Watch Out Below

The most recent underemployment figures from the Federal Reserve Bank of New York, indicating that 43% of 22-27 year old college graduates who are working in jobs that do not require their university degrees, show a nearly 2% increase from February 2020, pre-COVID economic disruption. Yet, as college graduates are usually the last cohort to be more widely affected in…

Continue Reading

CMC_Debt(lg).2014

Student Loan Forbearance to End

Since March 2020, nearly 37.4 million people, or 90% of all student loan borrowers, stopped making payments under the loan forbearance provisions of the CARES Act. Additionally, all student loan interest has been suspended for the past eight months. However, since the current $900 billion stimulus bill does not extend the forbearance of student loans, the 42 million US borrowers,…

Continue Reading

College Tuition Increase = College Value Decrease?

For many higher education institutions, like the University of California (UC), the fiscal losses are growing as the health emergency extends, precipitating the need for a tuition increase. As reported in a December 12 Los Angeles Times article:  Systemwide, UC took a $2.7-billion financial hit between March and October — about 6.5% of its $41.6-billion operating budget, mainly from lost…

Continue Reading

The Unemployment Conundrum Continues

Increasing emergency unemployment claims seems to indicate more people have lost their jobs, yet decreasing continuing jobless claims could mean those unemployed are now employed or failed to get a job, thus are or at risk of being permanently unemployed (or those no longer looking for work.) Translation: we either have at best a bifurcated job market or at worst,…

Continue Reading

Economic Inequality & Generational Disparities Could Equal Deepening Divisions

In the 2009-2019 decade following The Great Financial Crisis, the top 5% experienced the greatest income increase of all Americans, further widening income disparities between the top and everyone else. Contributing to the wealth gap, during the same 2009-2019 decade, Millennials racked up nearly $893 billion in student loan debt to purchase college degrees as they chased economic prosperity, further…

Continue Reading

The American Dream in Trouble

The costs of childcare and college have outpaced wage increases in the past 20 years. So, a growing percentage of a family’s budget is spent caring for children, including paying for educational opportunities, like extracurricular activities as well as college tuition, in hopes of propelling kids toward a sustainable economic prosperity. Yet, as more of the family income is spent…

Continue Reading

The Shrinking American Middle Class, Part 3

The American middle class is shrinking in comparison to nations around the world. Yesterday, I proffered the view that those Americans wishing to sustain or aspiring to achieve a middle class standard of living may not be obtaining the academic preparation necessary, especially as indicated by their average performance on international educational assessments. Yet, their middling academic attainment does not…

Continue Reading

The Shrinking American Middle Class, Part 2

Like I posited a few days ago, “Why is the American middle class shrinking?” Firstly, it can be argued that personal success, whether economic or humanistic, requires the acquisition of knowledge and the application of such knowledge. However, rote memorization and regurgitation on cue, skills necessary to compete in the modern American academic meritocracy, yet often devoid of higher order…

Continue Reading

Teenage Unemployment Blues

Many high school and college students, who are normally camp counselors, are unemployed as many in-person and residential summer programs were cancelled. While a financial deficit for many students in the short term, cascading consequences may also affect students’ prosperity in the long term.  On May 24, Patrick Thomas of The Wall Street Journal wrote an article chronicling the current…

Continue Reading

Delayed Economic Vitality

As the Class of 2020 commences, into what economic state do they commence? As reported by Courtney Weaver in the Financial Times on May 28, 2020: With US unemployment at its highest level since the second world war and the country still grappling with the economic fallout of coronavirus, university graduates are watching start dates be deferred, internships cancelled and…

Continue Reading