Category Archives: Business & Economy

Poor Americans’ Credit Card Usage Spikes As Their Savings Run Out

Poor Americans’ Credit Card Usage Spikes As Their Savings Run Out

A widely propagated myth is that there is north of $2 trillion in “excess cash” savings spread evenly across the US population (courtesy of Biden’s trillions). However, this “excess” is actually only held by the top 20% of the wealthiest in America. But, the statistic that should make people pay attention is the fact that spending on credit cards among the lower income cohort has spiked with a 23% growth rate over a 2-year period, up from the summer average of 15%. According to Bank of America, this growing reliance on credit cards reflects “the loss of income support from the expiration of unemployment benefits (UI) which has disproportionally impacted the lower income population.”

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Parts Shortages Hit Auto Repair Shops, Taking Weeks To Fix Vehicles

Parts Shortages Hit Auto Repair Shops, Taking Weeks To Fix Vehicles

A global semiconductor shortage has reduced new car production and boosted used car demand. The average used car age on U.S. highways hit 12.1 this year, a record high, and has unleashed a repair boom. But with snarled supply chains, auto repair shops have had difficulty sourcing parts and told customers their cars could take weeks to fix, according to Bloomberg. 

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Yellen Is Wrong. The US Government Doesn’t Always Pay its Debts.

Yellen Is Wrong. The US Government Doesn’t Always Pay its Debts.

Former Fed Chair Janet Yellen is trying to convince people that the United States has never defaulted before, and has always made good on its financial obligations. Yet the United States government absolutely has defaulted on debts before—more than once. Moreover, if we expand the idea of default slightly, to encompass the idea of inflating away a government’s debt in real terms, default is even more common.

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Fears of Stagflation Loom as Job Growth Stalls

Fears of Stagflation Loom as Job Growth Stalls

Job growth numbers on Friday failed to impress. Economists had predicted job growth in the area of 720,000, but according to the Department of Labor’s estimates, jobs growth for August was only a third of that: 235,000. Commentators called it “terrible news” and the word “stagflation” has started to appear more and more in the media and investor narratives. And there are good reasons to fear that stagflation may be on the horizon…

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