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--:-- Georgia Howe: Welcome to Morning Wire. I'm Georgia Howe with Daily Wire editor-in-chief John Bickley. It's Tuesday, November 1st.
--:-- John Bickley: Good morning, Georgia.
--:-- Georgia Howe: A major diesel fuel shortage is raising alarms up and down the East Coast as winter approaches. We're going to face higher diesel prices. We're going to face higher home heating prices. Natural gas prices are going to go up. So pain to stay warm and also pain to move products and products across the highways.
--:-- John Bickley: That's right. And we'll be talking more about that later in the show.
--:-- Georgia Howe: We also have details on the first day of testimony in the trial against the Trump Organization in New York. Thanks for waking up with Morning Wire. Stay tuned. We have the news you need to know.
--:-- Georgia Howe: In what could prove to be another set of landmark rulings, the Supreme Court heard oral arguments on two affirmative action cases on Monday, one that involves Harvard University and another relating to the University of North Carolina's admissions policies.
--:-- John Bickley: Joining us to discuss is Sarah Parshall Perry, Senior Legal Fellow at the Heritage Foundation.
--:-- Sarah Parshall Perry: Okay, so Sarah, we have major affirmative action cases in front of the court here. First, tell us about these cases. Who brought the suits and who are the defendants?
--:-- Georgia Howe: The individual group that have brought the suit in both cases is an organization called Students for Fair Admission, and they claim about 20,000 members nationwide at colleges and university campuses coast to coast.
--:-- Sarah Parshall Perry: But they have each brought two individual claims against both UNC, which is a public university, University of North Carolina, and Harvard College, which is a private university. And they've alleged similar, though not identical, claims, both based on race discrimination, the first being in the UNC case, a violation of the Constitution's Equal Protection Clause in the 14th Amendment, and in the Harvard case, a violation of Title VI of the Civil Rights Act, which prevents any race discrimination in any federally funded program related to education.
--:-- John Bickley: So what arguments did we hear presented Monday from both sides?
--:-- Sarah Parshall Perry: Well, we've heard quite a number of attorneys get up and speak today because there was a group of students who intervened in the lawsuit at UNC. They have sided not only with Solicitor General for the United States, Elizabeth Prelogger, but also for the Solicitor General for the state of North Carolina, Mr. Park, the three attorneys have all followed sort of continually of a pace. Their arguments have tracked distinctly with the need for continued academic diversity, saying that we're not at the point where Grutter v. Bollinger needs to be overruled, that there is benefit to achieving racial diversity.
--:-- Georgia Howe: Essentially what been countered by the very adept arguments of the petitioner attorney is basically we can get stuck in essentially achieving diversity based on race alone when 30 to 40 other factors are taken into account.
--:-- Sarah Parshall Perry: If the Constitution is very clear about the prohibition of reliance on race and the denial of equal protection one group over another, Why can't we simply eliminate race altogether? Particularly so because as here in the UNC case, the expression of racial identity was itself voluntary.
--:-- John Bickley: Alito and Gorsuch actually went into a series of hypotheticals in which they discussed, well, where do we draw the line between national origin, indigenous populations, and race itself? What if, for example, an individual emigrates from Afghanistan? How do they identify themselves?
--:-- Sarah Parshall Perry: What I'm hearing repeatedly is that the more often race is used and the more finite these distinctions are attempted to be drawn, the more problematic it becomes. When a precedent begins to be exceptionally difficult to apply consistently, as is the case here when we're dealing with constitutional issues and colleges aren't quite sure exactly how much race they can use, the best approach and the constitutionally sound approach is to eliminate the use of that category altogether.
--:-- Georgia Howe: From what we witnessed in Court Monday and past precedent, do we have any sense of how the justices will rule?
--:-- Sarah Parshall Perry: This is actually a great question. I am hearing definitely based on lines of questioning the three liberal female justices voting together in a block with the chief justice, very likely among them. The line of questioning from Clarence Thomas, who has driven exceptionally from a position of his own awareness of having gone to non-racially diverse schools and repeatedly emphasizing that the goal here is educational excellence. It's not racial diversity.
--:-- John Bickley: That is, of course, a secondary and ancillary goal. It was recognized as a necessary result of the civil rights movement, but he himself never went to racially diverse schools.
