Tariffs

 Tarifflation Fallout: 39% of Global

Consumers Rethink Travel  

    BELLEVUE, Wash. -- (BUSINESS WIRE) -- 7/8/2025 -- Rising costs driven by tariffs are reshaping how global consumers live, shop, and engage with brands, according to a new study released recently by UserTesting. Conducted in partnership with Talker Research, the study surveyed 4,000 consumers across the U.S., U.K., and Australia and revealed that a growing number of people are scaling back spending, switching brands, and rethinking long-standing habits—from summer travel to everyday purchases.

    Tariffs are no longer background noise, they’re triggering real lifestyle changes. Consumers across the globe are actively cutting back:

• 42% are buying fewer products overall
• 27% are switching to generic or store-brand alternatives
• 18% are shopping second-hand more often
• 20% are traveling less
• And notably, 39% say tariffs caused them to reconsider their summer travel plans entirely

    Price hikes are especially visible: 72% of U.S. consumers, 55% of Australians, and 68% of Brits report noticing tariff-related increases. Many are voting with their wallets—nearly half of U.S. and U.K. consumers who noticed these hikes say they’ve already switched away from their favorite brands to find better value.

    As tariffs push prices upward, many consumers are reassessing where their products come from—bringing new awareness, and in some cases, a preference for domestically made goods. 54% of U.S. respondents, 61% of U.K. respondents and 64% of Australians reported they would be more likely to buy domestically manufactured products due to tariffs. Day-to-day, a majority of global respondents (53% across all three regions) show a preference for domestic brands, with only a small fraction preferring international alternatives. This suggests that tariffs aren’t just shaping wallets, but may be actively transforming how consumers think about product origin and brand loyalty.

    The impact of tariffs goes far beyond bank accounts. Across all three regions surveyed, consumers report a growing sense of emotional strain—from stress and anger to sadness and feeling overwhelmed—as rising costs disrupt not just their budgets, but their sense of control.

    In the U.S., the emotional weight appears to be hitting hardest. Over one-third of Americans say tariffs leave them feeling stressed (37%), with nearly a quarter feeling overwhelmed (23%) when hearing about economic changes tied to trade policy. Emotions are just as raw in other regions, with anger and frustration rising sharply in both Australia and the U.K.

    Notably: 

• 31% of Australians and Brits alike say tariffs make them feel angry
• 26% of U.K. consumers report feeling sad about the current economic outlook, the highest across regions

    As economic uncertainty stretches on, brands are now navigating an increasingly emotionally charged marketplace, where trust, tone, and transparency matter as much as price.
    
    While many brands have raised prices, most consumers aren’t automatically assigning blame, yet. In fact, 54% (U.S.), 65% (Australia), and 55% (U.K.) say their perception of brands hasn’t changed.

    The deciding factor? Honesty.

• 72% of Americans,
• 82% of Australians, and
• 80% of Brits say that transparent communication about pricing changes is essential to maintaining their trust.

    “Whether tariffs remain or not, it’s clear they’ve already reshaped consumer habits,” said Bobby Meixner, VP of Solution Marketing at UserTesting. “Consumers understand that price hikes may be out of a company’s control. What they’re looking for is honest, upfront communication—and they’re making purchase decisions based on it.”

    A Global Shift in Sentiment

• 78% of Australians and 62% of Brits believe U.S. tariff policy has negatively impacted their national economies.
• More than 25% of global respondents believe their country’s economy will never return to pre-tariff conditions.
• In the U.S. and U.K., a majority of consumers expect at least 19 months before they’ll see economic recovery.
• And 19% of consumers in the U.S. and U.K. say they’re considering a second job, side hustle, or longer hours just to keep up.

About the Study

    The study was commissioned by UserTesting and conducted by Talker Research. A total of 4,000 consumers were surveyed between June 4 and June 12, 2025, including a nationally representative sample of adults (18+) across the United States (2,000), Australia (1,000), and the United Kingdom (1,000).

    For more insights and the full report, click here.

Tariff Politics

Mega Retailer Confirms Tariffs Will

Raise Prices for Americans

     (American Bridge) -- May 18, 2025 -- Walmart, the largest retailer in the country, called Trump’s tariffs “too high” and announced “higher tariffs will result in higher prices” at their stores beginning later this month. The retail giant confirmed that Trump’s high tariffs on major trading partners are raising the cost of electronics, toys, and food.

    Tariffs have already made mattresses, toys, strollers, and big-ticket purchases that many families need more expensive. An analysis from the Yale Budget Lab shows their chaotic policies will cost almost half a million American jobs and raise the cost of living for households by an average of $2,800, with the poorest Americans paying a disproportionate share of the costs.

    Trump’s chaos is hurting workers at major ports nationwide, leaving many dockworkers and truck drivers uncertain about their futures. Last week, California’s major ports faced 12 hours during which zero cargo ships left from one of America’s most important trading partners, which hasn’t happened since the COVID-19 pandemic shut down global trade.

