by M. Garro | Parenting
The U.S. Federal Reserve’s commitment to addressing inflation without triggering a recession is being tested. This week introduces three fresh hurdles – a sweeping autoworkers strike, the looming shadow of a federal government shutdown, and the reintroduction of student loan repayments after a pandemic-induced hiatus.
A Perfect Storm
The United Auto Workers (UAW) union has made a bold move, launching a strike against all three of the major U.S. automakers. This started with the mobilization of around 13,000 workers at three plants, and these numbers have the potential to expand significantly.
Meanwhile, federal officials face a ticking clock, with a deadline of September 30 to prevent a government shutdown. The added layer of complexity comes from congressional Republicans, who are currently stalling negotiations.
To further thicken the plot, student loan repayments, which have been paused for three years due to the COVID-19 pandemic, are set to resume in October.
Potential Economic Impact
If viewed in isolation, each of these events might appear manageable. However, their cumulative effect, combined with an already anticipated economic slowdown in the latter part of the year, raises alarms. These consequences could have a broad impact, including less spending by consumers, higher car prices that hurt the Fed’s efforts to control inflation, and a shake-up in business and consumer confidence.
These combined events could decide if the economy has a smooth landing or faces a more significant downturn.
Goldman Sachs, usually optimistic about the economy, is now sounding a warning. Their economists expect a bumpy fourth quarter that could reduce GDP growth by over one percentage point.
Although they still predict a 1.3% annual growth rate, their numbers are much lower than what the Fed expected in June and differ from many other private sector forecasts.
Fragile State of the Economy
Vincent Reinhart, Chief Economist for BNY Mellon Asset Management, has voiced concerns over the fragile state of the economy, citing the aggressive Fed interest rate policies, the tightening grip on credit, and the dwindling pandemic-era savings. For Reinhart, the slightest shock can lead to an economic deviation.
Furthermore, he points out that the reduction of the Fed’s balance sheet has now reached a stage where it could inadvertently tighten financial conditions, posing yet another risk.
In its upcoming meeting, the Federal Reserve seems poised to retain its policy rate at a range between 5.25%-5.5%. The Fed’s journey through the recent months, despite being fraught with challenges, has seen a silver lining, with inflation rates subsiding even as the economy has been growing above the expected trend.
Bright Spots Amid Challenges
Coupled with a consistent addition of jobs each month, the economy presents a mixed picture of potential growth and lurking dangers.
Potential disruptions from strikes involving as many as 146,000 auto workers and a government shutdown affecting up to 800,000 federal employees (who would go without paychecks) cast dark shadows on growth prospects.
Analysts are wary, noting that the current circumstances are uniquely precarious. Michael Pearce, a leading U.S. economist for Oxford Economics, has expressed that any strike could be particularly detrimental. This is because the auto supply chains are still getting back to normal, and workers want to make up for the money they lost due to inflation, even though the auto industry booming.
Long-term Impacts and Consumer Behavior
The trajectory of these events and their long-term impact remains uncertain. Some suggest that reduced consumer spending could paradoxically aid the fight against inflation.
On the flip side, experts like Ian Shepherdson and Kieran Clancy from Pantheon Macroeconomics suggest a different perspective. They point out a potential change in how people spend, noting that more money is going toward the U.S. Department of Education while searches related to travel and leisure have decreased.
If the economy does stumble, the Federal Reserve’s safety nets will remain shelved until the inflation battle is won, compelling businesses and families to grapple with persistent high interest rates. Preparations have been ongoing, as the institution has been living with and strategizing around this recession risk for over 18 months.
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by M. Garro | Parenting
American wallets are under pressure as expenses surge faster than incomes, resulting in rising credit card debt and diminishing savings. From housing to transportation and the impact of inflation, we’ll explore the factors affecting people’s financial stability.
Growing Gaps in American Wallets
Recent data reveals a concerning trend for the American wallet. While incomes are increasing, the rise in expenses is outstripping paychecks, leading to increasing credit card debt and dwindling savings.
Inflation’s effects are evident in all spending categories, but it significantly hits harder in sectors such as food and transportation.
Recently, American credit card debts have exceeded the $1 trillion threshold.
While half of the cardholders clear their balances monthly and benefit from rewards, the remaining half grapple with mounting balances and record-high interest rates.
A Growing Economic Divide
The “K-shaped” economic recovery, where various sectors of the economy rebound at varying rates after a downturn, highlights the escalating economic inequality.
As we approach another presidential election year, these economic disparities will undoubtedly be at the forefront of national discussions.
The financial landscape paints a clear picture: even if wages increase, rising expenses dampen the sense of economic progress for many.
