Category: Finance/Economy

17% Of Food Production Wasted, UN Report Estimates

Staff ReporterEnvironment, Finance/Economy 0

A new report from the United Nations estimates that 17% of food produced globally is wasted each year. Instead of finishing your leftovers, you let them go bad and buy takeout.

It’s a familiar routine for many — and indicative of habits that contribute to a global food waste problem that a new United Nations report says needs to be better measured so that it can be effectively addressed.

The U.N. report estimates 17% of the food produced globally each year is wasted. That amounts to 931 million metric tons (1.03 billion tons) of food.

The waste is far more than previous reports had indicated, though direct comparisons are difficult because of differing methodologies and the lack of strong data from many countries.

“Improved measurement can lead to improved management,” said Brian Roe, a food waste researcher at Ohio State University who was not involved in the report.

Most of the waste — or 61% — happens in households, while food service accounts for 26% and retailers account for 13%, the U.N. found. The U.N. is pushing to reduce food waste globally, and researchers are also working on an assessment of waste that includes the food lost before reaching consumers.

The authors note the report seeks to offer a clearer snapshot of the scale of a problem that has been difficult to assess, in hopes of spurring governments to invest in better tracking.

“Many countries haven’t yet quantified their food waste, so they don’t understand the scale of the problem,” said Clementine O’Connor, of the U.N. Environment Program and co-author of the report.

Food waste has become a growing concern because of the environmental toll of production, including the land required to raise crops and animals and the greenhouse gas emissions produced along the way. Experts say improved waste tracking is key to finding ways to ease the problem, such as programs to divert inedible scraps to use as animal feed or fertilizer.

The report found food waste in homes isn’t limited to higher income countries such as the United States and the United Kingdom.

Roe of Ohio State noted that food sometimes is wasted in poor countries without reliable home refrigeration. In richer countries, people might eat out more, meaning food waste is simply shifted from the home to restaurants.

Roe said cultural norms and policies also could contribute to waste at home — such as massive packaging, “buy one, get one free” deals, or lack of composting programs.

That’s why broader system changes are key to helping reduce waste in households, said Chris Barrett, an agricultural economist at Cornell University.

For example, Barrett said, people might throw away food because of a date on the product — even though such dates don’t always say when a food is unsafe to eat. “Food waste is a consequence of sensible decisions by people acting on the best information available,” he said.

To clarify the meaning of labeling dates, U.S. regulators have urged food makers to be more consistent in using them. They note that labels like “Sell By”, “Best By” and “”Enjoy By” could cause people to throw out food prematurely, even though some labels are intended only to indicate when quality might decline.

The U.S. Department of Agriculture estimates that a family of four wastes about $1,500 in food each year. But accurately measuring food waste is difficult for a variety of reasons including data availability, said USDA food researcher Jean Buzby, adding that improved measurements are part of a government plan to reduce waste.

Richard Swannell, a co-author of the U.N. report, said food was generally more valued even in richer countries just a few generations ago, since people often couldn’t afford to waste it. Now, he said, awareness about the scale of food waste globally could help shift attitudes back to that era. “Food is too important to waste,” he said.

Warren Buffett Admits To A Rare ‘Mistake’

Staff ReporterFinance/Economy 0

In his annual letter to shareholders of Berkshire Hathaway (BRKB), investing guru Warren Buffett disclosed that the company took an $11 billion writedown last year on its 2016 purchase of Precision Castparts, describing it as “a mistake.”

The 90-year-old billionaire, Berkshire’s chairman since 1970, said in the company’s annual letter to shareholders that the “ugly” write-down had a simple explanation. “I paid too much for the company,” he said. “My miscalculation was laid bare by adverse developments throughout the aerospace industry.”

Despite that loss and fallout from the pandemic in general, the company’s operating businesses enjoyed a solid end to 2020. The sprawling conglomerate, which owns Geico, Dairy Queen, the Burlington Northern Santa Fe Railway Company, Duracell batteries and many other consumer, financial, industrial and energy companies, said Saturday it posted a net profit of $35.8 billion in the fourth quarter, an increase of 23%.  Berkshire’s operating profit rose nearly 14% in the quarter, to $5 billion.

In the letter, Buffett also disclosed that Berkshire Hathaway’s annual shareholder meeting on May 1, normally held in Buffett’s home town of Omaha, Nebraska, will instead be livestreamed from Los Angeles so that vice chairman Charlie Munger, who lives in Southern California, can attend.

The 97-year old Munger did not attend last year’s virtual shareholder meeting in Omaha due to the Covid-19 pandemic. Instead, Buffett was joined on stage by another Berkshire vice chairman, Greg Abel.

“I missed him last year and, more important, you clearly missed him,” Buffett said of Munger, who is also chairman of California newspaper publisher Daily Journal (DJCO), which held its own shareholder meeting on Wednesday in Los Angeles.

Buffett said Abel and Berkshire’s third vice chairman, Ajit Jain, will also be on stage in LA to answer questions during the virtual May 1 meeting, which is scheduled to last from 1:30 p.m. ET until 5:30 p.m. Buffett said he hoped Berkshire can once again hold an in-person meeting in Nebraska in 2022. As he often does in Berkshire’s annual letter to shareholders, Buffett — who has a net worth of some $90 billion — dispensed some words of wisdom about the current state of the market.

Staying away from bonds and buying back more Berkshire stock

He is not currently a fan of bonds because despite a recent uptick, yields remain historically low. “Bonds are not the place to be these days,” he wrote, adding that the yield on the 10-year Treasury, now hovering around 1.46%, was 15.8% in 1981.

“In certain large and important countries, such as Germany and Japan, investors earn a negative return on trillions of dollars of sovereign debt. Fixed-income investors worldwide — whether pension funds, insurance companies or retirees — face a bleak future,” Buffett noted.

He also defended Berkshire’s propensity for using cash to buy back its own stock. The company spent $24.7 billion last year to repurchase shares. Some investors have argued that Berkshire could find a better use for its cash, which totaled more than $138 billion in cash at the end of 2020. Berkshire could it use to make more acquisitions.

“In no way do we think that Berkshire shares should be repurchased at simply any price,” Buffett wrote. “American CEOs have an embarrassing record of devoting more company funds to repurchases when prices have risen than when they have tanked. Our approach is exactly the reverse.”

Still, some wonder if Buffett has lost his Midas touch. Berkshire Hathaway’s stock is up just 11% over the past year, compared to a nearly 23% gain for the S&P 500. The company has lagged the broader market during the past five years, too, despite being a major investor in Apple (AAPL).

Buffett, however, defended the company’s investment strategy, describing it as like a classic diner. “At Berkshire, we have been serving hamburgers and Coke for 56 years. We cherish the clientele this fare has attracted,” Buffett wrote.

Although he has dipped his toe into higher techs like Apple and Amazon (AMZN) recently, the majority of Berkshire’s investments are in slower growth “value” stocks such as Chevron (CVX), Verizon (VZ), American Express (AXP) and, yes, Coca-Cola (KO). (Buffett is an avid drinker of Cherry Coke.)