    “Americans trusted Trump to bring prices down on his first day in office, but prices keep rising on his watch while he ignores struggling families and brags about soon flying in a $400 million plane,” said American Bridge 21st Century spokesperson Brandon Weathersby. “The future of Trump’s economy looks dire for American workers and their families. Jobs will be lost, and people will get priced out of buying the essentials they need. Instead of admitting defeat, he’s doubling down on a trade war he’s losing badly, and it’s everyday people paying the price for his failures.” (story originally published May 15/25

Extremism

Dangerous 'Project 2025' Would

Lead to Financial Disaster,

Loss of 8.7 Million Jobs,

New Analysis Finds

    Washington, D.C. (CAP) — 7/4/2024 — Nearly three decades of deregulation opened the door for banks, investment companies, insurers, and other firms to engage in the excessive risk-taking that culminated in the 2007–2008 financial crisis and triggered the Great Recession. Now, extremists from the far-right Heritage Foundation are laying the foundation for another crisis. Project 2025 includes well-documented plans to overturn post-crisis policies that protect consumers, investors, and the stable functioning of financial markets. But it also proposes new limits on regulators’ capacity to step in during periods of instability—specifically, restricting the Federal Reserve’s “lender-of-last-resort” function that allows troubled banks to borrow money quickly. A new Center for American Progress analysis shows how irresponsible this is by calculating the present-day costs of a repeat of the Great Recession.

    This new analysis finds that a comparable financial shock and recession would result in 8.7 million people losing their jobs by 2026 and that employment would not recover to current levels until 2031. On top of this, the loss in real gross domestic product per capita over the next five years would be $7,774.

    “If far-right extremists are successful in enacting Project 2025, the likelihood of a 2007-scale financial crisis would be greater, and this risks economic losses to workers and households that could exceed those in the Great Recession,” said Marc Jarsulic, senior fellow and chief economist at CAP and co-author of the column. “The proposals in Project 2025 makes things crystal clear—far-right extremists care more about bolstering Wall Street’s bottom line than protecting American families.” 

 

    Read the column: “Project 2025 Would Allow Financial Disaster To Bolster Wall Street’s Bottom Line” by Marc Jarsulic and Lilith Fellowes-Granda 

Economic Trends

 Wealth of Younger Americans 

Grows 49 Percent Since Pandemic

    Washington, D.C. — (CAP) - 4/28/2024 - A new Center for American Progress analysis finds that younger Americans are the winners of the strong economic recovery coming out of the COVID-19 pandemic, growing their wealth by 49 percent after inflation since right before the pandemic and breaking decades of stagnation.

    Millennials, in comparison to other generations, have not seen anywhere near this level of wealth accumulation during and after the pandemic. The new CAP analysis examines the latest data from the Federal Reserve and explains how younger households saw faster wealth gains than older generations during the pandemic. Some key takeaways from the new analysis include: 

• Young Americans have seen the fastest wealth growth of any group since the onset of the pandemic: Among Americans under the age of 40, average inflation-adjusted household wealth grew 49 percent since the onset of the pandemic, whereas wealth fell 7 percent for households from 40 to 54 years old and rose only 4 percent for households 55 to 69 years old.
  

• Millennials have experienced wealth growth after a recession, unlike previous generations: Millennials, who were 23 to 38 years old in 2019, saw their inflation-adjusted wealth double—increasing by 101 percent—from the end of 2019 through the end of 2023. In comparison, Generation X, who were similarly aged prior to the Great Recession (27 to 42 years old), only saw their real wealth grow 4 percent over the same four-year time period following the beginning of the Great Recession in the fourth quarter of 2007.

“Millennials have broken through decades of stagnation with historically rapid wealth growth, and this is because of the historic economic recovery after the COVID-19 pandemic recession,” said Brendan Duke, senior director of economic policy. “This rapid and broad-based wealth growth across various assets—whether that’s owning a house, liquid assets, owning a business, or decline in debts—is helping grow financial security and upward economic mobility for younger Americans.”

 Link to column by by Brendan Duke and Christian Weller, "Wealth of Younger Americans is Historicall High"

Economic Policy

Center for American Progress

Creates 'Playbook for 

Advancement of Women in Economy'

    Washington, D.C. — (CAP) -- 3/14/2024 - Women are driving many of the United States’ economic successes. Not only were they the primary drivers of the strong labor market in 2023, but their spending powered the economy, and they are expected to control two-thirds of consumer spending by 2028. Yet women continue to face economic insecurity throughout their lives, which is partly driven by the failure of policymakers to center them in economic plans. Between the persistent gender wage gap and continuous attacks on reproductive freedoms, women’s economic security has been anything but secure. 

    The Center for American Progress’ new “Playbook for the Advancement of Women in the Economy” offers a blueprint for actions that both federal and state policymakers can take to strengthen women’s economic security. It makes the case for how an economy that delivers for women is an economy that delivers for all. 

