All Posts Tagged as 'Economy'
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Unemployment aid is running out for millions: "People are going to become desperate"
Millions of unemployed Americans faced an income "cliff" in July when the extra $600 in pandemic jobless benefits came to an end. But millions more are now facing another — and perhaps more dire — hit to their income as they exhaust all their unemployment options at both the state and federal levels.
"People are saying, 'Oh my god, I'm running out of money,' and they have no idea what's to come," said Alex Emanuel, an actor, filmmaker and musician in New York whose unemployment aid ran dry two months ago.
The issue is affecting a range of workers, including people who lost their jobs toward the end of 2019 and have run through multiple unemployment aid extensions provided by Congress earlier this year. Gig-economy workers and others who tapped the federal Pandemic Unemployment Assistance (PUA) program early in the crisis are also about to run out of aid.
These benefits aren't particularly generous — the typical weekly unemployment check amounts to $333 a week — but out-of-work adults tell CBS MoneyWatch that the additional money has helped them pay for necessities like utilities and rent.
Unemployment aid is running out for millions:
Updated: How Do Black People Spend Their Money? (The Racial Wealth Gap)
How black people spend their money has been a hotly debated topic not only on this site, but in our office, at social events and in beauty and barber shops across America. This article has been the most read and commented article for 9 years running. Once I learned that this was the most popular and discussed article on the website, I decided to do some research and share this information with others.
I predict that even after reading this article there a significant number of Black people who will NOT change their habits and work toward changing their situation. Over time, when things go unchallenged, they seem normal. After centuries of slavery, black people must realize that they need to work toward building generational wealth and learn to invest their money and establish Trust funds for their wealth that can be passed down to future generations.
Black Men In America
Could Artificial Intelligence Have The Answer To America's Coronavirus Economic Woes?
Unless the American economy somehow gets way more productive. More innovative. Technology optimists hope artificial intelligence is the “next big thing” that will drive the next big productivity boom. Eventually. The history of important “general purpose technologies” — such as the steam engine, electrification, and personal computing — is that it takes a while for them to achieve significant economy-wide impact. (Although that diffusion lag has shortened.) They need supporting investments in physical and human capital to achieve full potential. As economist Erik Brynjolfsson told me recently on my Political Economy podcast, we need more people “who know how to take these new technologies and translate them into new products. The more of those we have, the better because there are intangible capital and business processes that need to be reinvented.”
The National Interest
GERMAN ZOO SAYS IT MAY HAVE TO FEED ANIMALS TO OTHERS DUE TO CORONAVIRUS CRISIS
A zoo in Germany may have to feed some animals to others to cope with the financial impact of the novel coronavirus crisis, its director said.
Neumünster Zoo in northern Germany belongs to an association and is not entitled to financial relief from the county's state emergency fund for small businesses, the BBC reported. The zoo's director Verena Kaspari told German newspaper Die Welt that the zoo—which is home to more than 700 animals including polar bears, seals, and alpacas—will lose out on an estimated $190,000 (€175,000) in income this spring.
Chinese tourists are opting out of travel to the US in favor of the rest of the world
In 2018, Chinese tourists made nearly 150 million trips around the world, spending a colossal $277 billion. More than $36 billion, or about 13% of that sum, was spent in the US, with Chinese visitors spending it up in Hawaii, Hollywood, and other big-ticket US destinations.
Since the start of the trade war, however, Chinese tourism to the US is down by more than 8%. The number of Chinese visitors stateside is waning—due to geopolitical pressures, a strong dollar, and the seductive call of the rest of the world.
NYC has a penthouse problem, LA has a mansion problem, and Miami has a condo problem
Miami condos may boast ocean views and luxury living, but that's no longer enough to get them off the market.
Long a city for vacation homes and foreign buyers seeking safe investments, Miami is now faced with a surplus of condos, reported Candace Taylor for The Wall Street Journal. Its high-end real-estate market has slowed in recent years, with condo sales in Miami Beach decreasing by 24% over the past four years, she said.
The condo craze began in the early 2000s, Taylor reported. The market imploded during the financial crisis, but Latin American buyers — along with buyers from Europe and America — brought it back to life post-recession.
But what were once strong South American economies are now suffering, and Latin American buyers have less buying power in the US, according to Taylor. Their disappearance isn't the only factor driving the abundance of empty condos — the threat of rising sea levels and the preference for large houses are also shaping the trend, she said.
This is why America's travel business is worried
Foreign travelers to the United States bring billions of dollars into the economy each year. But that flow of people and money now appears to be at risk.
Last year set a record for tourism: 78.6 million foreign travelers came to the United States in 2018. But following that banner year, tourism is now in a slump. Travel in early 2019 is in decline, particularly from Canada, Mexico, China and South Korea. That slowdown started taking place in the second half of last year.
The travel industry is worried about how severe, and long lasting, that decline could be.
Tourism is a serious economic driver for the American economy. The United States enjoyed a $69 billion surplus on international travel last year, reducing the country's overall trade deficit by 11%, according to Tori Barnes, executive vice president of the US Travel Association, the industry trade group. On average,foreign travelers spend $4,000 each on visits to the United States. Chinese tourists spend about $7,000.
"It's a really significant economic impact," said Barnes.
Companies that rely on foreign tourism are starting to feel the decline in travel: For example, Tiffany's reported disappointing sales this week, in part because of a drop in purchases by foreign tourists at its US stores.
