Axios AM

January 31, 2024
๐ซ Happy Wednesday!ย It's the last day of Dry January!
- Smart Brevityโข count: 1,181 words ... 4ยฝ minutes. Thanks to Noah Bressner for orchestrating. Copy-edit by Bryan McBournie.
๐๏ธ Breaking: Just after midnight, House Homeland Security Committee Republicans approved two articles of impeachment against Homeland Security Secretary Alejandro Mayorkas, setting up a vote on the floor. Keep reading.
๐ 1 big thing: America's money mojo

The U.S. economy grew faster than any other advanced economy last year โ by a wide margin โ and is on track to do so again in 2024, Axios' Neil Irwin writes.
- Why it matters: America's outperformance is rooted in its distinctive structural strengths, policy choices and some luck. It reflects a fundamental resilience in the world's largest economy that's easy to overlook with the nation's problems.
All countries dealt with the same problems of post-pandemic inflation and high interest rates. But the U.S. managed to achieve solid growth despite those headwinds.
- Strong growth in the U.S. labor force was one factor: More Americans chose to enter the workforce, and immigration surged.
- The U.S. also experienced strong productivity growth fueled by an innovative corporate sector and โ Biden administration officials argue โ big federal investments in infrastructure and manufacturing capacity.
๐งฎ By the numbers: U.S. GDP looks to have grown 2.5% in 2023, according to the IMF's hot-off-the-presses World Economic Outlook, the highest among the G7 economies. (Japan was second at 1.9%.)
- IMF economists forecast similarly best-in-class growth this year, with 2.1% U.S. growth. (Second place: Canada at 1.4%.)
๐ Between the lines: Adam Posen, president of the Peterson Institute for International Economics, argues that an important part of the story is the pandemic, which pushed more Americans toward higher-productivity work.
- "The enormous labor market churn of COVID in 2020-21 had the unintended benefit of moving millions of lower-income workers to better jobs, more income security, and/or running their own businesses," Posen tells Axios.
๐ฅ Reality check: It's not just that the U.S. is doing well. It's that other major economies have distinctive problems holding back growth.
- Japan has a shrinking population and low immigration rates. So even when its economy is doing well, growth is lower than in the U.S.
- The U.K. is still working through the supply disruptions triggered by Brexit.
2. ๐ Haley's Hail Mary
Photo illustration: Sarah Grillo/Axios. Photo: Allison Joyce/Getty Images
Nikki Haley is seeking a complex โ and unlikely โ path to the GOP presidential nomination by relying on independent and Democratic voters in 13 states with primaries open to non-Republicans, Axios' Sophia Cai writes.
- Why it matters: It's a long shot. But Haley's Hail Mary strategy might help her chip away at GOP front-runner Donald Trump as he faces legal challenges that could complicate his campaign.
Haley's team is pinning its hopes on the primary formats in South Carolina, Michigan and 11 of the 16 Super Tuesday states whose March 5 primaries aren't limited to registered Republicans.
- The former UN ambassador is also bashing Trump in a flurry of media appearances, daring him to debate her and embarking on a fundraising frenzy this week.
It's a tough sell: The GOP's base continues to rally around Trump.
3. ๐ Poll: Biden losing border blame game

President Biden looks increasingly vulnerable on immigration โ the issue that has been the focus of former President Trump's entire political career, Axios' Alex Thompson and Erin Doherty write.
- Why it matters: The issue resonates far from the border. In six of seven swing states in a Bloomberg News/Morning Consult poll out this morning, a majority of voters say they've seen more immigrants over the last few years. (Michigan was the exception.)
๐ข By the numbers: 61% of swing-state voters say Biden is at least somewhat responsible for the wave of migration on the U.S.-Mexico border.
- On the same question, 30% blamed the Trump administration and 38% blamed congressional Republicans.
Voters in all seven swing states โย Arizona, Nevada, Georgia, North Carolina, Wisconsin, Pennsylvania and Michigan โ say they trust Trump over Biden on immigration, 52% to 30%.
- That 22-point margin is up five points since the same poll in December.
4. ๐ Mapped: Anti-DEI bills surge

Proposals aimed at dismantling diversity, equity and inclusion programs on college campuses have surged since 2021, Axios' Russell Contreras reports.
- Bills have been introduced in 21 states since 2021. Nine have approved such laws.
Why it matters: The wave of anti-DEI bills in state legislatures has come amid an ongoing conservative backlash against initiatives aimed at fighting systemic racism.
- Just two states โ Washington and New Mexico โ have passed bills since 2022 requiring higher education institutions to offer training in DEI or antiracism.
5. โพ David Rubenstein = new Orioles owner

David Rubenstein, co-founder of the Carlyle Group, reached a deal to buy the Baltimore Orioles for $1.725 billion.
- The Baltimore native is leading an investment group that includes fellow private equity mogul Mike Arougheti, Puck's John Ourand reported.
The Orioles are coming off a 101-win season and their first AL East title since 2014.
- With young stars like Adley Rutschman and Gunnar Henderson, the future looks bright for a team that hasn't won a World Series since 1983.
6. ๐ Buggy software stalls EV switch

Illustration: Sarah Grillo/Axios
GM is racing to diagnose and fix software issues that have caused flickering screens, looping error messages and glitchy charging in some of its most important new electric vehicles, Axios' Joann Muller writes.
- Why it matters: Software bugs on your phone or laptop are an annoyance. A software snafu in a car could be life-threatening.
What's happening: Multiple carmakers โ including GM, VW, Volvo and Polestar โ have delayed new EVs while they rethink their approach to software development.
- Most traditional automakers don't have the required software skills and are struggling to reorient their businesses.
7. ๐ค Taylor Swift backlash gets ugly

Conservative media personalities are raging over a new enemy who's never been more powerful: Taylor Swift.
- MAGA acolytes โ from Vivek Ramaswamy and Trump lawyer Alina Habba, to multiple Fox News hosts โ are publicly fuming over the singer, asserting she needs to stay out of politics, Axios' Natalie Daher writes.
Among the most extreme conspiracy theories surrounding Swift and her boyfriend โ Super Bowl-bound Chiefs tight end Travis Kelce โ is that their relationship is a deep-state plot orchestrated by the NFL and Democrats to work in President Biden's favor.
- Swift hasn't endorsed anyone in the 2024 presidential race. The N.Y. Times reports that the Biden campaign is courting her.
8. ๐ธ TikTok's music fiasco
Illustration: Sarah Grillo/Axios
Universal Music โย the recording industry giant that controls about a third of the global music market โย is yanking its songs from TikTok after today.
- Why it matters: TikTok's viral video algorithm relies heavily on sound, and more specifically, songs it has licensed from labels like Universal for its users to record with, Axios Media Trends expert Sara Fischer writes.
Universal said TikTok "attempted to bully us into accepting a deal" and offered a "fraction ofย the rate" that other social media sites pay.
- The company represents some of the world's biggest superstars, including Taylor Swift, Drake and BTS.
Go deeper (Hollywood Reporter).
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