    CAP’s “Playbook for the Advancement of Women in the Economy” features 13 chapters covering everything from protecting and increasing abortion access and guaranteeing paid family and medical leave, to ending workplace discrimination and harassment and realizing equal pay, to expanding women’s access to male-dominated industries and dismantling employment barriers for disabled women and immigrant women in the health care sector, and more. The playbook contains a suite of policy options readily available for policymakers to guarantee family planning and care, deliver good jobs, and build a labor force to meet the demands of the country’s future. 

    Historically, women turn out to vote at higher rates than men and list economic concerns as a top voting issue, and they’ve made their voices heard time and again in referendums. Ahead of the 2024 election, this is likely to continue. Policymakers should listen and respond to the needs of women—or else they risk not just their political success but also the U.S. economy.

    “This playbook offers ready-to-use solutions to fast-track the advancement of women’s economic security and help the United States unlock women’s—and the economy’s—full economic potential, ”said Rose Khattar, director of economic analysis for Inclusive Economy at CAP. “For decades, women have suffered from systemic economic inequities – from wages that are too low and costs that are too high—and this has plagued women at every stage of their lives, costing not just women and their families, but the economy at large.

    “Current and aspiring federal and state policymakers have an opportunity to create a new reality for women that expands their economic opportunities and secure the gains they’ve already made to ensure their economic well-being and, by doing so, invests in the U.S. economy,” said Sara Estep, associate director of the Women’s Initiative at CAP. “The playbook includes a suite of recommendations for policy action that will help strengthen women’s economic security and help put women and families economic security first—because an economy that helps women thrive is an economy that helps everyone thrive. 

    Read the playbook: “Playbook for the Advancement of Women in the Economy” by Rose Khattar and Sara Estep

Economic Policy

 Leaders Discuss Implementation

of Biden's Economic 

and Climate Legislation

    Washington, D.C. — (CAP) -- 2/12/2023 - Governors and mayors from across the country joined the Center for American Progress and the Center for Innovative Policy for a summit on Feb. 8 to discuss the economic progress they are making after passage of the Biden administration’s historic economic and climate change legislation.

    The officials outlined how these measures are helping their communities transform to support new jobs and clean energy in the months and years to come.

    Maryland Gov. Wes Moore (D) said President Joe Biden’s vision has translated directly into job growth in his state and around the country.

    “We’re talking about a job growth in two years that we have not seen a president accomplish in four,” Moore said. “That’s facts, that’s numbers—that when we’re talking about brand-new record investments in infrastructure, that’s not just hyperbole. I can tell you as the chief executive of the state of Maryland, that’s real because we’ve been there, we’re putting that capital to work in the state of Maryland.”

    Moore added: “The president is moving full force into not just a reminder to this country of what’s been accomplished over these past few years, but moving full force and helping people understand that we’ve still got work to do. And we’ve got to move in partnership in order to make this happen.”

    Minnesota Gov. Tim Walz (D) discussed how he had just signed into law a measure calling for 100 percent clean energy in the state by 2040. That legislation had both labor and utility companies in the state on board.

    “If we’re going to move to this clean energy economy, Minnesota wants to be there, to be the place where we manufacture, the place where we do the innovation, the place where we implement that,” Walz said. “We can’t be aggressive enough on this because, again, the competition is already global to a point where we’re losing our competitive advantage, especially in those spaces. Minnesota wants to lead in that.”

    Colorado Gov. Jared Polis (D) discussed his state’s investments in clean energy jobs and how that will bolster the economy while mitigating climate change. He said the state would transition to 80 percent renewable energy by the end of 2029 and wants to achieve 100 percent clean energy by 2040.

    “We want to be in the forefront of not only making sure that electric vehicles can access our market but also that we have the charging and infrastructure in place to make them a success and that we are able to promote affordability though tax credits and other mechanisms,” Polis said.

    Polis said he views the transition to clean energy as a change to end the state’s reliance on costly natural gas so that consumers see energy savings. And he stressed the importance of a “just transition” that would help workers from coal power plants, mining, and other legacy fuels get retraining for new jobs.

    “The jobs are different, and the skills are different,” he said. “We need to make sure that we bring people along and that we can square people’s livelihoods in the clean energy future.”

    New York Gov. Kathy Hochul (D) credited the Biden administration with helping to create 536,000 new jobs in her state over the past 1 1/2 years. That includes about 50,000 new manufacturing jobs in upstate New York due to passage of the CHIPS and Science Act.

    “The jobs are starting to come back from the money that we’ve been using from the federal dollars to create those jobs,” she said.

    Hochul added: “We’ve been absolutely joined at the hips with our federal partners, President Biden, our leadership, to bring the infrastructure spending, the climate money, the child care money, and money to build resiliency because of climate change,” she said. “All of it is being spent in New York state very happily by this governor.”

    North Carolina Gov. Roy Cooper (D) said he sees the Biden administration’s economic legislation and the funding it provides as an opportunity for generational change.

    “I am so excited about the investments that we’re going to be able to make,” he said. “We’re going to be laying the groundwork with these generational funds to make sure that we’re building a North Carolina, particularly based on advanced manufacturing, that’s going to provide great-paying jobs.”

