Government
1.5 Million Parents Could Drop Out Of Workforce If Biden Stimulus Passes; Analysis
1.5 Million Parents Could Drop Out Of Workforce If Biden Stimulus Passes; Analysis
Submitted by Andrew Moran of The Epoch Times,
As many as 1.5 million working parents could exit the labor market as more U.S. households receive the expanded.
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Submitted by Andrew Moran of The Epoch Times,
As many as 1.5 million working parents could exit the labor market as more U.S. households receive the expanded Child Tax Credit (CTC) benefit, a new study predicts.
According to a recent analysis (pdf) from University of Chicago economist Bruce Meyer, approximately 2.6 percent of parents could drop out of the workforce after being given monthly entitlement checks based on family income.
Under the American Rescue Plan that was passed in March, lawmakers expanded the CTC from $2,000 to as much as 3,600 per child. Half of the CTC funds were sent to households or deposited into bank accounts in the form of monthly checks from July to December. Parents are not required to work to receive the CTC and its monthly payments.
Meyer explained that some parents could choose to quit working because of the payments and if they can gather enough money from public assistance and family and friends.
“The proposed expansion would get rid of the strong work incentives under the prior CTC; it would essentially eliminate a tax credit that encouraged work and replace it with something that discourages work,” Meyer told CBS MoneyWatch.
“In the end, those at the bottom may not be better off.”
He added that it would be “a good idea” to insert a work requirement. The economist endorsed Sen. Joe Manchin’s (D-W.Va.) proposal of requiring an employment prerequisite.
As part of the previous CTC, beneficiaries needed to work to receive the full credit.
Still, Meyer anticipates that the tax credit, even if 1.5 million parents were to quit their jobs, would alleviate child poverty. He projected that child poverty could decline by 22 percent because of the payments.
Others dispute his suggestion that more than one million working parents would be submitting their letters of resignation.
Researchers at Columbia University’s Center on Poverty and Social Policy argued in a recent paper (pdf) that the data show that CTC payments have not led to a noticeable impact on payrolls or the labor force participation rate.
“Real-world data in the immediate wake of the CTC expansion do not support claims that the elimination of the phase-in portion of the CTC has discouraged work among parents in any meaningful way,” the researchers stated.
Speaking to reporters aboard Air Force One on Dec. 17, White House press secretary Jen Psaki stated that President Joe Biden could double the CTC payments in February if the $1.75 trillion social-spending and climate change plan is enacted in January.
“If we get it done in January, we’ve talked to Treasury officials and others about doing double payments in February as an option,” she told the press. “The president wants to see this move forward. It’s a priority for him as soon as Congress returns.”
While the administration and Democrats want to extend the payments as part of the legislative push, the bill is not guaranteed to pass amid hesitancy from Manchin. In addition, many congressional Democrats have conceded that they do not have a considerable backup plan to maintain the monthly payments prior to their expiration.
Ultimately, experts concede that the United States has, for many decades, refrained from offering variations of basic income similar to the CTC payments. Therefore, they aver, there are still many unknowns and uncertainties.
Child Care Costs a Financial Burden
For many parents, it might be economically beneficial to resign from their positions since daycare is costly.
It is no secret that the cost of child care is expensive. According to the Bureau of Labor Statistics (BLS), the price of daycare and pre-school advanced by 2.7 percent year-over-year in November.
Families nationwide spend an average of $8,355 per child for year-round child care, with some estimates going as high as $16,000.
“Monthly child-care costs can feel like an extra mortgage payment, especially if you live in an expensive area or have more than one kid,” said Ted Rossman, Bankrate’s senior industry analyst, in a news release.
Biden’s American Families Plan possesses proposals to diminish child-care prices. For households earning less than 1.5 times their state median income levels, they would not pay for child care. Others earning above that level would pay no more than 7 percent of their income on child care.
The Latest from The Great Resignation
Employers are coming across a myriad of challenges in this economy, and labor has been one of the chief obstacles in this market.
According to the BLS, about 4.2 million Americans quit their jobs in October, bringing the total number of people leaving employment to nearly 39 million in the first 10 months of 2021.
It is expected that 2021 will set a new record if workers leave their jobs at comparable levels in November and December.
The so-called quit rate for public- and private-sector workers is high for many reasons. Many people are quitting because of concerns over contracting the coronavirus, being unable to find or afford care for their children or aging parents, or they have located employment opportunities with better compensation.
Indeed, the number of job openings in the United States increased to almost 11 million in October, with the figure concentrated in education, hotels, manufacturing, and restaurants.
