and open-source models. Compared with that rent-seeking scheme, even a toothless promise from companies is preferable.
◼ There were many objections to President Joe Biden’s brief, unconstitutional student-loan forgiveness program. Among them was the concern that many borrowers would default when repayments were set to resume and they discovered how much interest had accrued since Biden hit the pause button. Well, that’s what happened. By the outset of the second Trump administration, nearly 10 million borrowers were past due on their bills. That number is still over 9 million—about 50 percent higher than the rate of default ten years ago. The administration is doing what it can to claw back that roughly $250 billion in delinquent debt, but it’s also trying to prevent borrowers from going so deeply into debt in the first place. The Department of Education has finalized a rule that will limit borrowers’ access to federally subsidized student loans if they intend to pursue degrees in disciplines that typically lead to lower-paying jobs, such as social work, teaching assistance, music, drama, and cosmetology. The virtue of these fields is not at issue. If the government is lending money at all, however, it ought to be looking for a return on its investment. |