If you think the American economy is booming now, just think what it would be like if American collegians had an extra $1.5 billion to spend—especially with President Donald Trump’s tariffs set to raise the prices of imported consumer goods despite he and his administration saying the tariffs won’t result in price hikes.
Well, if prices aren’t increasing, tariffs aren’t working. The point of a tariff is to make locally produced products more attractive to local consumers by raising the price of imported alternatives. This, in theory, would result in more local production and fewer imports. But a tariff is paid by the importer of a product, not the exporter. So the 25-percent tariff Trump recently leveled on Chinese imports is transferred to the American consumers of those goods, not the Chinese producers.
The trade war isn’t taking money out of the pockets of Chinese manufacturers; it’s taking money out of the pockets of American consumers of Chinese products and Chinese consumers of American products. And since the United States runs a $375 billion trade deficit with China, the only way Trump can “win” his trade war is if Chinese economists can’t do the math to match Trump’s tariffs dollar-for-dollar. It’s even becoming more likely trade with China ends altogether. China has already cancelled planned trade talks with Trump.
It is impossible for America to run a trade surplus with China because China produces more products Americans consider essential than America produces for the Chinese, including car, computer and mobile phone components. It’s lower labor costs and Americans’ addiction to consumption allow China to perpetually have the upper hand in a trade war. If an iPhone were made entirely in America, it would cost as much as a brand new car, so while Trump might be making some American-made products more attractive to American consumers, he’s doing so at the expense of American consumers who can’t do without many of the Chinese imports found in their technology and automobiles. Even the Tesla Model 3 can only be 95-percent American-made at most.
Since Americans will be paying more for computers, mobile devices and cars, it’s not entirely unreasonable to forgive the $1.5 billion in student loan debt and allow those accepted into college two years of college education free of charge. Students and parents are going to pay more for the devices required to attend college, and colleges are going to pay more for them as well, which will be reflected in tuition costs, which will further increase student loan debt while decreasing consumers’ available income for spending in the American economy, potentially sinking the stock market.
There are other reasons besides boosting the economy for the government to payoff student loan debt. First, today’s Associate’s degree, usually obtained in two years at a community college, is the equivalent of a 1980s high school diploma. Advances in technology have made working in what is now a global economy much more complicated and necessitates further education be obtained. Students are not leaving high school with the education necessary to provide for themselves let alone a family, and it’s not their fault.
Secondly, with 17 states offering tuition-free college programs, the trend seems to be students at least delaying the accumulation of student loan debt for two years, potentially lowering accrued interest as well as principal loan balances. In short, future college students in the United States will be saddled with considerably less student loan debt than current and past college students. Meanwhile, entire generations (and student loan debt does span generations), are suffering student loan debt and unable to stimulate the American economy by spending money on anything but debt and living expenses.
Finally, the collective credit rating of American college students, past, present and future, would receive a boost that could spur entrepreneurial growth and investment in businesses as a whole. America was the land of opportunity, where you could go from “rags to riches” with enough hard work. America used to be the best place to start a small business and be your own boss. That isn’t the case these days because despite incomes increasing for middle-class Americans, their purchasing power has barely budged since 1965. You can’t grow an economy in which most consumers have hardly more purchasing power than their grandparents did over 50 years ago, and consumer confidence in the stock market can’t increase if consumers have no means to express their confidence by purchasing stocks.
Lifting the $1.5 billion in student loan debt owed by 44.2 million American borrowers would allow 44.2 million Americans to spend their student loan payment, averaging $351 per month, stimulating the American economy instead of simply paying off interest. Lenders can’t be the only ones making money if the American economy is going to grow.
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In the poker game of American life, the white man is on tilt, bleeding chips like he’s giving them away—because that’s exactly what the white, American man has been doing for 150 years. White, American men started comfortable and stayed comfortable. Some got lazy, and now the chip leader in the poker game of American life senses his chip stack dwindling at the poker table that is American capitalism.
Income inequality grew in 2017 to the largest income gap ever recorded, but for roughly 200 years the white man was the only person at the poker table that is American capitalism. His chips were safe and regularly augmented along with a glass of lemonade by a slave who did the work responsible for the chip stack while his master played solitaire alone.
But when the white man’s first challenger arrived in the 1820s, he felt immediately threatened despite his massive chip stack and perceived mental and physical advantage over his opponent. White men were threatened by women entering the workplace because they’d work for less and advanced machinery made factory jobs easier for them to do. So when a white, American woman approached the poker table with her modest chip stack in hand, the white man went to work, teaching the white woman about American capitalism by using his superior stack of money to take hers. The white man didn’t take the white woman lightly, but he enjoyed her company and gave her enough time and just enough money to learn the game—opportunities not afforded his male opponents. When civil war broke out in the states the white woman’s chip stack grew considerably, and when slavery was abolished, more new players sat at the poker table that is American capitalism.
When a black, American man brought his meager chip stack to the poker table in 1865, the white man might have lost his means of subsidizing his stack, but he knew he could still steal chips from the black man as he did the white woman. And he did and continues to do so, but less often and at an ever-decreasing rate of success.
In 1910, the Mexican Revolution sparked a wave of immigration in the United States, but the first successful labor movement of immigrants in America took place in 1903, when Mexican and Japanese farm workers unionized. It was the first union to win a strike against the giant, California agriculture industry. Then the first wave of Asian immigration to the United States during the California Gold Rush in the 1950s brought more players to the table, each with a larger chip stack than the last. The white man gained another opponent to bully each player who dared sit at the poker table of American capitalism, but that window of opportunity grew shorter with each new player.