Experts contend that the labor market pendulum has swung in the direction of the workers. As a result, companies have been raising wages, expanding their perks and benefits, and introducing a wide range of bonuses to attract talent.
“As companies face labor shortages, employers are making a serious effort to recruit workers by offering signing bonuses, additional benefits, and—most importantly—higher compensation across the income distribution,” Morgan Stanley recently purported in a research note.
When businesses cannot find applicants, employers are doing everything they can to retain their current staff members. This, market analysts note, is part of the reason why initial jobless claims have hovered around a five-decade low. Businesses are too frightened to terminate their employees in this environment.
According to a study from the Conference Board think tank, private firms are allocating 3.9 percent of their payroll budgets to wage hikes in 2022, the biggest increase since 2008.
The report noted a unique trend as companies try to limit record turnover rates. Many of the salary hikes will be given to present employees.
Meanwhile, the Conference Board survey reported that 39 percent of businesses revealed they are hiking incomes to keep up with surging inflation.
“The rapid increase in wages and inflation are forcing businesses to make important decisions regarding their approach to salaries, recruiting, and retention,” said Conference Board chief economist Gad Levanon in the report. “In particular, companies are likely to raise wages aggressively for their current employees or they will risk even lower retention rates. After being a non-issue in wage determination for several decades, sizable cost of living adjustments may be making a comeback.”
“At the same time, business leaders will have to decide how much they will pass the additional labor costs to consumers through price increases. That decision, relative to competitors’ strategies, could impact companies’ market shares.”
This development could persist heading into the next calendar year. A recent CareerArc/Harris Poll survey discovered that 23 percent of employed Americans intend to quit their jobs over the next 12 months as a considerable number desire better working conditions and want higher pay.
JPMorgan Chase recently warned that this labor shortage could persist for years, citing a diverse array of factors. JPMorgan’s chief global strategist David Kelly alluded to Baby Boomers retiring, falling immigration numbers, and skills mismatch as partially to blame for the lack of workers.
“All of these forces should gradually resolve the current excess demand for labor,” Kelly stated in a research note. “However, barring a recession, this process could take years.”
Fed Worried About Wage Threat in 2022
This month, many experts, from Wall Street analysts to top economic policymakers, have sounded the alarm about one of the biggest threats in the economy next year: A “wages push” by workers in 2022 that could contribute to higher inflationary pressures. While he conceded his concerns over 39-year high inflation, Federal Reserve Chair Jerome Powell explained that ballooning wages are “both larger in [their] effect on inflation and more persistent.”
He revealed that one of the notable factors determining a rate hike was the Employment Cost Index (ECI) that was published in October. The report discovered that hourly labor costs climbed at a “very high” pace of 5.7 percent over the last three months.
Federal Reserve Chairman Jerome Powell speaks after President Joe Biden nominated him to continue as Chair of the Board of Governors of the Federal Reserve Systems during an event at the White House in Washington on Nov. 22, 2021. (Jim Watson/AFP via Getty Images)
Over the last 12 months, average hourly earnings have climbed by 4.8 percent to $31.03.
“If you had something where real wages were persistently above productivity growth, that puts upward pressure on firms, and they raise prices,” Powell said. “We don’t see that yet. But with the kind of hot labor market readings—wages we’re seeing, it’s something that we’re watching... You know, usually, in every other expansion, it’s that there aren’t enough jobs and people can’t find jobs,” he added. “What we need is another long expansion, like the ones we have been having over the last 40 years.”
The head of the U.S. central bank acknowledged that many Americans do not want to return to the workforce because of medical concerns, the paucity of child care, and nobody to look after seniors. “The ratio of job openings, for example, to vacancies is at all-time highs, quits—the wages, all those things are even hotter,” Powell said.
Government
Student loan borrowers may finally get answers to loan forgiveness issues
A major student loan service company has been invited to face Congress over its alleged servicing failures.
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U.S. Sen. Elizabeth Warren (D-MA) wants answers from one of the top student loan service companies in the country for allegedly botching its student loan forgiveness process involving the federal Public Service Loan Forgiveness program, leaving borrowers confused and without answers.
The senator sent a letter to Mohela CEO Scott Giles on March 18 inviting him to testify before Congress at a hearing on April 10 titled “MOHELA’s Performance as a Student Loan Servicer.” During the hearing, Giles will have to answer for why his company allegedly failed to send billing statements to student loan borrowers in a timely manner and miscalculated monthly payments for borrowers when it was time for them to repay their loans in September last year.
