Corporate Corruption Media ArticlesExcerpts of Key Corporate Corruption Media Articles in Major Media
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Federal regulators have slapped former Wells Fargo CEO John Stumpf with a $17.5 million fine for his role in the bank’s sales practices scandal. Stumpf also accepted a lifetime ban from the banking industry. Along with its fine against Stumpf, the Office of the Comptroller of the Currency announced Thursday it is suing five other former Wells Fargo executives for a combined total of $37.5 million. This is the first time regulators have punitively punished individual executives for Wells Fargo’s wrongdoing. The San Francisco-based bank has paid hundreds of millions of dollars in fines and penalties for encouraging employees to open up millions of fake accounts in order to meet unrealistic sales goals. As part of their settlements and lawsuits against these Wells’ executives, regulators seek to ban all of them from ever working in the banking industry again. “The root cause of the sales practices misconduct problem was the Community Bank’s business model, which imposed intentionally unreasonable sales goals and unreasonable pressure on its employees to meet those goals and fostered an atmosphere that perpetuated improper and illegal conduct,” the OCC said in its complaint. “Community Bank management intimidated and badgered employees to meet unattainable sales goals year after year, including by monitoring employees daily or hourly and reporting their sales performance to their managers, subjecting employees to hazing-like abuse, and ... terminating employees for failure to meet the goals.”
Note: Though it's great that someone has finally been fined at Wells Fargo, a small time robber gets locked up in jail for years. Why aren't these people who were the cause of huge white collar crime being jailed? For more along these lines, see concise summaries of deeply revealing news articles on financial industry corruption from reliable major media sources.
Facial recognition has become a security feature of choice for phones, laptops, passports, and payment apps. Yet it is also, increasingly, a tool of state oppression and corporate surveillance. Immigration and Customs Enforcement and the FBI have deployed the technology as a digital dragnet, searching for suspects among millions of faces in state driver's license databases, sometimes without first seeking a court order. In early 1963, [Woody Bledsoe] proposed to conduct "a study to determine the feasibility of a simplified facial recognition machine." A recently declassified history of the CIA's Office of Research and Development mentions just such a project in 1965; that same year, Woody sent a letter on facial recognition to John W. Kuipers, the division's chief of analysis. In 1967 ... Woody took on one last assignment that involved recognizing patterns in the human face. The purpose of the experiment was to help law enforcement agencies quickly sift through databases of mug shots and portraits, looking for matches. As before, funding for the project appears to have come from the US government. A 1967 document declassified by the CIA in 2005 mentions an "external contract" for a facial-recognition system that would reduce search time by a hundredfold. Woody's work set an ethical tone for research on facial recognition that has been enduring and problematic. The potential abuses of facial-recognition technology were apparent almost from its birth.
Note: For more along these lines, see concise summaries of deeply revealing news articles on intelligence agency corruption and the disappearance of privacy from reliable major media sources.
The Pacific Gas and Electric Company (PG&E) has diverted over $100 million from safety and maintenance programs to executive compensation at the same time it has caused an average of more than one fire a day for the past six years killing over 100 people. PG&E is the largest privately held public utility in the United States. A new research report shows that 91% of PG&E stocks are held by huge international investment management firms, including BlackRock and Vanguard Group. PG&E is an ideal investment for global capital management firms with monopoly control over five million households paying $16 billion for gas and electric in California. Between 2006 and the end of 2017, PG&E made $13.5 billion in net profits. Over those years, they paid nearly $10 billion in dividends to shareholders, but found little money to maintain safety on their electricity lines. A 2013 Liberty Consulting report showed that 60% of PG&E’s power lines were at risk of failure due to obsolete equipment and 75% of the lines lacked in-line grounding. Between 2008 and 2015, the CPUC found PG&E late on thousands of repair violations. A 2012 report further revealed that PG&E illegally diverted $100 million from safety to executive compensation and bonuses over a 15-year period. In November, 2018, the PG&E caused Camp fire burned 153,336 acres, killing 86 people, and destroying 18,804 homes, business, and structures. PG&E has caused some $50 billion in damages from massive fires started by their failed power lines.