When your chip stack is bigger than everyone else’s, you don’t actually have to play poker, or any game for that matter, including the game that is the American economy. You just have to use your money to repeatedly force the poor to decide whether they’re ready to lose everything they have, and they seldom are regardless of the amount. That’s not poker; it’s old-fashioned bullying. The haves lean on the have-nots until they break, at which point the white man borrows them money to buy back into the game, with interest, of course.
The rules of both a poker game and a capitalistic economy cease to govern the gameplay when the majority of wealth is controlled by an extreme minority of players. The game has never been fair and still isn’t, but white, American men are scared anyway. While their chip stack hasn’t decreased significantly, there are more players at the table, and the white man fears there will be more coming for his ill-gotten gains. They can sense the table turning, which is why they’re expressing their anger more boisterously than in the past. They didn’t have much reason to complain while they were buying pots with busted, gutshot straight draws and suited connectors that found no similar suits nor connections amongst the community cards. The white, American man was probably only called and forced to show his cards once every few years in the poker game of American life.
The wealth gap between white and black households in America persists, as does the gap between white and black men. And the wealth gap between white and Hispanic-American men is expected to widen until 2020. But that’s not the case for white and black women. While women have and continue to make less than their male counterparts, white women do not make considerably more than black women raised in similar households. So while white and black women aren’t winning pots as big as the white or black men, they are winning similarly-sized pots relative to each other.
The white man has managed to avoid losing chips to the black man, but the white and black women at the table have charmed the chips right out of the hands of the white man. And he’s enjoyed losing to the women so much the white man has only just realized the growing chip stacks of his other opponents at the table, like the Hispanic- and Asian-Americans. Worse yet, the white and black women at the table are starting to call the white (and brown) on their attempts at getting more than just a handful of chips from the ladies.
Instead of observing the tendencies of his opponents and acting on them, the white man has resorted to bullying the rest of the table with his chip stack, over-betting the pot and forcing his opponents to either risk all their chips or fold. But it’s harder to buy pots with a dwindling chip stack, and the rest of the table has him figured now. The white man doesn’t have the chips to bluff with garbage cards anymore, and while he thinks he’s on a frozen wave of cards you read about, he’s really just scared of all the new action at the table. More players means more cards are out, too, so with every new player at the table, every hand becomes less and less valuable. But that doesn't make immigrants a threat; they can actually pad the chip stack of white, American men, too.
Immigrants work the jobs American men and women won't do, and they pay income taxes for doing them, and spend their income in the American economy, creating more jobs and more wealth for everyone. More players means more action, which means bigger pots and bigger swings of fortune. That worries the white man, as it should, because he's the only one who hasn't been playing poker these last 150 years or so.
White, American men have always been unreasonably angry, but how can you be mad after enjoying an economic advantage built on the backs of slave labor for over 150 years? White, American men tilted the economic playing field so much with slavery and ensuing racial discrimination that their advantage persists to this day. But they sense that advantage dissipating with every immigrant that arrives at the poker table of American capitalism, and that pisses them off, but not rightfully so. Simply being entitled to earning more money isn’t reason enough to be angry about that entitlement decreasing ever so slightly. Being the reason for providing that entitlement against your will, as black Americans were and continue to be (as well as women), is reason enough to be angry, and to be angry for however long the table is tilted in the white man’s favor.
This was originally published at Grandstand Central, where we cover sports from unique angles.
A great American tradition born of the struggle to fill great American ballparks with great American baseball fans is dying. The ballpark giveaway is giving way to greed.
The Ohio Supreme Court heard arguments last Wednesday in a dispute over taxes on promotional items purchased by the Cincinnati Reds and offered to fans through promotional ticket packages. Ohio state law exempts companies from paying taxes on items they buy and resell, but the issue is whether promotional items like bobbleheads are being sold as part of a ticket package or given away in an effort to increase ticket sales. Simply put, if the team gives away bobbleheads, they pay tax. If they sell them with the ticket, they do not.
Regardless of whether the Reds’ techniques are legal or not, the attempt to avoid paying $88,000 in state taxes is pretty insensitive given the Reds’ recent history, both on and off the field. The construction of Great American Ball Park cost Hamilton County taxpayers $349 million and deprived federal taxpayers of $142 million in revenue — the third-most costly of any Major League Baseball stadium according to a Brookings Institute study. The Reds share responsibility with the Cincinnati Bengals for burying Ohio’s Hamilton County in debt, resulting in cuts to social services, including the sale of a hospital, and forcing Hamilton County Commissioners to refinance $376 million of stadium bond debt in 2016. Property owners in Hamilton County were promised 30 percent of the revenue raised by the half-cent increase to the sales tax in the form of reduced tax bills, but the county has rarely had the money to pay the stadium debt and offer the full tax rollback.
Meanwhile, the Reds could go from increasing attendance by giving away items for which they once paid tax to profiting from tax-free items while also increasing attendance. And they’re not the only ones.
The Minnesota Twins are also offering more of these promotional ticket packages and fewer giveaways after winning a similar case back in 1998. Like Ohio, “goods and services purchased solely to resell, lease or rent in the regular course of business” are tax exempt in Minnesota. In fact, most states allow businesses to purchase items tax-free as long as those items are to be resold. So this is only the beginning, and already, great American ballparks are turning giveaways into takeaways, likely turning a profit on what was a cheap means of advertising and now is a cheaper means of advertising.