    Cooper praised the Biden administration’s legislation for, among other things, capping drug prices, investing in child care so parents can get back into the workforce, and providing money to connect high-speed internet across North Carolina.

    He also praised climate change legislation that will help create jobs in the private sector to build electric vehicles, charging stations, and other infrastructure.

    “We’re so excited about the Inflation Reduction Act because it helps us to fund our EV infrastructure and to coax people into getting electric vehicles,” he said.

    Richmond, Va., Mayor Levar Stoney (D) said his top priorities are dealing with his city’s housing crisis, improving public safety, and helping better the lives of children and families. He praised the American Rescue Plan Act for helping steer federal funds directly to cities, so local leaders can target money to areas where it’s needed most.

    “It gives us the flexibility to innovate and be creative because at the end of the day, it’s cities and mayors who are the front lines,” he said. “I’m grateful that we were able to get that function into the American Rescue Plan Act, and moving forward, it’s my hope that they take a page out of President Biden’s book and empower local governments to make these decisions.”

    Stoney said about half of the $155 million the city received from the American Rescue Plan Act is being used to build new community centers in Black neighborhoods and other communities of color that were historically redlined. Other funds were used to create more than 250 new seats for early childhood education and preschool for the city’s children as well as exploring how to re-connect the historically Black neighborhood of Jackson Ward, that was literally split in half by I-95, to help revitalize the area.

    “This is the largest investment in local government since the Great Society, and I think we’re going to see great results and accomplishments for years and years to come,” Stoney said.

    Washington, D.C., Mayor Muriel Bowser (D) said her city’s biggest economic challenge post-COVID-19 is revitalizing local businesses, closing wealth gaps, and attracting more residents to the city. The economic legislation that President Biden’s administration has steered through Congress is providing a major lift for her and other city leaders to address those issues.

    “I think the president deserves a lot of credit,” she said.

    She said she also urged the administration to think about how to make it easier for cities to spend federal funds.

    “It’s great to have a lot of money,” she said. “What’s not great is not being able to spend it. As we think about policies that help us get policies out the door, we should also think about innovative procurement policy as well.”

    Bowser also praised federal funding for projects that will improve neighborhood walkability, safety, and affordable transportation access.

“These dollars will help us advance planned work on making intersections more safe,” she said.

Click here to watch the event.

Reproductive Rights

Report Examines How State

Abortion Bans Will Harm 

Women and Families

Economic Security and State and Local Economies At Risk

    Washington, D.C. — 8/29/2022 - The Center for American Progress released a report on Aug. 26 examining the economic consequences of state abortion bans. The report provides a comprehensive overview of the existing research that highlights the connection between abortion legalization under Roe v. Wade and women’s advancement, along with an analysis of the challenges women—especially women of color—will face in the 27 states that have at least one abortion ban on the books and are already difficult places for women and families to thrive. The social infrastructure of these states is not equipped to deal with the fallout of the U.S. Supreme Court’s decision in Dobbs v. Jackson Women’s Health Organization. Many of these states already have some of the worst economic and health outcomes for women and families across the country. For example, of these states: 

• None guarantee paid family and medical leave. 
• Eighteen have gender wage gaps above the national average. 
• Twenty-two have poverty rates for women above the national average. 
• Seventeen have poverty rates for children above the national average. 
• Nineteen have not extended Medicaid coverage to 12 months postpartum. 
• Only four legally require insurers to cover an extended supply of contraceptives. 

    The report also highlights how abortion bans will cost local and state economies by leading to reduced labor force participation, increasing time off and turnover among women, and causing some employers to relocate to other states with abortion protections. 

    To combat the detrimental impact of these abortion bans, the authors argue that legislative and administrative action will be critical. They recommend that state and federal officials must use every legislative and administrative tool to expand abortion access.  They also recommend that at the same time, federal and state policymakers must fight to strengthen workplace protections and social safety nets—while acknowledging that these supports, as critical as they are to women’s overall economic security, do not eliminate the need for abortion care or erase the deep harms abortion bans impose on women. 

    “The Supreme Court’s decision to deny women the constitutional right to abortion will negatively affect women and families’ economic security, particularly for those living in the 27 states that have at least one abortion ban on the books,” said Lauren Hoffman, associate director of Women’s Economic Security at CAP. “The federal and state governments must take legislative and administrative action to mitigate these harms and preserve access to abortion care.” 

    “State leaders banning abortion are not interested in improving economic and health policies that support women and the children these women already have—revealing, at best, a willful ignorance of the real-life effects of abortion bans and, at worst, a deliberate attack on gender equality and women’s progress.” said Osub Ahmed, associate director of Women’s Health and Rights at CAP. 

    “Without robust federal and state action to strengthen the nation’s social safety net and advance policies to help working families, women, and other people who can become pregnant, facing unintended parenthood in those states are likely to fall even further through the cracks—with downstream effects on their children, communities, and local and state economies,” said Bela Salas-Betsch, research assistant for the Women’s Initiative. 

