Business

Public health groups alarmed at White House delay of menthol cigarette ban on December 6, 2023 at 10:48 pm Business News | The Hill

Published

1 year ago

December 6, 2023

The Biden administration is delaying a decision on whether to ban menthol flavored cigarettes amid intense lobbying from critics including the tobacco industry, industry-backed groups and some Black criminal justice advocates.

The delay is alarming public health groups, which fear that the White House could cave to pressure and delay the rule indefinitely, especially against the backdrop of President Biden’s reelection bid.

The target date for releasing the rule was initially August, which was then pushed back to the end of the year. The White House in its regulatory agenda released Wednesday set a new target for March 2024.

“Any delay in finalizing the FDA’s [Food and Drug Administration’s] menthol rule would be a gift to the tobacco industry at the expense of Black lives,” said Yolanda Richardson, CEO of the Campaign for Tobacco-Free Kids. “We urge the administration to keep its promise and issue a final rule by the end of this year.”

The Obama administration solicited comments for potential regulation of menthol cigarettes in 2013, but it never proposed a rule. Then, in 2018, the Trump administration revisited the issue under former FDA Commissioner Scott Gottlieb.

But Trump’s FDA also failed to issue a formal rule. So when the Biden administration’s April 2022 proposals for a ban on menthol and flavored cigars were released, they represented a significant step forward.

Public health groups said based on past history, they’re worried the delay will go beyond March.

“We were expecting to see final rules in August this year. It’s now December. And so an additional delay to March certainly begs the question, how much longer are we gonna have to wait? How many times are we going to punt this?” asked Emily Holubowich, national senior vice president of federal advocacy at the American Heart Association.

“The science is clear. The rules need to be released now,” Holubowich said.

The FDA said it remained committed to issuing the rule “as expeditiously as possible.”

“At this stage in rulemaking, the FDA is limited from further discussions about the rules before they are published,” an agency spokesman said.

A menthol ban has been more than a decade in the making and would be one of the most consequential policies from the FDA since it began regulating tobacco in 2009. Health officials and tobacco control advocates have said such a move could save hundreds of thousands of lives, particularly among Black smokers.

An estimated 85 percent of Black smokers use menthols, according to the FDA, compared with 30 percent of white smokers. About 40 percent of excess deaths due to menthol cigarette smoking in the U.S. between 1980 and 2018 were among African Americans, according to the Centers for Disease Control and Prevention (CDC).

David Margolius, director of public health for Cleveland, said the delays in issuing the ban have left him frustrated.

“What it says to us is that cities like Cleveland are being left behind,” Margolius said, adding that the city’s smoking rate is 35 percent. The national average is around 11 percent.

“Every month that they kick the can down the road, more lives are lost in places like Cleveland. The right time to do this was as many years ago as possible. We’ve got to right the wrongs of the past. And so pushing this further along, that doesn’t help anybody,” Margoulis said.

The White House has been reviewing the ban since October, typically the final step before the rules get released.

But the White House Office of Management and Budget has been holding dozens of meetings with outside groups about the policy since October, including retailers, civil rights groups and law enforcement officials. According to records, almost all the meetings have been with groups that oppose the ban.

Representatives from Rev. Al Sharpton’s National Action Network along with civil rights attorney Ben Crump, tobacco companies, former lawmakers and leaders of a Black law enforcement group attended a Nov. 20 meeting with senior Biden administration officials — including FDA Commissioner Robert Califf, Health and Human Services Secretary Xavier Becerra and White House domestic policy advisor Neera Tanden — to lobby against the ban.

Sharpton has faced criticism for taking money from the tobacco industry. The New York Times reported in 2019 that tobacco giant Reynolds American enlisted him to lobby against a New York City ban on menthol tobacco products.

The National Organization of Black Law Enforcement Executives, which requested the meeting, has also received funding from tobacco companies, including Reynolds.

The groups argue a menthol ban will lead to more over-policing in communities of color, similar to the war on drugs campaign of the 1980s and 1990s.

The ban would only apply to companies that manufacture, distribute or sell menthol cigarettes, not individuals who possess or use them. And public health advocates have pointed out tobacco companies also make similar arguments about racial justice.

Tobacco companies are also using economic arguments to warn against a menthol ban.

“A menthol ban would fuel yet another extensive illicit market for unregulated and potentially more dangerous products in the U.S.,” R.J. Reynolds said in a statement.

“The economic consequences as consumers move to an illicit market will be severe, including adverse impacts on small businesses and on government revenues used to support public health programs.”

