Category: Business & Economy

Celadon, the largest U.S. truckload carrier, filed for bankruptcy Monday morning, leaving 3,000 truck drivers and 500 administrative positions without a job two weeks before Christmas. 

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.

This year, as it has for several consecutive years now, the Tax Foundation reported that “Americans will collectively spend more on taxes in 2019 than they will on food, clothing, and housing combined.”

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.

Despite the fact that the Fed insists on keeping interest rates low, many credit cards are actually raising rates for consumers, according to the Wall Street Journal. The increase is to make up for the generous rewards – perks like cash back and travel – that credit cards are offering to lure in customers.