
Without compromise, American democracy has no future
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The following day, Bacon announced that he'd also had enough of the intolerant partisanship dominating Congress. The former Air Force brigadier general,
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Tillis and Bacon aren't rebels. They just don't believe their job is to elevate hardline ideological rigidity above all other considerations. In that sense they are like former Senators Kyrsten Sinema of Arizona and Joe Manchin of West Virginia, two Democrats who likewise found themselves demonized for occasionally making common cause with members of the opposing party. Last year, they too chose not to run for reelection.
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Of all the developments that have sickened American politics in this generation, the abandonment of democratic civility and the resulting hostility to compromise are the most toxic. The virtues of moderation and magnanimity, the willingness to engage respectfully with others' views, the assumption that individuals with contrary opinions may be wrong but are not evil — without these, our political institutions cannot function. The first and most vital task of liberal democratic politics is to accommodate strong differences without tearing society apart. But that becomes impossible when conciliation is regarded as treachery — and when politics stops focusing on persuasion and debate and becomes obsessed instead with defeating enemies by any means necessary.
Granted,
Yet compromise has been the lifeblood of the American experiment from its earliest days. The very possibility of self‑government is grounded in the presumption that citizens with intensely held but divergent views can find ways to cooperate. The American founders knew perfectly well that there would always be deep disputes over principles, tactics, means, and ends. That is why they regarded compromise not as a necessary evil but as an essential element of our constitutional system.
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'Those who hammer out painful deals perform the hardest and, often, highest work of politics,' the American thinker Jonathan Rauch wrote in
In '
America's independence holiday is a good time to remember that some of this nation's greatest achievements emerged from political give‑and‑take, not from unilateral assertions of power.
The Constitution itself was born of compromise. At the convention in 1787, delegates were deadlocked between a population-based legislature (favored by large states) and one that would treat all states equally (favored by small states). Had the impasse not been broken by what was later called the Great Compromise — a bicameral Congress with proportional representation in the House and equal representation in the Senate — the convention would have collapsed and the fragile confederation of states might never have endured.
American progress has depended time and again on the ability of political leaders to transcend their partisan, sectional, or ideological loyalties and reach a compromise all sides could live with.
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Consider the bargain struck in 1790 between Alexander Hamilton of New York and Virginia's Thomas Jefferson and James Madison. Hamilton wanted the federal government to assume all state debts, which would amount to a dramatic expansion of national power. That prospect alarmed Southern leaders like Jefferson and Madison — but they agreed not to derail the plan in exchange for locating the new national capital on the Maryland-Virginia border instead of in one of the major commercial centers of the North. Though each side had to swallow a bitter pill, the deal achieved two vital ends: national creditworthiness through debt assumption, and a seat of government accessible to both North and South. And it showed that even foundational questions about the scope of federal power could be resolved through negotiation rather than force.
Congress similarly chose compromise over caustic stalemate in 1964, with a Civil Rights Act that combined Southern concessions on federalism with Northern demands to outlaw segregation. The law was far from perfect, but it transformed American society and politics. It passed despite the opposition of hard-core segregationists, thanks to a bipartisan coalition hammered together by President Lyndon Johnson and Senator Everett Dirksen, the Republican minority leader — proof that compromise, when linked to moral conviction, can dismantle entrenched injustice.
To mention one more, recall the 1997 budget agreement. When Republicans under Newt Gingrich won control of the US House for the first time in decades, their '
surpluses
. It was one more illustration of how ideological opponents, if they are motivated to do so, can find ways to compromise.
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None of this is to suggest that all compromises are good. That would be as ridiculous as insisting that any compromise is bad. The point, rather, is that without the ability to compromise — and without the civility and mutual respect that make that possible — our democratic republic cannot survive. Maybe we've already crossed that point. Is there any reason to be optimistic about a Congress in which fanatics like Marjorie Taylor Greene and Bernie Sanders flourish while thoughtful legislators such as Thom Tillis and Kyrsten Sinema are marginalized until they resign?
In '
What would have happened if those men hadn't been able to reason together — if they had abandoned all efforts to persuade and had resorted instead to invective and intimidation? The American experiment might have ended before it even got off the ground. If today's leaders continue to scorn compromise and civility, ours may be the generation that brings it crashing back to earth.
