Category Archives: Business & Economy

Why Bad GDP Metrics Lead to Bad Policy

Why Bad GDP Metrics Lead to Bad Policy

The laser-like focus on consumer spending as the driver of economic health is largely the result of the government’s premiere measure of the economy: the Gross Domestic Product (GDP). Significant flaws in how GDP is measured, however, not only make it a misleading indicator, but have led to erroneous conclusions about what makes the economy tick. Such errors lead to extremely costly and damaging public policies.

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63% Of All U.S. Jobs Created Since 1990 Have Been Low-Wage Jobs

63% Of All U.S. Jobs Created Since 1990 Have Been Low-Wage Jobs

Since 1990, the U.S. economy has produced millions of jobs, but nearly two-thirds of them have been low wage jobs. Of course this is one of the biggest factors causing the systematic erosion of the American middle class. Today, half of all U.S. workers make less than $33,000 a year, but meanwhile the cost of living has been steadily increasing.

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Nearly Half Of US Consumers Report Their Incomes Don’t Cover Their Expenses

Nearly Half Of US Consumers Report Their Incomes Don’t Cover Their Expenses

Low-income consumers are struggling to make ends meet and if a recession strikes or the employment cycle continues to decelerate — this could mean the average American with insurmountable debts will likely fall behind on their debt servicing payments. A recent report that showed that 44% of consumers don’t make enough money to cover their expenses.

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Sub-Prime Auto Credit Deteriorates In July, Says Report

Sub-Prime Auto Credit Deteriorates In July, Says Report

Kroll Bond Rating Agency (KBRA) published its Auto Loan Indices for July and reported deteriorating credit conditions for non-prime auto and prime loan pools. In July, losses climbed on both MoM and YoY basis. Annualized net losses rose 67bps MoM and 25bp YoY to 7.30%, while the percentage of borrowers that were two months late increased to 4.41%

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Student Debt Crushes Home-buying Dreams For Millennials , Now Delayed 8 Years

Student Debt Crushes Home-buying Dreams For Millennials , Now Delayed 8 Years

The life-altering impacts of student loan debt on millions of millennials is debilitating towards their financial health. At least 60% of millennials have no savings, and their poor financial health has contributed to the reason why so many young adults can’t afford a down-payment on their first home. About 40% of millennials have student debt, according to the AARP, and Clever Real Estate says the student debt has delayed home buying by eight years for millennials.

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