Connect with us

Business

Mark Cuban Proposes Government Hiring Spree, More Free Money For All

Avatar

Published

on

Mark Cuban Proposes Government Hiring Spree, More Free Money For All

Mark Cuban, the billionaire owner of the Dallas Mavericks NBA team, says the blueprint for our country to recover from the devastating job losses brought on by the coronavirus pandemic has already been created. Now, we just need to be willing to implement it.

Our nation’s unemployment rate is already at the highest levels since the Great Depression, and it will likely get worse. So, Cuban says the government needs to take a page from the Depression-era playbook. He says it needs to step up and get our country back to work.

Government Should Create Jobs

During the Great Depression, President Roosevelt understood that there was only one way to get people back to work. That way was the government directly creating jobs. Roosevelt launched the New Deal and put nearly 20 million Americans to work and wages back in their pockets. Through a myriad of programs, the workers built airports, schools, hospitals, bridges, dams, irrigation systems, roads, and much more.

The number of jobs created was significant. For nearly a decade after the end of the Great Depression, the US government was still the country’s largest employer.

Today, states move to slowly re-open and many businesses remain uncertain about their future. Because of this, it’s unlikely that private-sector employers will be able to create 36 million or more new jobs to shrink the unemployment rolls.

Cuban says the government should be willing to step in and create jobs for out-of-work Americans.

Possible Ways To Do So

During an interview on Fox Business last night, Cuban said “If we would’ve had this discussion four months ago, I would’ve said it’s a crazy idea, there’s no way to do it, and that as much as possible, you let the free market do what it can. We’ve never been in a situation like this.”

He says existing public service organizations like AmeriCorps could create around 4 million jobs. It can do so by hiring people to conduct testing, tracking and tracing for COVID-19. He also mentions that they could also create jobs to support services for vulnerable members of society.

“I think with government intervention on a transitional basis, not permanent — and I know that creates its own set of issues — I think the government can be supportive, to help create demand for the markets and even put together a federal jobs program to have jobs that do things that are productive,” he said, adding that the jobs could initially be for three or four years until they are slowly eliminated as their need goes away.

In the time it takes to get this new program underway, Cuban said every American household should get a $1,000 check every two weeks for the next two months. To help move the money through our economy and help businesses get back on their feet, Cuban says the money would only be good for 10 days after its received, basically a game of hot potato with stimulus cash.

What’s In Store?

Cuban, who is a member of President Trump’s “Opening Our Country” economic council, has not shared his ideas with the White House yet, but he plans to do so soon. He estimates his plan would cost about $500 billion.

“We have an opportunity for the economy to be even bigger over the next five to seven years,” he said. “But that means there will be a lot of disruption. There will be companies that are created out of this that just change the game, and hopefully allow us to compete even more strongly internationally.”

This whole plan sounds a bit like a politician looking for drum up support from their base. So, it shouldn’t come as a surprise that Cuban has toyed with the idea of running in the 2020 race.

A few weeks back he said, “I’m not saying no, but it’s not something I’m actively pursuing. I’m just keeping the door open… You just don’t know what can happen between now and November.”

Up Next:

Business

Why You Should Consider Filing For Social Security At Age 62

Avatar

Published

on

Why You Should Consider Filing For Social Security At Age 62

Earlier this week we discussed four common regrets that retirees have when they look back at their golden years. One of the most common regrets was filing for Social Security benefits at 62, the earliest possible age. According to the Social Security Administration, about 1 out of 3 people apply for benefits at that age.

The regret is that if they had waited longer to file for their benefits, their monthly check would be much larger. For example, by delaying filing for Social Security until age 70, your monthly benefits can be as much as 75% larger than someone who filed at age 62. That’s because benefits grow by a guaranteed 5% to 8% each year that you delay your claim.

But there are always two sides to a coin. Today we wanted to discuss the benefits of filing for Social Security as soon as possible. With this, you can decide which approach you believe will benefit you the most.

The Case For Filing Social Security Early

The earliest you can file for Social Security benefits is age 62, but each month you file before reaching your full retirement age (FRA) cuts your monthly benefit amount. As an example, if your full retirement age is 67 and you start your claim at age 62, your monthly check will be reduced by approximately 30%.

Despite the reduced monthly benefit that comes with filing early, tens of millions of Americans make that decision every year. And it boils down to one line:

We have no idea what the future holds.

The financial benefits of waiting until age 70 to claim Social Security make complete sense. But we don’t know how long we will live, so we don’t know if the trade-off is worth it. If we knew we would live a long, healthy life until age 100, we would all delay filing until age 70 and reap the maximum reward.

But if you decided to wait until age 70 to claim, and unfortunately passed away before that, you would have foregone all the retirement income from age 62 on.

Waiting to file is a gamble, but so is giving up guaranteed monthly income starting at age 62.

Deciding when to claim your benefits requires serious thought and shouldn’t be a hastily made decision. And we aren’t saying that filing Social Security immediately at 62 or waiting until age 70 is the right choice. Every situation is different. If you are still healthy and working, waiting a few years passed 62 to claim but not all the way to 70 might be a good compromise. You’ll get a larger check than had you claimed right away, and your regular working income can make up for some of the reduced benefit amount since you didn’t wait until age 70.

