U.S. Economy Archives - Page 7 of 107 - Money Morning - Only the News You Can Profit From
Why Millions of Americans are Still "Trapped" in Their Homes
For millions of Americans who were underwater on their mortgages, the tide is finally receding.
Housing not only generates construction jobs, one of the hottest job sectors in the country right now, it also sparks spending on home furnishings and appliances. And as home prices increase, people feel more wealthy and tend to spend more.
The number of homeowners underwater – those who owe more on their mortgage than their home is worth – dropped in the first quarter to 25.4% percent of all mortgages, or 13 million homeowners, from 31.4 % a year earlier, real estate researcher Zillow reports.
The "Part Time-ification" of America: How We've Been Conned Again
By now, you've had a few days to digest the "wonderful" jobs numbers reported from Washington last Friday.
Well, don't get too excited about the economy. We've been conned again.
First off, 59% of all jobs created this year are in 3 sectors: Leisure/Hospitality, Retail Trade and Administrative/Waste Services. Wages in those sectors have fallen by 0.7%. These jobs pay an average of $15.80 per hour versus the $23.98 average hourly wage. Which means "jobs creation" just equals cheaper labor.
The American jobs participation rate is at 34-year lows and falling, as people give up and leave the workforce.
Underemployment is between 14% and 15% and rising.
In Obama's America, the Harder You Work, the Less You Make
The harder we work, the less we make. That seems to be the mantra of the Obama recovery. That is, if we have a job.
In the last four years, real median household income has fallen during both the recession and the recovery. Amazing. It's like still standing in the muck after the ebb tide.
According to Sentier Research, the June median income in the United States sat at $52,098, or 3.9% lower than in June 2009, the month tagged as the start of the recovery.
The median income of Americans continues to decline (adjusted for inflation), increasing concerns about the long-term health of the middle class and consumer purchasing patterns.
Still, it's not just the last five years that has seen the middle class take a steep dive. The trend, adjusted for inflation, is much worse.
President Obama's Grand Bargain is DOA
In attempts to break the fiscal stalemate lingering in Washington, D.C., U.S. President Barack Obama claims he's ready to do some serious "grand bargaining"…
The president presented his so-called grand bargain plan Tuesday during a trip to an Amazon.com Inc. (Nasdaq: AMZN) distribution center in Chattanooga, TN. The controversial proposal includes cutting the corporate tax rate, long-favored by congressional Republicans, in exchange for stepped-up spending on jobs programs.
"I've come here to offer a framework that might help break through the political logjam in Washington and get some of these proven ideas moving," President Obama said.
The GOP, unmoved, immediately slammed the suggestions and cast doubts about the plan's prospects.
And the "grand bargain" turns into just another speech…
An Obamacare Bailout: A Struggling City's Best New Budget Tool
Call it an "Obamacare Bailout" – while millions of Americans look for ways to opt out of Obamacare, broke Detroit is trying to get its residents signed up as soon as possible.
You see, Detroit has grossly over-pledged its benefits, pensions and fully-funded health care plans to thousands of public sector employees for decades, while its tax revenue dwindled.
Now Detroit – after filing for Chapter 9 bankruptcy July 18 – can't deliver on its pricey promises.
The Next Fed Chief Will Be the Most Powerful of All Time
The U.S. Congress established three core objectives for monetary policy in the Federal Reserve Act of 1913: maximum employment, stable prices, and moderate long-term interest rates.
But in addition to acting as steward of the economy, the Fed's role has expanded over the years.
The Great Recession, a need for corporate bailouts, and concerns over the Fed's secrecy brought about recent changes to its institutional identity.
Certainly we've had a renewed focus on the Fed's responsibility as a regulator.
People wanted to see – needed to see – a Fed that operates no longer as a creature of the banks, but as a watchdog instead.
Emblematically, the Dodd-Frank Wall Street Reform and Consumer Protection Act were signed into law in July 2010.
With it, Dodd-Frank brought the most substantial changes to financial regulation since the aftermath of the Great Depression. Particularly, a greater breadth of regulatory power was given to the Fed.
U.S. Corporate Tax Rate Makes Ireland the M&A Hotspot
No wonder U.S. President Barack Obama addressed the U.S. corporate tax rate in his "grand bargain" proposal Tuesday…
Avoidance or lowering of taxes has become a major consideration of corporate managements around the world. This is a result no doubt of the pursuit globally by governments of more and more money through taxes from both corporations and individuals.
The recent $8.6 billion deal in the pharmaceutical sector between Perrigo Company (NYSE: PRGO) and Ireland-based Elan Corp. PLC (NYSE ADR: ELN) could be the poster child for the effect of this trend – it drives corporate revenue out of the United States.