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Workers Continue to Struggle Despite ‘Strong’ Jobs Reports

November 17, 2019 Leave a Comment

There’s plenty of anecdotal evidence that America’s workers are being left behind. But now a group of researchers and economists have identified a key part of the problem — the kinds of jobs increasingly available to America’s workforce. And what they’ve found, as illustrated in a new U.S. Private Sector Job Quality Index (JQI), is troubling. The Hill reports:

Since 1990, the United States has been creating an overabundance of low-quality service jobs. In fact, 63 percent of the production and nonsupervisory jobs created over the past 30 years have been in low-wage and low-hour positions. That’s a marked contrast from the start of the 1990s, when almost half of these jobs (47 percent) were high-wage.

For more than a year, economists from Cornell University, the Coalition for a Prosperous America, the University of Missouri, Kansas City and the Global Institute for Sustainable Prosperity have been sifting through private sector jobs data to develop the JQI. And they’ve found that, in the past three decades, the U.S. economy has become increasingly dependent on jobs that offer fewer hours of work and at lower relative wages.

What exactly do these low-hour, low-wage positions look like? They could be one of the almost 15 million nonmanagement jobs in leisure and hospitality. These offer an average of 24.6 hours of work per week at $14.65 an hour. That’s $360 a week.  Or they could be one of 13.5 million retail jobs offering 30.3 hours a week at $16.73 an hour. That’s $506 weekly.  

There are now roughly 105 million production and nonsupervisory jobs in the U.S. That’s 83 percent of all private sector jobs. And more than half of them — 58 million — pay less than the average weekly U.S. wage of $793. Many of these jobs don’t offer health care or other benefits. These are the best jobs that many Americans can find and the most hours they can get. 

White House Unveils Rules Requiring Online Disclosure of Hospital Prices

November 15, 2019 Leave a Comment

The Trump administration on Friday unveiled new rules to require increased disclosure of health care prices, in a move officials said would drive down costs by increasing competition. The Hill reports: 

One regulation would require hospitals to provide a consumer-friendly online page where prices are listed for 300 common procedures like X-rays and lab tests. A second regulation would require insurers to provide an online tool where people could compare their out-of-pocket costs at different medical providers before receiving treatment. 

Officials billed the announcement as a major step in President Trump’s health care agenda. The move is controversial with the health care industry, as both hospitals and insurers have objected to having to disclose the information…

President Trump said in remarks at the White House on Friday that the move is “another major victory in our mission to deliver great health care at a price you can afford.”

“I don’t know if the hospitals are going to like me very much anymore but that’s okay,” he said, later adding, “after many, many years we finally have transparency.”

Indeed, hours after the announcement, the American Hospital Association, along with other provider groups, announced it would sue to stop the rule. 

Capsule Living: A Cheap Option for Young People Flocking to LA

November 11, 2019 Leave a Comment

Kay Wilson packed up her life in a hurry and moved to Los Angeles… only to find that what she paid in Pennsylvania for a nice studio apartment would only get her a 2.9-square-meter box in California. Her new home is a capsule, inspired by the famous hotels in Japan. AFP reports: 

Each room contains up to six capsules, which Wilson describes as “cozy.” They contain a single bed, a bar for hanging clothes, a few compartments for storing shoes and other items and an air vent.

By most standards, the accommodation is still not cheap — $750 per month plus taxes. That works out at around $800, which is slightly more than the 26-year-old was paying in Bethlehem, around 70 miles outside Philadelphia.

“I couldn’t afford a studio by myself. Not at all,” she told AFP. “It’s $1,300 or more.”

Jeremiah Adler, founder of UP(st)ART, said each capsule costs roughly half the rent of a studio in Los Angeles — the US entertainment capital, and one of its most expensive cities.

Black Unemployment is at Record Low

November 1, 2019 Leave a Comment

Nonfarm payrolls rose by 128,000 in October, exceeding the estimate of 75,000 from economists surveyed by Dow Jones. The unemployment rate ticked higher to 3.6%, in line with estimates, but remains around the lowest in 50 years. The unemployment rate for African Americans nudged down to a record low 5.4%. CNBC reports: 

The total employment level as measured in the household survey jumped to 158.5 million, also a new high.

The pace of average hourly earnings picked up a bit, rising 0.1% to a year-over-year 3% gain, also in line with estimates. The average work week was unchanged at 34.4 hours.

