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THE ECONOMIST: Why the MAGA economy is thriving as politics Trumps wealth for American consumers
THE ECONOMIST: Why the MAGA economy is thriving as politics Trumps wealth for American consumers

West Australian

time14-05-2025

  • Business
  • West Australian

THE ECONOMIST: Why the MAGA economy is thriving as politics Trumps wealth for American consumers

Imagine the perfect morning . . . After sleeping between sheets from MyPillow — a company established by Mike Lindell, a conspiracy theorist — you drink some Black Rifle Coffee, which 'serves coffee and culture to people who love America'. You shave with Jeremy's Razors ('built for rugged jawlines . . . not feelings'). Then you eat some bacon from Good Ranchers, which pledges to 'make the American farm strong again', before going for a spin on your Harley-Davidson. The broader MAGA universe extends beyond goods with over-the-top marketing to products and employers merely favoured by Republicans. And each economic choice adds up to something bigger. According to our analysis, America is splitting into two different economies and markets: one conservative, the other liberal. People on each side think about the economy differently, they buy different things and work in increasingly different industries. Not only that: the MAGA economy is doing surprisingly well. American liberals tend to look down on companies that market themselves to conservatives. Although this is in part because they do not like the opposing side, some MAGA products look like scams. President Donald Trump's crypto coin soared following its launch, only to crash quickly and leave many supporters holding the bag. His branded watches, including the 'Fight Fight Fight' model, cost up to $US100,000 ($154,000) and have received mixed reviews. Such snobbery also reflects a belief that the conservative economy is backward. Hillary Clinton, the Democratic presidential nominee in 2016, noted she had 'won the places that represent two-thirds of America's gross domestic product . . places that are optimistic, diverse, dynamic, moving forward'. Kamala Harris, the nominee in 2024, won a similar share of GDP. Of course, some solidly Republican districts have long been rich. In Jupiter, a town in Florida, local activities include playing golf and wearing white chinos. Yet Yuba City, in northern California, where lots of locals are farmers and people voted strongly for Mr Trump, may be more illustrative of MAGA-land. Incomes are low; shops sell hardware, guns and fast food. There are no chinos in sight. Despite this, the association of Republicanism with backwardness has run ahead of the data. Even places like Yuba City are doing better than before and together MAGA-land is enormously powerful. If Democrats have two-thirds of American GDP, that still leaves Republicans with around $US10trillion — making them the world's third-largest economy. And as anyone who has watched Friday Night Lights will know, all parts of America have big spenders. Buddy Garrity, a car dealer, is the archetypal MAGA rich guy. He is not wealthy enough to own a private jet or plugged-in enough to attend the Met Gala; still, he has plenty in the bank. The growing gap between the MAGA and Democratic economies can be seen in both 'soft' and 'hard' data. Surveys suggest that Democrats and Republicans now live in two different realities. Before the presidential election 50 per cent of Democrats believed that the economy was getting better, against just 6 per cent of Republicans. Today 8 per cent of Democrats and 49 per cent of Republicans respond in the same way. Such partisanship has become more pronounced. Look, for instance, at the gap in inflation expectations by party. 