Business

Women bear the brunt of financial stress in the US economy, study says on November 16, 2023 at 11:00 am Business News | The Hill

Published

1 year ago

November 16, 2023

The economy looks a lot better than it did last year, but persistent inflation, ballooning debt and dwindling savings have hit women especially hard.

Nearly 6 in 10 women are living paycheck to paycheck, compared to 41 percent of men, according to a recent study by Varo Bank, Morning Consult and THRIVE Financial Empowerment Services of 1,004 Americans who regularly spend most or all of their income.

This economic strain is felt across the political spectrum, and Americans living paycheck to paycheck — regardless of party — cited the cost of living as their greatest financial concern.

Eroding savings and increasing debt round out the top three concerns for people living paycheck to paycheck, the study found.

“It’s impacting everyone,” Colin Walsh, founder and CEO of Varo Bank, told The Hill. “Sometimes you see political headlines and other things that would maybe lead you to believe there’s concentrations, but [financial stress] was pretty widespread.”

Making less than men affects the entire budget

Women represent two-thirds of those considered financially fragile, a subset of Americans living paycheck to paycheck who lack any financial slack or support.

“Women are still facing the brunt of not being as economically advantaged as men right now for a host of reasons that are generations old,” said Ayesha Whyte, the founder of Ellevator, an online platform that provides career development resources to women of color.

Whyte noted women have historically been paid less than men for the same jobs, leaving them with less surplus money to invest in the stock market or put in savings for an economic downturn.

“If you want to look at something more contemporary and recent, you can just look at the pandemic,” she added. “We’re still kind of recovering from that era. At that time, a number of women walked away from their jobs due to childcare duties at home.”

The Census Bureau’s Household Pulse Survey started during the pandemic to measure how it impacted people’s lives. As of mid-October, the survey found 39 percent of women had trouble paying for household expenses versus 35 percent of men, Marisa DiNatale, head labor economist at Moody’s Analytics, told The Hill.

“Women, generally speaking, are making less than men (on average) as they tend to be employed in lower-paying occupations than men and still bear the bulk of household and childcare responsibility, making them also more likely to be working part time or to have had gaps in their work experience which also affects pay,” DiNatale said.

Macy Norman, center, serves guests at Puckett’s Grocery and Restaurant in 2021 in Nashville, Tenn. The net worth of the typical U.S. household grew at the fastest pace in more than three decades from 2019 through 2022, when pandemic stimulus funds and low interest rates made it easier for households to pay their debts. Mark Humphrey / AP

Rising prices force some Americans to forgo basic needs

Economic hardship took center stage in last week’s Republican primary debate, with candidates blasting “Bidenomics” but offering few solutions to make life better for Americans.

Consumer outlook on the economy has also soured as their savings, once padded by pandemic-era stimulus payments, have been eroded by higher prices.

The Biden administration is grappling with stubbornly high inflation, which has fallen precipitously from its 9 percent year-over-year peak last June. New consumer price index data released Tuesday found prices were still 3.2 percent higher in October than they were a year ago, above the Federal Reserve’s 2 percent target for annual inflation.

The Fed has hiked interest rates to a range of 5.25 percent to 5.5 percent as part of its crusade to cool the economy and bring down inflation.

While the Varo Bank study points to financial institutions and the media that “focus heavily” on interest rates, rates are higher than they’ve been in two decades and make it significantly more expensive to borrow money, pinching Americans looking to buy a house, get a car loan or carry a credit card balance.

Nearly half of all respondents — 48.2 percent — said they had sacrificed at least one basic need in the past six months because of cost. Basic needs include doctor’s visits, medication, healthy food and safe housing. Twenty-eight percent went without at least two basic needs.

Younger people reported more difficulty asking for financial help, with 38 percent of Generation Z respondents saying they were embarrassed or ashamed to ask for support.

A doctor uses a Doppler probe on a pregnant woman to measure the heartbeat of a fetus in 2021 in Jackson, Miss. U.S. births were flat in 2022 as the nation continued to see fewer babies born than before the pandemic. (AP Photo/Rogelio V. Solis, File)

Trust in financial institutions falls

Heightened financial fragility has eroded trust in financial institutions, with nearly three-quarters of respondents saying they believe U.S. financial institutions are “rigged against the poor.”

Women, who are more likely to identify as financially fragile, were found to be less trusting of financial institutions than men.

Ethnicity did not correlate with a significant difference in trust, which surprised Walsh, who noted overall trust in financial institutions has been falling.

“The only truly surprising thing about the financial strain we are putting on youth, women and communities of color is how resilient they are and how entrepreneurial they remain,” Nathalie Molina Niño, co-founder and chief strategy officer at the financial services platform Known, told The Hill.

Despite the persistent divide, women’s economic situations have steadily improved from where they were at the start of the pandemic.