    Read the report: “State Abortion Bans Will Harm Women and Families’ Economic Security Across the US” by Lauren Hoffman, Osub Ahmed, and Bela Salas-Betsch.

Living Wages

Michigan Workers Win 

Minimum-Wage Increase, 

Paid Sick Leave

 

By Brett Peveto, Producer

    MICHIGAN (PNS) - 8/20-2022 - Workers in Michigan won major victories recently as a minimum-wage increase and employer paid sick time program were reinstated by court order.

    In 2018, petitioners succeeded in placing a minimum-wage increase along with an earned-sick-time provision on the November ballot. In turn, the Michigan Legislature passed the measures in September to avoid a vote on the referendums, then in a lame-duck session in December the Legislature amended the bills, delaying the wage increase and denying the full hourly rate to tipped workers. The sick-time provision also was changed.

    Last month, a Michigan Court of Claims judge ruled amending the original bills was a violation of the state constitution, and the $12 minimum wage will now be instituted in February.

    Alicia Renee Farris, chief operations officer of Restaurant Opportunities Centers United, helped organize the ballot initiative and is calling it a victory for Michigan workers.

    "This is really a victory for 685,000 Michiganders that do not make $12 an hour," Farris asserted. "We see that as very important particularly for low-wage restaurant workers."

    The minimum wage for tipped employees is set to gradually increase to $12 per hour by 2024.

    After Judge Douglas Shapiro declared the adopt-and-amend legislative maneuver unconstitutional, the State of Michigan asked for a stay pending appeal. Shapiro denied the request but did delay implementation until Feb. 19.

    Mark Brewer, the attorney representing the plaintiffs, said the delay is due to the scale of the coming changes.

    "This is a massive change. The paid sick time affects every employer in the state," Brewer pointed out. "Minimum wage obviously affects many employers and hundreds of thousands of employees, so the court said, 'Look, you can have a few months to make a transition here to fully implement these laws.' "

    Litigation over the matter has not ended with the Court of Claims ruling, since the state of Michigan will next take its case to the Michigan Court of Appeals. Brewer noted the appeals court has agreed to speed things up.

    "We did get some good news in just the last 24 hours," Brewer emphasized. "The court of appeals has agreed to expedite our appeal, and so we're hopeful to have oral argument in the court of appeals this fall, which would mean a decision early next year."

    Upon implementation, the minimum wage will be indexed to inflation with adjustments made annually so long as the state unemployment rate remains below 8.5%.

    Disclosure: Restaurant Opportunities Center United contributes to our fund for reporting on Civil Rights, Human Rights/Racial Justice, Livable Wages/Working Families, and Social Justice. If you would like to help support news in the public interest, click here.

References:  

Ballot initiative Ballotpedia 2018
Ruling State of Mich. Court of Claims 07/19/2022

Credit: Story published courtesy of Public News Service.

Insurance Industry

Auto Insurance Companies Made

Windfall Profits During Pandemic

Advocates call for policy change to better protect customers

    Illinois (PIRG) - 7/13/2022 - Auto insurance companies’ profits soared during the first year of the COVID-19 pandemic, as many Illinoisans were driving less and “sheltering in place.” The risks associated with driving plummeted but insurers did not lower premiums or offer rebates in proportion to the reduction in risk, according to new data released by the Illinois Department of Insurance recently.

    According to preliminary analysis, the new data is in line with previous estimates that insurance companies could still owe Illinois car insurance customers $896 million in pandemic relief. For example, the top four auto-insurance companies by Illinois market share – State Farm, Geico, Progressive and Allstate – charged customers $280 million more than needed to maintain their 2019 profitability, even after accounting for the $220 million they refunded customers in 2020.

    After overcharging customers, Illinois’ major insurance companies rewarded top executives with generous bonuses.

    “Moments of crisis are revealing. Auto insurers took the opportunity provided by the pandemic to charge their customers excessive rates and make windfall profits,” said Abe Scarr, director of Illinois PIRG Education Fund. “The General Assembly should give the Department of Insurance authority to review rate hikes and protect Illinois consumers.”

    While auto insurance companies were slow to reduce rates or provide rebates to customers because of the pandemic -- and those reductions and rebates proved inadequate -- they have been aggressively increasing rates in recent months, claiming that an uptick in crashes and inflationary pressure requires immediate price hikes. State Farm recently raised rates by 3%, only two weeks after a 5% increase. In January, Allstate hiked rates by 12%.

    Illinois regulators have no power to block or modify insurance rate hikes -- or to mandate reductions or refunds -- as regulators do in other states. California regulators, for example, ordered insurance companies to “close the gap” after initial pandemic rebates fell short. In March 2021, State Farm announced that it was sending its California customers an additional $400 million dollars in pandemic refunds “due to better than anticipated claims results” during the second half of 2020.

    Illinois state legislators say insurers need to do better.

    “I am appalled that these companies overcharged families sheltering at home and call on the insurers to issue additional refunds promptly,” said Illinois state Sen. Jacqueline Collins. “This is particularly important in Black communities like those I represent, where auto insurers indiscriminately charge higher rates."