--:-- Sarah Parshall Perry: I believe Clarence Thomas will probably vote with Justices Alito, Gorsuch, and Kavanaugh. And that leaves, to my mind, a single swing vote and possibly an unlikely one in Justice Amy Coney Barrett, who's not quite sure, based on her reasoning, when the need for diversity comes to an end. just how much diversity is required.
--:-- Georgia Howe: All right, so this could come down to Barrett.
--:-- Sarah Parshall Perry: Sarah, thanks for joining us.
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--:-- Georgia Howe: As winter approaches, a looming diesel shortage and skyrocketing fuel costs have experts sounding the alarm over a potential energy crisis.
--:-- John Bickley: Here with the latest on what's causing the shortage and what it means for your pocketbook is Daily Wire senior editor Cabot Phillips.
--:-- Cabot Phillips: So Cabot what going on with the energy market?
--:-- Georgia Howe: While gas prices have come down a bit from their all highs over the summer the rest of the energy sector is still experiencing sky prices. The latest numbers from the Labor Department show that compared to this time last year, propane is up 12 percent, electricity is up 15 percent, natural gas is up 33 percent, and fuel oil is up 58 percent. And those prices are only expected to go higher as winter comes and demand increases.
--:-- Cabot Phillips: Now, what about diesel? How significant is the shortage?
--:-- Georgia Howe: It is, it's bad. So last week, the Energy Information Administration reported that American inventories are at their lowest point since 1951. And it's worth noting, usually shortages like this occur coming out of winter instead of going into it.
--:-- Cabot Phillips: Now, when most people think of diesel, they only think of fuel used for big 18 wheelers. But keep in mind, diesel fuel is also used for heating homes. Diesel prices have surged to $5.37 a gallon nationwide. This time last year, it was $3.73. Not only does that mean higher prices for heating, but because diesel also fuels trucks, that means the cost of shipping goes up, which obviously then trickles down to the cost of goods.
--:-- Georgia Howe: For example, Mansfield Energy, a large shipping company in Georgia, wrote a letter last week to their clients saying, quote, conditions are rapidly devolving and carriers are having to visit multiple terminals to find supply, which delays deliveries and strains local trucking capacity.
--:-- Cabot Phillips: Now, what's causing the diesel shortage? Well, there are a few things. First, America's fuel capacity is just lower than it's been in the past. A number of large refineries were shut down over the last two years, in large part as a result of new climate regulations from the Biden administration, as well as decreased demand during the pandemic.
--:-- Georgia Howe: And there's also the fact that the U.S. has been shipping a significant portion of our fuel to Europe to help with their own shortages brought on in large part by the war in Ukraine and embargoes against Russia.
--:-- Cabot Phillips: Now, it's not just a diesel shortage that we're seeing. We're also seeing natural gas shortages in some parts of the country.
--:-- Georgia Howe: Yeah, you're absolutely right. So while the diesel shortage is especially impacting the southeast, the northeast is preparing for a heating oil shortage. Currently, New England's inventory of heating oil, which is similar to diesel fuel, are 70% lower than they've been on average across the last 30 years.
--:-- Cabot Phillips: To give you an idea of where we stand, Eversource Energy, they're the largest utility company in all of New England, just wrote a letter to President Biden asking him to prepare emergency measures, saying, quote, New England will not have sufficient natural gas to meet power supply needs for the region in the event of a severe cold spell this winter.
--:-- Georgia Howe: And to that point, we're already seeing suppliers in Massachusetts, New York, and Connecticut rationing the amount of heating oil that they're selling right now. Experts say it's part of an effort to prevent panic buying or hoarding.
--:-- Cabot Phillips: In the short term, the rationing is causing prices to rise even more. Heating oil is up 66% right now compared to this time last year.
--:-- Georgia Howe: So not good news across the board.
--:-- Cabot Phillips: Right. Definitely not the news we want to hear going into the winter.
--:-- Georgia Howe: Cabot, thanks for reporting.
--:-- Cabot Phillips: Anytime. That's Daily Wire senior editor Cabot Phillips.
--:-- Georgia Howe: Two of former President Trump's legal battles have had significant updates in the past few days. Trump's legal team has asked the Supreme Court for an emergency stay to protect his tax returns from congressional subpoena. Meanwhile, in New York, Trump's company is on trial for tax fraud and other charges.
--:-- John Bickley: Here to discuss Trump's legal battles is Daily Wire reporter Tim Pierce.
--:-- Tim Pierce: So, Tim, let's start with the congressional subpoena. Trump hasn't had much luck in lower courts blocking that, correct?