'Hard' data tell a similar story According to a recent paper by Verena Schoenmueller of Esade University and colleagues, residents of each economy consume in increasingly different ways. After Mr Trump's election victory in 2016, 'liberals faced a threat to their political identity . . . which they possibly compensated for by stronger support for liberal-oriented brands' — buying more Patagonia fleeces, perhaps. TD Cowen, an investment bank, has forecast that Elon Musk's alliance with Mr Trump will reduce Tesla sales by over 100,000 vehicles a year in Democratic-leaning counties, while boosting sales by twice as much in Republican ones. Official data also suggest that consumer tastes are splitting along partisan lines. Compare New York, a blue state, with Wyoming, a red one. Since the 1990s blue people have spent more on stereotypical blue goods and services, and red people more on red. New Yorkers have splurged on dining out. They have also jacked up spending on public transport. People in the Equality State, by contrast, spend more than they did on things you might associate with an older, more conservative population, such as vehicle parts and nursing homes. It is not just consumption. MAGA and blue economies are behaving increasingly differently, too. They reacted in different ways to the first wave of COVID-19. Economic activity in red states, where locals were not so afraid of the virus, fell by half as much as in blue ones. This divergence was the culmination of a long-term trend. The variance in GDP-growth rates, between Democratic and Republican counties, widened sharply around 2008. It has remained about twice as high ever since. In the olden days, when a red place was doing well, you could be pretty sure that a blue place would also be thriving. No longer. The two economies are behaving differently since their industrial compositions are changing. We have analysed data on employment and pay across counties. Over time, places that voted Democratic in 2024 have taken a greater share of knowledge-intensive forms of economic activity. In 1993 roughly the same share of employee compensation came from the 'information' sector, comprising software and the like, in Republican counties as elsewhere. Now the share is 30 per cent lower than average, while dependence on manufacturing has risen. All told, employment patterns in the Democratic and Republican economies have diverged by 20 per cent, according to difference between 'location quotients', a measure of job dispersion by industry. Buddy up There are more Buddy Garritys today, too. In 2024, 47 per cent of Americans reporting annual incomes above $US1m lived in Trump-voting states, up from 43 per cent in 2014. The MAGA economy has lots of big businesses that liberals rarely encounter. Yuba City is home to WinCo, which feels like a knock-off Costco; Boot Barn, which sells cowboy boots; and Hobby Lobby, an arts-and-crafts retailer. All seem to be doing well. Fox News's viewers may be on the poorer side, yet over the past year the company's share price has been on a tear. Olive Garden, an Italian restaurant chain, is another example found in Yuba City. According to a YouGov the dining option most favoured by Republicans, relative to Democrats, behind Cracker Barrel, which offers wooden rocking chairs and Southern cuisine. The share price of Darden, which runs the chain, has nearly tripled in the past five years. These trends play out across America. Along with Kai Wu of Sparkline Capital, a fund manager, we assembled 30 listed firms that are seen favourably by Republicans or Democrats, based on surveys as there is no single poll that covers all companies. In the end, the Republican basket included firms such as John Deere, Fox and Harley-Davidson, whereas the Democratic one featured Etsy, Lululemon, Lyft and more. The recent market turmoil hit the Republican basket hard. But in the past decade its shareholder returns, including dividends, have thrashed the blue basket. Why do MAGA companies seem to outperform? Maybe they eschew virtue-signalling. Point Bridge America First, an exchange-traded fund that uses the stock ticker MAGA, only includes firms that support Republicans. The Democratic Large-Cap Core Fund, with the stock ticker DEMZ, invests in companies that make big donations to the Democrats. Since the end of 2020 MAGA's price has easily outperformed DEMZ. Goldman Sachs, a bank, has built a stock index containing firms 'that could benefit from key Republican policies', such as those in oil. In the past decade the share prices of these companies have comfortably beaten the market. The future for the MAGA economy is uncertain. By raising the cost of imported components, tariffs will hurt manufacturing. Harley-Davidson is a soft target for foreign politicians looking to retaliate. On the flip side, however, Republican states including Florida and Texas are still enticing internal migrants. And with local consumer confidence strong, expect spending in MAGA-land to hold up better than in Democratic-leaning areas. It does not just rely on MyPillow.