Related: Here's who qualifies for Biden's student loan debt relief starting next month
Also, in the letter, Warren highlighted a report that claimed that Mohela failed to perform basic servicing functions for borrowers eligible for PSLF, which led to over 800,000 public service workers facing delays in receiving student debt relief. The report also accuses the company of using a “‘call deflection’ scheme” to keep customers away from speaking to a customer service representative and instead redirecting them to parts of their website.
“Your company has contributed to student loan borrowers’ difficulties by mishandling borrowers’ return to repayment following the COVID-19 pandemic-related pause on payments, interest, and collections and by impeding public servants’ access to PSLF relief,” wrote Warren in the letter.
The move from Warren comes after the U.S. Department of Education withheld $7.2 million in payments to its servicer Mohela in October as punishment because it failed to issue timely billing statements to 2.5 million borrowers which resulted in 800,000 borrowers becoming delinquent on their loans. The department ordered Mohela to put those affected by the issues into forbearance until the mess was resolved.
Mohela is also currently facing two class-action lawsuits, one filed in December last year and another in January this year, for its alleged “failure to timely process and render decisions for student loan borrowers enrolled in the Public Service Loan Forgiveness program.”
In response to recent criticism surrounding its alleged issues and failures regarding the PSLF program, Mohela claimed in a statement to the Missouri Independent that it “does not have authority to process loan forgiveness until authorization is provided by FSA, which can take months to occur.”
The company also claimed that there are “false accusations” inside of the bombshell report, which was released in February, that details the company’s servicing failures.
“It is unfortunate and irresponsible that information is being spun to create a false narrative in an attempt to mislead the public. False accusations are being disingenuously branded as an investigative report,” said Mohela.
white house congress pandemic covid-19International
Bolsonaro Indicted By Brazilian Police For Falsifying Covid-19 Vaccine Records
Bolsonaro Indicted By Brazilian Police For Falsifying Covid-19 Vaccine Records
Federal police in Brazil have indicted former President Jair…
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Federal police in Brazil have indicted former President Jair Bolsonaro for falsifying his Covid-19 vaccine card in order to travel to the United States and elsewhere during the pandemic.
Federal prosecutors will review the indictment and decide whether to pursue the case - which would be the first time the former president has faced criminal charges.
According to the indictment, Bolsonaro ordered a top deputy to obtain falsified Covid-19 vaccine records of himself and his 13-year-old daughter in late 2022, right before he flew to Florida for a three-month stay following his election loss.
Brazilian police are also waiting to hear back from the US DOJ on whether Bolsonaro used said cards to enter the United States, which would open him up to further criminal charges, the NY Times reports.
Bolsonaro has repeatedly claimed not to have received the Covid-19 vaccine, but denies any involvement in a plan to falsify his vaccination records. A previous investigation by Brazil's comptroller general concluded that Bolsonaro's vaccination records were false.
The records show that Bolsonaro, a COVID-19 skeptic who publicly opposed the vaccine, received a dose of the immunizer in a public healthcare center in Sao Paulo in July 2021. [ZH: hilarious, Reuters calling the vaccine an 'immunizer.']
The investigation concluded, however, that the former president had left the city the previous day and didn't leave Brasilia until three days later, according to a statement.
The nurse listed in the records as having applied the vaccine on Bolsonaro denied doing so and was no longer working at the center. The listed vaccine lot was also not available on that date, the comptroller general's office said. -Reuters
"It's a selective investigation. I'm calm, I don't owe anything," Bolsonaro told Reuters. "The world knows that I didn't take the vaccine."
During the pandemic, Bolsonaro panned the vaccine - and instead insisted on alternative treatments such as Ivermectin, which has antiviral properties against Covid-19. For this, he was investigated by Brazil's congress, which recommended that the former president be charged with "crimes against humanity," among other things, for his actions during the pandemic.
In May, Brazilian police raided Bolsonaro's home, confiscating his cell phone and arresting one of his closest aides and two of his security cards in connection to the vaccine record investigation.
Brazil's electoral court ruled that Bolsonaro can't run for public office until 2030 after he suggested that the country's voting system was rigged. For that, he has to sit out the 2026 election.
International
This gambling tech stock is future-proofing the world’s casinos
Supported by the universal thrill of a quick payout and the need for leisure, gambling stocks make a compelling case for long-term returns.
The post This…
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Supported by the universal human thrill of a quick payout, and the need for leisure and entertainment to bring enjoyment to adult life, casinos will remain essential spaces for people to dream and play for the foreseeable future, making gambling stocks a prospective space to look for long-term returns.
