Attorney General Jeff Sessions has ordered prosecutors to stop settling corporate wrongdoing cases by requiring companies to make donations to third-party groups, a feature of some Obama-era bank settlements that congressional Republicans had opposed.
In a brief, one-page memo dated Monday and released on Wednesday, Mr. Sessions told Justice Department officials they could no longer include any provision in a civil or criminal settlement “that directs or provides for a payment or loan to any non-governmental person or entity that is not a party to the dispute.”
The list, which ranks U.S. companies by total yearly revenue, includes 53 firms whose headquarters are in the Golden State — a total that’s second only to New York’s 54. (The list of 500 companies is compiled by looking at results reported by publicly traded firms, as well as from the privately traded ones that file financial statements with a government agency.)
The number of U.S. job openings hit a new high in April while hiring slowed, a sign that employers are struggling to find workers.
The number of job openings rose by 259,000 to 6.04 million, the Labor Department said Tuesday, the highest level recorded since the government started tracking the figure at the end of 2000. The number of hires, meanwhile, fell by 253,000 to 5.05 million in April.
The misuse of settlement slush funds was one of the Obama Administration’s worst practices, which it used to end run Congress’s constitutional spending power. After the GOP took the House and tried to cut spending for liberal interest groups, the Obama Justice Department began to force corporate defendants to allocate a chunk of their financial penalties to those same groups.
Every manufacturing investment and job creation decision is made by company executives who are looking down the road at future costs, taxes, and regulations. Many states and countries want to attract manufacturing investments and jobs. If they have longstanding policies that will be in effect for ten or more years, they will beat out the locations with policies that expire in the short term. In fact, the larger and more important the investments, the more risk averse company executives will be; they will assume the expiration in existing law will occur, as promised.
Lawmakers may believe that California will nevertheless attract manufacturing jobs and investments even without the policies under discussion, but the data states otherwise. Since 2001 California has attracted less than 2 percent of US manufacturing new sites or expansions, far lower than the state’s share of manufacturing GDP. More recently the re-shoring surge shows a similar loss to the rest of the country, with under 2 percent of those jobs coming to California since 2013. That means manufacturing jobs and investments are now shifting to other locations under our noses and long-term policies to keep manufacturers here are crucial.