“This report is yet another sign that the economy is still strong right now and adds to a list of indicators that are looking optimistic of late,” said Steve Rick, chief economist at CUNA Mutual Group. “The vigor of this labor market, along with a more positive housing market and solid Q3 GDP, should offer some welcome reassurance.”

Currency is Popular Again, Especially the $100 Bill

October 27, 2019 Leave a Comment

People in many of the world’s most advanced nations — including the United States, the euro area and Japan — are holding more of it than ever. In the U.S., for example, currency in circulation stood at an estimated $1.76 trillion as of late September, according to the Federal Reserve. That’s about 8.2% of gross domestic product, up from just 5.6% before the 2008 financial crisis and close to the highest level in at least 36 years.​ Los Angeles Times reports: 

If people need less cash to pay for stuff, why do they want to hold so much of it? The answer, it seems, is that they’re turning to currency as a store of value.

Consider the kind of cash they favor: Increasingly, it’s large denominations such as $100 bills, which are the most convenient for stashing away big sums. Benjamin Franklin’s share of total U.S. currency in circulation reached 80% in 2018, up from 73% a decade earlier, Federal Reserve data show.

Since 2017, the $100 bill has surpassed the $1 note as the most widely circulated U.S. currency…

When safe investments such as deposits or government bonds yield little or less than nothing, people aren’t missing out by holding paper money. This illustrates why central banks can’t push rates too far below zero: Instead of spending the money or watching their savings shrink while sitting in the bank, people will just withdraw their cash and put it in the mattress.

Customer in France Accidentally Received a Phone Bill of €11,721,000,000,000,000

October 26, 2019 Leave a Comment

A woman in France received a bill for €11,721,000,000,000,000 (that’s 11.7 million billion euros – more than 5,000 times the gross domestic product of France) – it took her days of wrangling with helpline staff to stop it being debited from her bank account. The Guardian reports: 

Solenne San Jose. of Pessac, a Bordeaux suburb, had just lost her job and wanted to end her phone subscription, when the final bill arrived. She told her local paper, Sud Ouest: “I nearly had a heart attack. There were so many zeros that I couldn’t even work out how much it was.”

She called Bouygues Telecom, the phone company headed by Martin Bouygues, a friend of Nicolas Sarkozy, but was told by shrugging staff there was nothing they could do. One said: “It’s calculated automatically.” Another told her she would be contacted about paying in instalments. Several calls later, an adviser admitted it was a mistake: San Jose owed €117.21. The company has apologised and let her off the real bill.

Apple Pay Overtakes Starbucks as Most Popular Mobile Payment Platform in the US

October 23, 2019 Leave a Comment

Apple Pay has overtaken the Starbucks mobile app to become the most popular mobile payment system in the United States, claims a new report out today. MacRumors reports:

According to eMarketer, Apple Pay became the market leader last year, when 27.7 million Americans used the app to make a purchase. Since then, however, Apple Pay has grown even faster than expected.

In 2019, Apple Pay will have 30.3 million users, or 47.3 percent of mobile payment users. That compares with Starbucks’ 25.2 million customers via its mobile app in the same year, representing 39.4 percent of mobile payment users.

“Apple Pay has benefited from the spread of new point-of-sale (POS) systems that work with the NFC signals Apple Pay runs on,” said eMarketer principal analyst Yory Wurmser. “The same trend should also help Google Pay and Samsung Pay, but they will continue to split the Android market.”

Poll: Young Americans Are More Likely to Resent the Rich

October 8, 2019 Leave a Comment

Millennials

The Cato 2019 Welfare, Work, and Wealth National Survey finds that Americans under 30 stand out from their parents and grandparents’ in their attitudes toward socialism, capitalism, and resentment toward the rich. These results may help explain the striking success of self-described democratic socialist Bernie Sanders in capturing the support of the young. Young Americans feel more resentment toward the rich. Emily Ekins writes on Cato Institute: 

Young Americans are the only cohort in which a majority believe the wealthy didn’t earn their wealth. A slim majority (52%) of Americans under 30 say that “most” rich people in the United States got rich “by taking advantage of other people.” In contrast, a strong majority (72%) of seniors (65+) say that most wealthy people in America “earned their wealth” without exploiting people.

Across the board, younger people are more likely than older people to hold negative attitudes toward the rich. Americans under 30 are about 20–35 points more likely than Americans age 65 and older to feel “angry” when they read or hear about rich people (44% vs. 11%), to feel more “resentment” than “admiration” of rich people (39% vs. 16%), to believe it’s “immoral” for society to allow people to become billionaires (39% vs. 13%), and to believe that citizens taking violent action against the rich is sometimes justified (35% vs. 10%). Young people are also about 10–25 points more likely than older people to believe billionaires are a threat to democracy (51% vs. 26%), to disagree that billionaires earned their wealth by creating value for others (39% vs. 26%), and to disagree that rich people make society better off by investing in new businesses that create jobs and invent technology (38% vs. 21%).

