Blue collar boom? College grads, baby boomers big winners in Trump’s economy

first_imgNet worth combines the value of assets like real estate and stocks and subtracts liabilities like mortgage loans and credit card balances.Because America’s bottom 50 percent are starting from such a small base, given the enormous disparities in wealth in the United States, even large moves in their fortunes do little to dent the overall distribution. In dollar terms as of the end of September 2019, that latest data available from the Fed, the combined net worth of the poorest half of families was $1.67 trillion out of total US household wealth of $107 trillion.Here is what the Fed’s Distributional Financial Accounts have to say:Historically, 17 percent growth in household wealth over 11 three-month “quarters,” or nearly three years, is pretty standard. There have been 110 such periods since the Fed’s data series begins in mid-1989, and the most recent ranks 55th, squarely in the middle.On a quarterly basis, compound growth in household wealth since 1989 has averaged 1.39 percent. Under Trump it is slightly less, at 1.34%.The bottom half of households saw their net worth rise by 54 percent under Trump, from $1.08 trillion to $1.67 trillion. That’s compared to an 18 percent rise for the top 1 percent, who control roughly a third of the total household wealth in America, or around $34.5 trillion.Even after those gains, that works out to average net worth of around $26,000 for the bottom half of households versus around $27 million for the ones at the top.Much of that increase among the bottom half was due to increases in real estate, not stocks, after a resurgence in home ownership rates that began in 2016.Wages for lower-skilled jobs have of late been rising faster than those for higher-skilled occupations. But it takes time for income to be saved and translate into wealth. Since Trump took office, households headed by a college graduate captured 75 percent of the net worth gains, or around $11.88 trillion.They represent about a third of all households, according to the Fed survey on which the data series is based.Overall, households headed by a high school graduate, a group on the front lines of Trump’s pledge to restore blue collar fortunes, lost $0.4 trillion in net worth during his time in office. Those households represent about a fourth of the total.A baby boomer boomGenerationally, households with a head born from 1946 to 1964 did not get fooled again, as the 1971 rock anthem pledged. The title of Trump’s speech was “The Great American Comeback.” It could just as easily have been “OK Boomer, What About the Rest of Us?”Baby boomers under Trump, himself a member of that generation, captured around $10 trillion of recent wealth gains, or about two-thirds of the total.The Fed survey’s demographic estimates are as of 2016, and the population would have changed slightly since then. In 2016 about 36 percent of household heads (in the case of mixed-sex couples the Fed considers the man to be the head, in same-sex couples it is the oldest of the two) were headed by a member of the baby boom.Wealth accumulates with time, and older people would tend to have a larger base to start with. But for millennials, those born between 1981 and 1996, the last three years of booming markets have meant an extra half trillion dollars only, spread across about 20.6 percent of households. GenX’ers, born between 1965 and 1980, got about 21 percent of the gains, and made up roughly 26 percent of households. The pre-baby boom “Silent Generation” got 16 percent of the gains, roughly in line with that group’s share of households.Analyzed by race, the data told a familiar story of inequality. About 84 percent of recent wealth gains accrued to the 64 percent of households that self-identified to the Fed as white.About 4.6 percent of wealth gains went to the 14.5 percent of households that identified as black, and 3.8 percent to the 10.1 percent of households that identified as Hispanic.Topics : US President Donald Trump rolled out an eye-catching statistic in his State of the Union address Tuesday: the wealth held by the poorest half of American households increased three times as fast as the wealth held by the “1 percent” since he became president.That’s true, according to Federal Reserve data.On average, Americans have seen a 17 percent jump in household wealth since Trump’s election, while wealth at the bottom half has increased 54 percent. “This is a blue collar boom,” Trump also said Tuesday. That’s less apparent. The biggest winners on a dollar basis were a familiar group – whites, college graduates, and people born during the “baby boom” between 1946 and 1964.Since December 2016, President Barack Obama’s last full month in office, average household wealth has increased US$15.8 trillion, but the vast majority went to groups that have tended to accumulate wealth in the past.Even with a 54 percent increase in their household wealth under Trump, the poorest half of American households, around 64 million families, still have just 1.6 percent of household “net worth.”Half of Americalast_img read more