Why the MAGA economy is thriving
Why the MAGA economy is thriving

Mint

time14-05-2025

  • Business
  • Mint

Why the MAGA economy is thriving

Imagine the perfect morning. After sleeping between sheets from MyPillow—a company established by Mike Lindell, a conspiracy theorist—you drink some Black Rifle Coffee, which 'serves coffee and culture to people who love America". You shave with Jeremy's Razors ('built for rugged feelings"). Then you eat some bacon from Good Ranchers, which pledges to 'make the American farm strong again", before going for a spin on your Harley-Davidson. The broader MAGA universe extends beyond goods with over-the-top marketing to products and employers merely favoured by Republicans. And each economic choice adds up to something bigger. According to our analysis, America is splitting into two different economies and markets: one conservative, the other liberal. People on each side think about the economy differently, they buy different things and work in increasingly different industries. Not only that: the MAGA economy is doing surprisingly well. American liberals tend to look down on companies that market themselves to conservatives. Although this is in part because they do not like the opposing side, some MAGA products look like scams. President Donald Trump's crypto coin soared following its launch, only to crash quickly and leave many supporters holding the bag. His branded watches, including the 'Fight Fight Fight" model, cost up to $100,000 and have received mixed reviews. Such snobbery also reflects a belief that the conservative economy is backward. Hillary Clinton, the Democratic presidential nominee in 2016, noted she had 'won the places that represent two-thirds of America's gross domestic that are optimistic, diverse, dynamic, moving forward". Kamala Harris, the nominee in 2024, won a similar share of GDP. Of course, some solidly Republican districts have long been rich. In Jupiter, a town in Florida, local activities include playing golf and wearing white chinos. Yet Yuba City, in northern California, where lots of locals are farmers and people voted strongly for Mr Trump, may be more illustrative of MAGA-land. Incomes are low; shops sell hardware, guns and fast food. There are no chinos in sight. Despite this, the association of Republicanism with backwardness has run ahead of the data. Even places like Yuba City are doing better than before and together MAga-land is enormously powerful. If Democrats have two-thirds of American GDP, that still leaves Republicans with around $10trn—making them the world's third-largest economy (see chart 1). And as anyone who has watched 'Friday Night Lights" will know, all parts of America have big spenders. Buddy Garrity, a car dealer, is the archetypal MAGA rich guy. He is not wealthy enough to own a private jet or plugged-in enough to attend the Met Gala; still, he has plenty in the bank. The growing gap between the MAGA and Democratic economies can be seen in both 'soft" and 'hard" data. Surveys suggest that Democrats and Republicans now live in two different realities. Before the presidential election 50% of Democrats believed that the economy was getting better, against just 6% of Republicans. Today 8% of Democrats and 49% of Republicans respond in the same way. Such partisanship has become more pronounced. Look, for instance, at the gap in inflation expectations by party, as in chart 2. 'Hard" data tell a similar story. According to a recent paper by Verena Schoenmueller of Esade University and colleagues, residents of each economy consume in increasingly different ways. After Mr Trump's election victory in 2016, 'liberals faced a threat to their political identity…which they possibly compensated for by stronger support for liberal-oriented brands"—buying more Patagonia fleeces, perhaps. Tesla, a carmaker, demonstrates the power of partisanship better than any other company. TD Cowen, an investment bank, has forecast that Elon Musk's alliance with Mr Trump will reduce sales by over 100,000 vehicles a year in Democratic-leaning counties, while boosting sales by twice as much in Republican ones. Official data also suggest that consumer tastes are splitting along partisan lines. Compare New York, a blue state, with Wyoming, a red one. Since the 1990s blue people have spent more on stereotypical blue