April 20, 2024

Foreign Food Inspections Decline as Illnesses Rise

While Congress spared meat and poultry inspections by the Agriculture Department from the automatic budget cuts known as the sequester, inspections at foreign food factories have been in decline because of years of budget cuts, and border inspections like this one in New York may be eliminated.

The Food and Drug Administration, which inspects everything but meat and poultry, is struggling to find the money to inspect foreign foods under a new food safety law that Congress did not support with enough funds. The Obama administration’s 2014 budget calls for an increase in agency financing, but the most money would come from fees that the food industry and Congress oppose. Lawmakers in March did approve an additional $40 million in one-time financing for the agency to put the new law into effect, but food safety experts say more money will be needed.

The upheavals in government food inspections are occurring as Americans are biting into more and more foreign food and the rate of illness from imported food is rising. Just last month, a salmonella outbreak was traced to Mexican cucumbers that sickened at least 73 people in 19 states. In just the past two years, major food poisoning outbreaks from salmonella bacteria have been linked to imported foods, including Turkish pine nuts, Mexican papayas and cantaloupes from Guatemala. Last year, 2.5 million pounds of contaminated beef from Canada made it into American supermarkets before additional shipments were caught at the border.

Dr. Richard Raymond, a former under secretary for food safety at the Agriculture Department in President George W. Bush’s administration, said the decline in inspections was risky.

“We tried to do inspections every year, because if you don’t, people cut corners,” Dr. Raymond said. “The decline in in-country inspections appears to be a casualty of tough budgetary times.”

A study by the Centers for Disease Control and Prevention found an average of six and a half outbreaks a year from foreign foods between 2005 and 2010, more than double the annual rate of infection between 1998 and 2004. And the number of outbreaks caused by imported food could be far higher because the origins of many foods are not always known, said Hannah Gould, an epidemiologist at the agency.

Food safety experts like Marion Nestle, a New York University professor and the author of “Safe Food: The Politics of Food Safety,” said the rise in illness linked to imported foods could be attributed directly to the lack of vigilance by government regulators.

“The agencies responsible for food safety simply don’t have the resources to inspect all the food that is entering the United States each year,” Ms. Nestle said.

The Agriculture Department, whose foreign inspection budget has declined 18 percent since 2010, inspected food plants and the safety programs in just 10 countries last year, down from 32 four years ago, according to agency documents. The department said it would not inspect every exporting country each year but planned to focus on those with a history of food safety problems.

Under a pilot project, certain Canadian plants would be allowed to ship meat directly to food processors in the United States, bypassing border inspections, the result of a recent trade agreement. Government inspections would occur at the processing plants in the United States, officials said.

In an e-mail, Richard McIntyre, a spokesman for the Agriculture Department Food Safety Inspection Service, denied that any of the changes were related to budget cuts or trade pressures. He said the agency was taking a more “risked-based approach” by concentrating on problem-prone countries. Nations like Australia, Canada and New Zealand, which have had relatively good food safety regulations, will be inspected every two or three years.

But food safety advocates and some lawmakers are skeptical.

“This policy change puts the health of customers at risk,” said Representative Rosa DeLauro, Democrat of Connecticut, who wrote a letter to the White House and the Agriculture Department seeking information about the decline in inspections overseas and the trade agreement with Canada.

Neither has responded, she said.

This article has been revised to reflect the following correction:

Correction: May 7, 2013

An earlier version of this article misstated the name of the law firm where David Acheson is a partner. It is Leavitt Partners, not Levitt Partners.

Article source: http://www.nytimes.com/2013/05/08/us/foreign-food-inspections-decline-as-illnesses-rise.html?partner=rss&emc=rss

Economic Scene: The Payoff in Retiring a Few Years Later

“It’s a disaster, but a slow rolling one,” said Jared Bernstein, former chief economic adviser to Vice President Joseph R. Biden Jr.

N. Gregory Mankiw, the former chief economic adviser to President George W. Bush, wouldn’t disagree. “Other than being precisely the opposite of the kind of fiscal changes we need, what’s not to like?” he told me, with more than a touch of irony.

Yet despite the broad criticism, what the impasse between Democrats and Republicans just did to the federal budget is not at all atypical. It follows to the letter the most ironclad rule of American politics, which has held sway for the last three decades: spare the old.

The impasse was portrayed as a doomsday machine that went off unexpectedly — the consequence of an intractable divide in Washington over taxes and spending. It led to the so-called sequester, the product of a longstanding bipartisan reluctance to tinker with the social safety net erected to maintain the living standards of the elderly. Why? Because the old vote at much higher rates than the young.

It’s true that Republicans have offered plans to limit spending on Medicare and Social Security by turning them into voucher-type programs, letting seniors buy their own health insurance with a set amount of money and manage their own pensions. But they never dared pay the political cost of turning these ideas into law even when they controlled Congress and the White House.

Democrats, meanwhile, have been reluctant to put up an all-out fight for the large tax increases needed to pay for the expanding entitlement programs demanded by an aging population, without any cuts. Usually champions of progressivity, they have nonetheless resisted proposals to direct benefits for the elderly more specifically to low and middle income Americans.