American Airlines responds to rapper Boosie's profane rant after missing flight
Another tourist dies in Dominican Republic
Too much money (and too few places to invest it)
A truly bizarre trend is having an impact on the economy — wealthy people and corporations have so much money they literally don't know what to do with it.
Why it matters: At a time when growing income inequality is fueling voter discontent and underpinning an array of social movements, the top 1% of earners and big companies are holding record levels of unused cash.
The big picture: U.S. companies raked in a record $2.3 trillion in corporate profits last year, while the country's total wealth increased by $6 trillion to $98.2 trillion (40% of which went to those with wealth over $100,000).
So, where is all the money going? The IMF notes large companies around the world are overwhelmingly and uniformly choosing not to reinvest much of it into their businesses. They're hoarding it in cash and buying back stock.
"There are only 2 things that money can do — sit on a balance sheet unused, where it's just earned income earning an interest rate of zero," ICI chief economist Sean Collins points out. "Or it makes sense to release it to share buybacks or dividends."
Your House Should Not Be Your Retirement Plan
The average American is more likely to own a home than to have saved enough money for retirement. In fact, for many Americans, their house is their retirement plan: They’re counting on the value of that nest egg to fuel their golden years. But while real estate can be a good investment, it isn’t wise to rely on a house to fund your retirement. To explore why, Barron’s spoke with Teresa Ghilarducci, the Irene and Bernard L. Schwartz Chair in economic policy analysis in the Economics Department at the New School, and the author of How to Retire With Enough Money.
“You can’t eat your house a sandwich at a time,” she says.
YOUNG PEOPLE ARE CHOOSING TO LIVE IN “PODS” INSTEAD OF APARTMENTS
Young people have long chosen to rent coworking spaces and take rideshares instead of buying cars.
Now, some are pushing the sharing economy to its logical conclusion: NPR reports that young people in Los Angeles — and other cities around the country — are choosing to rent small pods instead of an apartment.
Through a service called PodShare, young people are giving up the comfort of a private home for a bunk bed with shared kitchen and bathroom facilities.
The Affluent Homeless: A Sleeping Pod, A Hired Desk And A Handful Of Clothes
Forget That Social Security Increase, Seniors Are in Trouble. Here’s Why.
You might have heard that Social Security checks are going up 2.8% this year, the biggest rise in seven years. That translates into an average benefit of $1,461 a month, up $39.
While welcome, it’s necessary to remember that the increase is tied to inflation. Higher payouts will simply enable retirees to keep up with the rising cost of living. It doesn’t mean that anyone’s standard of living will go up—as if an extra $1.28 a day will do much in the first place. Think of a treadmill: You’re not going anywhere.
In fact, retirees and those who are eyeing retirement risk going in a different direction: backward. A study by the Schwartz Center for Economic Policy Analysis at the New School finds that about 40% of middle-class Americans will live close to or in poverty by the time they reach age 65. “Golden years?” For millions, it’s doubtful.
Loads of houses are up for sale -- but middle-class buyers are still shut out
Despite an uptick in homes on the market and weakening home sales across the country, home ownership is out of reach for a growing number of middle-class buyers, according to a recent report from real estate brokerage Redfin.
An analysis of U.S. homes on the market in 2017 and 2018 found that the number of affordable homes for sale has decreased in 86 percent of metro areas (of 49 included in the study), even as the number of homes on the market grew. While buyers normally benefit from better availability in competitive housing markets, it doesn’t help if the majority of available homes are priced for the wealthy.
“For the past few years, home prices have gone up faster than wages,” said Daryl Fairweather, chief economist at Redfin. “That kind of growth really isn’t sustainable. At a certain point, there won’t be enough buyers left for the homes left on the market.”
Boise and Reno Capitalize on the California Real Estate Exodus
For some Californians, the state’s punishing housing costs, high taxes, and constant threat of natural disaster have all become too much. They’re making their escape to areas such as Boise, Phoenix, and Reno, Nev., fueling some of the biggest home-price gains in the country. While the moves are motivated mainly by economics, they’re also highlighting political divides as conservatives from the blue state seek friendlier areas and liberal transplants find themselves in sometimes hostile territory.
Where Are All Of The Pro-Choice Men?
Abortion rights and reproductive freedom are in jeopardy like never before. The Trump administration has proposed radical cutbacks to Title X, the nation’s only federal grant for family planning services. And now, with the nomination of Judge Brett Kavanaugh to the Supreme Court, Roe v. Wade and the right to safe, legal abortion are in imminent danger. A recently leaked email revealed that Kavanaugh once disputed the description of Roe v. Wade as “settled law” and said it could be easily overruled.
The American people have not been silent in their opposition to Trump and his decidedly anti-abortion Supreme Court nominee. Protests and demonstrations have been ongoing since Kavanaugh’s confirmation hearings began on Tuesday. People are standing outside the hearing room holding signs or wearing T-shirts or “Handmaid’s Tale” costumes. Some are even interrupting the hearing itself.
But almost all of the protesters are women.
This is how much money you need to make to afford rent in every state
The rule of thumb on how much a person should budget for rent is 25% to 30% of monthly income. But due to inflation in property values and surging demand, affordable housing is increasingly becoming a pipe dream in some states.
Among the most expensive rental markets is the nation’s capital, where a person must make an average of $8,487 a month to rent, according to cost estimating site HowMuch.net.
In California, the richest state in the U.S. based on gross domestic product, the monthly income to afford renting a house is $8,313, followed by Hawaii at $7,806 and New York at $7,223.