According to a sales representative at Associated Premium Corporation, a preferred vendor of MLB promotional items, a seven-inch bobblehead purchased in bulk exceeding 10,000 units could cost a ballclub between $3 and $5. Markups on promotional ticket packages are considerably higher than that, and in some ballparks, they vary by seat location.
Senior manager of group sales for the Twins, Phil McMullen, informed me that the prices for their promotional ticket packages are based on the price of their group tickets, which explains why the markup for the promotional item appears to vary by seat location when compared to buying a single game ticket alone. The same cannot be said for the Reds.
The June 19 promotional bobblehead in Cincinnati is available at three different price points in three different sections of the ballpark. The promotional ticket package is $25 per “View Level” ticket, $55 for a seat in the “Field Box” section and $80 for an “Infield Box” seat. The price of a ticket to the same game in the “View Level” section is $17. A field box seat is $41, and infield box seats range from $65 to $68. So the same bobblehead costs $8 when purchased with a “View Level” ticket, $14 when purchased with a “Field Box” ticket and between $12 and $15 when purchased with an “Infield Box” ticket. Assuming the “Field Box” price is based on one ticket price, Cincinnati fans purchasing the promotional ticket package will pay three different prices for the exact same product in the same store.
“It’s consistently very close…the difference is negligible,” Reds’ group sales representative Kristen Meyers said of the varying costs for the promotional items. She attempted to explain the difference in price to accommodate fans buying tickets with exact change, but the Twins’ ticket prices are also full-dollar amounts and their cost of the promotional items don’t vary by seat location.
Minimal research revealed that the Twins and Reds aren’t the only Major League Baseball teams selling promotional items at varying prices depending on seat location. On June 23, the Colorado Rockies are selling a promotional ticket package available in five different sections of the ballpark that includes a University of Nebraska hat. Based on the Rockies’ group ticket prices, fans will pay either $8, $11 or $12 for the hat, depending on their seat location. In Milwaukee on July 7, fans will pay four different prices for a bobblehead depending on their seat location.
If MLB teams are going to sell promotional items on a sliding scale to make those items more accessible to lower-income fans, that should be advertised and owned. But forcing fans who pay more for their tickets to also pay more for a promotional item without their knowledge is theft. While buying a promotional ticket package might be preferable to standing in line for hours with no guarantee of scoring a giveaway item, don’t think for a moment you’re taking advantage of a business desperate to sell tickets. Quite the opposite is true, and the degree to which they fleece you varies as much as the prices of the promotional items they claim to sell in order to avoid paying state tax. But if you must have a promotional item offered with one of these promotional ticket packages, you’re likely best off buying the cheapest seats.
Sure, a business card will remind a potential customer who you are, how to contact you and what your business does, but you can be sure most people will never look at that business card again unless they absolutely need your services. And even then, they’ll probably have a hard time remembering where they stashed it. I know I have multiple stacks of business cards on my desk and bookshelf in the office that were organized in a certain manner I can no longer remember.
Even the nicest business cards get lost in the literal shuffle. Your business needs more than just business cards to convert potential customers into paying customers. If you really want to make a good first impression, you need to leave potential customers with promotional items they love so much they won’t even consider them advertisements. They’re just cool things they want, or even need. So here are the best promotional items to advertise your business and turn potential customers into paying customers.
While more expensive than your typical promotional item, a clever t-shirt worn by a loyal customer is the best walking billboard in which you can invest. Not only do you have ample space to let people know what makes your products or services unique, but you have an ambassador who can pay lip service to your company’s quality, too.
T-shirts are an especially effective investment for nonprofit organizations because their supporters are much more likely to represent the organization on their backs, or even pay for the t-shirt to represent their favorite nonprofits. Nonprofit supporters associate themselves with their nonprofits of choice like sports fans associate themselves with their favorite teams. They aren’t just consumers or spectators -- they have a real effect on the game. Some nonprofit fans even get in on the marketing efforts by designing t-shirts for their favorite nonprofits. That’s the case for the Marijuana Policy Project, which holds a t-shirt design competition annually.
You can save some money by printing your own t-shirts. Here’s a video on how to do just that. Personally, I can attest to how difficult it is to make great looking t-shirts, not because making the t-shirt is difficult. The problem is never applying the ink to the shirt, but properly exposing your silk screen. If you mess it up, you’re out at least $50 -- $25 for the screen you ruined and $25 for the new screen you’ll have to buy. The best screens we’ve worked with we built ourselves rather than buying at the arts and crafts store. They still work to this day despite bottles upon bottles of ink going through them.
Building and exposing your own screens might not be worth your time given the many options to design custom t-shirts online for around $3 to $6 per shirt, depending on quantity. But if you intend to print a ton of t-shirts over a long period of time, having a means to print them yourself whenever you need them would be a wise investment.
Ranging from 60 cents to around $2 each, a customized, ceramic mug is something everyone can use and everyone around them can see. Giving your potential customers or even loyal customers a mug is commonplace in many industries. Most of my mugs advertise something: the title company who helped me close on my house, Burlington Northern Santa Fe Railway, New York Air Brakes, Makoshika State Park, Hershey’s Chocolate. In fact, just one of my six mugs lacks advertising.
Mugs are always useful and tend to be used in the company of others. People at the office drink coffee or tea from their personal mugs at meetings, and people at parties drink beer from glass mugs. Both of which should be advertising your business.
As phones get larger, pocket space gets smaller. Enter the mobile phone wallet -- a silicone wallet to hold identification, credit cards and cash right on the back of your phone. The backs of people’s mobile phones are like billboards for your brand. People are on their phones constantly, so your brand is bound to reach people while giving your potential customer the convenience of carrying less stuff.