    The new data is the result of a March Illinois Department of Insurance call for information documenting insurer profits, losses, and refunds given to consumers between 2019 and 2021. The call for information came in response to a January letter from nine advocacy organizations and 16 state senators asking the Department to take action. In May, the auto insurance industry challenged the Department’s authority to collect and publish such information, but the vast majority of insurers, including all the major ones, complied.

    Illinois PIRG Education Fund will perform more detailed analysis of the new data over the summer.

Economic Issues

 

Report: Nursing Homes Under

Serious Financial Stress

Mike Moen, Producer

Public News Service

    (PNS) - 3/5/2022 - South Dakota continues to grapple with staffing shortages at nursing homes, and a new report found some might not be able to recover financially.

    The findings, issued this week by the American Health Care Association (AHCA), showed between 32% and 40% of nursing-home patients in the U.S. live in facilities considered financially "at risk." Separate reports showed close to half of South Dakota care facilities are dealing with staffing shortages.

    Mark Deak, executive director of the South Dakota Health Care Association (SDHCA), said it is a dangerous mix in trying to provide quality care for the state's older residents.

    "The pandemic has just exhausted our caregivers and nursing homes," Deak observed. "Certainly, it's hit other providers in the health-care sector as well, but not as hard as it's hit nursing homes."

    While staffing shortages existed before the pandemic, the AHCA report noted other factors add to the challenge, including higher operating costs, which have prompting calls for better Medicaid reimbursement rates.

    Deak acknowledged South Dakota recently increased its rate by 10%, but it still lags behind other states.

    Advocates argued when a skilled-nursing home does not have enough money to recruit and retain staff, it creates a domino effect. Deak worried there will not be enough options, because the facilities are struggling to operate.

    "You can't take folks that are being discharged from the hospital or who need your services," Deak pointed out. "It makes it very difficult, and sometimes, it gets to the point where, in fact, you have to close your doors."

    According to the SDHCA, nine nursing homes in South Dakota have closed over the past five years. Deak added it creates big problems especially in smaller communities, where these facilities are key contributors to the local economy.
 

    References: Nursing staffing report American Health Care Assn. 03/02/2022

Story credit: Mike Moen, Public News Service, 3/4/2022

Housing Market

 Economist: Rising Rates May Bring

 Balance to Housing Market

 

    SANTA ANA, Calif. - (BUSINESS WIRE) - 2/23/2022 - First American Financial Corporation (NYSE: FAF), a major global provider of title insurance, settlement services and risk solutions for real estate transactions, recently released the December 2021 First American Real House Price Index (RHPI). The RHPI measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time at national, state and metropolitan area levels. Because the RHPI adjusts for house-buying power, it also serves as a measure of housing affordability.

Chief Economist Analysis: Real House Prices Up 21.7 Percent Year Over Year

    “In December 2021, the Real House Price Index (RHPI) increased 21.7 percent compared with December 2020, the highest annual growth rate since 2014. The record increase was driven by rising mortgage rates and rapid nominal house price appreciation, which make up two of the three drivers of the RHPI,” First American Chief Economics Mark Fleming said. “The 30-year, fixed-rate mortgage and the unadjusted house price index increased by 0.4 percentage points and 21.4 percent respectively.

    “Even though household income increased 5 percent since December 2020 and boosted consumer house-buying power, it was not enough to offset the impact of higher mortgage rates and rising nominal prices on affordability. In the near term, affordability is likely to wane further, as mortgage rates are expected to continue to rise and the pace of house price appreciation exceeds gains in household income. How buyers and sellers react to higher rates may help the housing market regain some balance.”

Existing Homeowners Locked In?

    “When mortgage rates fall, a potential home buyer can buy the same amount of home for a lower monthly payment or buy more home for the same monthly payment. The 40-year tailwind of declining mortgage rates has allowed homeowners to buy a home at one mortgage rate and then later sell and move into a more expensive home when rates are lower,” Fleming said. “This long-run decline in mortgage rates has encouraged existing homeowners to move out and move up.

    “Faster house price appreciation, modestly rising mortgage rates and record low levels of homes for sale have been the economic dynamics dominating the housing market during the second half 2021. While existing homeowners have historically high levels of equity and may feel wealthier because of it, many have also secured historically low fixed-rate mortgages. There is a financial ‘lock-in’ effect that increases as mortgage rates rise and as the size of a mortgage increases. Rising mortgage rates increase the monthly cost of borrowing the same amount that a homeowner owes on their existing mortgage. The higher the prevailing market mortgage rate is relative to the homeowner’s existing mortgage rate, the stronger the lock-in effect. Why move out and move down?

    “Additionally, the record low level of houses for sale makes it difficult to find a better, more attractive house to buy, so sellers – who are also prospective buyers – don’t sell for fear of not finding something to buy. The good news is that builders have been breaking ground on more new homes, which may alleviate some of the supply crunch and encourage existing buyers to move.