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Jeff Jacoby can be reached at
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Trump signs sweeping domestic policy bill at White House ceremony
It was a victorious moment for President Trump, signing his tax and spending bill during a White House July 4th celebration. Democrats are poised to highlight the bill in the upcoming midterm elections given its cuts to social safety net programs but Republicans are touting its tax cuts and funding for Trump's immigration policies. NBC News' Kelly O'Donnell reports.

38 minutes ago
'This Week' Transcript 7-6-25: Chairman of the White House Council of Economic Advisers Stephen Miran, former Treasury Secretary Larry Summers and Dr. Richard Besser
A rush transcript of "This Week with George Stephanopoulos" airing on Sunday, July 6, 2024 on ABC News is below. This copy may not be in its final form, may be updated and may contain minor transcription errors. For previous show transcripts, visit the "This Week" transcript archive. STEPHANOPOULOS: Want to get more on this now from former Treasury Secretary Larry Summers. Also the former president of Harvard University. Larry, thank you for joining us this morning. In "The New York Times" this week, you and Robert Rubin, who also served as president -- as Treasury secretary, called this bill dangerous, said it 'posed a huge risk to the economy.' What are those risks? FORMER TREASURY SECRETARY LARRY SUMMERS: George, just to start with, what your people have been describing is the biggest cut in the American safety net in history. The Yale Budget Lab estimates that it will kill, over 10 years, 100,000 people. That is 2,000 days of death like we've seen in Texas this weekend. In my 70 years, I've never been as embarrassed for my country on July 4th. These higher interest rates, these cutbacks in subsidies to electricity, these reductions in the availability of housing, the fact that hospitals are going to have to take care of these people and pass on the costs to everybody else, and that's going to mean more inflation, more risk that the Fed has to raise interest rates and run the risk of recession, more stagflation, that's the risk facing every middle-class family in our country because of this bill. And for what? A million dollars over 10 years to the top tenth of a percent of our population. Is that the highest priority use of federal money right now? I don't think so. This is a shameful act by our Congress and by our president that is going to set our country back. STEPHANOPOULOS: Part of the president's argument is that economic growth sparked by the bill will alleviate the dangers that you talk about here. The chair of the Council of Economic Advisers is up next, and his council issued a report this week projecting $11 trillion in deficit reduction from growth, higher tax revenue and savings on debt payments. How do you respond to that? SUMMERS: It is respectfully nonsense. None of us can forecast what's going to happen to economic growth. What we can forecast is that when people have to hold government debt instead of being able to invest it in new capital goods, new machinery, new buildings, that makes the economy less productive. What we can forecast is that when we're investing less in research and development, investing less in our schools, that there is a negative impact on economic growth. There is no economist anywhere, without a strong political agenda, who is saying that this bill is a positive for the economy. And the overwhelming view is that it is probably going to make the economy worse. Think about it this way. How long can the world's greatest debtor remain the world's greatest power? And this is piling more debt onto the economy than any piece of tax legislation in dollar terms that we have ever had. STEPHANOPOULOS: But, Larry, as you know, experts in the past have raised alarm bells about the deficits, and the economy seems pretty resilient in the face of that. SUMMERS: George, the best period we have had in the economy was the economy that -- was the period that Secretary Rubin and I wrote about when we served President Clinton and by acting responsibly on the deficit by listening to the CBO rather than expressing contempt for it, we reduced the deficit, set off a virtual -- virtues circle of increased investment, more growth, lower deficits, lower interest rates, and then around the cycle again. Experts warn about risks. And I can't tell you whether the financial crisis is going to come this year or whether the financial crisis is going to come five years from now. And I'm not going to do cry wolf rhetoric. By the way, I was the one who was saying for a decade after 2010 that deficit reduction didn't need to be a national priority. But anybody who looks at the numbers sees that we've never had deficits remotely like this or the prospect of debts remotely like this at a moment when the economy was strong and we were at peace anytime in our history. This is a risk that we don't need to run, and for what? To give $1 million a year to the top-tenth of a percent while, in effect, sentencing 100,000 poor Americans to death over the next 10 years because they can't get access to necessary medical procedures, because they can't get driven to a hospital, because their family members can't get supported? This is just wrong. STEPHANOPOULOS: Finally -- SUMMERS: Look, there are lots of things, George, that you argue about, and Democrats, Republicans have different perspectives. This is that very rare instance where everybody outside of a mainstream sees something very dangerous happen. STEPHANOPOULOS: Finally, the president's team argued that tariff revenue is going to help make up some of the shortfall. What's your response? SUMMERS: Yeah, it probably will collect some revenue at the cost of higher inflation for American consumers, less competitiveness for American producers. 