Household Debts Make a Comeback in the U.S.

https://www.nytimes.com/2017/05/17/business/dealbook/household-debt-united-states.html?ref=economy

On Wednesday, the Federal Reserve Bank of New York said that the national household debt has reached a new low of $12.7 trillion. According to the article, “The growing debt level shows that many of the millions of Americans who struggled during the recession have repaired their credit to qualify for loans. It also suggests a rising optimism about economic growth among banks and other lenders.” One of the major causes for household debt has been student loans, which is definitely a blockade in preventing Americans from buying homes or expensive consumer items. In addition, debt from auto and credit card loans could play a significant part in increasing the national debt and put the U.S. back into a state of a “mortgage meltdown” just like ten years ago.

If the increase continues, how do you think this will affect our economy?

Do you think there are ways of decreasing household debt?

If you do believe so, then provide some examples. If not, explain why.

How to Become a Millionaire on $56,000 a Year

“When many of us “think of millionaires, we picture high-powered executives cruising around town in chauffeured limousines.”

According to Maurie Backman for The Motley Fool, you don’t need to have an insanely high salary to be a millionaire, in fact you can become one easily with the median household income for the US which is around $56,000 a year.

Get your priorities straight

Success does not come from luck or a one time investment. Rather it comes from working hard, living below your means, and saving early on. Ideally, you should be saving 10% of your salary each year for retirement, regardless of how much you earn

Choose the right investments

Even if you start investing early, the investments you choose play an equally important role.  Adopting a more aggressive investment strategy is a key component of growing wealth, and if you start saving early on, you'll have plenty of time to ride out the stock market's ups and downs.

On the other hand, if you play it too safe, you'll get much less bang for your investment buck.

All you need to become a millionaire by the time you retire (or even sooner) is a smart savings and investment strategy from the start. You must also be willing to adopt a lifestyle that supports your strategies. If you prioritize your savings early on in in your career, you will eventually become financially successful down the line.

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Questions
1) Do you think this is good advice?
2) What other ways can you save for your retirement/future?
3) Do you believe there are more components to being financially successful than saving and investing?

Source: http://money.cnn.com/2017/05/16/retirement/millionaire-salary/index.html?iid=hp-grid-dom

From Donald Trump to Sheryl Sandberg: what they want graduates to know about success

From Donald Trump to Sheryl Sandberg: what they want graduates to know about success

Donald Trump told graduates at Liberty University that "The future belongs to the dreamers, not the critics."

Will Ferrell told graduates at the University of Southern California that "You're never not afraid. I'm still afraid. I was afraid to write this speech."

Elizabeth Warren told graduates at the University of Massachusetts "If elected officials don't hear from people like you then the policies they set will be by the people they do hear from."

Sheryl Sandberg told Virginia Tech graduates "Speak up when you see injustice. Lend your time and your passion to the causes that matter."\

Arnold Schwarzenegger told University of Houston graduates "None of us can make it alone. None of us. Not even the guy that is talking to you right now that is the greatest body builder of all time."

Howard Schultz told Arizona State University graduates "Your generation will transform our economy and create millions of jobs. You will develop cleaner energy. You will make it so racism only exists in history books."

Discussion Questions

1. Which of these leaders messages do you hope to apply to your own future?
2. How can we use what they suggest to help us in college and career after Aragon?
3. What goals can you set for yourself based on one or more of these leaders' suggestions?

How Venezuela Stumbled to the Brink of Collapse

How Venezuela Stumbled to the Brink of Collapse

Venezuela used to be the wealthiest economy in Latin America, but GDP decreased 10% in 2016 and now its economy more closely resembles Syria's. With 700% inflation, approximately twice the rate of South Sudan (a borderline failed state), money has become nearly worthless. Citizens are hungry and black markets and violence have become the norm. When President Hugo Chavez died in 2013, he left the current President Nicolas Maduro a weak economy. With oil prices falling in 2014, Venezuela, the nation with the largest proven oil reserves in the world, faced economic disaster. Now President Maduro may seek a new Constitution to begin rebuilding Venezuelan society and their economy.

1. What are some things you think Venezuela could do to begin fixing their economy?
2. What happened under Hugo Chavez that you think led to these economic problems (can find this in the article)?
3. Should other nations in the Americas and globally help Venezuela and if so, how?

Behind China's $1 Trillion Plan to Shake up the Economic Order

Behind China's $1 Trillion Plan to Shake up the Economic Order

China plans to invest $1 trillion into its "One Belt, One Road" plan to improve infrastructure across Europe, Asia, and Africa. This plan is described as globalization 2.0 and has been compared to the Marshall Plan, which offered U.S. aid to Europe to help nations rebuild following WWII, only much larger, more ambitious, and more comprehensive. President Trump pulled the U.S. out of the Trans-Pacific Partnership and President Xi of China has used this as a green light to build trade relationships across Eurasia.

1. Is China poised to become the leading economic power in the 21st century?

2. Should the U.S. be investing more in infrastructure so as not to fall behind the development pace of the Chinese?

3. What risks is China taking with this "One Belt, One Road" plan? Do you think they will pay off?

Lyft and Waymo Reach Deal to Collaborate on Self-Driving Cars

Lyft and Waymo Reach Deal to Collaborate on Self-Driving Cars

Lyft, the ride hailing company, and Waymo, the self-driving car unit under Google have announced a deal to bring self-driving vehicles to the public. Uber is also investing hundreds of millions of dollars to develop this technology in what could become a multi-billion dollar industry. Waymo vehicles have logged more than three million miles of on the road testing in California, Arizona, Texas, and Washington and could be ready for mass adoption soon.

Discussion Questions

1. What do you see as the costs and benefits of self-driving cars? Do the benefits outweigh the costs?
2. If self-driving cars become widely adopted, should there be a mix of human operated cars and self-driving cars?
3. How could you envision Lyft and Waymo working well together? What trouble could they encounter?

Economists Debate If Tax Cuts Pay For Themselves Listen· 3:49

http://www.npr.org/2017/05/09/527541011/economists-debate-if-tax-cuts-pay-for-themselves

Our current administration under Trump's presidency is pushing a business tax cut. In order to garner more support for this position, they are arguing that tax cuts are able to pay for themselves and remain self-sustainable. They cite the Laffer curve as evidence; stating that with lower taxes, businesses will have more money to be able to invest into the economy and hire more people. Their new employees will end up paying income tax, and eventually the tax cuts will be able to pay for themselves at that point. There have been tax cuts in the 1920s and the 1960s, immediately followed by an economic boom, further supporting the viewpoint that tax cuts could in fact finance themselves. Even with all the speculation, it is still unsure if tax cuts are self-sustainable, as there are no concrete links between tax cuts and economic prosperity.

Do you think tax cuts could bring more money into the economy?

How much would you cut tax by?

Should tax cuts be enacted right now?