But tobacco control advocates and criminal justice experts said that while there is always a concern about over policing, they are skeptical that a menthol ban would compound the problem.

In a speech on the Senate floor Wednesday, Sen. Richard Durbin (D-Ill.) criticized the delays and addressed potential White House concerns that a menthol ban would cause Biden to lose Black voters.

“I think that’s greatly exaggerated,” Durbin said. “And I want to make it clear, they’re peddling stories — Big Tobacco is — that we’re going to go out and arrest African Americans if they use menthol cigarettes. But that’s not the case at all.”

Health Care, Administration, Business, CDC, Cigarettes, fda, menthol ban, Tobacco The Biden administration is delaying a decision on whether to ban menthol flavored cigarettes amid intense lobbying from critics including the tobacco industry, industry-backed groups and some Black criminal justice advocates. The delay is alarming public health groups, which fear that the White House could cave to pressure and delay the rule indefinitely, especially against…

Business

U.S. Adds 177,000 Jobs in April; Unemployment Holds Steady at 4.2%

Published

5 days ago

May 3, 2025

Bolanle Media Staff

The U.S. labor market demonstrated continued resilience in April, adding 177,000 jobs and keeping the unemployment rate unchanged at 4.2%, according to the latest data from the Bureau of Labor Statistics. This job growth exceeded economists’ expectations, who had forecast around 133,000 to 138,000 new positions, despite mounting concerns over the economic impact of President Donald Trump’s sweeping tariffs and ongoing policy uncertainty.

Job Gains Outpace Forecasts Despite Headwinds

April’s job creation, while slightly below the revised 185,000 jobs added in March, signaled a robust labor market even as the economy faces headwinds from aggressive trade policies and federal government cuts. The household survey, which measures employment differently from the payroll survey, showed an even stronger gain, with 436,000 more people reporting employment during the month.

Key sectors driving job growth included:

Health care: +51,000 jobs
Transportation and warehousing: +29,000 jobs, as companies rushed to import goods ahead of tariff deadlines
Leisure and hospitality: +24,000 jobs
Professional and business services: +17,000 jobs
Financial activities: +14,000 jobs

However, manufacturing and retail both saw declines, losing 1,000 and 1,800 jobs respectively, as uncertainty over tariffs and higher costs weighed on these industries.

Wages and Participation

Average hourly earnings rose by 6 cents to $36.06, marking a 3.8% increase over the past year, which aligns with the Federal Reserve’s inflation target. The labor force participation rate edged up to 62.6%, reflecting a slight increase in Americans either working or seeking work.

Broader Measures and Revisions

A broader measure of unemployment, which includes discouraged workers and those working part-time for economic reasons, fell to 7.8%. Meanwhile, revisions to February and March payrolls subtracted a combined 58,000 jobs from previous estimates, suggesting some moderation in earlier job gains.

Economic Outlook: Resilient, but Risks Loom

Economists note that while the job market remains strong, the outlook is clouded by policy risks. President Trump’s “Liberation Day” tariffs-raising duties on a wide range of imports, including a 145% tariff on Chinese goods-have injected volatility into financial markets and could dampen future hiring if trade tensions persist. Federal government employment declined by 9,000 jobs last month, reflecting layoffs and budget cuts.

Despite these risks, the labor market’s performance in April provided some relief to investors, with stock futures rising after the report’s release. The Federal Reserve is now less likely to lower interest rates in the near term, as the jobs data eased fears of an imminent downturn.

“Job growth in April exceeded expectations, even amidst concerns regarding the effects of President Donald Trump’s sweeping tariffs on U.S. trading partners,” CNBC reported.

While experts caution that the full impact of tariffs and policy changes may not be felt for several months, April’s job report underscores the U.S. economy’s capacity to generate jobs and maintain low unemployment in the face of uncertainty.

Bolanle Media covers a wide range of topics, including film, technology, and culture. Our team creates easy-to-understand articles and news pieces that keep readers informed about the latest trends and events. If you’re looking for press coverage or want to share your story with a wider audience, we’d love to hear from you! Contact us today to discuss how we can help bring your news to life

Business

How Your Lipstick, Lunch & Underwear Predict a Recession

Published

3 weeks ago

April 17, 2025

Bolanle Media Staff

As economists scrutinize GDP reports and unemployment rates, unconventional metrics—from cosmetics to undergarments—offer startlingly accurate glimpses into economic health. These “unofficial indicators” reveal how consumer behavior shifts under financial strain, often foreshadowing downturns before traditional metrics do.