60 times as many people use -- work in industries that use steel as work in the steel industry, and every one of them is less competitive because of the president's tariffs. So, higher prices, less competitiveness, and not really that much revenue relative to what's being given to the very wealthy in this bill. STEPHANOPOULOS: Larry Summers, thanks very much. STEPHANOPOULOS: Let's get more on the health care impact now from our former colleague, Dr. Richard Besser, president of the Robert Wood Johnson Foundation. Rich, thank you for joining us this morning. Your -- your organization said this legislation is going to devastate the U.S. health care system. Spell out why you believe that. DR. RICHARD BESSER, FORMER CDC ACTING DIRECTOR & ROBERT WOOD JOHNSON PRESIDENT AND CEO: Yes, I mean, George, the -- the -- the -- the piece we just heard laid out some of that. This is the biggest cut to federal support to health care in history. A trillion dollars coming out of that, you know, and it will reverse generations of improvement we had been making in terms of getting people access to health care. The Congressional Budget Office says that over 11 million people will lose access to health care. I worked in community clinics for over 30 years, and in those clinics, some patients had Medicaid and some had no insurance. And I saw the struggle that people would make to determine, 'Should I come in for my health care,' 'Should I pay for my medications,' or, 'Should I use that money for rent, to put food on the table?' This bill will make it so much harder and will put so many more people in that position. STEPHANOPOULOS: Defenders of the president's plan said that the CBO, the Congressional Budget Office, as you just cited, has a history of overestimating the coverage cuts, and that most states will find workarounds to these work requirements. How do you respond to that? BESSER: Well, you know, we have an example. Arkansas tried work requirements -- the idea that anyone who should be able to work should work to get benefits. And what they found was that the number of people working didn't go up at all, but over 11,000 people lost their Medicaid insurance. And it not only affects those individuals, which is bad enough, but rural hospitals across America depend on Medicaid dollars to stay in existence. It's predicted that there could be hundreds of rural hospitals that close. Those hospitals are also a driver for businesses. Businesses don't want to move into a community without a hospital. There are so many repercussions of this bill. I don't know how someone can go back to their district and face the people who voted for them after they intentionally are causing so much pain and harm across our nation. STEPHANOPOULOS: Beyond the cuts on Medicaid, there are also some changes for -- to those who are covered by the Affordable Care Act and the overall impact on health insurance costs. What should we expect? BESSER: Well, you know, this -- we all know that the Affordable Care Act wasn't the end game. We're the only wealthy nation in which not every person who lives here has access to health care, but the Affordable Care Act moved us in that direction. But this does nothing to help people who have health insurance but are finding it too expensive. This makes it harder in terms of not providing people with the -- with the extra supplement to help pay for their insurance. So, we're going to see more and more people who are not able to get the care that they need. And what that leads to is that people who were healthy become unhealthy and become unable to work. People with disabilities in particular can be hit hard. One-third of people with disabilities get Medicaid and it helps keep people healthy with disabilities so they can work. That's going to be -- that's going to be a challenge with this. STEPHANOPOULOS: How can organizations like yours fill the gap? BESSER: Well, we can't. What we can do is work with others to put forward a vision of what should be. We should be a nation in which every single person has access to high quality, comprehensive, affordable health care. We're going to be working on that. We're going to be putting forward that message. But we cannot fill the gap from what the government is doing. And there's an assault on health care that's coming from all sides. You know, this bill is doing it to the health care system, to food support. We're seeing it with our secretary of health who's doing it to our vaccine system. There are so many assaults. The