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Republicans Are Picking Economic Winners and Losers

smokestacks
(Wikipedia)

On April 25, 2018, Arizona’s Republican Gov. Doug Ducey signed a bill passed by the state’s Republican controlled legislature to exempt coal purchases from the state sales tax. It would lower the price of coal produced at the state’s only active coal mine, Peabody Energy’s Kayenta Mine on Black Mesa. The objective of the bill is to help attract a buyer for the mine’s only customer, the coal-fired Navajo Generating Station power plant near Page. The bill was pushed by Peabody Energy’s lobbyist Tom Dorn.

All but one of the Navajo Generating Station’s owners have decided to shut it down in 2019 because they can buy cheaper and cleaner electricity on the open market. And its other owner, the U.S. Bureau of Reclamation, cannot afford to operate the plant by itself, so if it shuts down, so will the Peabody coal mine.

“This bill is essential to the economic success of the Navajo Nation, the Hopi Tribe, and surrounding communities,” Ducey said when he signed it. The two tribes would, indeed, be severely impacted by a shutdown because the power plant and mine are located on their reservations. Both tribes hold leases for the mine, and the Navajos hold one for the power plant. If the plant and mine close, it’s estimated the annual revenue of the Navajo Nation’s government would shrink by about $40 million, or about 23%, while the smaller Hopi Tribe’s revenue could decline by about $12 million, or about 67%. In addition, the power plant and mine employee about 750 workers, nearly all of them Native Americans. (Some people would still be needed to maintain and dismantle the plant and mine if they were closed.)

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The Shameful History of U.S. Intervention in Cuban Affairs

Cuban flag
Cuban flag

I visited Cuba earlier this year with an American tour group and learned many things. One of them was that the U.S. government’s involvement in Cuban affairs before the Cuban Revolution was more extensive than what we’ve been taught – and not in a good way.

American involvement in Cuban affairs began as early as 1854, when the Ostend Manifesto was drafted by Southern expansionists who wanted to acquire Cuba from Spain in order to facilitate the expansion of their slave economy. Its publication outraged anti-slavery Northerners and the idea was shelved, although the Confederates would have pursued the acquisition of Cuba if they’d won the Civil War.

Many ex-Confederates moved to Cuba after the South lost the war because slavery was still legal there. They had little effect, however, because American businessmen were already heavily invested in Cuba and controlled its lucrative sugar industry.

The Spanish-American War
U.S.S. Maine
U.S.S. Maine entering Havana Harbor, January 1898 (U.S. Dept. of Defense)

The Cuban War of Independence, inspired by Cuban patriot José Martí, began in 1895 and by 1897 the liberation army had the Spanish on the defensive. Then in 1898 the U.S. militarily intervened in the war after the American battleship U.S.S. Maine mysteriously exploded in Havana Harbor on February 15, killing 266 U.S. sailors. President William McKinley asked Congress to declare war in April and in the subsequent Spanish-American War an American army defeated Spanish troops at the Battle of San Juan Hill and a U.S. naval force subsequently destroyed a Spanish naval squadron at the Battle of Santiago de Cuba. These losses, coupled with other Spanish military defeats in the Philippines, Guam and Puerto Rico, caused Spain to sue for peace and a ceasefire was established on August 12. In the formal peace treaty that was signed in December, the Philippines, Guam and Puerto Rico were annexed by the U.S. and Cuba became a protectorate – a virtual U.S. colony. Cubans were not included in the negotiations with Spain.

During my visit to Cuba I learned that most Cubans resent America’s intervention in their independence war. They believe they were close to defeating the Spanish on their own, and the Maine was blown up as part of a secret scheme by U.S. imperialists to create an excuse for America to gain control of Cuba. (No definitive cause for the ship’s explosion has ever been identified.)

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