Arsenal fight back against Spurs to draw London derby

first_imgBy Richard MartinLONDON (Reuters) – Arsenal strikers Pierre-Emerick Aubameyang and Alexandre Lacazette inspired a stirring comeback against rivals Tottenham Hotspur to salvage a 2-2 draw in a thrilling north London Premier League derby on Sunday.Spurs were looking to bounce back from a shock 1-0 home loss to Newcastle United and went ahead through Christian Eriksen and a Harry Kane penalty before Lacazette struck before the break and Aubameyang got a 71st minute equaliser.Arsenal, who were beaten 3-1 at Liverpool last week, are in fifth place with seven points while Spurs are ninth on five after four games.The visitors took a 10th minute lead when Eriksen knocked the ball into an empty net on the rebound, capitalising on some sloppy goalkeeping from Arsenal’s Bernd Leno, who could only parry Erik Lamela’s weak shot into the path of the Dane.Arsenal had most of the ball on a sun-soaked afternoon at the Emirates Stadium but Tottenham were far more threatening on the break and Leno was forced to keep out stinging efforts from Kane and Eriksen in the first half.“We played with our heart sometimes more than our head, we needed more balance, we needed to have clearer heads,” said Arsenal coach Unai Emery of his side’s first-half mistakes.Tottenham were then awarded a penalty for a clumsy foul by Granit Xhaka on the lively Son Heung-min and Kane converted in the 40th minute to put Spurs on track for a first league win on enemy territory in nine years.However, Arsenal’s France striker Lacazette halved the deficit right before halftime with an emphatic strike after controlling an exquisite pass from the club’s record signing Nicolas Pepe.Kane came close to sealing the points for Tottenham when he struck the post but Arsenal became galvanized when Spanish midfielder Dani Ceballos came off the bench and hit a shot which keeper Hugo Lloris did well to tip over.An equaliser looked ever likelier and duly arrived when Gabon striker Aubameyang prodded a lofted pass from Matteo Guendouzi into the net in the 71st minute, scoring a third goal in four Premier League games this season.AMAZING MATCH “It was an amazing match. We are proud of our work and our supporters,” added Emery.“The key was the first goal to give us confidence and give us more chances in the second half. We deserved it.”Tottenham coach Mauricio Pochettino also felt Lacazette’s timely goal was pivotal.“Conceding with the last action of the first half gave relief to Arsenal and was an emotional hit to us, we were very down, before our emotions were very high and football is all about emotion,” he said.Arsenal’s Sokratis Papastathopoulos later had a goal ruled out for offside while Tottenham’s Moussa Sissoko spurned a last-gasp chance in a thrilling finale by blasting over the bar after Kane was denied a penalty when he tangled with Sokratis.Tottenham striker Kane said his side were disappointed to have let their lead slip.“I feel like we’re coming off disappointed, we expected to see the game out,” he told reporters.“The (Lacazette) goal hurt us with momentum just before the break. It was an end-to-end game, especially the last 10-15 minutes, but the players left everything on the pitch.”The England international also felt he should have been awarded a second penalty.“As a striker, if it is on halfway (line) it is a definite foul. In the box you don’t always get them,” he added.Aubameyang, meanwhile, said Arsenal should have come away with more than a point.“I think in the first half we deserved to score two goals,” he said. “It was a tough game and I think we deserved more.”last_img read more

No-confidence motion must take precedence – Jagdeo

first_img– wants debate before Budget presentationDays after the parliamentary Opposition filed a no-confidence motion against the coalition Government, Opposition Leader Bharrat Jagdeo has made it clear that the Party wants its motion debated before the reading of the 2019 Budget.The Opposition has contended that November 26 was already scheduled to be private members day, where their matters take precedence. However, the reading of the National Budget has taken over that day; with the result that another private members day must be scheduled.Jagdeo expressed fears that attempts would be made by the Government side to get Speaker of the National Assembly, Dr Barton Scotland, to schedule the motion to be heard some time after the budget.“I’ve heard they’ve decided when they want the motion to be debated. Now this is a matter for the Speaker, because the Speaker is head of the legislative branch. The Speaker has to make that decision. We’re hoping that that decision will be made, and the matter will be debated prior to the budget,” said.He added that the convention is that once a no confidence motion is filed, it takes precedence over other issues. “We hope this will be done and the Speaker will stand up to any attempt of the executive, because I’ve heard they want (the debate) in December, after the budget. We’re going to be watching carefully to see how the Speaker acts in this matter,” the Opposition Leader added.Jagdeo pointed to standard practise in democracies around the world, where no confidence motions are given priority. A poignant example of this is in Sri Lanka, where multiple no confidence votes have been held against Prime Minister Mahinda Rajapaksa.“If a no confidence motion is filed in the Government, you can’t proceed to a budget debate while that is hanging. What if it succeeds?” He questioned. Meanwhile, Jagdeo also noted that the reports of charges being prepared against Opposition frontbencher Irfaan Ali follow a pattern by the coalition Government.“We expected them to continue harassing… I saw that they said they want to file charges on Pradoville again… Pradoville will surface up once again. It’s a pattern, every time they’re in a corner, Pradoville surfaces.”No confidenceJagdeo had first announced the no-confidence motion during his press conference last week, on the heels of devastating losses in the Local Government Elections (LGE) for the coalition Government.Speaker of the National Assembly, Dr Barton ScotlandThe next day, the scheduled sitting of the National Assembly was abruptly cancelled at Government’s request and the Opposition turned up to an empty chamber. At the half empty Parliament Chambers, he reiterated some of his expectations regarding the motion.In a subsequent advertisement, the PPP went into further details on their reasons for filing the motion, and which were the concrete reasons for the peoples’ rejection of the People’s National Congress-led coalition. It pointed to the thousands of jobs that have been lost as a result of the closure of Guyana Sugar Corporation (GuySuCo) estates.In addition, the Party referred to the various scandals that have erupted under the Administration. They include the single sourcing of the feasibility contract for the new Demerara River crossing, the single sourcing of a drug bond and the single sourcing of drug procurement contracts.The Party noted the numerous breaches of fiscal laws flagged by the Audit Office of Guyana in its reports, as well as the lack of accountability in the D’Urban Park project; something even the Auditor General had to launch a special probe into.The depletion of Guyana’s gold and foreign reserves was also highlighted. In fact, a report from the Central Bank earlier this year had indicated that Guyana’s net foreign reserves, held by the Bank in foreign currency notes; has fallen to its lowest point since 2008.Tax collection has increased dramatically; a point alluded to by the Party. This publication had reported findings from the recently released 2017 Auditor General report, which had showed that the Guyana Revenue Authority (GRA) collected more taxes than was even anticipated.In the End of Year Budget and Reconciliation Report, it noted that the projected revenue for 2017 was $186 billion. Instead, Government actually collected $195 billion in current revenue. This includes duties, levy, personal income and withholding taxes.Court settlements since the coalition Government took office were also zeroed in on by the Party. The Attorney General’s Chambers has come under much criticism for not being able to secure success for several cases against the State.Since taking office, in addition to losing cases, Government has opted to enter into out-of-court settlements. These settlements included sums to the tune of US$5.7 million; $226 million and $3.8 billion.last_img read more