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Millionaires Support a Wealth Tax — as Long as They Aren’t Getting Taxed

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A majority of millionaires support a wealth tax on those worth $50 million or more, but their support declines for a tax on those worth $10 million, according to a new poll. CNBC reports:

Fifty-nine percent of millionaires said they would support a new federal tax on wealth over $50 million, according to the Q4 CNBC Millionaire Survey. Democratic presidential candidate Elizabeth Warren’s tax plan includes a wealth tax of 2% on wealth over $50 million and 6% over $1 billion.

Forty-eight percent opposed a wealth tax on those worth over $10 million.

Attitudes toward the wealth tax are also strongly dependent on political party rather than wealth levels. Fully 88% of Democratic millionaires support a tax on wealth over $50 million, compared with just a third of Republican millionaires.

Super Saturday Set Record as the Biggest Single Day in U.S. Retail History

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Holiday shopping set records over the weekend, with Super Saturday sales reaching $34.4 billion, the biggest single day in U.S. retail history, according to Customer Growth Partners. Bloomberg reports:

“Paced by the ‘Big Four’ mega-retailers — Walmart, Amazon, Costco and Target — Super Saturday was boosted by the best traffic our team has seen in years,” said Craig Johnson, president of the retail research firm.

Job growth and fatter wallets, along with stronger household finances, have put consumers in a buying mood this season, Johnson said. And more of them are shopping online. As retailers offer improved web platforms, online spending so far this season has accounted for 58% of sales growth from a year earlier, he said.

Super Saturday’s results topped Black Friday’s $31.2 billion in sales by 10%. The next biggest shopping days were Dec. 14, with $28.1 billion, and Cyber Monday, with $19.1 billion.

A $45,000 Loan for a $27,000 Ride: More Borrowers Are Going Underwater on Car Loans

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John Schricker took out a loan to buy a car in 2017. Then he took out another. And then another. In two years, the 40-year-old electrician signed up for four auto loans, each time trading in the previous car and rolling the unpaid balance into the next loan. He recently bought a $27,000 Jeep Cherokee with a $45,000 loan from Ally Financial Inc. The Wall Street Journal reports:

Consumers, salespeople and lenders are treating cars a lot like houses during the last financial crisis: by piling on debt to such a degree that it often exceeds the car’s value. This phenomenon—referred to as negative equity, or being underwater—can leave car owners trapped.

Some 33% of people who traded in cars to buy new ones in the first nine months of 2019 had negative equity, compared with 28% five years ago and 19% a decade ago, according to car-shopping site Edmunds. Those borrowers owed about $5,000 on average after they traded in their cars, before taking on new loans. Five years ago the average was about $4,000.

Rising car prices have exacerbated an affordability gap that is increasingly getting filled with auto debt. Easy lending standards are perpetuating the cycle, with lenders routinely making car loans with low or no down payments that can last seven years or longer.

Robocall Fines Rise to $10,000 Per Call Under Newly Passed Law

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After months of negotiations, Congress approved a landmark bill on Thursday to stop the flood of illegal robocalls. The president is expected to sign it into law within the next few days. The Verge reports:

The Telephone Robocall Abuse Criminal Enforcement and Deterrence Act, or the TRACED Act, empowers the federal government with new abilities to go after illegal robocallers. Once TRACED is enacted, the Federal Communications Commission could fine robocallers up to $10,000 per call. It also would require major carriers like AT&T, Verizon, and T-Mobile to deploy a new technology called STIR/SHAKEN into their networks, which will make it easier for consumers to know if they’re receiving a call from a spoofed number.

The House voted overwhelmingly to approve the measure earlier this month, and Thursday’s unanimous Senate vote means the bill only requires President Trump’s signature to become law. Rep. Mike Doyle (D-PA) said that the bill should be signed into law within the “next week or so.”

For the First Time in History, the US Economy Has Started and Ended a Decade Without a Recession

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As of December, the U.S. economy has expanded for a record 126 straight months, the longest time period in the country’s history according to the National Bureau of Economic Research. Put another way, the U.S. has avoided a recession for an entire calendar decade for the first time ever. CNBC reports:

“It is unusual that this has been such a persistent recovery,” Michelle Meyer, chief U.S. economist at Bank of America Merrill Lynch, told CNBC.

Economists cite a few reasons for why the expansion has lasted for so long. For one, the U.S. was coming from a low point at the end of the last decade. Much of the expansion over the past ten years has been spent recovering from the Great Recession…

Overall, economic expansions have started to last longer in the post-war period. The NBER, which keeps the official tally of recessions in the U.S., found expansions have lasted an average of 58.4 months from 1945 to 2009, compared to 35 months from 1919 to 1945. One reason for this, economists say, is that policymakers have gotten better at responding to changes in the economy while inflation has remained subdued…

Another reason economists say the expansion has lasted so long is that the memory of the crisis is still fresh in the minds of consumers and businesses, making them more risk-averse and alert to the next downturn.