“Since the pandemic ended, women’s employment has grown quickly (especially since kids are back to in-person learning) and they have recouped all the jobs that were lost,” DiNatale said.

“Furthermore, there is some evidence that flexible work arrangements (including remote work) has improved job matching and now prime age women (those between 25 and 54) are participating in the labor force at higher rates than they ever have historically,” she added.

Business, Health Care, News, Policy, Technology, cost of living, financial stress, inflation, Interest rates, paycheck to paycheck, savings The economy looks a lot better than it did last year, but persistent inflation, ballooning debt and dwindling savings have hit women especially hard. Nearly 6 in 10 women are living paycheck to paycheck, compared to 41 percent of men, according to a recent study by Varo Bank, Morning Consult and THRIVE Financial Empowerment Services…

Business

David Sacks: The New White House AI and Crypto Czar

Published

2 weeks ago

December 6, 2024

Bolanle Media Staff

According to CNBC and NBC News, David Sacks, a prominent venture capitalist and former PayPal executive, has been appointed as the White House AI and Crypto Czar by President-elect Donald Trump. This newly created position underscores the incoming administration’s focus on artificial intelligence and cryptocurrency as critical areas for American competitiveness.

Role and Responsibilities

Sacks will be tasked with several key responsibilities in his new role:

Guiding policy for the administration in AI and cryptocurrency
Establishing a legal and regulatory framework for the cryptocurrency industry
Safeguarding free speech online, and steering away from Big Tech bias and censorship
Leading the Presidential Council of Advisors for Science and Technology

Trump emphasized that Sacks will focus on making America the clear global leader in both AI and cryptocurrency.

Background and Qualifications

David Sacks brings a wealth of experience to his new position:

Former Chief Operating Officer of PayPal
Founder of Yammer, which was sold to Microsoft for $1.2 billion in 2012
Co-founder of Craft Ventures, a venture capital firm
Investor in major tech companies including SpaceX, Palantir, Uber, and Airbnb

Sacks is also known for his close associations with tech entrepreneurs like Elon Musk and Peter Thiel, being part of the “PayPal Mafia“.

Political Involvement

Sacks has been a vocal supporter of Trump during his campaign:

Hosted a fundraiser for Trump at his San Francisco estate, with tickets priced at $50,000 each and a more exclusive $300,000 tier
Delivered a speech at the Republican National Convention in Milwaukee in July 2024
Wrote a detailed essay on X explaining his reasons for supporting Trump

Implications for AI and Crypto Industries

The appointment of Sacks signals a potential shift towards more crypto-friendly policies and regulatory clarity for the digital asset industry. This move, along with Trump’s nomination of crypto advocate Paul Atkins to head the Securities and Exchange Commission, marks a departure from the stricter oversight approach seen under the previous administration.

As the White House AI and Crypto Czar, Sacks is expected to play a crucial role in shaping the future of these rapidly evolving technologies in the United States, potentially influencing their development and adoption on a global scale.

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Business

Bitcoin Surpasses $100,000 Milestone: A New Era for Cryptocurrency

Published

2 weeks ago

December 5, 2024

Bolanle Media Staff

In a historic moment for the cryptocurrency world, Bitcoin has officially surpassed the $100,000 mark, reaching a new all-time high and solidifying its position as a major player in the global financial landscape. This milestone comes amid a surge of investor enthusiasm and significant market developments.

The Breakthrough

Bitcoin breached the $100,000 threshold in the early hours of December 5, 2024, climbing to approximately $103,000 before experiencing a slight pullback, according to BBC News. This remarkable achievement represents a culmination of Bitcoin’s impressive performance throughout 2024, with the cryptocurrency’s value on an upward trajectory for most of the year.

Factors Driving the Surge

Several key factors have contributed to Bitcoin’s meteoric rise:

Political Influence: The recent U.S. presidential election, with Donald Trump’s victory, has played a significant role in boosting Bitcoin’s price. Trump’s pro-cryptocurrency stance and his promise to make the U.S. a “crypto capital” have fueled investor optimism, according to BBC News and AP News.
Regulatory Developments: According to AP News, the imminent appointment of Paul Atkins, a former SEC commissioner known for his crypto-friendly views, as the next chair of the Securities and Exchange Commission has been seen as a positive sign for the cryptocurrency industry.
Institutional Adoption: According to BBC News, the approval of spot Bitcoin exchange-traded funds (ETFs) by the SEC has allowed major investment firms like Blackrock, Fidelity, and Grayscale to offer Bitcoin-linked products, attracting billions in investments.
Market Dynamics: The recent Bitcoin halving event, which reduced the rate of new Bitcoin creation, has contributed to increased scarcity and demand.

Expert Opinions and Predictions

Analysts and industry experts have weighed in on Bitcoin’s future prospects:

Dan Coatsworth, an investment analyst at AJ Bell, described the $100,000 milestone as a “magic moment” for Bitcoin.
Ryan Lee of Bitget Research suggested that Bitcoin’s momentum could propel it well above $100,000 by the end of the year, citing historical patterns and post-halving cycle trends.
Bitfinex analysts expect Bitcoin to continue accumulating and ranging, with potential for further growth in the coming months.