In other words, don’t expect Buffett to start investing in meme stocks like GameStop (GME) or momentum darlings such as Tesla (TSLA).

“The tens of millions of other investors and speculators in the United States and elsewhere have a wide variety of equity choices to fit their tastes. They will find CEOs and market gurus with enticing ideas,” he said. “Many of those investors, I should add, will do quite well.”

But Buffett stressed a more patient approach to investing. “All that’s required is the passage of time, an inner calm, ample diversification and a minimization of transactions and fees,” he said.

US Debt Soars To $29 Trillion, Owes India $216 Billion

Staff ReporterEconomy, Finance/Economy, Nation USA 0

The US, the world’s largest economy, owes India USD 216 billion in loan as the country’s debt grows to a record USD 29 trillion, an American lawmaker has said, cautioning the leadership against galloping foreign debt, the largest of which comes from China and Japan.

In 2020, the US national debt was USD 23.4 trillion, that was USD 72,309 in debt per person. “We are going to grow our debt to USD 29 trillion. That is even more debt owed per citizen. There is a lot of misinformation about where the debt is going. The top two countries we owe the debt to are China and Japan, not actually our friends,” Congressman Alex Mooney said.

“We are at global competition with China all the time. They are holding a lot of the debt. We owe China over USD 1 trillion and we owe Japan over USD 1 trillion,” the Republican Senator from West Virginia said on the floor of the US House of Representatives as he and others opposed the latest stimulus package of USD 2 trillion.

In January, US President Joe Biden announced a USD 1.9 trillion coronavirus relief package to tackle the economic fallout from the pandemic, including direct financial aid to average Americans, support to businesses and to provide a boost to the national vaccination programme.

“The people who are loaning us the money we have to pay back are not necessarily people who have our best interest at heart. Brazil, we owe USD 258 billion. India, we owe USD 216 billion. And the list goes on the debt that is owed to foreign countries,” Congressman Mooney said.

America’s national debt was USD5.6 trillion in 2000. During the Obama administration, it actually doubled.

“Since the eight years Obama was President, we doubled our national debt. And we are adding another—projected here—a completely out of control debt-to-GDP ratio,” he said urging his Congressional colleagues to consider this national debt issue before approving the stimulus package.

“So I urge my colleagues to consider the future. Don’t buy into the—the government has no money it doesn’t take from you that you are going to have to pay back. We need to be judicious with these dollars, and most of this is not going to coronavirus relief anyway,” he said.

Congressmen Mooney said that things have gone completely out of control. The Congressional Budget Office estimates an additional USD 104 trillion will be added by 2050. The Congressional Budget Office forecasted debt would rise 200 per cent.

“Today, as I stand here right now, we have USD 27.9 trillion in national debt…That is actually a little more than USD 84,000 of debt to every American citizen right here today,” Mooney said.

Reliance Acquires Majority Stake In US-Based Skytran Inc

Staff ReporterBusiness, Finance/Economy 0

Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), announced on Sunday that it has acquired majority stake in its investee company skyTran Inc for a consideration of $26.76 million.

With this transaction, RSBVL has increased its shareholding to 54.46 per cent on a fully diluted basis, RIL said in a statement.

Mukesh Ambani, Chairman and Managing Director of RIL, said: “Our acquiring majority equity stake in skyTran reflects our commitment to invest in building futuristic technologies that would transform the world. We are excited by skyTran’s potential to achieve an order of magnitude impact on highspeed intra and inter-city connectivity and its ability to provide a high speed, highly efficient and economical ‘Transportation-As-Service’ platform for India and the rest of the World.”

“We firmly believe that non-polluting high speed personal rapid transportation system will help facilitate environmental sustainability through efficient use of alternative energy and make an impactful reduction in air and noise pollution,” he added.

SkyTran is a technology company incorporated under the laws of Delaware in the US in 2011. It has developed breakthrough passive magnetic levitation and propulsion technology for implementing personal transportation systems aimed at solving the problem of traffic congestion globally. The technology has been developed by skyTran to create smart mobility solutions, said a company statement. (IANS)

Money vs. Happiness

Raghav Gaiha, Vani S. Kulkarni and Veena S. KulkarniFinance/Economy, Lifestyle 0

The question whether the rich are more satisfied with their lives is often taken for granted, even though surveys, like the Gallup World Poll, show that the relationship between subjective well-being and income is often weak, except in low-income countries in Africa and South Asia. Researcher Daniel Kahneman and his collaborators, for example, report that the correlation between household income and reported life satisfaction or happiness with life typically ranges from 0.15 to 0.30. There are a few plausible reasons. First, growth in income mostly has a transitory effect on individuals’ reported life satisfaction, as they adapt to material goods. Second, relative income, rather than the level of income, affects well-being — earning more or less than others looms larger than how much one earns. Third, though average life satisfaction in countries tends to rise with GDP per capita at low levels of income, there is little increase in life satisfaction once GDP per capita exceeds $10,000 (in purchasing power parity). This article studies the relationships between subjective well-being, which is narrowly defined to focus on economic well-being in India, and variants of income, based on the only panel survey in India Human Development Survey (IHDS).

Why do we need a new measure of well-being when there is already a widely used, objective welfare measure based on per capita income? There are several reasons. The first stems from the distinction between decision utility and experienced utility. In the standard approach to measure well-being, ordinal preferences are inferred from the observations of decisions made supposedly by rational (utility maximising) agents. The object derived is decision utility. In contrast, recent advances in psychology, sociology, behavioural economics and happiness economics suggest that decision utility is unlikely to illuminate the utility associated with different experiences — hence the emphasis on measures that focus more directly on experienced utility, notably using subjective well-being (SWB) responses.

We draw upon the two rounds of the IHDS for 2005 and 2012. An important feature of IHDS is that it collected data on SWB. The question asked was: compared to seven years ago, would you say your household is economically doing the same, better or worse today? So, the focus of this SWB is narrow. But as it is based on self-reports, it connotes a broader view that is influenced by several factors other than income, assets, and employment, like age, health, caste, etc.

There is a positive relationship between SWB and per capita expenditure (a proxy for per capita income, which is frequently underestimated and underreported): the higher the expenditure in 2005, the greater was the SWB in 2012. The priority of expenditure, in time, rules out reverse causation from high SWB to high expenditure, i.e., higher well-being could also be associated with better performance resulting in higher expenditure. High expenditure is associated with a decent standard of living, good schooling of children, and financial security. As India’s comparable GDP per capita in 2003 (PPP) was $2,270, well below the threshold of $10,000, it is consistent with extant evidence.

Aspirations and achievements

In order to capture the gap between aspirations and achievements, we have analysed the relationship between SWB and ratio of per capita expenditure of a household to the highest per capita expenditure in the primary sampling unit. Although this is a crude approximation to relative deprivation, we get a negative relationship between SWB and this ratio. In other words, the larger the gap, the greater is the sense of resentment and frustration, and the lower is the SWB.