American Banks Are Set to Automate Away 200,000 Jobs

October 7, 2019 Leave a Comment

Over the next decade, U.S. banks, which are investing $150 billion in technology annually, will use automation to eliminate 200,000 jobs, thus facilitating “the greatest transfer from labor to capital” in the industry’s history. The call is coming from inside the house this time, too—both the projection and the quote come from a recent Wells Fargo report, whose lead author, Mike Mayo, told the Financial Times that he expects the industry to shed 10 percent of all of its jobs. Gizmodo reports: 

This, Mayo said, will lay the groundwork for, and I quote, “a golden age of banking efficiency.” The job cuts are slated to hit front offices, call centers, and branches the hardest, where 20-30 percent of those roles will be on the chopping block. They will be replaced by better ATMs, automated chatbots, and software instruments that take advantage of big data and cloud computing to make investment decisions…

It is not rare that a report forecasts the imminent erosion of an industry’s jobs picture, but it is a little rare that a prominent industry analyst for one of said industry’s largest companies is so brazen — even giddy — about trumpeting the imminent loss of those jobs…. It is the confidence and enthusiasm for this schema that is key, as that is what will transform the report into a self-fulfilling prophecy. If the banks buy what Mayo and Wells Fargo are selling, then the report will contribute to an automated arms race between companies to cut staff and purchase enterprise financial software products that is already underway. This is how a lot of corporate automation unfolds.

As a result, we can expect to interact with even more customer service chatbots and automated call menus (whether they work well or not), to see more financial decisions turned over to algorithms, and a continued flood of software products to enter the banking industry. And Wells Fargo certainly won’t be the only bank automating here: As the FT notes, Citigroup is planning to eliminate tens of thousands of call center workers, and Deutsche Bank expects to slash half its ~100,000-strong workforce.

Gap Between Haves and Have-Nots Highest in 50 years

September 26, 2019 Leave a Comment

The gap between the haves and have-nots in the United States grew last year to its highest level in more than 50 years of tracking income inequality, according to Census Bureau figures. AP News reports:

Income inequality in the United States expanded from 2017 to 2018, with several heartland states among the leaders of the increase, even though several wealthy coastal states still had the most inequality overall, according to figures released Thursday by the U.S. Census Bureau.

The nation’s Gini Index, which measures income inequality, has been rising steadily over the past five decades.

The Gini Index grew from 0.482 in 2017 to 0.485 last year, according to the bureau’s 1-year American Community Survey data. The Gini Index is on a scale of 0 to 1; a score of “0″ indicates perfect equality, while a score of “1″ indicates perfect inequality, where one household has all the income…

The inequality expansion last year took place at the same time median household income nationwide increased to almost $62,000 last year, the highest ever measured by the American Community Survey. But the 0.8% income increase from 2017 to 2018 was much smaller compared to increases in the previous three years, according to the bureau.

Financial Stress Literally Making 2 In 5 Young Americans Sick

September 9, 2019 Leave a Comment

According to a survey of 1,000 Americans aged 25-45, financial stress and worries are quite literally making people sick. Respondents listed health care as the main financial worry of their lives, and three in four admitted to having a “negative experience” due to financial stress. John Anderer writes on Study Finds:

Ironically, 39% said that financial stress has had a negative impact on their health; indicating a troubling cycle of financial stress brought on by health care costs, which in turn leads to more health problems.

Additionally, 35% of respondents said financial stress has harmed their relationship with a spouse or significant other, and 26% said financial worries had harmed close friendships. Another 26% said it had affected their performance at work, and 21% said it had hurt their attendance at work.

A running theme throughout the survey’s responses was that young Americans aren’t addressing their health needs due to the cost. Many respondents reported that this strategy only allows the illness to worsen, resulting in higher medical bills by the time they make it to the doctor’s office. In fact, three in four surveyed young adults reported taking “risky” actions to save money on medical expenses. More specifically, 33% delayed seeking medical help in the hope that their condition would just go away, 27% considered avoiding medical attention due to high deductibles, and 22% scheduled a medical appointment but never showed after considering the bill.