You can easily design your mobile phone wallet using online software and choose multiple colors so your potential customers are comfortable affixing your promotional item to their precious mobile phone. You can order mobile phone wallets in bulk at less than 70 cents each.
Classic car calendars are my personal weakness. Everytime I see a classic car calendar for free I take one. I could have two at home and still find another place to put a third. You can never have enough calendars or pictures of hot cars. It’s cheap wall art as well as a practical item that serves a purpose. But not all calendars provide the same promotional payoff.
First of all, don’t bother with the peel and stick calendars that simply have your company logo atop a small, plain calendar capable of nothing more than telling your potential customer the date. There’s no space to write on it, so it’s not likely to get much attention. It also can’t be easily seen nor does it attract the eyes of passersby. If you’re going to give a potential customer a calendar, make it a calendar that draws their eyes as well as the eyes of anyone in the vicinity.
The same could be said of desktop calendars. They’re just too small, and while more practical and useful than the peel and stick calendars, you’re not going to catch the eyes of anyone except the person behind the desk.
The traditional, spiral-bound, hanging calendar is still king of the calendars. The average price of a customized calendar is less than $1, and you can design one yourself using online software and your own images.
Magnetic calendars are starting to catch on because they combine two great marketing materials into one. Most people’s magnets on their refrigerator/freezer were probably free and probably advertise something. Of the eight magnets on my fridge, I paid for one, and that’s because I wanted a momento from The Mob Museum in Las Vegas, which is well worth your time and money if you’re in Sin City. While I have no use for a calendar on which I can’t write, a magnet always comes in handy, which brings us to the best promotional item to advertise your business.
While most calendars have a promotional life of one year, magnets will promote your business for as long as they’re magnetized, so don’t pinch pennies, which is all you’ll be pinching. Most magnets can be had for less than 50 cents each unless you’re going big. While I really like the practicality and convenience of magnetized notepads, they too have a limited promotional life, so stick with a magnet that won’t exhaust its usefulness.
Invest in a thick magnet that will stand the test of time and secure a bunch of stuff to the fridge. There’s nothing more annoying than a cheap magnet that struggles to keep my cousin’s holiday, family photo attached to my freezer. But don’t pay the premium for the magnetized paper clips. They don’t allow you to convey any other information about your business besides your logo, which will be lost amongst the many papers the clip will hold.
The only real drawback of magnets is the competition. Refrigerators are consumed by children’s drawings, “A+” test papers, grocery lists, to-do lists and all manner of coupons or receipts -- each suspended there by a different magnet likely advertising a different company -- maybe even a competitor of yours. So it’s very important that your magnet stands out from the crowd.
The only people who see keychains are the owners of said keychains, so you can’t expect your investment in this promotional item to payoff. But I’ve seen variations of this promotional item that keeps it out of last place.
After a football game one day, I was handed a keychain that doubled as a windshield scraper. I’ve seen others that serve as flashlights. The best keychain I’ve seen is a bottle opener with a beer brand advertised on it. So if you’re going to go this route, make sure your keychain serves a purpose besides hanging from people’s keys.
People who regularly wear hats tend to have hats they prefer to wear. A cheap, trucker hat with your company’s logo is not likely one of those preferred hats. The only time I wear promotional headgear is when I’m doing construction work outside and don’t want to ruin one of my preferred hats. That’s not going to get your brand noticed.
Hats are also expensive promotional materials, especially given the limited return on investment. You can expect to pay about the same amount for a hat as you would a t-shirt, which is just asinine.
Pens are too small to allow others to see what’s advertised on them. And while they’re an affordable investment (less than 40 cents each), the return on investment in terms of lead generation is next to nothing.
If you like this, you might like these Genesis Communications Network talk shows: USA Prepares, Building America, Free Talk Live, American Survival Radio, Jim Brown’s Common Sense, Drop Your Energy Bill, The Tech Night Owl
The stock market is not the economy. It is not indicative of the economy’s health. The stock market is a human collective reacting emotionally to news and numbers. It is merely a means to measure the perceived value of publicly-owned companies based on human emotion and expectations. Those perceived values can be overvalued, undervalued or properly valued, and with the Dow Jones Industrial Average dropping nearly 1,000 points the last three days, it seems stocks were overvalued.
Stocks were overvalued due to a myriad of factors. According to the “Shiller PE Ratio,” stocks were more expensive than they were on “Black Tuesday” in 1929, but less expensive than they were at the height of the dot.com bubble. So historically speaking, stocks were dangerously expensive.
Stocks are overvalued when things are going right. A lack of volatility over the past few years has culminated in a perfect storm that’s seen the VIX -- the stock market’s most popular measure of stock volatility -- rise more than 300 percent in a month.
“One big change affecting the market is interest rates, which have climbed sharply in 2018 to multiyear highs in the U.S. and around the world as economies have picked up steam,” Ed Carson writes for Investor’s Business Daily. Higher interest rates mean higher borrowing costs, which result in people consuming less. Much of the stock market’s recent losses are tied to an expectation that consumers will be spending less in 2018.
Don’t expect the stock market to continue providing 2017 rates of return, and with interest rates likely to increase, bonds aren’t necessarily the best place to put your money, but not the worst either.