The larger the proportionate increase in per capita expenditure between 2005 and 2012, the greater is the SWB. To illustrate this, we construct three terciles of expenditure in 2005: the first representing extremely poor, the second the middle class, and the third the rich. If the proportionate increase in per capita expenditure is highest among the extremely poor and lowest among the rich, the higher will be the SWB of the extremely poor. This is indeed the case.

This provides important policy insights. One is that in a lower-middle-income country like India, growth of expenditure or income is significant. However, the widening of the gap between aspirations and achievements or between the highest expenditure/income of a reference group and actual expenditure/income of a household reflects resentment, frustration and loss of subjective well-being. So, taxing the rich and enabling the extremely poor to benefit more from economic opportunities can enhance well-being. In conclusion, objective welfare and subjective well-being measures together are far more useful than either on its own.

(Veena S. Kulkarni teaches Sociology at Arkansas State University and is a co-author for this article. Raghav Gaiha is Research Affiliate, Population Studies Centre, University of Pennsylvania; Vani S. Kulkarni teaches Sociology at University of Pennsylvania. The Oped was published in the Hindu and at IPS)

Bitcoin Hits $1 Trillion Market Cap, Soars To Another Record High

Staff ReporterBusiness, Finance/Economy 0

The world’s most popular cryptocurrency jumped to an all-time high above $54,000, setting it on course for a weekly jump of more than 11%. It has surged roughly 64% so far this month and was last up 5.5% at $54,405.

 

All digital coins combined have a market cap of around $1.7 trillion.(REUTERS)

Bitcoin touched a market capitalization of $1 trillion as it hit yet another record high on Friday, countering analyst warnings that it is an “economic side show” and a poor hedge against a fall in stock prices.

 

The world’s most popular cryptocurrency jumped to an all-time high above $54,000, setting it on course for a weekly jump of more than 11%. It has surged roughly 64% so far this month and was last up 5.5% at $54,405.

 

Bitcoin’s gains have been fueled by signs it is gaining acceptance among mainstream investors and companies, from Tesla and Mastercard to BNY Mellon.

All digital coins combined have a market cap of around $1.7 trillion.

“If you really believe there’s a store of value in bitcoin, then there’s still a lot of upside,” said John Wu, president of AVA Labs, an open-source platform for creating financial applications using blockchain technology.

 

“If you look at gold, it has a market cap $9 or $10 trillion. Even if bitcoin gets to half of gold’s market cap, that still growth of 4X, or $200,000. So I don’t know when it stops rising,” he added.

 

Still, many analysts and investors remain skeptical of the patchily regulated and highly volatile digital asset, which is little used for commerce.

 

Analysts at JP Morgan said bitcoin’s current prices were well above estimates of fair value. Mainstream adoption increases bitcoin’s correlation with cyclical assets, which rise and fall with economic changes, in turn reducing benefits of diversifying into crypto, the investment bank said in a memo.

 

“Crypto assets continue to rank as the poorest hedge for major drawdowns in equities, with questionable diversification benefits at prices so far above production costs, while correlations with cyclical assets are rising as crypto ownership is mainstreamed,” JP Morgan said.

 

Bitcoin is an “economic side show,” it added, calling innovation in financial technology and the growth of digital platforms into credit and payments “the real financial transformational story of the Covid-19 era.”

 

Other investors this week said bitcoin’s volatility presents a hurdle for it to become a widespread means of payment.

 

On Thursday, Tesla boss Elon Musk – whose tweets have fueled bitcoin’s rally – said owning the digital coin was only a little better than holding cash. He also defended Tesla’s recent purchase of $1.5 billion of bitcoin, which ignited mainstream interest in the digital currency.

 

Bitcoin proponents argue the cryptocurrency is “digital gold” that can hedge against the risk of inflation sparked by massive central bank and government stimulus packages designed to counter Covid-19.

 

Yet bitcoin would need to rise to $146,000 in the long-term for its market cap to equal the total private-sector investment in gold via exchange-traded funds or bars and coins, according to JP Morgan.

Coconut Oil Is The Best Hair Oil

Staff ReporterFinance/Economy, Health 0

Coconut oil is natures hair care miracle, offering 10-fold benefits when it comes to hair health. While its numerous hair advantages are well known, here are the top 5 benefits that make coconut oil indispensable.

  1. Coconut Oil Is The Ultimate Hair Protector

No one does the job of shielding hair better than coconut oil. Living in a warm and sunny environment has its own set of problems for hair. Every exposure to sun causes hair to lose moisture and shine, increasing dryness. But not when there’s coconut oil to protect it. A Research Gate study reveals that coconut oil seeps 10 layers deep into the hair shaft and forms a layer of protection that continually hydrates your hair. It also has SPF and anti-oxidant abilities to safeguard from sun damage. Additionally, chemical damage from shampoos and other styling products, including heat damage, can be averted by applying coconut oil prior to exposure.

  1. Coconut Oil Restores Hair Health From Within

As you tire out from superficial hair care products that do more damage than good in the long run, remember that coconut oil seeps into the deepest part of the hair shaft and rejuvenates the hair follicles to restore hair health from the inside out. The fatty acids and vitamins of this oil go deep into the hair to moisturize and hydrate the hair follicles to combat dryness.

  1. Coconut Oil Is A Scalp Saviour

Humidity and extreme climatic changes are not friends to our scalp. With abundant anti-fungal and anti-bacterial properties, coconut oil has the ability to prevent and treat multiple scalp issues including dandruff, dryness, and other infections. It also efficiently removes sebum build-up, a critical factor causing greasiness in the scalp and hair.

  1. Coconut Oil Effectively Removes Frizz

While we wish everyday were a good hair day, the reality is often quite different. Frizz, which is a result of moisture being sucked out of hair, generally happens when the harsh chemicals in some shampoos deplete the hair of its natural moisture. During the drying process, moisture is sucked out, especially in humid climes leading to frizzy hair. Applying a few drops of coconut oil to freshly washed, damp hair, ensures that the moisture stays locked in and your hair stays frizz free.

  1. Coconut Oil is Natural and Environmental Friendly

Coconuts trees, common as they are in the tropics, literally grow abundantly all around us. Hence, coconut oil is natural, local, available in plenty and perfectly suited to our hair’s multi-faceted needs, Let us ditch the multitude of exorbitantly priced, non-biodegradable and unnecessary hair products, and replace it with the all-natural goodness of coconut oil and do our part in protecting the environment. Our hair, our bank account and our planet will thank us for it. (Picture: Dr. Axe)

Biden Orders Allowing H4 Work Permits

Staff ReporterFinance/Economy, Immigration, Technology 0

“Withdrawn”. A single word on a thick bureaucratic file on the seventh day of the Biden administration delivered a huge win for spouses of workers on H1B visas in the US who spent the last four years worried sick that their work authorizations would be killed off.