According to Research and Markets, the global casino industry was valued at US$157.5 billion in 2022, and it will grow to US$224.1 billion by 2030 at a compound annual growth rate of 4.5 per cent. This trend includes:
Approximately 100 million gamblers in the United States, who generated US$66.5 billion in revenue in 2023, a 10 per cent gain from 2022, which itself was a record year A little fewer than 20 million gamblers in Canada, who generated about C$15 billion in revenue in 2023 A global addressable market of thousands of casinos, and more than 4.2 billion people who gamble at least once every year, according to a 2016 study by Casino.orgThe main challenge with attracting these billions through casino doors is they sway heavily toward middle age. The mean age of U.S. casino visitors has hovered around 50 for the past decade, with a similar trend across the world, forcing casinos to attract younger, tech-savvy customers, many with less gambling experience, to continue growing profits for their stakeholders over the long term.
Investors seeking exposure to a leadership position in building the bridge between casinos and the next generation of gamblers should evaluate Jackpot Digital (TSXV:JJ). The Vancouver-based company is a manufacturer of dealerless electronic table games that deliver immersive experiences tailored to the digital age, while earning casinos attractive returns on investment.
The gambling technology stock benefits from no direct competition in the dealerless poker space, with orders spanning North America, Europe, Asia, Africa and the Caribbean, a long-established presence with major cruise ship brands, such as Carnival, Princess Cruises and Holland America, and a growing land-based presence with orders or ongoing installations across 12 U.S. states. Its highlight partnership to date is a master services agreement with Penn Entertainment, the country’s largest regional gaming operator with 43 properties across 20 states.
Jackpot Digital’s differentiated technology and well-rounded management team are at the heart of its success in landing several blue-chip casino gaming companies as customers.
Jackpot BlitzThe gambling technology stock’s flagship product, Jackpot Blitz, is a dealerless poker table featuring three of the world’s most popular variations – Texas Hold’ em, Omaha, and Five-Card-Omaha – brought to life through slick 4k graphics on a 75-inch touchscreen, and offered in three formats – pot-limit, no-limit and fixed-limit – designed to attract a diversity of revenue from casual to experienced players.
Spokesperson and NFL championship-winning coach Jimmy Johnson explains the benefits of the Jackpot Blitz. Source: Jackpot Digital.The table also comes equipped with house-banked mini-games, including blackjack, baccarat and video poker, as well as side bets on the main poker game, such as Bet the Flop, all of which keep players engaged and entertained between, and even during, poker hands. The stunning Jackpot Blitz machine also offers multi-venue “Bad Beat” jackpot functionality, allowing casinos to offer a “Poker Powerball” with massive Jackpots, further enhancing the attractiveness of Jackpot Blitz to new players.
It’s by striking a balance between the needs of the modern gambler, and efficiency and profitability that in-person operators couldn’t hope to match – unless they ordered the machine for themselves – that Jackpot Digital has earned itself the top spot in dealerless poker.
Player benefitsWhen a veteran or novice gambler takes a seat at the Jackpot Blitz, his or her experience begins with an easy-to-use interface, laid out in a modern and stylish design, programmed to respond to hand gestures that bring real casino play into the digital age, including card bending and chip jingling.
Source: Jackpot Digital.The table’s intuitive controls, combined with instant payouts and its dealerless nature, translate into faster game play, which maximizes playing time and player excitement, while minimizing human error and the intimidation new gamblers might feel about approaching an analog poker table. The gambling technology stock’s in-house development team is also constantly working on new games to keep content fresh, with a special focus on bringing international games and regional versions of poker to casino audiences in Asia, South America and the Indian subcontinent.
As hands are laid down and pots pile up, players can also track game stats in real time, which inform future strategy and enhance the thrill of the moment with an added element of competition.
Operator benefitsFrom an operator’s perspective, a floor of automated gaming tables can meaningfully and instantly reduce casino staff expenditures and management pain points, while avoiding wage inflation, labour shortages and supply costs.
The Blitz is no slouch on revenue either, dealing more hands per hour, resulting in higher revenue and higher profitability, which is further enhanced by onboard side bets and mini-games that can be played while players are engaged in a poker hand.
The Jackpot Blitz’s economics are attractive to operators thanks to its ability to accommodate non-stop play, while monetizing downtime through side games and bets. While a human dealer must spend time shuffling, interacting with players, and consulting with colleagues, the Jackpot Blitz can accept wagers 100 per cent of the time, making sure gamblers get the action they came for and operators see a return on their investment.