The most important thing, whether you file at 62 or 70, is to find enjoyment in your golden years.

Up Next:

Continue Reading

Business

Mnuchin: Next Stimulus Coming By End of Month, No More Extra Unemployment Money

Avatar

Published

on

Mnuchin: Next Stimulus Coming By End of Month, No More Extra Unemployment Money

Treasury Secretary Steve Mnuchin said the next stimulus bill will be much more targeted than previous bills. He also said the goal is to get the next bill approved between July 20 and the end of this month. That time is when Congress will return from their holiday break and before they leave for August recess.

On Broad Stimulus Measures

It appears the White House will not support the type of broad stimulus measures of the previous bills. Instead, it will focus on direct payments to Americans. In an interview with CNBC yesterday, Mnuchin said “we do support another round” of stimulus checks to individuals. This mirrors the $1,200 payments that the government sent out as part of the $2 trillion rescue legislation passed in March.

Mnuchin didn’t mention whether he supported the idea of a $40,000 income cap to receive a check that has been floated by GOP lawmakers. The income cap for the first stimulus check was $75,000. He did say that he spoke with Senate Majority Leader Mitch McConnell. He also mentioned the “level and criteria” for checks would be discussed when lawmakers return to Washington.

Any new stimulus bill would likely not include proposals from the Democrats that include hazard pay for essential workers. It likely won’t include a longer extension of strengthened unemployment benefits, mortgage and rent relief, and support for state and local governments, too.

Mnuchin reiterated that the White House isn’t in favor of more relief money for states and municipalities to make up for lost revenue. Some state and local governments are considering trimming essential services as costs balloon and revenues drop. He said the administration does not want to “bail out” states that were “mismanaged” before the virus hit.

On Unemployment Benefits

Another critical topic the lawmakers will tackle the end of the enhanced unemployment benefits on July 30. They will do so when they return to Washington D.C.

Mnuchin said the White House has no interest in extending the enhanced benefits any further. Instead, he said it wants to change how they pay benefits. He did not give details. However, he did hint that unemployed workers shouldn’t be able to earn more money compared to full-time employees

“You can assume that it will be no more than 100%” of a worker’s usual pay, Mnuchin said. This echoes many Republicans who argue the additional benefits are preventing some from returning to work. These workers do this so that they make more at home than they would at their jobs.

While Mnuchin says the White House isn’t in favor of extending unemployment benefits, it is extending the Paycheck Protection Program that provides loans for small businesses. Earlier this week the Trump administration released a list of companies that received loans from the government. With that, backlash ensued as numerous businesses tied to wealthy individuals were found to have requested funds. Of the $130 billion remaining in the program, Mnuchin said he wants new relief to be “much, much more targeted” than past rounds of funding.

Up Next:

Continue Reading

Business

Kudlow: Economy Doing Great, Second Shutdown ‘Really Big Mistake’

Avatar

Published

on

Kudlow: Economy Doing Great, Second Shutdown ‘Really Big Mistake’

White House Economic Advisor Larry Kudlow says that the country is squarely in the middle of the “v-shaped” recovery that everyone had hoped for, and despite reports of coronavirus hotspots popping up, shutting down the economy for a second time would make the “solution worse than the disease.”

Kudlow spoke on “Fox and Friends” yesterday and said that the White House is monitoring the jump in new coronavirus cases in states like California, Arizona, Texas and Florida, but added that as a country we now know what works to stop the spread, and just need to work together.

“We know the right mitigation, which has worked, and if we use that wholeheartedly and respect each other, I think we’ll get out of this pretty well and it will not stop the V-shaped recovery.”

On A Second Shutdown

He added that a second shut down would be a “really big mistake.”

“Another shutdown, in itself is controversial,” and would “do more harm than good,” said Kudlow before adding, “It would harm everyone. Not just businesses — the V-shaped recovery would give way. It would harm kids, we saw numbers on depression, drinking and so on… that solution would be worse than the disease.”

Kudlow highlighted the job growth in the last two months, and pointed out that jobs are being added back so quickly, workers are now quitting jobs to search for new, higher-paying ones.

He said there existed a “tremendous burst of jobs in May and June” and “tremendous record hiring rates. People are starting to quit their jobs again, which is extraordinary, in order to shop around for better jobs and wages.”

All those workers looking for jobs should bring down the unemployment rate to as low as 7% iby the end of the year, according to St. Louis Federal Reserve President James Bullard.

That would be quite a rollercoaster ride for the job market, which has swung from a 50-year low unemployment rate of 3.5% earlier this year, to a post-WWII high of 14.7% in April.

U.S. Economy Doing “Very Well”

Appearing on “Closing Bell” yesterday, Bullard said “I think we’re tracking very well right now. Seems to me like by the end of the year you can get down certainly to single digits, probably even below 8%, maybe 7% by the end of the year.”

A surge in new cases could slow the re-hiring of workers across the country, but Bullard believes that wearing a mask will become standard and that will help bring back jobs and boost the economy.

“If we get to that situation, we’ll have the disease under control,” he said. “What I like about that scenario is it does not rely on a vaccine coming or a therapeutic coming. We can use simple, easy technology that we have today, get a good situation, get most of the production back to normal.”

Up Next:

Continue Reading
Advertisement

Facebook

Trending

Copyright © 2019 The Capitalist. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.