Americans are quickly getting poorer as the much-touted economic “recovery” remains elusive. Household wealth plummeted by more than four percent from July to September according to a report released last week by the Federal Reserve, marking the steepest drop since 2008 and the second quarterly decline in a row. That represents an average loss of about $21,000 per household in just three months.
Last week’s announcement that the auto industry could add as many as 167,000 jobs by 2015 merely confirmed what some economists were saying: that lower wages allow car manufacturers to hire more people more profitably. As part of the agreement between the federal government and the unions in 2007, a lower tier of wages was created in order to halt the hemorrhaging of cash the carmakers were experiencing that led to the bailouts. The unions reluctantly agreed to accept the two-tier system, concluding that a lower-paying job was better than none at all.
If you’ve seen “Little Blue Dynamos” ads urging you to consume blueberries, you probably assumed they were simply the result of blueberry producers getting together to promote their product. In fact, they are the result of certain blueberry producers’ collusion with the federal government to force all blueberry growers and importers to fund such promotions under the threat of hefty fines for noncompliance.
Here’s a story that’ll tickle your McRibs. On December 1 a law seemingly banning McDonald’s Happy Meals went into effect in San Francisco. The “Healthy Meal Incentives Ordinance” prohibits restaurants from giving away toys with meals that do not meet with the city’s approval — namely, meals with too many calories, too much salt or fat, or insufficient fruits and vegetables. Just a few days before the ordinance took effect, SF Weekly reports, McDonald’s announced it had found a simple way around the statute: Charge customers extra for the toys.
“New Company Policy: We Are Not Hiring Until Obama Is Gone.” Those words are plastered across every truck owned by U.S. Cranes LLC of Waco, Georgia — not as a threat but as a recognition of the fact that, as owner Bill Looman told ABC News, “overregulation and the cost of complying with federal mandates has [sic] caused many of his customers to shut their doors.” As a result, he has been forced to lay off three of his nine employees.
The Federal Reserve Bank committed some $7.77 trillion in funds to major Wall Street banks during the height of the 2008 financial crisis, according to a report published by Bloomberg News November 28 through a Freedom of Information Act request.
With the nation still deeply in debt and Americans struggling to make ends meet, residents in an Ohio valley are proving to the nation that perseverance and optimism are key ingredients to overcoming economic woes.
There was precious little good news in the latest employment report from the Bureau of Labor Statistics (BLS) for October. Employment rose by 80,000, less than economists expected, and much less than the 250,000 needed to begin to bring down the unemployment rate significantly.
Back in August, when Standard & Poor's downgraded the U.S. credit rating for the first time in history, from AAA to AA+, the Obama administration was disgruntled and fearful of how such a move would impact economic growth. Once the initial shock of the maneuver passed, however, Washington returned to its business-as-usual mentality. Now, however, it seems that this period will be short-lived, as another downgrade is expected.
Citigroup has agreed to pay $285 million to settle civil fraud charges that it misled buyers of complex mortgage investments just as the housing market was starting to collapse. The Securities and Exchange Commission brought forth the civil action against Citigroup, claiming that investors who bought into the deal (which involved, essentially, stuffing portfolios with risky mortgage — related investments, selling it to unsuspecting customers, and then betting against those investments) had been defrauded. The transaction involved a one-billion dollar portfolio of mortgage-related investments, many of which were handpicked for the portfolio by Citigroup without telling investors of its role or that it had made bets that the investments would fall in value. The SEC says that as investors lost millions, Citigroup made $160 million in fees and profits.