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In a squat rig fitted with a 5,000-gallon tank, Peter crisscrosses the expanse of farms and woods near the Ohio/West Virginia/Pennsylvania border, the heart of a region that produces close to one-third of America’s natural gas. He hauls a salty substance called “brine,” a naturally occurring waste product that gushes out of America’s oil-and-gas wells to the tune of nearly 1 trillion gallons a year. At most wells, far more brine is produced than oil or gas, as much as 10 times more. It collects in tanks, and like an oil-and-gas garbage man, Peter picks it up and hauls it off to treatment plants or injection wells, where it’s disposed of by being shot back into the earth. Through a grassroots network of Ohio activists, Peter was able to transfer 11 samples of brine to the Center for Environmental Research and Education at Duquesne University, which had them tested in a lab at the University of Pittsburgh. The results were striking. Radium ... is so dangerous it’s subject to tight restrictions even at hazardous-waste sites. The most common isotopes are radium-226 and radium-228, and the Nuclear Regulatory Commission requires industrial discharges to remain below 60 for each. Four of Peter’s samples registered combined radium levels above 3,500, and one was more than 8,500. Peter’s samples are just a drop in the bucket. Oil fields across the country — from the Bakken in North Dakota to the Permian in Texas — have been found to produce brine that is highly radioactive.
Note: In addition to producing this radioactive waste, fracking employs secret chemical mixtures and poisons drinking water. For more along these lines, see concise summaries of deeply revealing news articles on corporate corruption from reliable major media sources.
Wells Fargo has agreed to pay $3 billion to settle criminal charges and a civil action stemming from its widespread mistreatment of customers in its community bank over a 14-year period, the Justice Department announced on Friday. From 2002 to 2016, employees used fraud to meet impossible sales goals. They opened millions of accounts in customers’ names without their knowledge, signed unwitting account holders up for credit cards and bill payment programs, created fake personal identification numbers, forged signatures and even secretly transferred customers’ money. In court papers, prosecutors described a pressure-cooker environment at the bank, where low-level employees were squeezed tighter and tighter each year by sales goals that senior executives methodically raised, ignoring signs that they were unrealistic. Part of Friday’s deal ... is a deferred prosecution agreement, a pact that could expose the bank to charges if it engages in new criminal activity. During the final five years of abuse, the bank quietly fired thousands of employees for falsifying records in response to customer complaints. The practices covered by the settlement ... are not the only misbehavior the bank has revealed since 2016. The bank has also admitted it charged mortgage customers unnecessary fees and forced auto loan borrowers to buy insurance they did not need. The mortgage and auto loan claims are not part of Friday’s deal. Wells Fargo’s profits last year totaled nearly $20 billion.
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In 2013, the European Union called for a temporary suspension of the most commonly used neonicotinoid-based products on flowering plants, citing the danger posed to bees – an effort that resulted in a permanent ban in 2018. In the U.S., however, industry dug in, seeking not only to discredit the research but to cast pesticide companies as a solution to the problem. Lobbying documents and emails ... show a sophisticated effort over the last decade by the pesticide industry to obstruct any effort to restrict the use of neonicotinoids. Bayer and Syngenta, the largest manufacturers of neonics, and Monsanto, one of the leading producers of seeds pretreated with neonics, cultivated ties with prominent academics ... and other scientists who had once called for a greater focus on the threat posed by pesticides. A study published in peer-reviewed journal PLOS One found that the American landscape has become 48 times more toxic to insects since the 1990s, a shift largely fueled by the rising application of neonics. "Generally, we see the U.S. waiting longer than the EU to take action on a variety of pesticides and other chemicals," said [Willa] Childress ... with Pesticide Action Network North America. Part of the divergence, Childress continued, stems from a regulatory system in the U.S. that assumes chemical products are generally safe until proven hazardous. In contrast, the EU tends to use the "precautionary principle," removing products that may cause harm.
