Inflation relief checks by state: summary news 28 November
Inflation relief in the US: latest updates
Headlines: Monday 28 November 2022
- Biden pushes Congress to override worker vote to avoid a national rail strike
- We took a look at the drivers of inflation, not only in the US but around the world
- Student loan borrowers will get a few more months of relief as Supreme Court evaluates the constitutionality of the White House's forgiveness program.
- US stores prepare for Cyber Monday 2022
- What are the origins of Cyber Monday?
- Unemployment rose in 24 US states in October
- California continues to send Middle-Class Tax Refunds to households across the state
FTX collapse: what to know
- Collapse of major exchange FTX continues to roil cryptocurrency markets
- Lawsuit filed against FTX founder and several celebrity promoters, including NFL star Tom Brady
Take a look at some of AS USA's latest related articles:
The freight rail industry stands on the brink of major strike action unless a compromise can be found in the coming days. For months business leaders and union heads have been in negotiations to improve pay and scheduling procedures for railroad workers.
However those talks stalled and both sides agreed to a cooling-off period, which ends next week. If a deal cannot be found before Friday, 9 December a hugely damaging freight train strike could begin.
We take a look at the reasons for the strike, and how it could affect your Christmas plans...
President Biden says Congress should act to prevent rail strike
As a proud pro-labor President, I am reluctant to override the ratification procedures and the views of those who voted against the agreement. But in this case – where the economic impact of a shutdown would hurt millions of other working people and families – I believe Congress must use its powers to adopt this deal.
Some in Congress want to modify the deal to either improve it for labor or for management. However well-intentioned, any changes would risk delay and a debilitating shutdown. The agreement was reached in good faith by both sides.
Airfare has increased almost 15 percent since last year
For those looking to do some holiday travel, higher airfare tickets may be a barrier.
Compared to last year, prices are up 14.6 percent, driven at least in part by higher fuel costs. As crude oil prices rise, jet fuel refiners increase their prices and pass those costs along to airline companies, which are then passed to consumers.
The ideal time to buy a flight is around fifty days before the departure date, meaning that those who are looking to go somewhere over Christmas or New Years, should get their tickets ASAP.
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Federal Reserve expects negative job growth by 2023
In October, many economists were surprised when the economy added more jobs than many had projected. While unemployment increased last month, the job market maintained a strong position for workers, with the number of job openings far and above the number of unemployed people looking for their next gig.
Later this week, we will learn about October's layoff versus quit rates. In September, the vast majority of workers who left their jobs, did so willingly, meaning that many believe they will be able to find better employment elsewhere.
The Federal Reserve believes that by increasing interest rates, the national unemployment rate will increase, cooling demand as incomes take a dramatic fall. It is a brutal way to manage the economy that can have devastating outcomes for families who may not be able to make ends meet on unemployment insurance or government benefits. The Central Bank has released new projections that show that in quarter four of 2023, job growth will fall into the negative category, which could provoke a major recession if consumer spending is impacted at a massive scale.
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The other student loan debt forgiveness program not on hold
While the Limited Public Service Loan Forgiveness (PSLF) announced by the Biden administration expired 31 October, many of the benefits were made permanent. These will take effect 1 July 2023.
The PSLF program should not be confused with the one-time loan forgiveness progam that was announced in August and briefly went live in October. That program, which would cancel up to $20,000 in student loan debt, has been put on hold while court challenges are address.
The PSLF is available to people who work in public service in federal, state, tribal, or local government, or for a non-profit organization. Before applying though, the Departement of Education recommends checking out the changes tofind out if you are eligible.
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Record Cyber Monday expected after bumper Black Friday
Shoppers hit stores and online portals on Black Friday in droves. They spent a whopping $9.12 billion online this year returning to pre-pandemic levels. But Americans haven't finished getting ready for the holidays and are expected to seek out even more deals on Cyber Monday. Adobe Analyticds estimates that consumers will spend over $11 billion during the online sales extravaganza.
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Inflation turns Black Friday grey
As this short report reminds us, the impact of soaring inflation across the country means that the 'real' benefit of the discounts picked up in the 2022 Black Friday campaigns is not the same as other years.
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inflation Reduction Act impact
“This is a whole cloth transformation of our economy,” said Dr Bruce Kahn of Shelton Capital Management, as he discussed the long-range impact of the Inflation Reduction Act on the clean energy space.
It is not yet being felt by the market, he argues.
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Cyber Monday caps off the busy Thanksgiving shopping period. While the weekend promises many supposedly amazing deals, be aware that companies are more than aware of the buzz around Black Friday weekend and that many of the deals are not as they seem.