The Days of Getting a Cheaper Cable Bill by Threatening to Leave May Be Over

June 6, 2019 Leave a Comment

With internet service growing faster and more profitable, subscribers are becoming expendable, meaning pay-TV companies no longer need to entice customers who are threatening to quit with discounts and special offers. Bloomberg reports:

Over the past few years, pay-TV stocks have suffered wicked swings as investors reacted to growing subscriber losses. But they’ve recovered as the companies shift their focus to lucrative broadband services. Comcast, the largest U.S. cable provider, is up 22% this year and Charter is up 36% to a 21-month high, outpacing the 12% gain for the S&P 500. That’s despite accelerating pay-TV subscriber losses at both companies last quarter. 

“It used to be when customers would call and said, “I’m thinking of cutting the cord,’ they’d throw all sort of promotions to keep them from leaving,” said Craig Moffett, an industry analyst at MoffettNathanson LLC. “Now they’re saying, ‘Goodbye, it’s been fun, enjoy the broadband subscription.'” Cable One Inc., a smaller cable company with about 305,000 residential video customers, even helps cord cutters choose between online alternatives like YouTube TV or Hulu’s live TV service, according to Moffett. [C]able executives are now focused on what they call “profitable” or “high-quality” video subscribers and less interested in cutting deals…

As customers drop pay TV, cable companies will actually see their profit margins widen, Moffett said. That’s because much of their pay-TV revenue goes right to channel owners, like Walt Disney Co. and its ESPN network, in the form of subscriber fees. Fueled by expensive sports rights, those fees are even rising faster than cable TV bills, hurting profits for companies like DirecTV and Comcast. Selling high-speed internet is far more profitable.

What’s the Recommended Temperature for Vacant Home in Winter?

February 28, 2019 7 Comments

Whenever you will be away from home for an extended period of time, you should adjust the temperature to save money. During the winter months you want to minimize the heating cost while at the same time preventing water pipes from bursting and avoiding any damage to household appliances. Don’t worry! I will go over what you should do before you leave the house and what temperature you should set the house at while you are away.

 1. What’s the Recommended Temperature for Vacant Home in Winter?

Each house is different and the optimal thermostat setting depends on the level of insulation in the house, pipe layout, exterior temperature, and location. You should set the temperature around 50 to 60 degrees Fahrenheit (℉).

Most of the time, dropping the thermostat to 50 °F to save some heating bill is fine. You don’t need to set your thermostat too high if your plumbing runs within the interior walls. You should have no issues by leaving the thermostat at 50 °F.

If you have pipes in exterior walls you want to set the thermostat higher, such as 55 ℉ or 60 ℉, to warm the house enough that the pipes in the wall are above freezing. Also, if you live in a humid climate, setting the thermostat at a higher temperature to avoid getting musty as the furnace heats the air and lowers the relative humidity. Also, If you live in expose area then set it on the high side around 55 ℉ or higher to keep pipes from freezing.

2. What’s the Lowest Temperature to Set the Thermostat in Winter?

You should not set it lower than 40 ℉ when you leave a vacant house. The temperatures for the whole house are not homogenous as some parts of the house will be even colder than the lowest temperature setting on the thermostat. The money saved on lowering the thermostat further would be minimal compared to the damage if something happens.

Even though the recommended temperature setting is around 50 ℉ to 60 ℉, you can go lower to 45 ℉ and everything should be fine if your property is winterized properly. The goal is to minimize the heating bills but at the same time you don’t want any burst pipes or a flooded house when you arrive home. Please keep in mind that at a lower temperature setting, you have a higher risk of pipe freezing and material shrinkage. There’s a big difference between homes that are left at 55 ℉ and those left at 45 ℉ after years of leaving the house vacant.

3. What Temperature Should You Set the Thermostat in Summer?

Working in reverse for hot weather, you should set your thermostat higher while you are on summer vacation to save money on electricity bill. According to the Department of Energy, for every degree you raise the set temperature of your central air, you’ll save about three percent on your utility bill.

The optimum setting for your air conditioner is 4 ℉ or 5 ℉ higher than what you normally set at. So, if you normally set your house at 72 ℉, crank it up to 77 ℉ or 78 ℉ before you leave the house. Also, don’t forget to check your air conditioner filter and close the blinds before leaving your house.

Setting the thermostat too high might not save you any extra money as the air conditioner works harder to cool the house’s temperature back down. Beware of leaving your house too warm if you decide to shut off the air conditioner completely. You could damage wall structure and household items if the inside is too hot and humid. Set your thermostat higher by 4 ℉ or 5 ℉ is better than full shutdown. For through-the-wall air conditioner, you can safely shut it down when you are away.