Note: Merchants of Poison: How Monsanto Sold the World on a Toxic Pesticide is a recent and comprehensive analysis of documents released in litigation against Monsanto and their dangerous use of glyphosate. These revealing documents expose years of pesticide industry disinformation, attacks on scientists and journalists, and Monsanto's deep influence on US regulatory agencies to manipulate science and prioritize profits over public health. For more along these lines, see concise summaries of deeply revealing news articles on corruption in science and in the food system from reliable major media sources.
Mr. Ton-That — an Australian techie and onetime model — did something momentous: He invented a tool that could end your ability to walk down the street anonymously. His tiny company, Clearview AI, devised a groundbreaking facial recognition app. You take a picture of a person, upload it and get to see public photos of that person, along with links to where those photos appeared. The system — whose backbone is a database of more than three billion images that Clearview claims to have scraped from Facebook, YouTube, Venmo and millions of other websites — goes far beyond anything ever constructed by the United States government or Silicon Valley giants. Without public scrutiny, more than 600 law enforcement agencies have started using Clearview in the past year. The computer code underlying its app ... includes programming language to pair it with augmented-reality glasses; users would potentially be able to identify every person they saw. The tool could identify activists at a protest or an attractive stranger on the subway, revealing not just their names but where they lived, what they did and whom they knew. And it’s not just law enforcement: Clearview has also licensed the app to at least a handful of companies for security purposes. Because the police upload photos of people they’re trying to identify, Clearview possesses a growing database of individuals who have attracted attention from law enforcement. The company also has the ability to manipulate the results that the police see.
Note: For lots more on this disturbing new technology, read one writer's personal experience with it. For more along these lines, see concise summaries of deeply revealing news articles on the disappearance of privacy from reliable major media sources.
U.S. insurers and providers spent more than $800 billion in 2017 on administration, or nearly $2,500 per person - more than four times the per-capita administrative costs in Canada's single-payer system, a new study finds. Over one third of all healthcare costs in the U.S. were due to insurance company overhead and provider time spent on billing, versus about 17% spent on administration in Canada, researchers reported in Annals of Internal Medicine. Cutting U.S. administrative costs to the $550 per capita (in 2017 U.S. dollars) level in Canada could save more than $600 billion, the researchers say. "The average American is paying more than $2,000 a year for useless bureaucracy," said lead author Dr. David Himmelstein, a distinguished professor of public health at the City University of New York. "That money could be spent for care if we had a 'Medicare for all program'," Himmelstein said. Why are administrative costs so high in the U.S.? It's because the insurance companies and health care providers are engaged in a tug of war, each trying in its own way to game the system. "Some folks estimate that the U.S. would save $628 billion if administrative costs were as low as they are in Canada," said Jamie Daw, an assistant professor ... at Columbia University's Mailman School of Public Health. "That's a staggering amount," Daw said. "It's more than enough to pay for all of Medicaid spending or nearly enough to cover all out-of-pocket and prescription drug spending by Americans."
Note: The study described above is available here. For more along these lines, see concise summaries of deeply revealing news articles on corporate corruption and health from reliable major media sources.