Any Amount Of Running Linked To Significantly Lower Risk Of Death From Any Cause

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The joggers and runners of the world certainly have reason to smile, according to a new international study. Researchers from Australia, Austria, Finland, and Thailand performed a comprehensive analysis on available evidence, and concluded that any amount of running significantly lowers one’s risk of death from any cause. Study Finds reports:

All in all, 14 studies were included, encompassing 232,149 people who had had their health tracked for periods of time between 5.5 and 35 years. Within that long time frame, 25,951 of the included study participants passed away.

Upon pooling and analyzing all of that data, researchers determined that any amount of running was associated with a 27% lower risk of death from all causes, in comparison to participants who reported never running. This held true among both genders. Any amount of running was also associated with a 30% lower chance of dying due to cardiovascular disease, and a 23% lower risk of cancer-related death.

Even “small” doses of running, defined as going out for a jog just once every one to two weeks for less than 50 minutes, at a slow average speed of less than 6 miles per hour, were still found to induce significant health and longevity perks. In summation, the research team say their findings point to some light running as a great fitness option for people who may not have enough time most days to get in a full workout.

More Americans Delaying Medical Treatment Due to Cost

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A record 25% of Americans say they or a family member put off treatment for a serious medical condition in the past year because of the cost, up from 19% a year ago and the highest in Gallup’s trend. Gallup reports:

Another 8% said they or a family member put off treatment for a less serious condition, bringing the total percentage of households delaying care due to costs to 33%, tying the high from 2014 …

Reports of delaying treatment for a serious condition jumped 13 percentage points in the past year to 36% among adults in households earning less than $40,000 per year while it was essentially flat (up a non statistically significant three points) among those in middle-income and higher-income households.

As a result of the spike in lower-income households this year, the gap between the top and bottom income groups for failure to seek treatment for a serious medical condition widened to 23 percentage points in 2019. The income gap had averaged 17 points in the early years of Barack Obama’s presidency, but narrowed to an average 11 points in the first few years after implementation of the ACA, from 2015 to 2018.

College-Educated Workers Are Taking Over the American Factory Floor

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American factories demand white-collar education for blue-collar work. New manufacturing jobs that require more advanced skills are driving up the education level of factory workers who in past generations could get by without higher education, an analysis of federal data by The Wall Street Journal found.

Within the next three years, American manufacturers are, for the first time, on track to employ more college graduates than workers with a high-school education or less, part of a shift toward automation that has increased factory output, opened the door to more women and reduced prospects for lower-skilled workers.

U.S. manufacturers have added more than a million jobs since the recession, with the growth going to men and women with degrees, the Journal analysis found. Over the same time, manufacturers employed fewer people with at most a high-school diploma.

Employment in manufacturing jobs that require the most complex problem-solving skills, such as industrial engineers, grew 10% between 2012 and 2018; jobs requiring the least declined 3%, the Journal analysis found…

Specialized job requirements have narrowed the path to the middle class that factory work once afforded. The new, more advanced manufacturing jobs pay more but don’t help workers who stopped schooling early. More than 40% of manufacturing workers have a college degree, up from 22% in 1991.

Looking ahead, investments in automation will continue to expand factory production with relatively fewer employees. Jobs that remain are expected to be increasingly filled by workers from colleges and technical schools, leaving high-school graduates and dropouts with fewer opportunities. Manufacturing workers laid-off in years past also will see fewer suitable openings.

Unemployment Rate Drops to 50-Year Low of 3.5%

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Employers added 266,000 jobs in November and the jobless rate fell to a 50-year low of 3.5%, matching September’s level, the Labor Department said Friday. Wages advanced 3.1% from a year earlier. The Wall Street Journal reports:

The U.S. job market strengthened in November, as hiring jumped and unemployment fell, adding fuel to the economic expansion.

The stronger pace of hiring could help juice up the broader U.S. economy, which is still expanding but at a slower pace than last year. U.S. stock futures and government-bond yields rose Friday after the data was released.

Hiring was strong in health care, restaurants and transportation jobs. In November, manufacturers added 54,000 jobs, 41,000 of which were in auto manufacturing. General Motors Co. workers, who were on strike in October, helped drive the bounceback.

Iowa Man Used His Life Savings to Send 33 Strangers to College

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An Iowa man, Dale Schroeder, used his life savings to send 33 students to college. Dale Schroeder was a simple, humble man from Iowa, who ended up changing the lives of 33 people forever. Schroeder worked as a carpenter at the same company for 67 years. He grew up poor and had no wife or children of his own. CBS News reports:

Schroeder had saved up a fortune over the years. He had no living descendants, so before he died, he went to his lawyer with a plan for his money.