Lipstick Effect: Small Luxuries in Hard Times

The lipstick index, coined by Estée Lauder’s Leonard Lauder, tracks rising sales of cosmetics during recessions. When budgets tighten, consumers skip big-ticket indulgences but splurge on affordable treats like lipstick. During the 2001 post-9/11 downturn, U.S. lipstick sales jumped 11%, while the Great Depression saw a 25% spike in cosmetics sales.

Today, brands like MAC and Sephora report 15% growth in cosmetics sales, with drugstore options gaining traction as consumers prioritize affordability. This trend reflects the “moisturizer index” observed during COVID-19, where skincare replaced lipstick due to mask mandates, but the core principle remains: small luxuries thrive when wallets shrink.

Men’s Underwear: A Bare Necessity

The men’s underwear index, popularized by Alan Greenspan, signals trouble when sales drop. Men postpone replacing worn-out undergarments until finances stabilize, making it a reliable recession harbinger. Recent data shows a 6% decline in sales, suggesting consumers are stretching non-essentials.

Lunch Habits: Brown-Bagging It

Economic anxiety reshapes meal choices. More workers now bring lunches from home, opting for cost-saving over convenience. Similarly, the snack index reveals downturns through reduced purchases of items like Chex Mix and pet treats—General Mills reported a 5% sales drop, linking it to weakened consumer confidence.

Beer and Beauty: Downgrading Discretionary Spending

The beer index highlights a shift from craft brews to budget six-packs during recessions. “Craft beer sales are significantly down,” notes supply chain expert Jackington, as social drinking becomes a lower priority. Meanwhile, beauty routines adapt: “recession blonde” trends (skipping salon touch-ups) and press-on nail searches (up 10%) reflect thriftiness3.

Why These Indicators Matter

These metrics capture real-time consumer sentiment often missed by lagging economic reports. While not foolproof, they underscore how financial strain permeates daily life—from skipped haircuts to stretched underwear. As economist Kevin Shahnazari explains, “Affordable indulgences provide psychological comfort without breaking the bank”.

In an era of uncertainty, the economy’s pulse beats in the details—proving that sometimes, the most telling signs are hiding in plain sight.

Business

Chinese Business Owners Face Uncertainty as Trade War Escalates and Growth Slows

Published

3 weeks ago

April 17, 2025

Bolanle Media Staff

The deepening U.S.-China trade war has plunged Chinese entrepreneurs into a crisis of confidence, with retaliatory tariffs exceeding 145% on key exports and domestic economic pressures compounding fears of prolonged stagnation. While China reported stronger-than-expected GDP growth of 5.4% in Q1 2025, analysts warn this pre-dates the full impact of America’s sweeping tariffs enacted in April—a move that threatens to derail export-driven sectors and exacerbate existing vulnerabilities.

Trade War Fallout
The U.S. has imposed a 145% tariff on Chinese goods, prompting Beijing to retaliate with 125% duties on American imports, including agricultural products. This escalation has disrupted supply chains globally, with Chinese manufacturers reporting canceled orders from U.S. buyers and halted shipments across industries like furniture, toys, and apparel. Hong Kong-based exporters, such as Gaoxd, have seen sales drop by 20% this year, with owners citing a “wait-and-see” paralysis among clients.

Domestic Challenges
Despite the Q1 growth surge, China faces a fragile recovery:

Real estate crisis: Property market indicators remain weak despite minor price rebounds.
Consumer hesitancy: Domestic demand lacks momentum, with households reluctant to spend amid deflationary pressures.
Manufacturing strains: Factories report minimal room to further cut costs, with relocation to Southeast Asia hindered by underdeveloped supply chains.

Strategic Shifts
Beijing is aggressively diversifying trade partnerships, reducing U.S. export reliance from historic highs to 14.7% in 2024. President Xi Jinping’s recent Southeast Asia tour emphasized China’s pitch as a “reliable” alternative to U.S.-led trade frameworks. Meanwhile, state media insists China has “valuable experience” from eight years of trade tensions, framing the conflict as an existential struggle against Western decline.

Outlook
While China’s $586 billion fiscal stimulus and focus on high-end manufacturing aim to offset trade losses, analysts caution that the tariffs’ delayed effects could erase Q1 gains. With U.S. imports of Chinese goods effectively halted by prohibitive tariffs, businesses face a bifurcated future: adapt to decoupled markets or risk collapse in a prolonged standoff between the world’s largest economies.

As economist Vina Nadjibulla notes, the critical question is which economy can endure more pain—a calculus now keeping Chinese business owners awake at night.