More than 12 million pounds of medically important antibiotics sold in this country are not for use in humans; they're for livestock. And the antibiotics are driving the spread of drug-resistant bacteria in the animals that can get passed on to us through food. Yet it's almost impossible to get on the farms to conduct inspections and stop infection outbreaks from spreading, even for public health officials. In 2015, Washington state epidemiologist Scott Lindquist investigated an outbreak of antibiotic resistant salmonella tied to roaster pigs. The salmonella was resistant to antibiotics. Lindquist traced the cause of the outbreak to a slaughterhouse. "We come in and we find the bacteria, essentially everywhere," [said Lindquist]. "So I want to go back to the farms and I wanna sample the pigs at the farm." But to his surprise, Lindquist, who was conducting the investigation, was flatly turned down. Thwarted, he says, by the National Pork Producers Council, the lead lobbying group for the $23 billion pork industry. They sent Lindquist a letter denying him access to the farms. Even federal inspectors have trouble getting on farms. They are not allowed on a farm to look for bacteria that make people sick without the farmer's permission. Farmers started using antibiotics decades ago ... to make animals grow faster with less food. In 2017, the Food and Drug Administration told farmers to stop using antibiotics in animals for growth purposes, but ... they are permitted to use them for disease prevention, and there are no reporting requirements.
Note: For lots more, see this informative article. For more along these lines, see concise summaries of deeply revealing news articles on food system corruption from reliable major media sources.
An explosive leak of tens of thousands of documents from the defunct data firm Cambridge Analytica is set to expose the inner workings of the company that collapsed after the Observer revealed it had misappropriated 87 million Facebook profiles. More than 100,000 documents relating to work in 68 countries that will lay bare the global infrastructure of an operation used to manipulate voters on “an industrial scale” are set to be released over the next months. The documents were revealed to have come from Brittany Kaiser, an ex-Cambridge Analytica employee turned whistleblower, and to be the same ones subpoenaed by Robert Mueller’s investigation into Russian interference in the 2016 presidential election. Kaiser ... decided to go public after last month’s election in Britain. “It’s so abundantly clear our electoral systems are wide open to abuse,” she said. “I’m very fearful about what is going to happen in the US election later this year.” Kaiser said the Facebook data scandal was part of a much bigger global operation that worked with governments, intelligence agencies, commercial companies and political campaigns to manipulate and influence people. The unpublished documents contain material that suggests the firm was working for a political party in Ukraine in 2017 even while under investigation as part of Mueller’s inquiry and emails that Kaiser says describe how the firm helped develop a “sophisticated infrastructure of shell companies that were designed to funnel dark money into politics”.
Note: For more along these lines, see concise summaries of deeply revealing news articles on elections corruption from reliable major media sources.
Drugmakers including Bristol-Myers Squibb Co, Gilead Sciences Inc, and Biogen Inc hiked U.S. list prices on more than 50 drugs on Wednesday, bringing total New Year's Day drug price increases to more than 250, according to data analyzed by healthcare research firm 3 Axis Advisors. Reuters reported on Tuesday that drugmakers including Pfizer Inc, GlaxoSmithKline PLC and Sanofi SA were planning to increase prices on more than 200 drugs in the United States on Jan. 1. More early year price increases could still be announced. Many branded drugmakers have pledged to keep their U.S. list price increases below 10% a year, under pressure from politicians and patients. The United States, which leaves drug pricing to market competition, has higher prices than in other countries where governments directly or indirectly control the costs, making it the world's most lucrative market for manufacturers. Soaring U.S. prescription drug prices are expected to again be a central issue in the presidential election.
Note: For more along these lines, see concise summaries of deeply revealing news articles on Big Pharma from reliable major media sources.
40 years ago, a worn-out white Gulfstream II jet descended over Fort Lauderdale, Fla., carrying a regal but sickly passenger almost no one was expecting. Aboard were a Republican political operative, a retinue of Iranian military officers ... and Mohammed Reza Pahlavi, the newly deposed shah of Iran. The only one waiting to receive the deposed monarch was a senior executive of Chase Manhattan Bank, which had not only lobbied the White House to admit the former shah but had arranged visas for his entourage. Less than two weeks later, on Nov. 4, 1979, vowing revenge for the admission of the shah to the United States, revolutionary Iranian students seized the American Embassy in Tehran and then held more than 50 Americans — and Washington — hostage for 444 days. The shah, Washington’s closest ally in the Persian Gulf, had fled Tehran in January 1979. The shah sought refuge in America. But President Jimmy Carter ... refused him entry for the first 10 months of his exile. Chase Manhattan Bank and its well-connected chairman worked behind the scenes to persuade the Carter administration to admit the shah, one of the bank’s most profitable clients. For Mr. Carter, for the United States and for the Middle East it was an incendiary decision. The ensuing hostage crisis enabled Ayatollah Ruhollah Khomeini to consolidate his theocratic rule, started a four-decade conflict between Washington and Tehran ... and helped Ronald Reagan take the White House.