National Institutes of Health, which is where our cures and future treatments come from, they're under assault. You know, it's hard to pick one of these, and philanthropy cannot fill those gaps, but we can use our voice to call out the concerns that we see for health broadly across our nation. STEPHANOPOULOS: Rich Besser, thanks very much. STEPHANOPOULOS: Let's get a response now from Stephen Miran, the Chair of the White House Council of Economic Advisers. Steve, thanks for coming in this morning. You just heard Mr. Summers right there. He starts out saying the bill is dangerous, huge risks. STEPHEN MIRAN, CHAIR, WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS: Thanks for having me. Look, I think that there's been a lot of -- a lot of doom mongering, a lot of scare mongering, and this isn't the first time, by the way. During the president's first term, lots of folks said that the president's historic tariffs on China during the first term were going to be terrible for the economy. And there was no lasting evidence of that whatsoever. There was no meaningful economic inflation, no meaningful economic slowdown. Everything was actually pretty OK in response to the tariffs last time. And thus far again, this time, we've had a repeat of the same performance whereby lots of folks predicted that it would end the world, there would be some sort of disastrous outcome. And once again, tariff revenue is pouring in. There's no sign of any economically significant inflation whatsoever, and job creation remains healthy. STEPHANOPOULOS: Job creation does remain healthy. But let's talk about the Bill to begin. I want to get back to tariffs in a second. This increase in the debt, he says that every major economist who doesn't have a political agenda, agrees that this is going to pose a danger to the economy because of the increased debt service payments. MIRAN: Yeah, I don't think that's -- I don't think that that's true at all. And I think the historical record is on our side. It's the same combination of policies, tax cuts, deregulation, trade renegotiation, and energy abundance that gave us astounding economic growth in the president's first term, 2.8 percent until the pandemic. And that's exactly what we forecast again, very similar numbers. STEPHANOPOULOS: That was one year. MIRAN: No, no, no, 2017 to 2019. The annualized rate over those three years was 2.8 percent. Right? Very high economic growth as a result of these same policies. And that's just a statistical fact. And so, what the people who predict big deficits don't understand is that economic growth is going to soar in response to these policies. If you give massive incentives for investment, huge incentives for new factories, full expensing on new factories, full expensing on equipment, full expensing on R&D expenditures, that incentivizes more of this stuff. You're going to get more people investing in factories as a result of these tax benefits. More investment means more income. More income means more tax revenue. And as a result, deficits go down. STEPHANOPOULOS: Why should we not believe the CBO when they say that something approaching a little more than 11 million people are going to be -- are going to lose their healthcare coverage because of the Medicaid cuts? MIRAN: Well, because they've been wrong in the past. When Republicans repealed the individual mandate penalty during the Tax Cuts and Jobs Act in the president's first term, CBO predicted that there was going to be about 5 million people losing their insurance by 2019. And you know what? The number was not very significantly changed at all. It was a tiny fraction of that. And so, they've been wrong in the past. And look, if we don't pass the -- if we didn't pass the Bill, eight to nine million people would've lost their insurance for sure, as a result of the biggest tax act in history creating a huge recession. The best way to make sure people are insured is to grow the economy, get them jobs, get them working, get them insurance through their employer. Creating jobs, creating a booming economy is always the best way to get people insured. STEPHANOPOULOS: On tariffs, the deadline, the president's deadline is approaching for the deals. We've only seen three deals so far. What should we expect next? MIRAN: Well, I'm still optimistic that we're going to get a number of deals later this week. Part of that is because all the negotiating goes through a series of steps that lead to -- that lead to a culmination timed with the deadline. But it's important that countries line up to make concessions to get those deals, to convince the president that they should get lower tariff rates. And thus far, it's been happening. The president has very successfully used leverage and the threat of tariffs to get companies to create -- to grant concessions to open their markets to U.S. goods. STEPHANOPOULOS: But we've only seen an agreement with Britain. It's really just the framework of an agreement. We've seen the agreement with Vietnam. Where are the other deals? MIRAN: Well, I'm -- as I said, I'm still expecting a number to come this week. The Vietnam deal was fantastic. It's extremely one-sided. We get to apply a significant tariff