Health/Food Posts Tagged as 'Economy'
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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.
Republicans admit they’ll slash Medicare, Social Security to pay for their tax cuts
Slowly but surely, Republicans that supported the trillion dollar Trump tax bill are revealing their true motivations: slashing Medicare and Social Security.
During a Sunday interview with CNBC’s John Harwood, Rep. Steve Stivers (R-OH) urged entitlement reform as the deficit continues to balloon as a result of the GOP tax cuts.
“I do think we need to deal with some of our spending,” Stivers said. “We’ve got try to figure out how to spend less.”
Cannabis stocks soar to new highs
Rival Cronos Group (CRON) has soared more than 40% in the past week, including an 11% pop Tuesday. Tilray (TLRY), another competitor that just went public on the Nasdaq last month, has skyrocketed more than 60% in the last five days. Tilray shares were up 10% alone on Tuesday.
Both companies, which are also based in Canada, have clearly attracted more interest after Constellation (STZ) took an increased stake in Canopy Growth. That deal, announced last week, led to a 30% surge in Canopy's stock (CGC).
Investors are betting that Constellation, which owns Corona and other spirits and wine brands, may eventually launch cannabis-based beverages and other products.
Infused drinks likely won't be for sale in the United States, where cannabis continues to be prohibited by the federal government.
In America, wage growth is getting wiped out entirely by inflation
U.S. workers' paychecks are worth less than they were a year ago, the Labor Department reported Friday, as modest wage gains have failed to keep pace with inflation.
Inflation rose 2.9 percent from July 2017 to July 2018, the department reported, while average hourly pay increased 2.7 percent over the same period.
The lack of real wage gains comes despite a strong economy, with sustained growth and an unemployment rate of 3.9 percent — one of the lowest levels in decades.
The Labor Department tracks average hourly pay adjusted for inflation, which is known as the “real wage.” According to the federal government, the real average hourly wage was $10.78 in July 2017 and $10.76 in July 2018. Real wages have been on a sharp decline since the start of the year, mainly because energy prices have increased while pay has stayed flat.
The Washington Post
This High School Teacher Quit His Job to Deliver Groceries. Now He's Making $100,000 a Year
For the past two decades, Ed Hennessey has spent his days teaching high school and his nights picking up shifts at Blockbuster, Steak ‘n Shake and Target — “you name it, I’ve done it,” he jokes.
But as of this summer, Hennessey is retired from education. He’s found a much more lucrative job delivering groceries.