There is good news for this newly volatile stock market. Midterm elections are more often good for the stock market than bad. “[T]he seasonality associated with midterms has brought positive returns for the stock market a lot more than it has brought losses,” according to Dominic Chu of CNBC. “On average, the S&P 500's return between Oct. 31 of the midterm year and Oct. 31 of the following year has been an eye-popping 17.5 percent.” So it’s not time to pull your money out of the stock market; it’s time to invest in the stock market.
The best approach for investing in 2018 is the same approach for investing in 2017 and any other year: invest and forget. You’re not going to get rich buying Exchange Traded Funds (ETFs), but you will realize a better return than you would from putting your money in a savings account or buying a Certificate of Deposit (CD).
Attempting to time the market is also a mistake, as is reacting to the market like stock traders did this week. Pulling your money out of the stock market at the first sign of adversity is the same emotional response that drove the stock market down in the first place. Traders selling shares in fear worsened the market’s decline because they had come some accustomed to the market’s lack of volatility. In fact, regular contributions to the stock market help limit volatility. So expect volatility and accept it. Just keep feeding the beast and try to forget that it’s there.
If you like this, you might like these Genesis Communications Network talk shows: USA Prepares, Building America, Free Talk Live, American Survival Radio, Jim Brown’s Common Sense, Drop Your Energy Bill, The Tech Night Owl
It might be a while before post-secondary education is free for any American accepted to a public college or university. New York has become the first state to offer residents a tuition-free, post-secondary education at community colleges and public colleges and universities, and California could be next. That doesn’t help those of us who have already graduated from college with massive student loan debt, but you can get out of student loan debt without paying it all or worrying about interest accruing. The earlier you take these steps the better.
There are a ton of corporate scammers out there preying on recent college graduates struggling to repay their student loan debt. These companies offer nothing you can’t do yourself from the StudentLoans.gov website but charge a monthly fee for playing middle man between you and your student loan servicer(s).
You should be able to identify these scammers by their too-good-to-be-true offer, but if you ever call any other number besides (800) 557-7394 or (800) 557-7392, you’re likely dealing with a scammer. Keep in mind, though, that these companies already get a bad rep, so if you do end up being scammed, do not hesitate to demand a full refund.
This might sound impossible for an unemployed, college graduate, but it’s essential to improve your borrowing power during the six-month grace period you have before your first student loan payments are due.
What you can borrow depends on your debt-to-income ratio, which is probably pretty terrible for any recent college graduate looking for a job. But even if your income is low (or nonexistent), you can take steps to improve your financial situation by simply moving your debt around. The first step is prioritizing your non-student-loan debt.
Credit cards can be an asset if you use them correctly. If you’re struggling to find a job to improve your debt-to-income ratio by increasing your income, you must improve your debt-to-income ratio by reducing your debt. But how can you reduce your debt without income?
You should know which credit cards are costing you the most in interest. Some of these rates can be upwards of 30 percent, so check to see if there’s an opportunity to transfer your highest credit card balance to a credit card with a lower rate. You might pay a three percent fee on the balance transferred, but if that’s less than you’d pay in interest over the life of the introductory rate, better to pay that amount upfront during your six-month grace period.
The key is to never allow your credit card balance to grow. At the end of every month, your credit card balance should be less than it was when you graduated. That way, when the six-month grace period on your student loans expires, you can work with smaller (or nonexistent) credit card payments.
If you are tired of paying multiple student loan servicers, consolidate your loans under one servicer. This will make your student loan payments one payment paid to one servicer. The important thing to keep in mind when consolidating, though, is when asked the question of whether you work for a nonprofit, answer “yes,” even if you don’t. This will assure that your loans are consolidated with a servicer who qualifies for the Public Service Loan Forgiveness Program (PSLF). So if you end up working for a nonprofit in the future, your loans already qualify for the program.
You can only pay what you have, so anyone with student loan debt should be on an income-based repayment plan, unless, of course, you make a ton of money. If that’s the case you should just pay off your student loans as quickly as possible to avoid paying interest.
While you must reapply for an income-based repayment plan annually, regardless of your change in adjusted gross income, it will result in the lowest qualifying payment you can make on your student loans.
If your income is low enough, you could end up paying $0 per month, but unless you intend to work for a nonprofit for 10 years and have the remaining balance of your student loans forgiven, interest will accrue at an astronomical rate.
Under the PSLF program, if you make 120 payments -- even of $0 -- while working at least 30 hours per week for a nonprofit organization, the remaining balance of your student loans after those 120 payments will be forgiven. It will disappear.
You don’t necessarily have to be paid by the nonprofit. If you volunteer for 30 hours per week with a nonprofit or multiple nonprofits, you just need an executive of that nonprofit to verify that you work 30 hours per week for them using this form.
You can even start a nonprofit and have a member of your board verify your work hours. I just found out all the work I did for a nonprofit I started to grow ice sports in my hometown qualifies me for the PSLF program, so if there’s a cause near and dear to your heart that isn’t being addressed by a nonprofit, start one. It’s as easy as raising some money and filing some corporate paperwork with the state to acquire tax exempt status. (Note: partisan political nonprofits and labor unions do not qualify.)
Don’t let student loan debt cripple your economic outlook. Take these steps as soon as possible to get out of student loan debt.
If you like this, you might like these Genesis Communications Network talk shows: USA Prepares, Building America, Free Talk Live, American Survival Radio, Jim Brown’s Common Sense, Drop Your Energy Bill, The Tech Night Owl
Attending a first-time homebuyer workshop is a great way to prepare yourself for purchasing your first home. You’ll learn how much home you can really afford and how mortgage interest rates are determined, the importance of home inspections, what to look for in a home and how to thoroughly inspect a home during an open house. But an eight-hour, first-time homebuyer workshop isn’t enough time to completely prepare you for the home-buying process. Here are 5 things they don’t tell you at first-time homebuyer workshops.