goods and services, and red people more on red. New Yorkers have splurged on dining out. They have also jacked up spending on public transport. People in the Equality State, by contrast, spend more than they did on things you might associate with an older, more conservative population, such as vehicle parts and nursing homes. It is not just consumption. MAGA and blue economies are behaving increasingly differently, too. They reacted in different ways to the first wave of covid-19. Economic activity in red states, where locals were not so afraid of the virus, fell by half as much as in blue ones. This divergence was the culmination of a long-term trend. The variance in GDP-growth rates, between Democratic and Republican counties, widened sharply around 2008. It has remained about twice as high ever since. In the olden days, when a red place was doing well, you could be pretty sure that a blue place would also be thriving. No longer. The two economies are behaving differently since their industrial compositions are changing. We have analysed data on employment and pay across counties. Over time, places that voted Democratic in 2024 have taken a greater share of knowledge-intensive forms of economic activity. In 1993 roughly the same share of employee compensation came from the 'information" sector, comprising software and the like, in Republican counties as elsewhere. Now the share is 30% lower than average, while dependence on manufacturing has risen. All told, employment patterns in the Democratic and Republican economies have diverged by 20%, according to difference between 'location quotients", a measure of job dispersion by industry. Buddy up There are more Buddy Garritys today, too. In 2024, 47% of Americans reporting annual incomes above $1m lived in Trump-voting states, up from 43% in 2014. The MAGA economy has lots of big businesses that liberals rarely encounter. Yuba City is home to WinCo, which feels like a knock-off Costco; Boot Barn, which sells cowboy boots; and Hobby Lobby, an arts-and-crafts retailer. All seem to be doing well. Fox News's viewers may be on the poorer side, yet over the past year the company's share price has been on a tear. Olive Garden, an Italian restaurant chain, is another example found in Yuba City. According to a YouGov poll in 2023-24, it is the dining option most favoured by Republicans, relative to Democrats, behind Cracker Barrel, which offers wooden rocking chairs and Southern cuisine. At Olive Garden the pasta may not be fatta in casa, but it is popular. The share price of Darden, which runs the chain, has nearly tripled in the past five years. These trends play out across America. Along with Kai Wu of Sparkline Capital, a fund manager, we assembled 30 listed firms that are seen favourably by Republicans or Democrats, based on surveys. The process was inevitably arbitrary: there is no single poll that covers all companies. In the end, the Republican basket included firms such as John Deere, Fox and Harley-Davidson, whereas the Democratic one featured Etsy, Lululemon, Lyft and more. The recent market turmoil hit the Republican basket hard. But in the past decade its shareholder returns, including dividends, have thrashed the blue basket (see chart 3). Why do MAGA companies seem to outperform? Maybe they eschew virtue-signalling. Point Bridge America First, an exchange-traded fund that uses the stock ticker MAGA, only includes firms that support Republicans. The Democratic Large-Cap Core Fund, with the stock ticker DEMZ, invests in companies that make big donations to the Democrats. Since the end of 2020 MAGA's price has easily outperformed DEMZ. Goldman Sachs, a bank, has built a stock index containing firms 'that could benefit from key Republican policies", such as those in oil. In the past decade the share prices of these companies have comfortably beaten the market. The future for the MAGA economy is uncertain. By raising the cost of imported components, tariffs will hurt manufacturing. Harley-Davidson is a soft target for foreign politicians looking to retaliate. On the flip side, however, Republican states including Florida and Texas are still enticing internal migrants. And with local consumer confidence strong, expect spending in MAGA-land to hold up better than in Democratic-leaning areas. It does not just rely on MyPillow.