The latest development brings to an end years of effort by the Donald Trump administration to rescind an Obama era regulation that allowed a certain subset of spouses of H1B visa holders to work in the US. Up until the summer of 2015, H4 visa holders could not legally hold paid employment in the United States. Almost as soon as Obama changed the game, the lawsuits followed and then the Trump presidency took the attack on the H4 work permit to a whole new level.A

On text messages, chat groups and online threads, the outpouring of relief played out online on Tuesday evening. “Great news! Hopefully H4EAD delays will be ending soon which is leading to a long wait for dependent spouses,” tweeted Rashi Bhatnagar.

Sharmistha Mohapatra posted, “Big win for H4 EAD holders today. Former Pres Trump’s EO to rescind H4 EAD is now withdrawn by POTUS. Let’s hope excruciating long wait times often resulting in job loss is taken away too!”

From the time the skewering of the H4 work permit (called the EAD) began in Fall 2017, the proposed rule has been published seven times for ongoing review, keeping the H4 community on cliff-edge. The Trump government justified the move saying it is “economically significant” and aligns with the “Buy American and Hire American” executive order, which was mostly code for keeping foreign workers out of the US and flinging red meat to the Trump base. Now, the backlink to that Trump executive order ends up as a 404 (page not found) error and re-routes to the Biden White House.

“Removing H-4 Dependent Spouses from the Class of Aliens Eligible for Employment Authorization” was a Trumpian agenda pursued by White House immigration hawks with intense zeal and inter-agency collaboration. It was being reviewed by the Office of Management and Budget (OMB) and Office of Information and Regulatory Affairs (OIRA), where it was parked for months. The pressure on the H4 community never really let up since Trump took office.

The decision to rescind the proposed rule on revoking the H4 work permit came on the same day Biden signed an executive order calling for the practice of racial equity in the United States. Data from the US government show that Indian and Chinese workers account for the lion’s share of H1B visas. H4 visas typically follow the same trajectory. Indians filed 74 per cent of all H1B petitions in fiscal year 2019. Chinese filed 11.8 percent. (IANS)

UN Expects India’s Economy To Recover By 7.3% This Calendar Year

Staff ReporterFinance/Economy, Nation, Nation India 0

The United Nations sees the Indian economy recovering by 7.3 per cent this calendar year after a coronavirus-driven fall of 9.6 per cent last year. The UN’s World Economic Situation and Prospects 2021 report released on Monday said that “despite drastic fiscal and monetary stimulus” India’s gross domestic product (GDP) fell because of lockdowns and other containment efforts that “slashed domestic consumption without halting the spread of the disease.”

India’s GDP growth was forecast to dip in 2022 calendar year to 5.9 per cent, according to the report.

China, where the Covid-19 pandemic started and spread bring the rest of the world to its knees, was the only major economy to have grown last year, registering a 2.4 per cent increase last and is forecast to grow by 7.2 per cent this year and by 5.8 per cent next year, according to the report.

The global economy shrank by 4.3 per cent last year and is forecast to grow by 4.7 per cent this year and 5.9 per cent the next.

UN’s Chief Economist Elliot Harris said, “The depth and severity of the unprecedented crisis foreshadows a slow and painful recovery.”

He warned against the temptation to impose excessive fiscal austerity while the world recovers from the pandemic.

“As we step into a long recovery phase with the roll out of the vaccines against Covid-19, we need to start boosting longer-term investments that chart the path toward a more resilient recovery,” he said.

He said that the world now needed “a redefined debt sustainability framework, universal social protection schemes, and an accelerated transition to the green economy.”

The World Bank earlier this month forecast India’s economy to fall by 9.6 per cent during the current financial year but recover by 5.4 per cent next financial year if there is wide vaccination against the disease and it is contained.

Compared to this, according to the UN estimates made on a fiscal basis for India, its economy was estimated to fall by only 5.7 per cent in 2020-21 and increase by 7 per cent in 2021-22 and 5.6 per cent in 2022-23. The International Monetary Fund is set to release on Tuesday its report on the economic scenario with growth forecasts. (IANS)

(Pictuire: Jhalak.com)

America’s Billionaires Have Grown $1.1 Trillion Richer During The Pandemic

Staff ReporterBusiness, Finance/Economy 0

Billionaires are minting money during the pandemic, even as millions of Americans join the ranks of the poor. US billionaires have collectively become $1.1 trillion — nearly 40% — richer since mid-March, according to a report published Tuesday by progressive groups Institute for Policy Studies and Americans for Tax Fairness.

In other words, not only have the uber-wealthy recovered their losses from the spring, many are faring much better than before. That’s in large part because of the sizzling stock market. Elon Musk alone is about $155 billion richer, boosted by Tesla’s skyrocketing market valuation. 

Forty-six people joined the ranks of billionaires since March 18, 2020, the week after the World Health Organization declared a global pandemic, according to the report. 

Clearly, the pandemic is worsening America’s already troubling inequality crisis. The staggering gains at the top contrast sharply with the financial struggles of those at the bottom, many of whom are on the front lines of the pandemic and have lost their jobs or had wages cut.

America’s 660 billionaires now hold $4.1 trillion in wealth — two thirds more than the amount held by the bottom 50% of the US population, the report found. 

Poverty rate climbs sharply

More than 8 million Americans fell into poverty during the final six months of 2020, according to real-time estimates published by economists at the University of Chicago, University of Notre Dame and the Lab for Economic Opportunities. 

The US poverty rate declined during the first few months of the pandemic, in large part because of the federal government’s stimulus checks. However, the poverty rate climbed 2.4 percentage points during the second half of the year — nearly double the largest annual increase in poverty since the 1960s, the economists found. 

Some groups have suffered more than others. The poverty rate for Black Americans is 5.4 percentage points higher today than in June 2020, translating to 2.4 million people who have fallen into poverty, the economists found. 

For those with a high school education or less, the poverty rate has surged to 22.5%, compared to 17% in June. 

Florida, Mississippi, Arizona and North Carolina were among the states that suffered the largest increases in poverty rates. The state-level findings “suggest that poverty rose more in states with less effective unemployment insurance systems,” the economists said in the report. 

How Biden wants to fight inequality

The wealth and poverty statistics provide further proof of America’s K-shaped economic recovery. 

The stock market is at record highs, the housing market is booming and Big Tech is thriving. However, other industries including airlines, restaurants, hotels and movie theaters are still in disarray. 

Janet Yellen, President Joe Biden’s newly confirmed Treasury secretary, has acknowledged this problem and suggested it’s nothing new.

“Well before Covid-19 infected a single American, we were living in a K-shaped economy, one where wealth built on wealth while working families fell further and further behind,” Yellen told lawmakers during her confirmation hearing last week. 

Biden and Yellen are calling for bold action from Congress to ease inequality. Biden’s $1.9 trillion American Rescue Plan includes $1,400 stimulus checks, $350 billion in state and local aid and enhanced unemployment benefits. The White House is also expected to push for a multi-trillion infrastructure package that would be aimed at further boosting the economy — and could be financed in part by raising taxes on corporations and the wealthy.

Surging housing, stock markets

The pandemic has been a boon to the housing market, with existing home sales hitting a 14-year high in 2020. Home prices, a major source of wealth, hit a record high. 