You’ll probably be looking at homes during the day, so you might not turn on all the lights to make sure they work. You should. When I moved into my house I found almost every light bulb dead, which isn’t a big or expensive problem, but one fixture had a connection that needed cleaning with steel wool and electronic parts cleaner. It could have been worse. I could have had to replace the entire fixture, or worse yet, the wiring to the fixture. So turn on every light switch.
Flush the toilets and turn on all the faucets, too. You might find out your kitchen faucet or sink leaks, or your toilet doesn’t flush, or your shower head needs to be replaced, or your washer or dryer doesn’t work. These are all things you should request the seller repair, and you should go so far as to request all the carbon monoxide and smoke detectors and thermostats have fresh batteries. When buying your first home, you should nitpick.
Even your home inspector might not do a thorough inspection of your attic or crawl spaces. Their biggest concern is with the insulation of those areas, which they can see from afar. When you tour a home, check those areas for rodents or places where rodents could enter the home. If there are holes where rodents can enter, request the seller cover those holes with steel, which rodents can’t chew through. This will save you a lot of trouble you really don’t want.
You can get a sense of what utilities will cost you before offering on a home by making a few calls. Call the city or county regarding garbage and water, and call the electric company to see what the monthly electricity bill will run. If your home has natural gas, that should excite you, as it’s more efficient and cheaper than electricity. Once you have an idea what your monthly living expenses will be, you’re ready to make an offer.
Even after you submit your highest and best offer and it’s verbally accepted by the seller, the seller has more than a week to sign the papers officially confirming the acceptance of your offer, which is contingent on your request for work to be done on the house prior to the sale. If the seller decides to go with another offer because they don’t want to do the work you’ve requested, they can. So don’t get too excited when your realtor says your offer was the highest and best, and the seller has verbally accepted it, because the next eight to 10 days (depending on whether your offer is accepted around a weekend) will be the longest in the entire home-buying process unless your realtor has made you aware of it. Now you’ll be prepared.
If you’re the owner of an “aggressive breed” or “bully breed” dog, you won’t even qualify for home insurance policies with some insurers. Others will raise your rate because of the perceived risk associated with your dog, even if your dog is the gentlest dog on the planet. So before considering homeownership, shop around for home insurance so you get the absolute best policy and price.
If you like this, you might like these Genesis Communications Network talk shows: USA Prepares, Building America, Free Talk Live, American Survival Radio, Jim Brown’s Common Sense, Drop Your Energy Bill, The Tech Night Owl, What’s Cookin Today
If the tax plan presented by Donald Trump and Republicans is adopted, the average American stands to benefit very little. According to a new report by the nonpartisan Tax Policy Center, four-fifths of American taxpayers can expect their after-tax income to increase .5 percent or less, while the top fifth of earners would see a three percent increase in after-tax income.
The study also found that 80 percent of tax benefits would go to the top one percent of American earners. Households making more than roughly $900,000 a year would save $200,000 on average. The top one percent of American earners can expect a tax cut of 9.8 percent between now and 2027. Repealing the estate tax would cost the federal government $240 billion in tax revenue over the first decade, most of which would stay in the pockets of the super rich.
Big businesses stand to benefit from the Trump tax plan, too, thanks to a decrease of the corporate tax rate from 35 percent to 20 percent. But businesses that rely on debt to finance their investments, like real estate companies, private equity firms and financial companies, will likely see costs increase, because Trump’s tax plan proposes limiting the deductibility of corporate interest.
Realtors have been especially opposed to the Trump tax plan, because while it preserves the mortgage interest deduction, fewer people would benefit from itemizing their mortgage interest given the plan’s proposed increase to the standard deduction, which is closer to a 15 percent increase than a doubling of the standard deduction. This could make homeownership less attractive and hurt the housing market.
High-tax states like New York and California would be especially affected by Trump’s plan to eliminate the state and local tax deduction, which allows taxpayers who itemize to deduct property, state and local taxes. Congressional Republicans in high-tax states have already expressed their concern, so Trump’s tax plan might not pass without the state and local tax deductions being preserved.
Who is paying for these tax cuts for businesses and the super rich? The Tax Policy Center found that a majority of households earning between $150,000 and $300,000 would pay more in taxes under Trump’s tax plan, as would almost 30 percent of Americans earning between $50,000 and $150,000 annually.
Trump’s tax plan also doesn’t come in under budget. The tax plan would increase the deficit by $2.4 trillion over the first decade, and by $3.2 trillion over 20 years. And while the Royal Bank of Canada thinks Trump’s tax plan will raise gross-domestic product by .5 percent annually, even if that were sustainable over the next 20 years, Trump’s tax plan still increases the federal deficit by $1.252 trillion.
If you like this, you might like these Genesis Communications Network talk shows: The Costa Report, Drop Your Energy Bill, Free Talk Live, Flow of Wisdom, America’s First News, America Tonight, Bill Martinez Live, Korelin Economics Report, The KrisAnne Hall Show, Radio Night Live, The Real Side, World Crisis Radio, The Tech Night Owl, The Dr. Katherine Albrecht Show, Free Talk Live
Loyalty to your bank doesn’t pay. In this era of online banking, there is no reason to keep all your money in one bank. Even if you live in a small town and use a credit union, online bank accounts at the very least give you leverage over your bank to negotiate higher interest rates, but I would suggest taking some of your money out of that credit union or bank and stash it accordingly:
Discover Checking is the best checking account on the planet. Most checking accounts don’t allow you to accrue interest on your money, or if they do, it’s a very small amount of interest. Discover doesn’t offer interest, either. It offers cashback rewards.