4. What To Do Before You Leave The House?

First, if you are leaving a house for a couple months in the winter you should turn off the water. Then open the faucets to drain every plumbing you can. Depending on how long you will be away, turning off the main water supply line where it comes into the house is highly recommended.

Pipes with water in them have a high risk of busting during a long cold spell. By draining all the water lines and turning off the water, if the pipes freeze while the furnace dies it’s not the end of the world. Any sections of pipe that happened to be drained won’t be damaged, and you won’t have to tear the walls containing them apart to fix the damage. Nobody wants to come home after a vacation to a foot of water in the basement as well as numerous ruptures in pipes within the walls.

If you are away for a short period of time and don’t want to shut off the main water, then set the faucet for water to slightly drip out, especially with pipes on an exterior wall exposed to cold weather. Running water through the pipe – even at a trickle – helps prevent pipes from freezing.

In addition, keep the cabinet doors under the sinks open to prevent cold pockets from forming. Air circulates from the outside room temperature will keep the pipes below the sinks from freezing while you are away.

Don’t forget the water heater. You probably don’t want to drain the water heater, but it’s a good idea to turn it off if it’s electric or to shut off the gas supply. If a pipe bursts or water leaks out, an electric water heater could overheat and short out the heating elements, and a gas heater could do even worse. If you don’t want to turn off the water heater, make sure to turn it to low or vacation mode.

5. The Best Smart Thermostat

A smart thermostat is an app-enabled device that does more than manage your home’s heating and cooling system. You can adjust your thermostat remotely anywhere your phone has a Wi-Fi or cellular connection. That way, you can manage your heat and AC whether you’re at the grocery store, at work, on vacation, or just hanging out at home. Many models can also be controlled via Siri, Alexa or Google Assistant voice commands.

The Google Nest Learning Thermostat is the best smart thermostat because it manages your home with the least amount of input, it’s simple to use, and it has the best design of all the thermostats on the market.

The second best smart thermostat is Ecobee’s SmartThermostat. With a simple Alexa voice command, Ecobee’s SmartThermostat with Voice Control can play music, relay the news, and control your home’s smart lights—along with adjusting the heat and air conditioning. It also works with remote sensors, which you can place in rooms that are too hot or cold. The temperature and occupancy detectors in the sensors let the Ecobee tweak its settings to ensure that every location throughout your home is comfy, rather than just the spot where the thermostat is installed.

Most Americans Just One Serious Illness Away From Bankruptcy

February 12, 2019 Leave a Comment

A study of bankruptcy filings in the United States showed that medical expenses contribute to two-thirds of bankruptcy filings in U.S. For many Americans, putting one’s health first can mean putting one’s financial status at risk. Study Finds described:

The study, led by Dr. David Himmelstein, Distinguished Professor at the City University of New York’s (CUNY) Hunter College and Lecturer at Harvard Medical School, indicates that about 530,000 families each year are financially ruined by medical bills and sicknesses. It’s the first research of its kind to link medical expenses and bankruptcy since the passage of the Affordable Care Act (ACA) in 2010.

“Unless you’re Bill Gates, you’re just one serious illness away from bankruptcy,” Himmelstein says in a release by the Physicians for a National Health Program. “For middle-class Americans, health insurance offers little protection. Most of us have policies with so many loopholes, copayments and deductibles that illness can put you in the poorhouse.”

World’s 26 Richest Own As Much As Poorest Half of Humanity

January 20, 2019 Leave a Comment

In an annual wealth check released to mark the start of the World Economic Forum in Davos, the development charity Oxfam said 2018 had been a year in which the rich had grown richer and the poor poorer. As a result, the report concluded, the number of billionaires owning as much wealth as half the world’s population fell from 43 in 2017 to 26 last year. The Guardian reports:

Oxfam said the wealth of more than 2,200 billionaires across the globe had increased by $900bn in 2018 – or $2.5bn a day. The 12% increase in the wealth of the very richest contrasted with a fall of 11% in the wealth of the poorest half of the world’s population …

Among the findings of the report were:

* In the 10 years since the financial crisis, the number of billionaires has nearly doubled.

* Between 2017 and 2018 a new billionaire was created every two days.
The world’s richest man, Jeff Bezos, the owner of Amazon, saw his fortune increase to $112bn. Just 1% of his fortune is equivalent to the whole health budget for Ethiopia, a country of 105 million people.

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