    “Nonetheless, buying a home is often prompted by lifestyle decisions more so than financial considerations. Despite the financial lock-in, homeowners will still make the decision to move based on lifestyle changes, such as needing more space to accommodate a growing family or relocating for a new job or other reason.”

The Housing Market Will Adjust

    “Homeowners may feel rate-locked into their homes, but first-time home buyers have no such financial lock. Yet, first-time home buyers must also contend with the record low supply of homes in a declining affordability environment. But what goes up, must eventually moderate,” Fleming said. “Rising rates may be a housing market headwind in 2022, but as some buyers pull back from the market due to affordability and supply constraints and as new construction adds more supply, house prices will moderate, resulting in a more balanced housing market.”

December 2021 Real House Price Index Highlights

• Real house prices increased 1.9 percent between November 2021 and December 2021.

• Real house prices increased 21.7 percent between December 2020 and December 2021.

• Consumer house-buying power, how much one can buy based on changes in income and interest rates, increased 0.04 percent between November 2021 and December 2021, and decreased 0.2 percent year over year.

• Median household income has increased 5.2 percent since December 2020 and 69.3 percent since January 2000.

• Real house prices are 4.8 percent less expensive than in January 2000.

• While unadjusted house prices are now 44.5 percent above the housing boom peak in 2006, real, house-buying power-adjusted house prices remain 33.2 percent below their 2006 housing boom peak.

December 2021 Real House Price State Highlights

• The five states with the greatest year-over-year increase in the RHPI are: Arizona (+34.3 percent), Florida (+32.0), South Carolina (+29.4 percent), Connecticut (+28.6 percent), and Georgia (+28.4),

• There were no states with a year-over-year decrease in the RHPI.

December 2021 Real House Price Local Market Highlights

• Among the Core Based Statistical Areas (CBSAs) tracked by First American, the five markets with the greatest year-over-year increase in the RHPI are: Phoenix (+36.3 percent), Charlotte, N.C. (+36.0), Tampa, Fla. (+32.9 percent), Raleigh, N.C. (+31.5 percent), and Atlanta (+31.5 percent).

• Among the Core Based Statistical Areas (CBSAs) tracked by First American, there were no markets with a year-over-year decrease in the RHPI.

Next Release

    The next release of the First American Real House Price Index will take place the week of March 28, 2022 for January 2022 data.

Sources

• First American Data & Analytics

• Freddie Mac

• Census Bureau

Methodology

    The methodology statement for the First American Real House Price Index is available at http://www.firstam.com/economics/real-house-price-index.

Economic Trends

Small Business Hiring Sees 

Growth in December

Index Points to Strong Employment Rebound

    CLEVELAND-- (BUSINESS WIRE) -- 1/9/2022 - The CBIZ Small Business Employment Index (“SBEI”) reported a seasonally adjusted increase of 1.05% in December, offering a positive sign on the heels of the hiring decline seen in November. The CBIZ SBEI tracks payroll and hiring trends for over 3,700 companies that have 300 or fewer employees, providing broad insight into small business trends.

    “December is typically a month where we see positive hiring trends due to the holiday season, and this month was especially strong,”CBIZ, Inc. Executive Vice President Philip Noftsinger said. “It’s possible that workforce safety confidence was a growth factor earlier in the month prior to the omicron variant becoming a larger headline later in the month.”

    The ADP and Moody’s employment report indicated growth in hiring among small, medium-sized and large companies. Its December reading showed an overall increase of 807,000 private-sector jobs for the month, an improvement from the November report. Small businesses accounted for 204,000 of those new jobs on a seasonally adjusted, month-over-month basis. The ADP and Moody’s report counts small businesses as companies with 49 or fewer employees, while the CBIZ SBEI uses data from companies with 300 employees or fewer.

    The CBIZ SBEI reported hiring growth in all four regions measured. The West (1.95%) showed solid growth but less than the previous month, following its robust economic rebound from delta variant-related closures in the late summer. The Central (2.88%), Southeast (2.25%) and Northeast (1.80%) regions all showed impressive growth as well, reflecting a strong recovery from November’s negative readings for these regions.

    On an industry level, the most notable increases were seen in Insurance, Non-profit, Financial Services, Healthcare, Construction, and Retail. Education and Agriculture experienced hiring declines.

    “The December reading points to a positive indicator that the labor shortage is waning,” Noftsinger said. “The continued increase in COVID-19 cases could cause a slowdown in the momentum we’re seeing, but with the adoption of booster vaccines and the increased availability of treatments to mitigate severe symptoms, employees are likely to feel more confident returning to work.”

    To view an infographic with data from the employment index, see CBIZ.

    Additional takeaways from the December SBEI include:

• December’s snapshot: 28% of companies in the index expanded employment, 53% made no change to their headcounts and 19% reduced staffing.
• Industries at a glance: Hiring gains were seen in Insurance, Non-profit, Financial Services, Healthcare, Construction, and Retail. Meanwhile, declines were reported in Education and Agriculture.
  
• Geographical hiring: The Central (2.88%), Southeast (2.25%), West (1.95%) and Northeast (1.80%) regions all experienced hiring increases.