On top of rising debt, the personal saving rate is trailing well below historical averages.
The much-discussed $2 trillion in surplus savings from 2020 and 2021, which accumulated due to COVID-induced stimulus payments and reduced pandemic spending, has largely been exhausted.
Holiday Shopping Forecast
This year’s holiday season will likely see a highly price-sensitive consumer landscape.
Despite a robust job market, low consumer sentiment exacerbated by inflation and rising interest rates is palpable.
A survey by Bankrate indicates that inflation will influence a third of holiday shoppers, with a significant 25% expressing stress over holiday shopping costs.
A whopping 88% of shoppers plan to employ cost-saving strategies, emphasizing a clear trend in the retail sector.
The Underlying Forces
But what’s driving the upward trend in expenses, and how is it shaping consumer behavior?
According to the Bureau of Labor Statistics’ latest annual consumer expenditures survey, Americans observed a growth in their average annual expenses by 9% from 2021 to 2022.
However, there’s a catch. The rise in expenses exceeded inflation rates, recorded at 8%, while average income growth before taxes was just 7.5%.
Housing emerged as the most significant expense for Americans in 2022, accounting for 33% of total expenditures.
Other major expense categories included transportation (17%), food (13%), personal insurance and pensions (12%), and healthcare (8%).
A Deeper Dive into Spending Trends
Notably, spending on food escalated by 13% consecutively from 2020 to 2022, with transportation costs also rising by 12% annually.
It’s crucial to understand that even as inflation rates decrease, prices aren’t reverting to pre-pandemic levels.
Current inflation rates are still exceeding the Federal Reserve’s 2% target, with the Core PCE (the Fed’s preferred inflation metric) surging 4.2% year-over-year.
Fed’s Stance on Inflation
The Federal Reserve, spearheaded by Chairman Jerome Powell, reiterates that a universally beneficial economy will materialize once inflation is effectively managed.
However, for now, the strain of high prices and surging interest rates continue to weigh heavily on the American household.
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by O. Davies | Parenting
A teacher from California who identifies as non-binary has openly admitted on TikTok to letting kids switch genders in the classroom. The controversial part? The parents don’t have a clue!
Helping Kids Switch Gender
Olivia Garrison, a teacher, revealed she’s been helping students change their gender without telling their parents.
Garrison, who identifies as non-binary, believes it’s her job to protect kids, even from their parents, “Sometimes they need protection from their own parents.”
Garrison teaches at Del Oro High School, where students can change their name and gender info without needing their parents’ signature.
Does Safe Space Have to Mean Secret?
Garrison has a classroom where all students can feel safe to be themselves, especially if they don’t feel comfortable at home.
Some parents, like Jessica Bradshaw, are upset because they weren’t told about their child’s changes at school, and they want the school to be open about it.
Parents think they should be part of big decisions, like gender changes, for their kids.
The student in the middle of this, who needed a safe place, is thankful for the school’s support and wishes it didn’t have to be hidden from parents.
Respecting Parents
California says schools shouldn’t share students’ gender identity without permission, but other places have other rules.
People are having a considerable debate about how to keep students safe and make parents feel respected at the same time.
A dad from Alabama, Jeff Walker, says some kids don’t have supportive families, so school needs to be a safe place.
Do you think kids should be allowed to express themselves at school without their parent’s knowledge? Let us know know your thoughts in the comments.
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by J. Lysikatos | Parenting
This TikTok story has gone viral, and people are outraged! A woman named Amiyah faced a heartbreaking dilemma when her mother-in-law crossed a line she never thought possible.
Microaggressions From Mother-In-Law
Amiyah was in a difficult situation with her mother-in-law (MIL). From the beginning, Amiyah sensed that her MIL wasn’t thrilled about her son marrying a Black woman. Though she hadn’t been outright nasty, subtle microaggressions were all too common.
One of the earliest incidents occurred when they first met — her MIL touched Amiyah’s curly hair and said she loved her “wild look.”
Amiyah, feeling offended, politely asked her not to touch her hair.
But her MIL brushed it off, said, “You must be used to it since you’re okay wearing your hair like this,” and touched it again!
Prettier With Straight Hair
Amiyah confided in her then-boyfriend, now husband, about this unsettling encounter.
He understood her concerns and talked with his mother about respecting personal boundaries. After that, they went low contact with her, hoping it would improve their relationship.
Despite these efforts, her MIL continued making uncomfortable comments, usually about Amiyah’s race and natural hair.
One instance that stuck out to Amiyah was when her MIL asked her why she had never tried to tame her hair. Her MIL then explained she thought that Amiyah would be such a pretty girl if she had straight hair, and her natural hair was such a shame.