Note: More information is available in this 1991 New York Times article and this article. For more along these lines, see concise summaries of deeply revealing news articles on government corruption from reliable major media sources.
The International Federation of Health Plans, a group representing the C.E.O.s of health insurers worldwide, publishes a guide every few years on the international cost for common medical services. Its newest report, on 2017 prices, came out this month. Every time, the upshot is vivid and similar: For almost everything on the list, there is a large divergence between the United States and everyone else. Patients and insurance companies in the United States pay higher prices for medications, imaging tests, basic health visits and common operations. Those high prices make health care in the U.S. extremely expensive, and they also finance a robust and politically powerful health care industry, which means lowering prices will always be hard. For a typical angioplasty, a procedure that opens a blocked blood vessel to the heart, the average U.S. price is $32,200, compared with $6,400 in the Netherlands, or $7,400 in Switzerland, the survey finds. A typical M.R.I. scan costs $1,420 in the United States, but around $450 in Britain. An injection of Herceptin, an important breast cancer treatment, costs $211 in the United States, compared with $44 in South Africa. These examples aren't outliers. Researchers at Harvard conducted an exhaustive study last year of things that make health systems in developed countries different from one another. The clear finding of those researchers was that it's this huge gap in prices ... that helps explain why the United States is such an expensive place to be sick.
Note: For more along these lines, see concise summaries of deeply revealing news articles on health from reliable major media sources.
400 of America’s largest corporations paid an average federal tax rate of about 11 percent on their profits last year, roughly half the official rate established under President Trump’s 2017 tax law. The 2017 tax law lowered the U.S. corporate tax rate from 35 percent to 21 percent, but in practice large companies often pay far less than that because of deductions, tax breaks and other loopholes. In the first year of the law, the amount corporations paid in federal taxes on their incomes — their “effective rate” — was 11.3 percent on average ... according to a report by the Institute on Taxation and Economic Policy. From 2008 to 2015, under the previous tax code, the corporations’ effective rate was about 21 percent. The report also found that 91 corporations in the Fortune 500, many worth billions of dollars, paid no federal taxes last year. The findings come amid an explosion in the federal deficit, which this year rose to almost $1 trillion. Corporate tax revenue fell markedly during the first year of the tax law, from about $300 billion in 2017 to $204 billion in 2018. “When drafting the tax law, lawmakers could have eliminated special breaks and loopholes in the corporate tax to offset the cost of reducing the statutory rate,” the report says. “Instead, the new law introduced many new breaks and loopholes, though it eliminated some old ones.” The 91 profitable Fortune 500 corporations that paid no federal tax in 2018 earned a combined $101 billion last year. As a group, their effective federal tax rate was -5.9 percent.
Note: How is it that 91 of the biggest corporations in the U.S. get away with paying no taxes? For more along these lines, see concise summaries of deeply revealing news articles on government corruption from reliable major media sources.