“He said, ‘I never got the opportunity to go to college. So, I’d like to help kids go to college,'” Nielsen said. Not only did Schroeder have enough money to send a few kids to college, he had enough saved to send dozens.

“Finally, I was curious and I said, ‘How much are we talking about, Dale?’ And he said, ‘Oh, just shy of $3 million.’ I nearly fell out of my chair,” Nielsen remembered.

Schroeder’s friend was shocked by his secret fortune. So were the strangers who received pieces of it.

48 Million Americans Are Still Paying Off Credit Card Debt From Last Holiday Season

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Overspending, however, is too easy. In fact, about 48 million Americans are still paying off credit card debt from last holiday season, according to a NerdWallet survey conducted by The Harris Poll. USA Today shows how to avoid financial regrets in 2020 by shop intentionally. Here’s how:

Understand why overspending is easy: Pressures and emotions run high. Ideally, your holidays are full of joy. But they may be loaded in other ways, like the pressure to buy everyone presents …

Learn to shop intentionally: Acknowledge emotions and triggers. Recognize feelings, like sadness, and that they may lead to overspending. Plan to cope in another way, like calling a friend …

The Richest Man in Babylon

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The Richest Man in Babylon is a 1926 book by George S. Clason that dispenses financial advice through a collection of parables set 8,000 years ago in ancient Babylon. The book remains in print almost a century after the parables were originally published, and is regarded as a classic of personal financial advice.

The Richest Man in Babylon offered commonsense financial advice told through ancient parables. This classic reading reveals their secrets for creating, growing, and preserving wealth.

The ancient Babylonians were the first people to discover the universal laws of prosperity. Through these entertaining tales of merchants, tradesmen, and herdsmen, you’ll learn how to keep more out what you earn; get out of debt; put your money to work; attract good luck; choose wise investments; and safeguard a lasting fortune.

Read it here: The Richest Man in Babylon

2 Million Americans Don’t Have Access to Running Water and Basic Plumbing

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More than 2 million people in the U.S. lack running water and basic indoor plumbing, according to a new report by the human-rights nonprofit DigDeep and the nonprofit U.S. Water Alliance — and race and poverty are key determinants of who has access to clean water and sanitation. MarketWatch reports:

Native Americans are 19 times more likely to lack indoor plumbing than their white counterparts, putting them in the worst spot of any group, and African-American and Latino households lack indoor plumbing at almost twice the rate of white households, the report found.

“The United States is home to some of the most reliable water and wastewater systems on earth, and many Americans believe access is universal,” the authors wrote. “But in fact, millions of the most vulnerable people in the country — low-income people in rural areas, people of color, tribal communities, immigrants — have fallen through the cracks.”

Lacking access to safe water and sanitation “makes it difficult to stay healthy, earn a living, go to school, and care for a family,” they added.

‘Tidal Wave’ of 21M Homes to Be on Market — But Who Will Buy Them?

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The U.S. is at the beginning of a tidal wave of homes hitting the market on the scale of the housing bubble in the mid-2000s. This time it won’t be driven by overbuilding, easy credit or irrational exuberance, but by an inevitable fact of life: the passing of the baby boomer generation. Fox News reports:

One in eight owner-occupied homes in the U.S., or roughly nine million residences, are set to hit the market from 2017 through 2027 as the baby boomers start to die in larger numbers, according to an analysis by Issi Romem conducted while he was a senior director of housing and urban economics at Zillow. That is up from roughly 7 million homes in the prior decade.

By 2037, one quarter of the U.S. for-sale housing stock, or roughly 21 million homes will be vacated by seniors. That is more than twice the number of new properties built during a 10-year period that spanned the last housing bubble.

FCC Bars Huawei, ZTE from Billions in Federal Subsidies

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The US Federal Communications Commission on Friday voted to bar use of its $8.5 billion a year Universal Service Fund to purchase equipment and services from Huawei and ZTE. The government fund is used by multiple programs to subsidize US broadband deployment and services. CNET reports:

In a unanimous vote during its November open meeting, the FCC approved an order that blocks the use of USF funds to purchase equipment and services from companies that pose a national security threat. The order also establishes a process for barring more companies in the future. So far, just Huawei and ZTE are on the list. 

“Given the threats posed by Huawei and ZTE to America’s security and our 5G future, this FCC will not sit idly by and hope for the best,” said FCC Chairman Ajit Pai in a statement Friday. 

The main issue with Huawei and ZTE is their cozy relationship with the Chinese government. National security officials fear that equipment from these manufacturers could be used to spy on other countries and companies. The Commerce Department blacklisted Huawei following a May executive order from President Donald Trump that effectively banned the company from US communications networks.