Why the MAGA economy is thriving
Why the MAGA economy is thriving

Economist

time13-05-2025

  • Business
  • Economist

Why the MAGA economy is thriving

Imagine the perfect morning. After sleeping between sheets from MyPillow—a company established by Mike Lindell, a conspiracy theorist—you drink some Black Rifle Coffee, which 'serves coffee and culture to people who love America'. You shave with Jeremy's Razors ('built for rugged feelings'). Then you eat some bacon from Good Ranchers, which pledges to 'make the American farm strong again', before going for a spin on your Harley-Davidson.

Put a Better K-Cup in Your Keurig. I Tried More 40 Coffee Pods to Find the Best in 2025
Put a Better K-Cup in Your Keurig. I Tried More 40 Coffee Pods to Find the Best in 2025

CNET

time12-05-2025

  • Entertainment
  • CNET

Put a Better K-Cup in Your Keurig. I Tried More 40 Coffee Pods to Find the Best in 2025

What to skip: Revv No Surrender This coffee pod did little to rev my engines. Katherine Peach/CNET I found Revv No Surrender coffee disappointing for a few reasons:The blend reminded me of coffee from a pot that was left sitting on the burner for too long. The K-Cup tasted sour and astringent followed by a burnt and bitter finish. Second, No Surrender claims to be the jolt you need as an early grinder, but it's made with 100% arabica beans. Straight arabica means it's likely to possess a typical caffeine boost without the naturally higher caffeine content of the robusta bean. (None of the K-Cup boxes gave caffeine information.) Finally, No Surrender arrived unannounced in the Keurig Coffee Lovers' Collection variety pack. I bought a box of the brand to test because No Surrender wasn't listed as part of the collection on the Keurig website. Not a style that I needed excess of, unfortunately. What to try instead: Tactisquatch Tactisquatch by Black Rifle Coffee is smooth and toasty with a nice jolt of caffeine. Keurig If looking for a dark roast without much bitterness, I recommend trying Tactisquatch by Black Rifle Coffee Company at 68 cents per pod in the 22-count box on Keurig. The flavor is toasted and robust with a smooth finish. Tactisquatch also doesn't claim to be made with 100% arabica beans, so it likely includes the robusta bean for an extra dose of caffeine. It could be the jolt you're hoping for. What to skip: Starbucks Verona After tasting Starbucks' Verona blend, I'm starting to see why Romeo and Juliet ended up like it did. Kather Most people headed to Starbucks aren't going for its excellent drip coffee, but the Starbucks Verona K-Cup tastes like something has gone wrong in the roasting process. It is a hard pass for me because it smells burnt, tastes bitter and left an unpleasant tannic residue on the tip of my tongue. The brand markets Verona as a mid-dark on the label, but it tastes like an overcooked French roast. Are there better options out there, even by the same brand? Absolutely. What to try instead: Barista Premium Try Barista Premium instead of Starbucks Varona. Keurig The Barista Prima Coffeehouse Colombia is a single-origin alternative with deep toasted notes of walnut that doesn't overpower. I could see many people reaching for this first thing in the morning for an eye opener. I also find it a little acidic, but it's a solid option considering it's a medium roast than leans dark. The K-Cups are 62 cents per pod on Keurig and found online at retailers like Amazon. What to skip: Seattle's Best Breakfast Blend Seattle's Best was one of the worst. Katherine Peach Despite tasting