A whistleblower who works in Project Nightingale, the secret transfer of the personal medical data of up to 50 million Americans from one of the largest healthcare providers in the US to Google, has expressed anger to the Guardian that patients are being kept in the dark about the massive deal. The anonymous whistleblower has posted a video on the social media platform Daily Motion that contains a document dump of hundreds of images of confidential files relating to Project Nightingale. The secret scheme ... involves the transfer to Google of healthcare data held by Ascension, the second-largest healthcare provider in the US. The data is being transferred with full personal details including name and medical history and can be accessed by Google staff. Unlike other similar efforts it has not been made anonymous through a process of ... de-identification. The disclosed documents include highly confidential outlines of Project Nightingale, laying out the four stages or “pillars” of the secret project. By the time the transfer is completed next March, it will have passed the personal data of 50 million or more patients in 21 states to Google, with 10 million or so files already having moved across – with no warning having been given to patients or doctors. Google has entered into similar partnerships on a much smaller scale with clients such as the Colorado Center for Personalized Medicine. But in that case all the data handed over to the search giant was encrypted, with keys being held only on the medical side.
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The two sisters live in fear of being recognized. Ten years ago, their father did the unthinkable: He posted explicit photos and videos on the internet of them, just 7 and 11 at the time. Many captured violent assaults in their Midwestern home, including him and another man drugging and raping the 7-year-old. The men are now in prison, but in a cruel consequence of the digital era, their crimes are finding new audiences. This year alone, photos and videos of the sisters were found in over 130 child sexual abuse investigations involving mobile phones, computers and cloud storage accounts. The digital trail of abuse — often stored on Google Drive, Dropbox and Microsoft OneDrive — haunts the sisters relentlessly, they say, as does the fear of a predator recognizing them from the images. The scope of the problem is only starting to be understood because the tech industry has been more diligent in recent years in identifying online child sexual abuse material, with a record 45 million photos and videos flagged last year. But the same industry has consistently failed to take aggressive steps to shut it down, an investigation by The New York Times found. Approaches by tech companies are inconsistent, largely unilateral and pursued in secret, often leaving pedophiles and other criminals who traffic in the material with the upper hand. There is no common standard for identifying illegal video content, and many major platforms — including AOL, Snapchat and Yahoo — do not even scan for it.
Note: Listen to a disturbing, yet vitally important New York Times podcast showing this huge problem that few are willing to look at. For more along these lines, see concise summaries of deeply revealing news articles on sexual abuse scandals from reliable major media sources.
ABC News' Amy Robach, best known as co-anchor of 20/20, claimed that ABC killed her story about convicted pedophile Jeffrey Epstein's sex trafficking of minors three years ago in sensational hot microphone footage leaked Tuesday. In the footage, reportedly taken in August and published online Tuesday by the right-wing activist group Project Veritas, Robach, 46, says: "I've had this story for three years. I've had this interview with [Epstein accuser] Virginia Roberts. We would not put it on the air. First of all I was told, 'Who is Jeffrey Epstein? No one knows who that is. This is a stupid story.'" "Then the palace found out we had her whole allegations about Prince Andrew and threatened us in a million different ways," Robach continues, referring to the British royal that Roberts alleged in a 2015 court filing Epstein trafficked her to when she was 17. "[Roberts] told me everything," Robach says in the clip. "She had pictures. She had everything. She was in hiding for 12 years. We convinced her to come out. We convinced her to talk to us. It was unbelievable what we had. Clinton. Everything." Epstein was arrested on federal charges of sex trafficking of minors and conspiracy to sex traffic minors in July. He was found dead in his New York prison cell in August. Epstein's death has been ruled suicide by hanging, however, Epstein's family believe he was murdered. A private pathologist hired by the Epstein estate said last week that Epstein's autopsy showed injuries more consistent with "homicidal strangulation" than suicide.
Note: Watch the incredible interview of this revelation. For more along these lines, see concise summaries of deeply revealing news articles on Jeffrey Epstein from reliable major media sources.