Cautions and Considerations

While the mood is largely optimistic, experts also urge caution:

Carol Alexander, a finance professor at Sussex University, warned that while Bitcoin’s price may continue to rise, many younger investors speculating on meme coins are facing losses.
According to BBC News and AP News, the cryptocurrency’s notorious volatility remains a concern, with some analysts reminding investors that Bitcoin does not function like conventional currencies and lacks traditional investor protections.

Looking Ahead

As Bitcoin enters this new phase, the cryptocurrency community is abuzz with speculation about its future trajectory. While some predict further gains, others caution against overexuberance. The coming months will likely be crucial in determining whether Bitcoin can sustain its position above $100,000 and potentially reach even greater heights.

With increased institutional involvement, evolving regulatory landscapes, and growing mainstream acceptance, Bitcoin’s journey past the $100,000 mark may well be just the beginning of a new chapter in the cryptocurrency’s history.

Business

The Cities Bracing for Trump’s Immigration Crackdown

Published

1 month ago

November 8, 2024

Bolanle Media Staff

In the wake of Donald Trump’s recent election victory and his promise of “the largest deportation operation in American history,” several major U.S. cities are bracing for potentially seismic shifts in their economic and social landscapes. As the nation grapples with the implications of this proposed policy, urban centers that have long been havens for immigrant communities find themselves at the epicenter of a looming storm.

Los Angeles, often dubbed the “City of Angels,” stands to lose more than its celestial nickname suggests. As a primary gateway for immigrants, the city’s vibrant tapestry of cultures and its economic engine could face significant disruption. From the bustling streets of Koreatown to the sun-drenched orchards of the Central Valley, the absence of undocumented workers could leave gaping holes in the city’s workforce and cultural identity.

Across the country, New York City, with its iconic skyline and melting pot reputation, faces its own reckoning. The Big Apple’s 5.9 million immigrants, many of whom are undocumented, form the backbone of industries ranging from construction to healthcare. The potential exodus could transform neighborhoods like Jackson Heights and Flushing, altering the very essence of what makes New York a global city.In the Sunshine State, Miami’s tropical allure belies the turbulent times ahead. Home to 2.5 million immigrants, the city’s economy relies heavily on sectors like tourism and hospitality – industries where undocumented workers often fill crucial roles. The potential deportation of these workers could send shockwaves through Miami’s economic ecosystem, from South Beach’s glitzy hotels to the agricultural heartlands of South Florida.

Chicago, the “City of Big Shoulders,” may find those shoulders significantly weakened. With 1.7 million immigrants in its metropolitan area, the Windy City’s diverse neighborhoods and industries face an uncertain future. From the meatpacking plants to the tech startups, Chicago’s economic resilience could be tested like never before.

In the Lone Star State, Houston and Dallas stand as twin testaments to the complexities of immigration policy. These Texas titans, each home to large immigrant populations, could see their booming economies stumble. The construction sites that dot their ever-expanding skylines and the service industries that keep these cities humming could face unprecedented labor shortages.

Out West, the San Francisco Bay Area’s reputation as a bastion of innovation and progress could be challenged. The region’s tech industry, often reliant on immigrant talent, might find itself grappling with a new reality. From Silicon Valley’s coding campuses to the agricultural expanses of the Central Valley, California’s economic powerhouse could face a reckoning. Phoenix, rising from the Sonoran Desert, could see its growth trajectory altered. As Arizona’s urban center, it stands at the forefront of the immigration debate, potentially facing not just economic impacts but social and political upheaval as well.

These cities, along with others like San Diego and Las Vegas, are not just facing potential economic disruptions. They are staring down the barrel of profound social change. Family separations, community fragmentation, and the erosion of cultural enclaves built over generations are all possible consequences of mass deportations. Moreover, the fiscal implications are staggering. Undocumented immigrants contribute billions in taxes annually, often without receiving the full benefits of their contributions. Their sudden absence could leave gaping holes in city budgets, potentially affecting public services and infrastructure projects.

As these urban centers brace for impact, the debate rages on. Supporters of stricter immigration policies argue for the need to enforce laws and protect American jobs. Critics warn of economic devastation and the unraveling of America’s urban fabric. What’s clear is that America’s cities stand at a crossroads. The coming months and years will likely reshape urban landscapes in ways both visible and invisible. From the foods we eat to the services we rely on, from the neighborhoods we call home to the very character of our cities, the impacts of this proposed immigration crackdown could be far-reaching and long-lasting. As the nation watches and waits, these cities – vibrant, diverse, and economically vital – find themselves on the front lines of a policy that could redefine what it means to be an American city in the 21st century.

Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring filmmakers. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!