this K-Cup several times, the Seattle's Best Breakfast Blend is a medium roast that delivers a combination of muddiness upfront and a sweet yet musty finish. (I did confirm the best buy date is fine for almost one more year. Of course, the "best buy" date on a coffee label isn't an indicator of freshness.) Overall, this blend lacks the brightness and citrus notes listed on the box. I found the earthiness overwhelming and would need plenty of milk and sugar to balance out the flavor. Plus, at 56 cents per pod on the Keurig site, this isn't even the cheapest K-Cup option available. What to try instead: Illy Classico Opt for Illy Classico over Green Mountain for a medium breakfast blend. Illy Illy Classico is another brand commonly found in the grocery store or on Keurig for $1.30 per pod. It's toasted and rounded in flavor for a medium roast without verging into overcooked. This isn't the most complex of blends, but it's likely to please anyone interested in a solid, international coffee. What to skip: Green Mountain Coffee Roasters Colombia Select Green Mountain's Columbia Select started smooth but finished surprisingly bitter and flat. Katherine Peach/CNET I selected the Green Mountain Single-Origin Colombia Select because it was the only option with a Fair Trade Certified label from my local grocery store. While I appreciate sustainable sourcing, I found this K-Cup to be inconsistent. Even when it started smooth, it finished surprisingly bitter and flat. The aroma is sweet but is missing the claims of cocoa and caramel tasting notes. The Colombia Select also arrived as part of the Keurig variety pack and the flavor still disappointed. Granted, it's not as muddy as some of the other Green Mountain blends, but the finish carried an essence of twig that just couldn't meet the label's aspirations. What to try instead: Philz Tesora I liked Philz Tesora with its smooth, toasted flavor and full-bodied texture. Philz For a medium roast with responsible sourcing, try Philz Coffee Tesora blend, at 78 cents per pod on Keurig. Tesora is a smooth, toasted flavor and full-bodied texture. This pod also claims notes of chocolate and caramel similar to the Colombia Select. The blend is bright overall to balance the nuttiness. Plus, Philz Coffee claims a range of partnerships for sustainability, fair labor conditions and social programs. What to skip: Gevalia Signature Blend Gevalia's signature blend was hardly offensive, but there are plenty of others I would choose over it. Katherine Peach/CNET Labeled as a mild blend, the Gevalia Signature Blend light roast is bright and a little sour. If you want a true light roast, though, then it's better to go with another blend because this one is quite toasted. This K-Cup is also more bitter than I anticipated, which does mellow as the coffee cools. The Signature Blend also finishes with wet earth notes that are more musty than herbaceous. This is hardly an offensive blend, but there are just better options out there. What to try instead: Coffee People Morning Blend Coffee People's Morning Blend is a delightful light roast for daily drinking. Coffee People Coffee People Morning Blend is a better light-roast alternative. The Morning Blend is one of the few light-roasted blends that is truly mild with low acidity. It's also nutty with a light body that allows for a satisfying viscosity at the start of the day. While Coffee People Morning Blend isn't my top choice for a light roast, I found the pods consistent and highly drinkable at 39 cents per pod in a 24-count on Keurig.