to Vietnamese exports. They're opening their markets to ours, you know, applying zero tariff to our exports. It's a fantastic deal for Americans. STEPHANOPOULOS: So, if the -- but if these other deals don't come in this week, will the president be extending the deadline? MIRAN: Well, my expectation would be that countries that are negotiating in good faith and making the concessions that they need to, to get to a deal, but the deal is just not there yet because it needs more time, my expectation would be that those countries get a roll, get, you know, sort of, get the date rolled. STEPHANOPOULOS: Like which countries are those? MIRAN: Well, I mean, I think we're seeing lots of good progress on a variety of countries. You know, I -- to be clear, I'm not a trade negotiator. I'm not involved in the details of these talks, but I hear good things about the talks with Europe. I hear good things about the talks with India, you know? And so, I would expect that a number of countries that are in the process of making those nego -- making those concessions, you know, they might see their date rolled. For the countries that aren't making concessions, for the countries that aren't negotiating in good faith, I would expect them to sort of see higher tariffs. But, again, the president will decide -- you know, the president will decide later this week, and in the time following, whether or not the countries are doing what it takes to get access to the American market like they've grown accustomed to. STEPHANOPOULOS: We saw new jobs numbers come in this week. As I said, the economy seems pretty resilient. But underneath the overall numbers, there does seem to be some slowdown among private sector job creation. Concerned? MIRAN: Well, it's not really a concern because of the huge incentives we have to unleash growth in the -- in the near future. The One Big, Beautiful Bill is going to create growth on turbocharge. Cutting regulations, cutting red tape so that companies can invest, build higher when and where they want instead of spending years begging permission from Washington is going to turbocharge growth. Opening foreign markets to U.S. exports by getting concessions through trade renegotiation is going to turbocharge growth. Low energy prices like the president is achieving, lowest gas prices since 2021 at the pump is going to turbocharge growth. And all that's to come. STEPHANOPOULOS: You say this is all going to turbocharge growth. We have seen some experience with this back -- in Ronald Reagan's day, back in 1981. He had huge tax cuts. The growth didn't come, and they had to end up raising taxes for several years after that. Concerned that could happen again? MIRAN: Well, like I said before, you know, history's on our side. If you look at what happened in the president's first term, growth soared and there was no real material, you know, meaningful long-term decline in revenue. Revenue as a share of GDP was 17.1 percent last year, the same as it was before the Tax Cuts and Jobs Act. So, you got this huge surge in growth as a result of the Tax Cuts and Jobs Act. There was no material long-term decline in revenue. Corporate revenue even went up as a share of GDP from 1.6 to 1.9 percent. And the growth delivered. And we expect the same thing to happen this time.
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Your kid is getting a ‘Trump account.' Should you put your money in it?
Republicans' 'big, beautiful bill' includes a gift to millions of families: $1,000 in an investment account for every eligible newborn. The new savings vehicles, akin to Individual Retirement Accounts, are designated for children who are U.S. citizens born from 2025 through 2028. In addition to the one-time government contribution, parents and others can chip in as much as $5,000 a year to the accounts, which beneficiaries can access at 18, with some constraints. Subscribe to The Post Most newsletter for the most important and interesting stories from The Washington Post. The seed money is a boon for recipients and will grow tax-deferred. Financial planners say parents and guardians might do better putting their money into existing investment vehicles such as a 529 plan, a savings plan designed to cover college expenses. But 529s are limited to education, while backers say the new accounts can help their recipients beyond college. Republican lawmakers call the accounts 'Trump accounts,' though the Senate's plan to officially name them after the president did not make it to the final version of the legislation, which was signed Friday. They deliver on an idea that both Democrats and Republicans have floated for years: to invest money for all children at birth. Withdrawals from a 529 are not subject to state or federal taxes as long as the funds go toward qualified education expenses - a feature the new investment accounts don't share. And in the new accounts, parents' deposits don't qualify for a tax deduction, notes Greg Leiserson, a senior fellow at the Tax Law Center at New York University. 'You have this very slight or minimal-to-nonexistent tax benefit,' he said. 'What is the point here?' Financial adviser Amy Spalding of Chapel Hill, North Carolina, said she will continue to steer her clients to 529s. 