The stock market has played a significant role in the divide between rich and poor.

Even though the US economy has not fully recovered from the pandemic, the S&P 500 is up by 72% from its low point in March. That V-shaped recovery reflects optimism about vaccines, trillions in relief provided by Washington and unprecedented steps from the Federal Reserve that have essentially forced investors to bet on stocks. 

Not surprisingly, surging stock prices are especially helpful to the wealthy because they have more skin in the game. As of early 2020, the wealthiest 10% of US households owned 87% of all stocks and mutual funds, according to the Federal Reserve. By contrast, millions of less affluent Americans can’t feel the stock market boom.

Tesla’s (TSLA) skyrocketing share price has lifted Musk’s wealth by more than 600%, according to the wealth report. Other big gainers include Amazon (AMZN) founder and CEO Jeff Bezos, whose wealth has climbed by more than $68 billion during the pandemic. Facebook (FB) co-founder and CEO Mark Zuckerberg is about $37 billion more wealthy than in mid-March.

Inequality isn’t just an American problem.

It will take more than a decade for the world’s poorest to recoup their losses from the pandemic, according to Oxfam International’s annual inequality report released Sunday. By contrast, it took just nine months for the world’s top 1,000 billionaires to recover. 

(Picture; Fox Carolina)

Indian Americans Have Highest Average Household Income In USA

Staff ReporterCommunity, Finance/Economy 0

The household income of Indian American family on an average is USD 120,000 (over ₹87 lakhs) per annum, surpassing all ethnic groups and white Americans as well, according to a report released by the Coalition for Asian Pacific American Community Development.

But almost 7 percent of Indian Americans live at or below the federal poverty line, defined in 2018 — the year for which the report drew its data — as $12,490 for a single person, and $25, 750 for a family of four. Low-income Indian American immigrants had feared the Trump-era’s version of the public charge rule, which would deny permanent residency to those who have availed of federal public benefits, such as food stamps, housing assistance and a myriad of other benefits.

Indian Americans and Filipino Americans have the lowest poverty rates among all ethnic groups, and White Americans. Fifty-seven percent of Indian Americans own their homes, while 26 percent are renters. Data shows that some groups, like Indian households, are earning remarkably high incomes (USD 119,858), others, like Burmese households, are earning incomes (USD 45,348) comparable to those earned by Black (USD 41,511) and Latinx (USD 51,404) households.

Nepalese and Bangladeshi American households have an annual income of about $46,000, while Pakistani Americans come closer to the AAPI average, with household incomes of $79,000 per year. Eighteen percent of Bangladeshi American households fall below the federal poverty line, while 16 percent of Pakistani Americans are low-income.

But prosperity does not cut equally among all AAPI ethnicities, including other South Asian American subgroups. While the mean household income for all AAPI ethnicities is $82,000 annually, Burmese Americans earn just half of that at $42,000 per year.

Burmese Americans have the highest level of poverty in the nation, surpassing Black and LatinX households, according to CAPACD — an Oakland, California-based organization that works with low-income AAPI families.

As a whole, 11 percent of Asian American households are at or below the federal poverty level. By comparison, almost 24 percent of Black and Native American households, and 18 percent of LatinX households are low-income.

Poverty levels for White Americans is below 10 percent; they also represent the highest percentage of homeowners — almost 80 percent — according to the CAPACD report.

Because of modern immigration policy, immigrants are more likely to be wealthy and educated when they immigrate to the U.S., stated the report. The Immigration and Nationality Act of 1965 has favored higher education or professional class skills or those who have family in the U.S. As of 2012, 61 percent of Asian immigrants have a bachelor’s degree or higher, compared to the overall U.S. population, in which only one-third have graduated from college or university.

Asian Americans have also gobbled up the majority of employment-based visas, which contributes to a higher earning capacity.

But the authors of the report — Cy Watsky, Josh Isimatsu, Arika Harrison, and Emanuel Nieves — stated that the myth of the model minority masks the severe economic, education, and employment disparities within the AAPI community. People from Asia are clubbed into one ethnic category, which disallows an examination of diverse backgrounds, said the researchers.

“Ultimately, while the Asian American category allows for political solidarity and power for many, when we examine the economic indicators for the AAPI community, it becomes clear that the aggregated data does not come close to telling the full story of these diverse communities,” wrote the researchers.

The U.S. Census does not provide disaggregated wealth data, which is important in understanding the long-term financial security for AAPI households, stated CAPACD in a press release.

“The aggregation limits the conversation around Asian American wealth and financial security. In fact, many AAPI communities are not as economically prosperous as the stereotype of the community would otherwise suggest. These individuals have unrecognized economic needs, which can be best addressed through policies informed specifically by the diverse experiences of AAPI communities,” stated the organization, advocating for disaggregated data for the AAPI community.

(Picture: The Mill Chronicle)

Biden’s $1.9 Trillion Covid Relief Proposal Has Ambitious Plans for Rekindling US Economy

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President-elect Joe Biden unveiled a $1.9 trillion relief package Thursday that included more stimulus payments and other direct aid, but don’t expect to see those funds in your bank account anytime soon. There’s a lot that has to happen before Biden’s plan — which is chock-full of measures long favored by Democrats — becomes law. And even though Democrats will soon control the White House and both chambers of Congress, that doesn’t mean lawmakers will follow Biden’s suggestions to the letter.

As per Kevin Kosar, resident scholar at the right-leaning American Enterprise Institute and co-editor of the book “Congress Overwhelmed,” the earliest the stimulus money could reach one’s home maybe mid- to late February.

Biden’s massive plan includes several immediate relief items that are popular with a wide swath of Americans, including sending another $1,400 in direct stimulus payments, extending unemployment benefits and eviction protections, and offering more help for small businesses. It also would boost funding for vaccinations by $20 billion and for coronavirus testing by $50 billion.

But it also calls for making some larger structural changes, such as mandating a $15 hourly minimum wage, expanding Obamacare premium subsidies and broadening tax credits for low-income Americans for a year.

It’s the first of two measures Biden has planned to right the nation’s economy and fight the coronavirus. He intends to announce a recovery strategy at his first appearance before a joint session of Congress next month.

The plan, which would require congressional approval, is packed with proposals on health care, education, labor and cybersecurity. He has outlined a five-step approach to getting the vaccination to the American people, and to ensure that it is distributed equitably. “Equity is central to our COVID response,” he said.

Here’s a look at what’s in Biden’s plan: 

CONTAINING THE VIRUS

— A $20 billion national program would establish community vaccination centers across the U.S. and send mobile units to remote communities. Medicaid patients would have their costs covered by the federal government, and the administration says it will take steps to ensure all people in the U.S. can receive the vaccine for free, regardless of their immigration status.

— An additional $50 billion would expand testing efforts and help schools and governments implement routine testing. Other efforts would focus on developing better treatments for COVID-19 and improving efforts to identify and track new strains of the virus.

THE VACCINATION PLAN

— Working with states to open up vaccinations beyond health care workers, including to people 65 and older, as well as essential front-line workers.