Criticising New Grand Baby’s Hair
These remarks were not only rude but hurtful, and to add insult to injury, this happened in front of all of Amiyah’s in-laws, with none coming to her defense.
Amiyah and her MIL’s relationship really took a hit when Amiyah gave birth to their first child. Her mother-in-law’s comments at the hospital were nothing short of shocking.
As she held the baby for the first time, instead of embracing the moment, she couldn’t help but comment on the baby’s hair, saying, “Let’s hope you end up having pretty hair like grandma!”
Amiyah had heard enough. She kicked her out of the delivery room, further straining their fragile relationship.
A Most Regrettable Day With Grandma
For a while, Amiyah kept her MIL at arm’s length. However, their work life got super busy, and the couple decided to take a day trip, leaving their daughter in her care.
Despite her reservations, Amiyah reluctantly agreed. Little did she know that this decision would lead to one of the most regrettable moments of her life!
When Amiyah returned to her mother-in-law’s house, her jaw dropped when she saw her daughter.
Her toddler had swollen eyes like she had been crying all day.
What Had She Done to Her?!
Even more concerning was her daughter’s hair, which had been dyed and straightened! It looked terrible, and Amiyah’s daughter was clearly upset.
Like any mama bear, Amiyah wasn’t going to let this stand. She immediately began ripping into her MIL, demanding to know what she had done to her child.
Amiyah’s MIL was unfazed. She kept telling Amiyah to calm down and explained that this was a much cleaner look for her daughter.
Apparently, Her MIL had taken the toddler to a professional salon for hair dye and keratin treatment (a chemical treatment that makes curly/wavy hair look straight, sometimes permanently).
A Distressing Day
However, the results could have been better. Her daughter’s hair was an unnatural platinum blonde, and the keratin treatment left it with a crispy, wavy texture that felt like straw.
The worst part? Her little girl had been forced to spend almost four hours sitting in the salon chair despite being just a toddler with a typical toddler-like attention span. She was exhausted and upset, constantly touching her hair and crying in her mother’s arms.
Amiyah was furious and declared that she would never let her MIL take care of her baby again and never wanted to see her again for as long as she lived! She stormed out, leaving her husband behind to deal with his mother.
Dad Did Nothing
Amiyah comforted her distressed daughter in the car, but her husband’s silence was deafening.
He didn’t even check on their daughter or offer any support; instead, he went to bed early, leaving Amiyah feeling ignored.
Amiyah knew she couldn’t let her mother-in-law’s actions slide. It was one thing to disrespect her, but altering her daughter’s appearance without consulting them was a line she couldn’t tolerate.
She planned to have a serious conversation with her husband when he returned from work, hoping to find a way to navigate this tricky situation together.
“Press Charges”
Amiyah’s journey was far from over, but she was determined to protect her daughter and assert her boundaries.
Viewers were left furious when they heard this story.
One person remarked, “Husband is a red flag tbh,” with someone else replying, “I would’ve pressed charges immediately, like so quick.”
Another woman warned Amiyah, “MY GRANDMA DID THIS TO ME AS A KID SHE DYED IT BLONDE I ENDED UP BALD!”
What do you think about Amiyah’s mother-in-law’s actions? Was her reaction justified?
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by S. Salmaan | Parenting, Politics
In a recent interview with Fox News, Erin Friday, a Democrat, shared her thoughts against California’s gender policies. Here’s the whole story.
“Democratic Parents Are Against the Mutilation of Children”
“The party is just not listening to us,” Friday said to Fox News.
“They want to frame this as right versus left, and this is about child safeguarding. It has nothing to do with party affiliation whatsoever.”
“Each one of them has to then be promoting the removal of healthy body parts of children. Otherwise, they would be supporting us. Now, I don’t think they’re reading the tea leaves. I don’t think they’re listening. I don’t think they’re paying attention to the fact that Democratic parents are against the mutilation of children. They want to know what’s happening to their children while they’re at school. They don’t want boys in girls’ sports. I mean, these are just facts,” she continued.
“Parents Are Losing Their Rights Regardless of What Party They’re From”
She said, “This issue is affecting Democratic families and Republican families. Parents are losing their rights regardless of what party they’re from.”
Friday’s stance on this issue stems from her personal experience.
When her daughter was transitioned without her knowledge by a public school, she understood the importance of involving parents in decisions affecting their children’s lives.
Protect Kids California
Joining with Jonathan Zachreson, a Republican affiliated with the newly-formed group Protect Kids California, Friday seeks to address the matter, taking it directly to the people of California.