    What’s next? Small businesses are growing their workforces despite the labor shortage and pandemic-related economic volatility. In 2022, this momentum should continue as other factors like supply chain issues and stagflation abate. 

    CBIZ is one of the largest accounting and insurance brokerage providers in the U.S. For more information, visit www.cbiz.com. 

 

Economic Analysis

Survey: Gen Z Purchasers 

Value Sustainability More 

Than Older Generations

    PITTSBURGH-- (BUSINESS WIRE) -- 11/26/2021 -- As sustainability and climate change dominate the headlines globally, new consumer research conducted by First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania shows the power that Gen Z consumers have over older generations to influence purchasing decisions around sustainability. Fully three-quarters of Gen Z consumers said that sustainability was more important to them than the brand name when making purchase decisions. As a result of Gen Z’s influence over their Gen X parents on this issue, Gen X consumers’ preference to shop sustainable brands increased by 24 percent and their willingness to pay more for sustainable products increased by 42 percent since 2019.

    Gen Z, the demographic cohort born after 1997, has historically been the most vocal about the health of the planet. The survey, conducted by First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania, found that Gen Z leads the way in sustainability. In fact, consumers across all generations—from Baby Boomers to Gen Z—are now willing to spend more for sustainable products. Just two years ago, only 58 percent of consumers across all generations were willing to spend more for sustainable options. Today, nearly 90 percent of Gen X consumers said that they would be willing to spend 10 percent extra or more for sustainable products, compared to just over 34 percent two years ago.

   “Our research points to a seismic shift in sentiment around sustainability purchasing decisions, with significant increases in just two years. When the previous study was fielded in 2019, older generations were not as sustainability-conscious as they are today. The global pandemic caused many to rethink their consumption and its impact on the health of the planet, yet Gen Z have been consistent in remaining true to their sustainability values while also educating and influencing the generations that came before them,” First Insight CEO Greg Petro said.

 
    Download the report to see all the key findings from the study here.

Additional Key Findings:

    Today, the majority of respondents across every generation expect retailers and brands to be more sustainable. The survey found, however, that there is some disconnect across the generations about what sustainability actually means. Nearly half of the Boomers (44 percent), Gen X (48 percent), and Millennials (46 percent) agree that sustainability means “products made from recycled, sustainable and natural harvested fibers and materials.” Meanwhile, nearly half of the Gen Z (48 percent) respondents believe that sustainability means sustainable manufacturing. One thing most could agree on is that packaging should be sustainable. Across generations, 73 percent combined feel that sustainable packaging is very or somewhat important today, compared to only 58 percent in 2019.

    The survey found that values-based purchase decisions—whether they are personal, social, or environmental—are more likely to be made by Gen X (76 percent), Millennials (77 percent), and Gen Z (75 percent), and within those groups, men (77 percent) are more likely than women (67 percent) to make values-driven purchases.

Methodology:

    First Insight’s findings are based on the results of a U.S. consumer study of a targeted sample of more than 1,000 respondents, balanced by gender, geography, and generation, and was fielded between July 1, 2021, and July 10, 2021. The study was completed through proprietary sample sources among panels who participate in online surveys. Further details on the findings are available upon request.

Taxes and Wealth

More Than 200 Individuals,

 Corporate Leaders 

Support Higher Taxes on Wealthy

 

By Lily Bohlke
Producer / PNS

______________

    CHICAGO - (PNS) - 9/19/2021 - More than 200 high-net-worth individuals signed a letter recently urging Congress to move forward on the $3.5 trillion budget bill - even though it includes tax-code changes that would cost them more money.

    To fund the budget plan, President Joe Biden wants to raise the income-tax rate for folks making more than $400,000 a year. The plan also would tax capital gains as income for people making more than $1 million a year, raise the corporate tax rate, close loopholes and strengthen IRS enforcement.

    "Each of these proposals is to make sure that we have a fair tax system, in which those who have the most and are benefiting the most are asked to pay the most as well," said Sandra Fluke, president of Voices for Progress, the lead organizer behind the letter.

    One Chicagoan signed the letter to House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer.

    A recent poll showed that Americans overwhelmingly support raising taxes on the wealthy instead of borrowing and increasing the national debt. Opponents include Republicans and business groups who say it could harm post-pandemic economic recovery.

    Fluke said the Trump administration's tax cuts in 2017 has hampered the nation's revenue collection, and his gutting of the IRS to one-third of its previous size limits its ability to enforce tax policy. She said all that affects our ability to fund today's big priorities.

    "And we only have to look out of our window to see what is happening in terms of the severe weather being caused by climate change," she said. "So, we gotta make those investments and not be giving away tax cuts to corporations that are actually lower than what they even asked for."

    In her view, getting corporations and the highest-income Americans to pay higher tax rates is an opportunity to invest in child care, long-term care, health care and more. 

 

References:  

Letter Voices for Progress 9/10/2021
Build Back Better agenda The White House 2021
Poll Americans for Tax Fairness 6/10/2021

 

Story credit: Public News Service.