— Establishing more vaccination sites, including working with FEMA to set up 100 federally supported centers by the end of his first month in office . He suggested using community centers, school gymnasiums and sports stadiums. He also called for expanding the pool of those who can deliver the vaccine.

— Using pharmacies around the country to administer the vaccine. The Trump administration already has entered into agreements with some large chains to do that. 

— Using the Defense Production Act, a Cold War-era law to “maximize the manufacture of vaccine and vaccine supplies for the country.”

— A public education campaign to address “vaccine hesitancy” and the refusal of some to take the vaccine. He called the education plan “a critical piece to account for a tragic reality of the disproportionate impact this virus has had on Black, Latino and Native American communities” 

INDIVIDUALS AND WORKERS

— Stimulus checks of $1,400 per person in addition to the $600 checks Congress approved in December. By bringing payments to $2,000 — an amount Democrats previously called for — the administration says it will help families meet basic needs and support local businesses.

— A temporary boost in unemployment benefits and a moratorium on evictions and foreclosures would be extended through September.

— The federal minimum wage would be raised to $15 per hour from the current rate of $7.25 per hour.

— An emergency measure requiring employers to provide paid sick leave would be reinstated. The administration is urging Congress to keep the requirement through Sept. 30 and expand it to federal employees.

— The child care tax credit would be expanded for a year, to cover half the cost of child care up to $4,000 for one child and $8,000 for two or more for families making less than $125,000 a year. Families making between $125,000 and $400,000 would get a partial credit.

— $15 billion in federal grants to help states subsidize child care for low-income families, along with a $25 billion fund to help child care centers in danger of closing.

SCHOOLS

— $130 billion for K-12 schools to help them reopen safely. The money is meant to help reach Biden’s goal of having a majority of the nation’s K-8 schools open within his first 100 days in the White House. Schools could use the funding to cover a variety of costs, including the purchase of masks and other protective equipment, upgrades to ventilation systems and staffing for school nurses. Schools would be expected to use the funding to help students who fell behind on academics during the pandemic, and on efforts to meet students’ mental health needs. A portion of the funding would go to education equity grants to help with challenges caused by the pandemic.

A president can propose ideas, but Congress passes the laws

 

Biden’s relief proposal now shifts to Congress, where it may change substantially as Democratic leaders transform it into a bill. They must decide whether they want to use a special legislative process called reconciliation, which would require only a simple majority of votes to pass the Senate — eliminating the need for Republican support — but would limit the provisions that could be included. Also, reconciliation also be used only sparingly each year. 

Top of Form

Bottom of Form

Another factor that could determine the path and speed at which lawmakers act is the health of the economy, said John Hudak, a senior fellow at the Brookings Institution. If the nation’s jobs report in early February shows a continued deterioration of the labor market, for instance, Congress may be spurred to move faster and approve more assistance.

Whatever leaders decide, the effort is expected to have an easier time passing in the House — which approved a $3 trillion relief package last May that contained measures similar to those in Biden’s plan — even though Democrats now hold a slimmer majority there.

“A new president and a new tone from the White House can put some pretty significant pressure when pressure is needed,” Hudak said. “For this to happen in some expedited time, it’s really going to require significant influence from the president, especially on key senators.”

Kiran Mazumdar-Shaw Is New Vice-Chair Of US-India Business Council

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US-India Business Council (USIBC) has selected Biocon Executive Chairperson Kiran Mazumdar-Shaw as one of its vice-chairs effective immediately. US Chamber of Commerce’s USIBC on January 14 announced three vice-chairs to its 2021 Global Board of Directors. The two other business executives joining Shaw as vice-chairs are Amway CEO Milind Pant and Edward Knight who is the vice-chair at Nasdaq. 

 “Kiran Mazumdar-Shaw will be one of the three vice-chairs for the US-India Business Council’s board of directors,” said USIBC Chairman Vijay Advani in a statement from Washington DC. “The perspectives of the new vice-chairs will be invaluable as the Council charts a path forward in the post-pandemic era and work to deepen the US-India partnership,” said Advani.

As vice-chairs, Mazumdar-Shaw, Pant and Knight will work with Council President Nisha Biswal and its policy directors to elevate priorities in key sectors and lead meetings between industry and government.

The trio will also work to amplify the voice of industry on international trade and investment issues and emphasise the key role that businesses can play in strengthening democratic institutions and combatting the global pandemic.

“I am honoured to serve the Council, which is committed to enhancing the US-India bilateral trade. In my new role, I look forward to forging collaborative initiatives in pharma and healthcare in research, innovation and skill development between our two nations,” Mazumdar-Shaw said.

The pandemic has provided an opportunity for robust engagement between the two countries that can lead to knowledge sharing in digital healthcare, medical technologies and Intellectual Property-led drug and vaccine innovation to deliver healthcare solutions, she added.

The Council represents top global firms operating across the US, India and the Indo-Pacific. Recognising that US-India trade is driven by new business hubs, the Council is also focused on strengthening connections between cities and states in both countries.

IAPC Seminar ByAlberta And British Columbia Chapters On Global Economy In The Post-Covid Era

Dr.Mathew JoysFinance/Economy, Health, Media 0

“Covid pandemic globally impacted meticulously by various factors like globalization severely disrupted, the digital revolution accelerated, and inequality in all the sectors drastically increased,” said Dr. EtayankaraMuralidharan, Ph.D. (School of Business, MacEwan University, Edmonton, Canada.), commencing the Zoom conference on Saturday, January 9th, 2021.

 

As a part of IAPC’s Web series Town Hall meetings, Alberta and British Columbia Chapters together was hosting the seminar on the subject “Global Economy in Post Covid Era.” The meeting was presided by Dr. Joseph Chalil( Chairman, IAPC), and Dr. P.V Baiju ( IAPC Director board member) was the moderator for the seminar.

 

Dr. Muralidharan presented the vivid aspects of the Covid consequences and how the world is adopting and reshaping globalization with social media resources like Zoom or webinar. He narrated the income inequality and income mobility and the means to change the objective or methods of operation in the governmental, organizational, and individual levels. He presented in turn how organizations contribute to social inequalities and how the firms need to develop CSR practices, reshape work designs, and to align compensation

 

The other panelist and economic expert, Dr. S. Mohammed IrshadPh D. (Jamsetji Tata School of Disaster Studies, Tata Institute of Social Sciences, Mumbai, India presented how the Covid pandemic pushed the economy down. Major countries are on the brink of economic recession, and the global economy is going to trail Pre pandemic trajectory for many years to come. He explained how economic resilience or accountable capitalism or how government stimulus can help overcome it.

 

The subject matter experts, after their presentations, tactfully answered the various questions raised by the audience. It was condensed that already pre Covid recession was creeping in, and the unexpected pandemic boosted the factors of recession. It is still uncertain how long the peril will continue.

 

BinoyKaruvayil, VP of the IAPC Alberta chapter, welcomed the guests and all the participants from the various chapters in Canada and the USA. Miss NeethuSivaram of the British Columbia Chapter well managed the event as the MC. Anjaleena Jose, the budding singer with her melodious voice, inspired the participants with her patriotic song ‘ VandeMataram.’