What would happen if the US military went after cartels on Mexican soil?
What would happen if the US military went after cartels on Mexican soil?

The Guardian

time27-01-2025

  • Politics
  • The Guardian

What would happen if the US military went after cartels on Mexican soil?

Evan Hafer, a popular veteran and founder of Black Rifle Coffee, was on Joe Rogan's podcast after the November election. As with any Maga acolyte, the US-Mexico border figured prominently in his mind. 'If we declare war on the cartel, these dudes are not going to understand what the fuck is going on. They are in for a world of ultra-violence,' said Hafer, who served in the Green Berets and the CIA. 'JD [Vance] or Trump had said something with the new guy from Ice, like: 'We're going to mobilize tier one units against the cartel.'' Referring to some of the most secretive parts of the American special forces, Hafer was forecasting the next chapter in the war on drugs – actual war inside Mexico, targeting the Sinaloa, Jalisco and other major narcotics-trafficking cartels with the same famed units of the war on terror. 'Yes, that is a real thing,' he said. While it sounded like a scene out of Sicario, Hafer's video garnered several million YouTube views. It raises the question: what would that type of combat south of the border actually cost the US? Now, it is a possible reality. In one of Donald Trump's first executive orders on Monday, he officially designated Mexican cartels terrorist organizations, joining the likes of al-Qaida and the Islamic State (Isis) – chief adversaries in more than two decades of expensive and bloody American wars. Days later, the Pentagon followed up and announced the deployment of 1,500 active-duty troops to the border. But experts say any American incursion into Mexico could come with serious repercussions and blowback. Mexican drug cartels, well-armed from the heavy flow of US weapons, unhesitatingly employ retaliatory violence, and regular Americans could be caught in the crossfire – namely, tourists in vacation hot spots like Cancun, where cartel networks are already well-defined, or the many communities on the border with Mexico. 'The persistent talk of unilateral US military intervention in Mexico is dangerous,' said John P Sullivan, a former law enforcement officer in Los Angeles and a senior fellow at the Small Wars Journal-El Centro. Sullivan said that, from a legal standpoint, the special designation does not expressly direct military actions, but he noted that calling out 'cartel actions and immigration as an invasion is likely a deliberate choice to allow direct military action'. The types of operations Hafer and Trump – who warned reporters that special forces on Mexican soil 'could happen' – were describing are the same as past missions against Isis and al-Qaida . With both groups, a mixture of elite units – such as Seal Team 6 with the 2011 killing of Osama bin Laden inside Pakistan – and aerial strikes were used to pursue every level of middle- to high-ranking operative. US intelligence compiled the so-called 'kill lists' of targets, and the US Special Operations Command (Socom) mostly went about ticking them off that list. The cost was in the billions of dollars and civilian deaths were commonplace, creating a legion of new recruits that drove the very rise of Isis itself. 'While targeting cartel leadership in 'kingpin' operations is politically attractive, it is operationally precarious,' said Sullivan. 'Often, the displacement of capos creates a leadership vacuum, triggering infighting among cartel factions vying to replace the last leader, resulting in an elevated state of violence and insecurity in the resulting quest for power and competitive control.' At least for now, a Socom contingent will not be part of Trump's first deployment of soldiers to the southern border. 'There are no SOCOM troops being deployed in support of this effort,' said a public affairs officer at Socom in a statement to the Guardian. Previously, Barack Obama as well as Trump had toyed with designating the cartels as terrorist groups, but reneged. In 2020, however, Trump still suggested missile strikes inside Mexico. Declaring total war on Mexican cartels would also implicate the very fabric of that country: narcotics trafficking is widely believed to be one of the top employers in Mexico and contributes billions to its economy annually. Several politicians, military officials, soldiers, police and business leaders all are suspected of being on their payroll. Beyond the estimated 175,000 people working for them, cartels enjoy regional support in some areas and function as a kind of shadow, narco-state. Further, if the US military makes good on its threat against the cartels, any and all retaliations are possible from criminal syndicates known for the beheadings of civilians. In the decades since 9/11, cartels have armed up – at least once via the US government. Some today boast of having Javelin missile launchers, armored vehicles and ex-commandos in their ranks. 'There is certainly a possibility that airstrikes and raids could eventually occur,' said Lucas Webber, a senior threat intelligence analyst at Tech Against Terrorism and a research fellow at the Soufan Center. 'Cartels may retaliate by hitting soft targets such as tourists or diplomatic targets in Mexico, possibly the soldiers the Trump administration is deploying at the shared border, or even tap networks inside the US itself.' Webber added that the cartels are keenly 'studying conflicts in Ukraine [and] Syria' and some 'have been improving their drone capabilities amongst other areas of operations'. 'This further indicates how Mexican cartels are learning organizations,' he said. On the other hand, Sullivan wasn't convinced there was any imminent threat to US civilians inside Mexico as of yet. 'It is clear that Mexican cartels have a history of using terrorist tactics as symbolic and instrumental tools of asserting power and influencing state actions in a form of violent lobbying,' he said. 'Such actions directed against American tourists are rare.' According to Sullivan, cartels have been hesitant to engage with American law enforcement in any direct way. He continued: 'While cartels and gangs usually avoid direct confrontation with US law enforcement, they have a history of attacking Mexican law enforcement and judicial officials, as well as mayors, members of Mexico's legislature and journalists.' Mexican cartels' wanton promotion of that violence takes a page out of the Isis playbook; they're known for using social media at the local and national levels to promote snuff films of their horrific executions – all in a bid to intimidate communities and warn government forces. Telegram and WhatsApp, as the DEA has regularly noted in its press releases, are widely used by cartels to coordinate operations and promote their strength. Some Telegram channels associated with cartel content have thousands of views and followers interacting with everything from gory kills to audio messages. 'Cartels are using a number of social media platforms and messaging applications to build support, recruit and post gruesome executions to create a chill effect for journalists, politicians, informants, prosecutors and so on,' said Webber.

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