Extremely low-interest rates are on their way out. The U.S. Federal Reserve decided to raise interest rates for the first time 2016 and the second time in a decade.The rate will change from 0.50 to 0.75 percent. Feds figure since jobs have increased, people are spending money and the last time rates were increased it helped the economy, this is a good bet. In, fact rates will increase three more times in 2017. So how’s it going to affect you? Any new loan is going to pricier. It’s a smart idea to pay that credit card bill much sooner than later since interest can compound and that means less shoe money.
Is tipping passé?
1. Come November, the 13 restaurants owned by famed restaurateurs Danny Meyer will do something out of the ordinary for eateries: say goodbye to tipping. Upset by uneven wages for his employees, Meyer hopes that eliminating tipping, and subsequently raising menu prices, spreads the wealth across his kitchen and dining rooms. Restaurateurs across the country are praising the move.
2. Meyer's plan isn't loved by everyone, however. One writer points out that the economics of Meyer's decision caters to one-percenters, as higher menu prices will drive away lower-earning patrons, making the often-inclusive world of fine dining even more unaccessible.
3. So, do you think getting rids of tips is revolutionary for the restaurant scene?
Your Thoughts?Weigh In.
Martin Shkreli, a capitalist or criminal?
1. Martin Shkreli, the CEO of Turing Pharmaceuticals, has had an interesting week. The 32-year-old made headlines when he hiked the price of Daraprim, a drug he owns rights to, from $13.50 per pill to $750, despite the pill's $1 manufacturing cost. Shkreli defended his actions, claiming that his company needed to "turn a profit" on the drug.
2. Public outcry for Shkreli's price hike was loud. Loud enough to garner the attention of Hilary Clinton, who called his actions "price gouging," and vowed to take on such pricing on speciality drugs. Shkreli's has since vowed to revisit the price hike.
3. So, is Shkreli a model capitalist or criminal?
Your Thoughts?Weigh In.
Are you currently staring at your newly-framed diploma, dreaming of the millions of dollars coming your way? Keep dreaming, says a new study from the Washington Center for Equitable Growth. The center concludes that even with a shiny college degree, securing high-paying employment is becoming increasingly difficult over time. The study relied on data from the United States Census Bureau to disprove the notion that America's economy is in need of highly-skilled workers. In fact, it argues the opposite: highly-skilled workers (read: those with degrees) are often left settling for work below their skill level or pay grade. Raise your hand if you've ever felt personally victimized by the slow-adapting work force? *raises hand*
China devalued its currency this week, and in terms of the global financial market, it's nothing to yuan about. With the devaluation, the Chinese central bank hopes to ignite its sluggish economy as a weak currency makes Chinese goods more attractive (read: cheaper) in the global marketplace. As soon as the devaluation was announced, financial pundits worried about a "currency war" breaking out as competing currencies (like the Australian dollar) would lower their value to remain competitive. For American consumers, this is great news as a cheaper Chinese currency means lower prices on Chinese imported goods (think clothes, electronics). But it's not so great for companies like Apple, whose producets are now more expensive to the Chinese consumer, which will ultimately lead to lower sales. Yuan some, you lose some, right?