Every time you spend the money in your Discover Checking account you get free money. Every check you write is worth 10 cents in rewards, and you’ll get enough free checks to last you a decade. Every time you use your Discover debit card, you get 10 cents.
Consider you pay every monthly bill with your Discover Checking account: rent, water, energy, credit card and a student loan or car payment. That’s 50 cents. Now consider all of your debit purchases each month. You probably buy groceries and fuel at least once every two weeks. There’s another 20 cents, and if you go out for dinner or entertainment a couple times per month, you’re making at least $1 per month in cashback rewards in lieu of interest. I’ll take that over a miniscule interest rate on my tiny checking account balance.
Oh, and if you ever need cash, you can withdrawal on your Discover Checking account at over 415,000 ATMs and do so for no fee at 60,000 of those ATMs. There’s an even better checking account if you live a mobile lifestyle, though.
The Aspiration Summit Checking account offers an interest rate up to 100 times bigger than the big banks. I get .25 percent APY on my Summit Checking account balance currently, and one percent APY when my balance reaches $2,500. The best part is I never pay an ATM fee no matter where I am in the world. Instead of getting traveler’s checks before going on vacation, you can just open an Aspiration Summit Checking account and use your debit card anywhere.
So those are my recommendations for checking accounts, but where should you keep your savings?
Synchrony is one of three banks that offer 1.2-percent APY on savings accounts (Barclays, Goldman Sachs), but Synchrony comes with easy access to your money, which could be a good thing or bad thing. Regardless, Synchrony offers discounts on hotels and car rentals that Barclays and Goldman Sachs don’t offer.
Since I already have a Discover Checking account, I opened a Discover Savings account as well. It stacks up well against the competition when it comes to its interest rate (1.1 APY), but it makes this list because of its $100 bonus offer. If you make an initial deposit of $15,000 into your new Discover Savings account, you get $100.
For an even better return on your savings, you can open a Wealthfront personal investment or retirement account by answering a few simple questions. Before opening your account, Wealthfront asks you questions about your preferred savings goals. If you want to take more risks for the chance at a better return, you can do that. If you want to preserve as much of your investment as possible, you can do that, too. Wealthfront will invest your money based on your answers to those questions, and they’ll even sell investments that have dipped in value so you can deduct the amount from your taxable income if you enable tax-loss harvesting. That’s why Wealthfront makes the list of 5 best places to keep your money: ease of use. You can open the account and never check it again until it’s time to collect.
If you like this, you might like these Genesis Communications Network talk shows: USA Prepares, Building America, Free Talk Live, American Survival Radio, Jim Brown’s Common Sense, Drop Your Energy Bill, The Tech Night Owl, Travelers411, What’s Cookin Today
Now that we know Donald Trump's budget would increase the deficit and do little to improve the economy according to the nonpartisan Congressional Budget Office, you can expect fixed costs like energy and transportation to cut into the average American’s income even more so than in the past. In fact, the Trump administration made a $3.7 trillion mistake in its budget, which is far larger than the $776 billion and and $303 billion mistakes the Obama administration made with its budgets.
While the bulk of Trump’s proposed cuts in energy are research programs at the Energy Department ($3.1 billion, an 18 percent cut in budget) seeking ways to decrease carbon emissions from coal-burning power plants and more efficient batteries for electric cars, programs that actually help Americans save money on energy will also be eliminated.
The Energy Star program, with which you’re likely familiar, costs about $50 million annually, but will be cut from the Environmental Protection Agency’s budget despite the EPA estimating that the program helped American consumers and businesses save $34 billion in energy costs and prevent more than 300 million metric tons of greenhouse gas emissions. That little blue label won’t be there to tell you whether the appliance you’re looking to buy meets the EPA’s standards because those standards no longer exist.
The same goes for the Weatherization Assistance Program (WAP), which funds energy audits of homes inhabited by low-income Americans and the installation of energy efficient additions like attic insulation and plastic over windows. Those workers are doing a lot more than installing plastic over windows, though. They also address health and safety issues by fixing broken windows, replacing faulty water heaters, repairing holes in roofs as well as installing other protective measures.
WAP cost $193 million in 2015, and the it estimates that for every dollar invested in the program, it returns $1.65 in energy-related benefits. In the past 31 years, 6.2 million low-income families have taken advantage of the program, which also produces “non-energy” benefits of an additional $1.07 per dollar invested. By lowering energy bills on average of $413 per year, low-income Americans have more income with which to stimulate the economy. But not anymore, which is likely why the CBO doesn’t see any improvement to the economy in Trump’s budget.
The Advanced Research Projects Agency-Energy (ARPA-E) received $280 million in 2015, and its budget will also be cut entirely. ARPA-E advances high-potential, high-impact energy technologies that are too early for private-sector investment, so cutting it would put more strain on technology businesses, resulting in higher costs for consumers.
The loan program that has made fuel-efficient vehicles more affordable, the Advanced Technology Vehicle Manufacturing Program, would also be cut. Luckily, according to its website, the program has $16 billion in loan authority remaining, despite loaning Ford Motor Company $5.9 billion in 2009. The scrapping of the program will also make it harder for the average American to afford fuel-efficient vehicles.