NBC News President Noah Oppenheim and his boss NBC News Chairman Andy Lack are still running the show. They remain at the helm despite the explosive reporting in Ronan Farrow’s new book “Catch and Kill,” which reveals how Oppenheim and Lack not only shut down the investigation into Harvey Weinstein’s predatory and abusive treatment of women, but how NBC News silenced or ignored multiple allegations of sexual misconduct inside the company ― including overlooking the behavior of “Today” show host Matt Lauer for years before finally firing him in 2017. In an article for Vanity Fair in October, Rich McHugh, the NBC producer who worked with Farrow on the Weinstein investigation, called out Oppenheim and Lack’s handling of the story. “They not only personally intervened to shut down our investigation of Weinstein, they even refused to allow me to follow up on our work after Weinstein’s history of sexual assault became front-page news,” he writes. MSNBC hosts Rachel Maddow and Chris Hayes have criticized NBC management on-air. Current and former employees say they want a true independent investigation of what happened at NBC News regarding Lauer, the Weinstein story, and any other incidents of internal sexual misconduct. The Weinstein story wasn’t the only time Oppenheim’s news organization declined to air a story about a powerful man preying on women. NBC famously sat on the “Access Hollywood” tape in which now-President Donald Trump bragged about assaulting women.
Note: For more along these lines, see concise summaries of deeply revealing news articles on sexual abuse scandals from reliable major media sources.
The network of clear streams comprising California’s Strawberry Creek run down the side of a steep, rocky mountain in a national forest two hours east of Los Angeles. Last year Nestlé siphoned 45m gallons of pristine spring water from the creek and bottled it under the Arrowhead Water label. Though it’s on federal land, the Swiss bottled water giant paid the US Forest Service and state practically nothing, and it profited handsomely: Nestlé Waters’ 2018 worldwide sales exceeded $7.8bn. Conservationists say some creek beds in the area are now bone dry and once-gushing springs have been reduced to mere trickles. The Forest Service recently determined Nestlé’s activities left Strawberry Creek “impaired” while “the current water extraction is drying up surface water resources”. Still, a year later, the Forest Service approved a new five-year permit that allows Nestlé to continue using federal land to extract water, a decision critics say defies common sense. At the national level, former agriculture secretary Ann Veneman serves on Nestlé’s board. Former Forest Service special uses leader Gary Earney administered Nestlé’s water permit between 1984 and 2007 and is now one of its most vocal critics. During that time, he witnessed “devastating” Forest Service budget cuts that made it impossible to monitor Nestle’s activities or properly manage the forest. Former San Bernardino national forest supervisor Gene Zimmerman ... left the agency in 2006 to work as a contractor for Nestlé.
Note: Nestlé is one of the companies pushing to transform fresh water into a Wall Street commodity. For more along these lines, see concise summaries of deeply revealing news articles on corporate corruption from reliable major media sources.
General Motors, Fiat Chrysler and Toyota said Monday they were intervening on the side of the Trump administration in an escalating battle with California over fuel economy standards for automobiles. Their decision pits them against leading competitors, including Honda and Ford, who this year reached a deal to follow California’s stricter rules. The Trump administration has proposed a major weakening of federal auto emissions standards set during the Obama administration, prompting California to declare that it will go its own course and keep enforcing the earlier, stricter standards. The automakers siding with the administration, led by the industry group the Association of Global Automakers, say that the federal government, not California, has the ultimate authority to set fuel economy standards. The legal fight between the Trump administration and California over auto pollution rules has swelled into a battle over states’ rights and climate change that is likely to only be resolved once it reaches the Supreme Court. The Obama-era national fuel economy standard requires automakers to build vehicles that achieve an average fuel economy of 54.5 miles per gallon by 2025, which would eliminate about six billion tons of carbon dioxide pollution over the lifetime of those vehicles. The Trump administration is planning to roll back the fuel-economy standard to about 37 miles per gallon. Nearly two dozen other states have filed suit against the Trump administration, alongside California, over the emissions rules.
Note: This is proof that the mileage our cars get is not determined by market forces, but rather by government regulation. Average mileage has risen consistently with regulation, not with innovation. For lots more on this, see this webpage. For more along these lines, see concise summaries of deeply revealing news articles on government corruption from reliable major media sources.
Important Note: Explore our full index to key excerpts of revealing major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.