 

Dr. Joseph Chalil thanked the guests and the Chapter members of the hosting Chapters. Chairman also released the colorful “IAPC Alberta Chronicle Vol 2” and congratulated Chief editor Rajesh Peter and the editorial team. Founder Chairman GinsmonZacharia, General Secretary Biju Chacko, Treasurer Reji Philip, BoD member Thampanoor Mohan, Vice President C G Daniel, Treasurer Innocent Ulahannan were also active participants of the Zoom Meeting.  With the vote of thanks by Anitha Naveen, Secretary BC chapter, the productive and informative session was concluded.

World Bank To Fund $500 Million ‘Green’ Highways Project In India

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India and the World Bank on Tuesday signed a $500 million project to build safe and green national highway corridors in the states of Rajasthan, Himachal Pradesh, Uttar Pradesh and Andhra Pradesh.
The project will also enhance the capacity of the Ministry of Road Transport and Highways in mainstreaming safety and green technologies.
The Green National Highways Corridors Project will support the ministry construct 783 km of highways in various geographies by integrating safe and green technology designs such as local and marginal materials, industrial by-products, and other bio-engineering solutions. The project will help reduce GHG (greenhouse gas) emissions in the construction and maintenance of highways.
“Connectivity for economic growth and connectivity for sustainable development are two important aspects of a country’s development trajectory. This operation brings these two priorities together in support of India’s growth strategy,” said Junaid Ahmad, World Bank Country Director in India.
“This project will provide efficient transportation for road users in the four states, connect people with markets and services, promote efficient use of construction materials and water to reduce the depletion of scarce natural resources, and help lower GHG emissions,” he added.
The National Highways of India carry about 40 per cent of road traffic. However, several sections of these highways have inadequate capacity, weak drainage structures and black spots prone to accidents. The project will strengthen and widen existing structures; construct new pavements, drainage facilities and bypasses; improve junctions; and introduce road safety features.
As it is imperative that the infrastructure investments are climate resilient, disaster risk assessment of about 5,000 km of the National Highway network will also be undertaken under the project along with support to the ministry for mainstreaming climate resilience aspects in project design and implementation.
The $500 million loan from the International Bank for Reconstruction and Development (IBRD) has a maturity of 18.5 years, including a grace period of five years. (IANS)

Lawmakers Urge President-Elect Joe Biden to Preserve Work Authorization for H-4 Visa Holders

Staff ReporterCommunity, Finance/Economy, Immigration 0

Over 60 members of the US Congress, including all four members of the ‘Samosa Caucus,’ wrote a letter to President-elect Joe Biden Dec. 16, urging him to preserve work authorization for H-4 visa holders. H-4 EAD is granted to the spouses of H-1B visa holders who are on track to get their green cards.
“We respectfully request that the Department of Homeland Security publish a Federal Register notice on day one of your administration that would extend the validity period of all expired H-4 EADs. We are confident that your incoming Secretary of the Department of Homeland Security will rectify the systemic processing issues that have been created by the Trump Administration,” wrote the members of Congress.
The revocation of H-4 work authorization is the Sword of Damocles hanging over the heads of more than 100,000 women from India since the advent of the Trump administration. H-4 visa holders are the dependent spouses of H-1B workers and largely have skills comparable to those of their spouse. However, they had not been allowed to work until 2015, when former President Barack Obama, via executive order, allowed them work authorization, known as H-4 EAD.
Shortly after taking office, President Donald Trump immediately stated his intention to rescind H-4 EAD. A Notice of Proposed Rulemaking — which has passed almost all procedural hurdles — currently rests in the Office of Management and Budget’s Office of Information and Regulatory Affairs for final approval.
Save Jobs USA filed a lawsuit in 2016 against the Department of Homeland Security, alleging that foreign workers were competing with and replacing American workers.
H-4 visa holders with work authorization are not limited to the types of jobs they can pursue.
The DC Circuit Court of Appeals ruled last November that H-4 EAD was in fact negatively impacting American workers: H-1B workers were remaining in the U.S. longer than they might have, since their spouses now had work authorization. Thus, they now faced increased competition for employment from H-4 and H-1B visa holders.
The Circuit Court has thrown the case back to a lower court.
In their letter to Biden, the 60 members of Congress — including Reps. Ami Bera and Ro Khanna, D-California; Pramila Jayapal, D-Washington; and Raja Krishnamoorthi, D-Illinois, framed the issue as one of gender equality.
“This rule presented an important step towards rectifying gender disparities in our immigration system as around 95 percent of H-4 visa holders who have secured work authorization are women,” wrote the members of Congress.
“Before the rule was granted, many women on H-4 visas described depression and isolation in moving to a new country and not being allowed to work outside of the home. Unfortunately, these women are losing and will continue to lose their jobs until this is put right, disrupting the lives of their families and the functioning of employers in our districts,” wrote the lawmakers.
The organization Save H4 EADs conducted a survey of 2,400 of its members in 2018. The survey found that 59 percent have postgraduate or professional degrees and above and 96 percent have a bachelor’s degree and above.
About 43 percent purchased a home after receiving work authorization, and 35 percent of them bought a home over $500,000. Forty-nine percent of workers with H-4 EAD have annual individual income of over $75,000. Sixty percent pay taxes of more $5,000. Five percent have started their own businesses, creating employment for American workers.
Meanwhile, in a major win for H-1B workers, the Ninth Circuit Court of Appeals Dec. 16 ruled that computer programming can be considered a specialty occupation, stating that U.S. Citizenship and Immigration Services’ denial of a visa for a computer programmer was “arbitrary and capricious.”
Immigration attorney Cyrus Mehta cheered the ruling. In a blog post, Mehta said: “While the Ninth Circuit’s decision in Innova Solutions is doubtless a victory for U.S. technology companies who employ foreign workers as computer programmers, the decision has broader implications, as well. For one, the decision is a refreshing rebuttal to USCIS’s longstanding practice of challenging computer programming on specialty occupation grounds.”
The Indian American attorney noted that this was the first time a circuit court has ruled in favor of the H-1B petitioner, adding that petitioners have won similar decisions in lower courts.
On March 31, 3017, two months after President Donald Trump took office with his “Buy American, Hire American” ethos, USCIS released a memo stating that computer programming would no longer be considered a specialty occupation. The agency noted that some programmers hold only an associate’s degree or less.
“As such, it is improper to conclude based on this information that USCIS would “generally consider the position of programmer to qualify as a specialty occupation,” noted the USCIS memo.
Current law requires H-1B workers to possess a bachelor’s degree or higher, with academic credentials specifically related to their prospective job duties.
In 2017, USCIS had denied an H-1B visa to Dilip Dodda who was scheduled to work for Santa Clara, California-based Innova Solutions as a programmer analyst. Dodda was denied his visa: USCIS noted that computer programming was not a specialty occupation.
Dodda had more than 10 years of experience in computer programming. Innova had planned to assign him to work for one of its clients, Change Healthcare Operations. Dodda would provide consulting services on Change Healthcare’s patient billing and payment system, which required knowledge of several programming languages.
However, USCIS noted in its response to the lawsuit that Innova had stated in its Labor Certification Application that the position in question was a “Wage Level 1 entry position.”
Innova provided to USCIS a list of about 14 functions that Dodda would perform, including writing script, testing beta sites, performing initial debugging, and rewriting code to fix buggy sites. USCIS nonetheless denied Innova’s petition for Dodda.
In its lawsuit, Innova contended that USCIS failed to properly consider the evidence and did not articulate any reasonable basis for its decision. It stated that the agency’s decision therefore must be set aside as arbitrary, capricious, and an abuse of discretion.
In 2019, United States Magistrate Judge Virginia Demarchi denied Innova’s lawsuit against USCIS, ruling that Innova had not sufficiently established that Dodda was to be engaged in a specialty occupation.
Demarchi said in her ruling that USCIS had noted that even interns could be classified as computer programmers. She ruled in favor of USCIS, stating that Innova failed to submit sufficient evidence “showing the unique or complex nature of the position, or how this position differs from other similar positions within the same industry.”
Innova appealed the lower court’s decision. Judge John Owens, writing for the three-judge panel at the Ninth Circuit, noted that USCIS relied solely on the Labor Department’s Occupational Outlook Handbook, which states that most computer programmers normally have attained a bachelor’s degree or higher, and that a bachelor’s degree is the typical level of education most programmers need to enter the field. “USCIS’s decision in light of that evidence was arbitrary and capricious,” ruled Owens. “It offered an explanation for its decision that ran counter to the evidence before it.” Mehta said in a blog post