Finally, Title XVII of the Energy Policy Act of 2005 authorizes the U.S. Department of Energy to support innovative clean energy technologies that are typically unable to obtain conventional private financing due to high technology risks through the issue of loans. Those loans will no longer be made available.
So that’s what’s happening to the U.S. energy budget. No more investing in American energy unless it comes in the form of decayed dinosaurs. But with fossil fuel exploration and drilling increasing, the price of fuel should go down, right? Well, the real price of gasoline and diesel fuel is already below nominal prices, which means they’re likely to increase to at least the nominal price.
Then there’s the U.S. transportation budget, or lack thereof. While shifting air traffic control to a nonprofit organization would transfer thousands of workers off the government payroll, it could impact smaller airports providing cheaper flights, which means more expensive rates for you. The elimination of $175 million in subsidies for commercial flights to rural airports will hurt rural Americans especially.
Also being eliminated is funding for many new transit projects and support for long-distance Amtrak trains, which, of course, would make Americans more car-dependent, and by design, more fossil-fuel dependent. Worst yet, the roads Americans will be forced to drive won’t be getting any better. The Republicans’ budget would cut $499 million from the TIGER grant program despite skyrocketing demand. The Department of Transportation received 585 eligible applications from all 50 States, and several U.S. territories, tribal communities, cities, and towns throughout the United States, collectively requesting over $9.3 billion in funding in 2016.
So how do we as Americans manage to get to and from the places we need or want to go with energy costs, both in the form of electricity and fuel, and transportation costs, both in the form of planes and trains, increasing? Well, here are 5 ways to save money despite budget cuts to energy and transportation.
If your roundtrip is under 10 miles, you need not drive. Get out the bicycle, put on the padded underwear and a helmet and take your share of the roads. I recommend wearing padded underwear if you intend to cycle for an hour or more. It generally only takes an hour to go 10 miles on a bike, and with a caddie and saddlebags, you can carry a towel and fresh clothes to change into once you arrive at your destination. Do not wear a backpack! You’ll regret it the moment you get a mile from home.
Not all of us live close enough to the places we frequent to do so on bicycle. But there are other people taking a similar trip. Mobile devices with unlimited data have made social circles a whole lot bigger than the water cooler at the office. Just because no one in your office goes by your house on their way to work doesn’t mean you can’t carpool.
Carpooling apps are becoming more popular in metro areas, with New York City, Chicago and Washington, D.C. already being served by Via. But growth of carpool communities is dependent on us as Americans to make them viable options. Apps like Duet and Waze need demand to be useful, and if we’re all set on wasting money and killing the Earth by driving our cars to work everyday, they might never be available in your area. So sign up to either drive or ride with all the carpool apps and share them with your friends on social media so we can grow the carpooling communities and all save on transportation.
In the future, your self-driving car will simply go out and drive people to work while you’re at work or asleep. Until then, we’ll have to take the wheel, both figuratively and literally.
More and more Americans are working from home these days, as employers look to cut costs like rent and energy, and employees look to cut transportation costs. If you do most of your work on a computer or over the phone like me, you can probably negotiate a work-from-home agreement with your boss. You might not be able to work from home everyday, but a few days per week will still save you money on transportation costs. And there’s nothing really like working in bed to the sounds of Rick James on vinyl.
This isn’t going to be feasible for the average American, but for the first time ever, a car doesn’t have to be a liability anymore. Buying an electric vehicle is an investment that will pay for itself. The payback period depends on the car, of course, but it could be as little as eight years for a Kia Soul EV and as many as 30 or more years for the mysterious Tesla Model 3. And if the average American drives 13,474 miles annually, a Model 3 owner will have paid for her car in 30 years. That’s seven years before Model 3 owners will have to worry about investing in replacement batteries given the 484,669-mile projection for the batteries’ ability to retain at least 80 percent of their capacity.
Regardless of where you live, there’s likely an opportunity for you to harness solar or wind to create energy and lower your energy bill. And until Republicans pass a budget, there are still tax incentives and rebates available to you for installing solar arrays and wind turbines. You might as well take advantage of them while you still can, as both technologies have become more affordable to install. Solar installations have dropped nine percent in a year, and wind turbines have dropped more than 60 percent in price since 2009.
The energy companies are doing their best to deter customers from installing renewable energy sources, though. Many are charging flat fees just for hooking up a solar array or wind turbine, and then they’re taking the extra energy you don’t need, but that you provide, and selling it to others. That’s why you should consult an electrician and find things you can run directly from your renewable energy sources if your energy provider is looking to take advantage of you.
Maybe your solar panels charge a battery or generator that runs the lights and electricity in your newly built shop or garage. You can always rewire your solar array or wind turbine into the grid, so don’t give in to paying those flat fees to use your own energy. If we discovered farting in a can could run lights for an hour, the energy companies would find a way to suck the fart out of that can and make you pay rent on the can. Don’t let them get your farts.
If you like this, you might like these Genesis Communications Network talk shows: The Costa Report, Drop Your Energy Bill, Free Talk Live, Flow of Wisdom, America’s First News, America Tonight, Bill Martinez Live, Korelin Economics Report, The KrisAnne Hall Show, Radio Night Live, The Real Side, World Crisis Radio, The Tech Night Owl, The Dr. Katherine Albrecht Show, Free Talk Live, The Easy Organic Gardener, The Magic Garden, The Paul Parent Garden Club Show, USA Prepares, American Survival Radio, Jim Brown’s Common Sense, Home Talk