Source: Jackpot Digital.
Beyond gaming revenue, casinos are further incentivized to onboard the Jackpot Blitz because of its fully customizable advertising functions, including logos, card backs, chips and felt colors, all of which bolster casino culture and enable the pursuit of revenue from third-party advertising partners.
The Blitz ties its value proposition together by generating automatic reports – including demographics and consumer behaviour through a rewards card system – and plugging directly into most back-end management systems, saving casinos the hassle of manual tracking, while also minimizing tampering, money-laundering and theft through the use of isolated servers.
Whether it’s streamlining the player experience or putting automation at the service of operators’ bottom lines, Jackpot Digital’s flagship product is positioned to create value, and plenty of it.
Jackpot Digital’s path to profitabilityAfter existing as an exclusively cruise-ship-based operation since 2015, Jackpot Digital suffered a steep decline in revenue during the COVID pandemic, falling from C$2.18 million in 2019 to C$0.42 million in 2021.
Management quickly pivoted in the face of uncertainty, redesigning the Blitz to execute on a land-based expansion strategy – backed by Gaming Labs International certification in fall 2023 – which is bringing about a successful turnaround after the re-emergence of the casino business. Revenue more than tripled to C$1.43 million in 2022, and reached C$1.57 million through three quarters of 2023, with the company expecting to ramp up significant recurring revenue after it installs several dozen machines currently in its backlog.
The Jackpot Blitz electronic gaming table in action. Source: Jackpot Digital.
The first installation of land-ready Jackpot Blitz machines is now completed at the Jackson Rancheria Casino in California, as the company announced today. The three-machine installation marks a new era of growth for the company, having announced 25 Blitz deals since November 2021 (slide 12), with many more across Canada and the United States in the works, in addition to a strong pipeline in Asia and Europe.
“Jackpot Digital could be a profitable company right now if it only focused on care and maintenance of the revenues it currently generates. But that’s not why we’re here,” Mathieu McDonald, Vice President of Corporate Development at Jackpot Digital, said in a recent interview with Stockhouse. “We intend to scale up to many multiples of the tables we have out right now, with the potential for up to 2,000 tables over the next three to five years.”
According to McDonald, the company is fielding three to five inquiries per week about the Blitz from casinos around the world that recognize the machines’ first-mover advantage in dealerless poker and potential expansion into other games in need of automation.
Jackpot Digital’s ambitious plan of action is supported by a management team of proven gambling, finance, advertising and legal professionals, many of which have been serving Jackpot stakeholders for more than two decades.
A long-tenured management teamThe management team behind Jackpot Digital is led by Jake Kalpakian, who has served as president and chief executive officer since 1999, including under the gambling technology stock’s former incarnation as Las Vegas From Home.com Entertainment Inc. Kalpakian brings more than 30 years of experience managing small-cap publicly listed companies, granting him a steady hand when it comes to maneuvering through the volatility of the economic cycle.
Kalpakian’s efforts are supported by three directors whose well-rounded expertise positions Jackpot Digital for long-term sustainable growth:
Gregory T. McFarlane, a director at Jackpot Digital since 1999, previously ran an independent advertising firm and holds a degree in mathematics from the University of Toronto. McFarlane is also a co-founder of the popular Control Your Cash personal finance website. Chief financial officer Neil Spellman, a director at the company since 2002, boasts an almost two-decade track record as vice president at Wall Street firm Smith Barney, where he developed a multi-industry understanding of the journey to profitability. Finally, Alan Artunian, a director since 2017, currently serves as CEO of Nice Guy Holdings, a corporate and legal consulting company advising clients across a diversity of sectors.Guided by a strategic management team, and benefiting from a macro-trend toward casino automation, Jackpot Digital is on course to ride a wave of millions of gamblers looking for an elegant, tech-informed alternative to traditional in-person play.
A multi-bagger opportunityThe Jackpot Digital opportunity sets up savvy investors who recognize the soundness of the company’s value proposition. The tremendous risk/reward value of Jackpot Digital gives investors the opportunity to ride the macro-trend toward casino automation, as deals for the Blitz keep pouring in, the company adds games to its portfolio, and the global casino industry adds hundreds of billions in revenue through this decade.
Join the discussion: Find out what everybody’s saying about this gambling technology stock on the Jackpot Digital Bullboard.
This is sponsored content issued on behalf of Jackpot Digital, please see full disclaimer here.
The post This gambling tech stock is future-proofing the world’s casinos appeared first on The Market Online Canada.
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