This fixation on defending entrenched positions is getting us nowhere. The problem — a growing cohort of retirees, born during the baby boom, now claiming Social Security and Medicare — is only getting bigger.

But what if there were a way for the government to ease the strain that the aging place on the budget while actually increasing their income in retirement, at little or no cost to their benefits? A well-designed reform would even improve the nation’s rate of economic growth. The way to do it is simply to encourage older workers to spend a larger share of their increasing life spans in the work force.

Reform along this line might even garner bipartisan support. But it requires Democrats and Republicans to overcome their fear of disturbing the old.

Spending on Medicare, Social Security’s old age pensions and retirement programs for civilians and military on the federal payroll will hit almost 9 percent of the nation’s total economic output by 2023, according to baseline projections by the Congressional Budget Office. It will consume about 38 percent of the federal government’s entire budget, up from 25 percent four decades ago, according to the Office of Management and Budget.

Meanwhile, the C.B.O. expects the discretionary part of the budget — which includes every program requiring annual appropriations, from the budgets of the Pentagon and the National Academy of Sciences to worker training programs and early childhood education — will shrink to its smallest share of the economy since the Eisenhower administration. Forty years ago discretionary programs, including much of the spending aimed at improving the economy for future generations, consumed more than half of the budget. In 10 years they will consume less than a quarter.

Senior citizens, to be sure, merit protection. Social insurance to keep retirees from dropping out of work and into poverty is as necessary today as when President Franklin Roosevelt signed the Social Security Act in 1935. But an income support system meant for a society where people retired in their late 60s and died in their late 70s is under strain as Americans take to retiring earlier and living well into their 80s and beyond.

Article source: http://www.nytimes.com/2013/03/06/business/the-payoff-in-retiring-a-few-years-later.html?partner=rss&emc=rss

Stocks Gain on Friday After Volatile Week

Stocks advanced modestly on Friday, leaving the Standard Poor’s 500-stock index with slight gains after a volatile week, as strong economic data overshadowed growth concerns in China and Europe and let investors discount the impact of federal spending cuts.

Data reported early in the day showed that Asian factories were slowing and European output was falling, setting off a sharp drop at the beginning of trading in New York. But most of the losses evaporated after a report showed that United States manufacturing activity had expanded in February at the fastest pace in 20 months. Consumer sentiment also rose in February as Americans turned more optimistic about the job market.

As $85 billion in government budget cuts took effect on Friday, President Obama blamed Republicans for the lack of a compromise to avert the so-called sequester. But the stock market appeared to have already priced in legislators’ failure to reach an agreement.

“We were able to dig out of that hole, but not make any great strides on it either,” said Peter M. Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Ill. “We will probably be in a holding pattern pending some big development on a broader budget deal.”

The Dow Jones industrial average gained 35.17 points, or 0.25 percent, to 14,089.66. The S. P. 500 rose 3.52 points, or 0.23 percent, to 1,518.20. The Nasdaq composite index advanced 9.55 points, or 0.3 percent, to 3,169.74.

For the week, the Dow rose 0.64 percent, the S. P. 500 edged up 0.17 percent and the Nasdaq gained 0.25 percent.

It was a bumpy road to the week’s slight gains. The markets slid on Monday after inconclusive elections in Italy revived concerns about the euro zone, only to rebound in the next two sessions after the Federal Reserve chairman, Ben S. Bernanke, defended the central bank’s stimulus measures.

The low interest rates from the Federal Reserve’s monetary policy have helped equities continue to attract investors. The Dow is less than 1 percent away from its nominal intraday record of 14,198.10. Declines have been shallow and short-lived, with investors jumping in to buy when the market dips.

Advancing stocks outnumbered declining ones on the New York Stock Exchange by a ratio of about 17 to 13, while on the Nasdaq, about seven stocks rose for every five that fell.

Shares of Intuitive Surgical jumped 8.5 percent on Friday, to $553.40, after a Cantor Fitzgerald analyst, Jeremy Feffer, upgraded the stock, saying a slide of more than 11 percent on Thursday had been a gross overreaction to a news report.

Groupon shares surged 12.6 percent, to $5.10, a day after the company fired its chief executive in response to weak quarterly results.

Gap stock rose 2.9 percent, to $33.87, after the company reported fourth-quarter earnings that beat analysts’ expectations and raised its dividend by 20 percent.

Salesforce.com posted sales that beat forecasts, driving its stock up 7.6 percent, to $182.

Chesapeake Energy shares fell 2.4 percent, to $19.67, after the Securities and Exchange Commission escalated its investigation of the company and its chief executive, Aubrey McClendon, over a perk that granted him a share in each of the natural gas producer’s wells.

The benchmark 10-year Treasury note rose 10/32, to 101 13/32, and its yield fell to 1.85 percent from 1.88 percent late on Thursday.

Article source: http://www.nytimes.com/2013/03/02/business/daily-stock-market-activity.html?partner=rss&emc=rss