Remarkably, approximately 80% of the members in Friday’s parents’ group identify as Democrats, reflecting a silent faction whose voices often remain unheard.
Talking to Fox News, Zachreson said, “California is one of the worst of the worst states as it comes to some of these procedures. We have legislators that are completely out of touch with the average Democrat voter and Republican voter in California.”
Together, they petitioned for three 2024 ballot initiatives designed to protect children in the Golden State.
The first initiative aims to prevent minors from receiving gender-affirming care procedures or puberty blockers.
Banning Males From Girl’s Sports
The second initiative proposes that schools must inform parents if their child chooses to adopt a different gender identity than the one corresponding with their biological sex.
The third initiative seeks to effectively ban biological males from competing in girls’ sports.
Zachreson admits that these proposals may encounter significant opposition in California, a traditionally blue state.
While he anticipates broad support, the real challenge lies in gathering the necessary 550,000 ballot signatures within six months, starting in November.
He highlighted the potential impact of their efforts, saying, “If we can show that in the bluest of blue states can shun these practices, then it can happen anywhere in the country.”
“Holding Women Hostage Over Abortion vs Self-ID”
Several social media users expressed their thoughts on the incident.
One Twitter user wrote, “Thank you…you are going to get those California signatures! I’m going to tell everyone I know who lives in California… this is progress.”
Another user wrote, “It’s astonishing to me the groupthink here and no one dares speak out against the party. Democrats are literally holding women hostage over abortion vs. self-ID. This is going to hurt Dems badly in 2024.”
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by B. Grayson | Parenting
Family shocked after stolen car tests positive for an array of hard drugs when returned.
Stolen Car Returned
When one’s stolen vehicle is recovered by law enforcement in relatively good condition, it’s typically seen as a stroke of good luck. After all, many stolen vehicles are either wrecked by joyriders or disassembled for illegal parts sales.
However, for the Culver family residing in Pierce County, Washington, this fortunate turn of events took a distressing turn.
The Culvers, who call Tacoma their home, had their 2002 Ford F-350 returned to them without any significant damage following its theft.
Mysterious Health Concerns
At first glance, this seemed like a happy ending to a troubling situation. Little did they know that their ordeal was far from over. Soon after their prized vehicle was back in their possession, the Culver family began experiencing bizarre symptoms.
Jake Culver, the head of the family, noticed that his eight and ten-year-old children were suffering from sleep disruptions and upset stomachs.
He, too, began experiencing frequent headaches after the few drives they took together in their recently recovered truck. These mysterious health issues left the family bewildered and concerned.
Drug Testing
It was during this perplexing time that a neighbor raised a crucial question: “Had we had it tested for drugs?” Jake Culver recalled. Puzzled by the inquiry, he replied, “No, why would we?”
Little did they know that their neighbor’s suggestion would uncover a deeply unsettling truth.
Stolen vehicles often find themselves in the hands of individuals who are breaking multiple laws, particularly in relation to illicit substances.
Shocking Results
Jake Culver decided to take the neighbor’s advice and get their vehicle tested for potential damage, including drug contamination.
They employed the same company that their insurance typically used to test for biohazards, expecting the report to come back negative.
The results were shocking and deeply concerning. The test revealed that traces of methamphetamine exceeded the national safe exposure limits by eight times, and the dangerous synthetic opioid, fentanyl, was found to be two times higher than the acceptable levels.
Insurance Company Failed to Test
Jake Culver couldn’t contain his dismay when he shared the results with his wife. “My wife just broke down in tears when I told her the results of the test,” he said.
“My heart sank. If she had inhaled the fentanyl or something like that, I mean, who knows where we’d be right now.”
Blaming the insurance company for failing to test for illicit substance exposure inside the stolen truck, Jake Culver highlighted that the firm often conducts such evaluations.
Reversing Exposure Impossible
He expressed his disappointment, saying, “I expect the people paid to help us through these troubles would actually do their job, and that’s more shocking, frankly, than the drug use and the car theft.”
Although they couldn’t reverse the exposure their family had experienced, the Culvers hope their ordeal will serve as a cautionary tale for others in similar situations.
They strongly encourage people to go thorough testing whenever a stolen vehicle is recovered to protect families from potential exposure to harmful substances.
An Ordeal
Thankfully, the Culver family’s ordeal has a somewhat fortunate ending in that they were exposed to the toxic residue of multiple drugs for only a week.
In nearby Seattle, the City Council made a controversial decision to vote against a law that would enable law enforcement to prosecute public drug use cases.
What do you think? Let us know in the comments!
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