'It's better from a tax standpoint,' Spalding said. 'And there are more investment options. And then there's a higher contribution limit.' (For 2025, a single person can deposit as much as $19,000 a year into a beneficiary's 529, while married couples can contribute as much $38,000.) Jeremiah Barlow, a financial planner in Santa Barbara, California, said the new accounts could benefit a family that has hit the maximum on their child's 529 and wants to save more, or who like the idea of setting up a fund for their child's first home or as an economic safety net. 'It would likely appeal to our families who want more flexibility for more general-purpose savings for their child's future,' Barlow said. 'You shouldn't rush to just use it because it's out there.' Leiserson cautioned that account holders should understand the tax implications, noting that withdrawals will be taxed at typical income rates, not at the capital gains rate of a taxable brokerage account. 'For most people, this is going to be worse than what they could do in a taxable account,' he said. Though parents don't get a tax deduction when they contribute to a new account, employers can claim a tax break for contributions on behalf of their workers' children or their teenage employees. Nonprofits also can contribute to they accounts. The law requires the new investment accounts to track a U.S. stock index, which means account holders have fewer options than they would in a brokerage account or a 529 plan, which generally offer a range of investment options with varying levels of risk, including stocks, bonds and mutual funds. Leiserson noted that all-stock portfolios come with their own risks, because they're tethered to market conditions. 'If you're saying, 'Okay, I'm going to start school in the fall' - if the market falls over the summer, the planning you were doing about how you were going to pay for college is totally messed up, because the money you thought would be there, isn't." The White House said the accounts 'will afford a generation of children the chance to experience the miracle of compounded growth and set them on a course for prosperity from the very beginning.' While some experts appreciate the premise of the accounts, they also see flaws in the design, such as the requirement that parents opt-in to the account on their tax return, which means people who don't know this might miss out. In addition, the law includes a penalty of at least $500 if a parent mistakenly claims an account, which could scare off some parents. During the grinding process of crafting the massive tax and spending legislation, the accounts changed both superficially - they were renamed from MAGA accounts to Trump accounts to a yet-to-be-determined name - and in substance. Legislators dropped plans to give account withdrawals favorable tax treatment similar to a brokerage account. Account withdrawals will be taxed at ordinary income tax rates, not capital gains rates. Congress also discarded rules that would have prescribed how beneficiaries could spend the money - on college at 18, on starting a business at 25, on buying a house at 30. Instead, account holders cannot touch the funds until they turn 18. After that, the rules are the same as those of an individual retirement account - withdrawals are taxed like income, plus an additional 10 percent tax penalty on any withdrawals before age 59½ except for certain qualified uses. Those uses include paying for college, supporting themselves if they become disabled, or recovering from domestic abuse or a natural disaster. Beneficiaries also can withdraw as much as $10,000 to buy their first home, and up to $5,000 when they have a new baby themselves. Even one of the Trump accounts' biggest proponents in Congress, Rep. Blake Moore (R-Utah), said in an interview that for many parents, the new account design offers more benefits for retirement than for college expenses. 'I would argue that the tax implications of a 529 are far more favorable,' he said, but noted that most families don't have the disposable income to invest in a 529, and the new accounts' $1,000 from the government can benefit people at all income levels. If the account saw a 6 percent rate of return for 18 years, it would be worth $2,854; if the stock market does well, it could be worth even more. 'The most beneficial thing in my opinion about these is that … you're investing from birth into an IRA,' Moore said. 'Most people start investing in an IRA at 30 …. We're talking at birth or at 30. The benefits of investing early into that IRA are significant.' Moore has four sons, and while none will qualify for the government's $1,000 seed money contribution for newborns, the law allows him to open a Trump account as a parent. He says he'll be putting money in it: 'I want my kids having a Trump account so they can take it out when they're 50 or 60 years old.' - - - Jacob Bogage contributed to this report. Related Content Arthur Ashe's knack for reinvention led him to history at Wimbledon Newlywed detained by ICE freed after 141 days and two deportation attempts The Met opens a dazzling wing of non-European art Sign in to access your portfolio