--:-- Georgia Howe: Nope. A judge he appointed has actually ruled against him.
--:-- Tim Pierce: Now, can we expect anything different from the Supreme Court?
--:-- Georgia Howe: Well, we'll see. Like you mentioned Trump track record in this particular case though It may be enough to keep this case tied up in the courts long enough for Democrats to lose control of the House The Republican Party is favored to win back the House in next week's election. If it does, you can expect Republicans to snuff out this investigation next year.
--:-- Tim Pierce: Okay, so the D.C. Circuit Court ruled in August that the Congress could get Trump's tax returns. What's Trump's case for keeping them protected?
--:-- Georgia Howe: Sure. Democrats in Congress are using a provision of the U.S. tax code. Under it, the chairman of the House Ways and Means Committee can get tax information from the Treasury on anyone the chair wants.
--:-- Tim Pierce: Trump's team has said that the committee doesn't have a legitimate purpose for seeking his tax forms, and the committee's request also raises separation of powers issues. In any event, the filing Trump's team made in court Monday doesn't ask for a ruling on those legal questions. The filing just requests a temporary stay. The legal arguments can be hashed out later if the stay is granted.
--:-- Georgia Howe: Now, let's pivot to the Trump Organization trial. Jury selection wrapped up last week, and opening arguments were held today. What happened?
--:-- Tim Pierce: Yeah, first off, this is a trial about Trump's family business. Neither Trump, himself, nor his children are facing charges. The case focuses on two corporations specifically, the Trump Organization and the Trump Payroll Corporation.
--:-- Georgia Howe: In the words of a Manhattan prosecutor. This case is about greed and cheating.
--:-- Tim Pierce: The corporations are accused of cooking up tax evasion schemes and paying executives under the table over a 15-year period starting in 2005.
--:-- Georgia Howe: And what is the company's defense?
--:-- Tim Pierce: The company is trying to pin it all on Chief Financial Officer Allen Weisselberg. As Trump's legal team put it, it started with Allen Weisselberg and it ended with Allen Weisselberg.
--:-- Georgia Howe: Weisselberg accepted a plea deal with prosecutors in August. He pleaded guilty in exchange for a reduced sentence and an agreement to testify against the company at trial.
--:-- Tim Pierce: Weisselberg is at the center of many of the charges facing the company. He pleaded guilty to receiving $1.7 million worth of off-the-books compensation. The illicit payments included a lease on two Mercedes and private school tuition for two of his grandchildren.
--:-- Georgia Howe: Weisselberg's actions may seem ungrateful to the company he has worked five decades for, but Weisselberg is 75 and was facing up to 15 years in prison in addition to financial penalties.
--:-- Tim Pierce: With his deal, he's expected to get a jail sentence of about five months and likely less with credit for good behavior.
--:-- Georgia Howe: So what's at stake for the Trump Organization or Trump himself if the company loses?
--:-- Tim Pierce: The Trump Organization faces a maximum fine of $1.6 million. It would also have more difficulty doing business in New York State, as well as obtaining banking services such as loans. Trump himself wouldn't face any direct legal consequences, but he may face some political consequences if he decides to run for office again in 2024.
--:-- Georgia Howe: All right, well, we're going to continue keeping track of this.
--:-- Tim Pierce: Thanks so much for reporting.
--:-- Georgia Howe: Thanks for having me.
--:-- Tim Pierce: That was Daily Wire's Tim Pierce.
--:-- Georgia Howe: Other stories we're tracking this week. Inflation reached 10.7% in Europe in October, according to the European Union's statistics agency, Eurostat. That number was 9.9% in September, and the highest on record since the agency began tracking the euro in 1997.
--:-- John Bickley: Guests have been locked down in a Disney resort in Shanghai in response to newly announced COVID measures. Guests will be required to test negative in order to leave the park.
--:-- Georgia Howe: As of Monday, the park continued to operate rides for the trapped visitors, but parts of the park were closed to comply with government-imposed curbs.
--:-- John Bickley: Thanks for listening to Morning Wire. We created this show to bring more balance to the national conversation. If you love our show and you stand with our mission, consider subscribing, leaving us a five-star rating, and most importantly, sharing our podcast with a friend.
--:-- Georgia Howe: That's all the time we've got this morning. Thanks for waking up with us. We'll be back this afternoon with more of the news you need to know.
--:-- John Bickley: Thanks for listening to Morning Wire.
--:-- Georgia Howe: We'll be right back.
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