But lets say you have found a particularly good deal that is actually cheaper than at any other time of the year? If it sounds too good to be true then perhaps it is, it’s an easier trap to fall into online compared to in-person shopping due to the tricky nature of internet shopping.
Here are a number of methods you can useto make sure you don’t ripped off with less than a month until Christmas.
The two states have options open for taxpayers to receive a portion of their paid tax back but in some cases the eligibility period is already over.
We take a look at how you can receive some taxes back before the Christmas period.
Cyber Monday expected to be largest on record
Spending on Cyber Monday is set to hit a record $11.2 billion, according to a report from Adobe Analytics that has access to data covering purchases at 85% of the top 100 internet retailers
In comparison, Cyber Monday sales fell 1.4% last year comapred to 2020.
"With holiday promotions kicking off long before the Thanksgiving weekend, consumers have been shopping strategically for the season's best deals," said Mastercard Chief US Economist Michelle Meyer.
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All major supply chains in the United States are dependent on truck drivers. These essential workers are responsible for ensuring grocery stores are stocked, drivers are able to pump gas, and retailers have goods to sell.
In the United States, seventy percent of freight is delivered by truck, so without these workers, supply chains would fall apart, particularly during the holiday season when shoppers begin to buy gifts online and in person.
In 2021, around 1.9 million truck drivers with an average salary of $49,887.96 worked to transport $671 billion of merchandise.
Read our full coverage for details on how wages and salaries differ from state to state.
With prices getting ever higher, despite recent drops in speed, people will be asking bosses for more money so inflation doesn’t swallow their wallet. Living is expensive and although there are laws for minimum amounts jobs can pay workers, the amount is so low that it is not at all liveable for any person.
In fact, the current minimum wage has not changed since July 2009.
Currently, the US federal minimum wage is $7.25 per hour, meaning that a person earning this wage who worked 40 per week every week of the year, would bring home $15,080 annually. That is less than half the US median annual average and slightly above the US poverty threshold at $13,590 for an individual.
However, some cities have taken steps to up the minimum pay for workers in their jurisdiction.
What are the main causes of inflation in the US?
Inflation is decreasing, but consumer prices remain almost eight percent higher than they were a year ago. For many families, this news is troubling as the holiday season approaches, and many evaluate their travel and gift-buying plans in the coming weeks.
The current inflationary crisis is not only being felt in the United States.
Germany has seen prices rise 10.4 percent since October 2021, and consumers in Argentina are trying to keep up with historic inflation that is expected to clock in 73.5 percent higher in January 2023 compared to the same period this year.
Around the world, the supply chain breakdowns caused by the covid-19 pandemic, the energy crisis caused by the Russian invasion of Ukraine, and corporate greed are leading to higher prices across critical markets, including food and shelter.
Read our full coverage for the details and what actions are being taken to reduce inflationary pressure across markets.
Another year is drawing to a close, and with it comes new changes to Social Security benefits, among them an 8.7% cost of living adjustment (COLA) that will be applied to benefits starting in January.
Under federal law, the Social Security Administration (SSA) must increase the monthly payments sent to retirees, those with disabilities, and their families, with the objective of equalizing the benefits with the current rate of inflation. In this way, purchasing losses are avoided for beneficiaries when inflation is high. This equalization is known as COLA. And, while the COLA does help keep the purchasing power of these recipients up, compared to where they would be without it, the Senior Citizens League says it’s not enough.
Read our full coverage for more information on when the increased benefits will hit accounts.
President Biden provides an update on student debt relief
After a DC court sided with loan servicers over the legality of the Biden administration's plan to forgive up to $20,000 in debt, the case is headed to the Supreme Court.
While the White House has said that the extension to the student loan moratorium enacted in August would be the last, another has been approved through 30 June. This extension was allowed because it helps to avoid confusion for borrowers who could have all or some of their debt forgiven if the Supreme Court upholds the constitutionality of the program. If the program is allowed to be enacted, it ensures that the Department of Education does not need to process millions of refunds for payments made between January and whenever the court releases its opinion.
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Also on the subject of Cyber Monday, AS USA's Oli Povey and Will Gittins look into the origins of the shopping day.
Cyber Monday is here - and we've prepared a preview of the shopping day, which stands alongside Black Friday as one of the two biggest days of the year for consumers in the States.
Good morning and welcome to AS USA's daily live blog for Monday 28 November 2022, bringing you the latest financial news from the US and information on inflation relief measures in the country.