Trump Backs Down, Signs Covid Stimulus Package

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Responding to multiple calls and prompting s from leaders from both the political Parties, President Donald Trump, finally signed into law a major coronavirus stimulus/survival package along with an annual spending bill on December 27th night, avoiding a government shutdown before a Monday night deadline.
Trump has railed against the $900 billion coronavirus relief bill and a $1.4 trillion government funding bill since Congress approved it, demanding $2,000 checks and cutting out foreign aid. But on Sunday evening after days of being lobbied by allies, Trump decided to sign the bill and not leave office amid a maelstrom of expired benefits and a government shutdown.
The Bill was voted upon nearly a week ago, and millions were awaiting Trump’s signature, as millions of Americans have temporarily lost their unemployment benefits after President Donald Trump failed to sign the Covid relief bill into law.
US President-elect Joe Biden had warned of “devastating consequences” if Mr Trump continued to delay signing but the Saturday deadline has now passed. Republicans both privately and publicly tried to sway Trump to change his mind after days of attacks on the bill.

After careful negotiations among congressional leaders and Treasury Secretary Steven Mnuchin, Trump threatened to blow up the deal — which his own administration negotiated and indicated he would support. More than $2 trillion was at stake, including badly needed pandemic aid for programs like unemployment and food assistance.
The package worth $900bn was approved by Congress after months of difficult negotiations and compromises. Trump said, he wanted to give people bigger one-off payments.
The bill includes the payment of $600 to Americans earning less than $75,000 a year. Mr Trump said, he wants Americans to receive $2,000 but Republicans in Congress refused to agree to the change.
The coronavirus economic relief is part of a $2.3tn spending package that includes $1.4tn for normal federal government spending. A partial government shutdown would have begun on Tuesday, had Trump still not signed the bill. About 14 million Americans would have been affected by a lapse in unemployment benefit payments and new stimulus cheques.
What did Biden say?
In a strongly worded statement published on the transition website on Saturday, Mr Biden described Mr Trump’s refusal to sign the bill as an “abdication of responsibility”.
“It is the day after Christmas, and millions of families don’t know if they’ll be able to make ends meet because of President Donald Trump’s refusal to sign an economic relief bill approved by Congress with an overwhelming and bipartisan majority,” Mr Biden said.
He praised the example of members of Congress in compromising and reaching a bipartisan agreement, adding: “President Trump should join them, and make sure millions of Americans can put food on the table and keep a roof over their heads in this holiday season.”
What’s Trump position?
On Twitter earlier, the president had reiterated his objection to the bill, saying: “I simply want to get our great people $2000, rather than the measly $600 that is now in the bill.”
The coronavirus aid relief bill – with the larger budget bill rolled in – overwhelmingly passed the House of Representatives and Senate on Monday but, a day later, Mr Trump issued an implied veto threat, describing the package as a “disgrace” full of “wasteful” items.
He baulked at the annual aid money for other countries in the federal budget, arguing that those funds should instead go to struggling Americans.
Mr Trump’s decision to bat the measure back to Capitol Hill stunned lawmakers since he has largely stayed out of negotiations for a coronavirus aid bill that had stalled since last July.
His top economic adviser, Treasury Secretary Steven Mnuchin, had proposed the $600 payments early this month, and many have questioned why the president waited until now to object.
“I will sign the omnibus and Covid package with a strong message that makes clear to Congress that wasteful items need to be removed. I will send back to Congress a redlined version, item by item, accompanied by the formal rescission request to Congress insisting that those funds be removed from the bill,” Trump said on Sunday night.
The president also said the Senate would soon begin work on ending legal protections for tech companies, examining voter fraud and boosting the check size for direct payments. The current Congress ends in six days.
“I applaud President Trump’s decision to get hundreds of billions of dollars of crucial COVID-19 relief out the door and into the hands of American families as quickly as possible,” said Senate Majority Leader Mitch McConnell in a statement that did not mention the commitments Trump said the Senate has made.
“To vote against this bill is to deny the financial hardship that families face and to deny them the relief they need,” Speaker Nancy Pelosi said previously in a statement.
On Sunday, Sen. Bernie Sanders (I-Vt.), who had pressed for higher stimulus checks, urged Trump to sign the bill, saying on ABC’s “This Week” that “the suffering of this country will be immense” if the president fails to sign the bill before the shutdown deadline.
But even if the House passes $2,000 stimulus checks, the GOP-controlled Senate is not expected to take up the legislation. The chamber will hold a pro forma session Monday morning and is scheduled to return Tuesday to begin the process of overriding Trump’s veto of the annual defense bill.

With Congress Approving Stimulus Bill, When Will You Get A Second Stimulus Check?

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A second round of stimulus payments is included in a coronavirus relief package struck by congressional leaders late Sunday after months of negotiations between Congressional leaders from both the major political parties.

US Congressional Lawmakers voted Monday on the deal, which would provide for $600 checks, but experts say it will take at least two weeks for the Treasury to get cash into individuals’ bank accounts after legislation is signed.

“The timing could be more challenging this time, but the IRS could likely begin to get the money out in January,” said Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center.

In March, Congress provided individuals with $1,200 direct payments and couples with $2,400 plus $500 per child under the $2 trillion CARES Act. Those payments started phasing out for singles who earn more than $75,000 a year and those earning more than $99,000 did not receive anything. The income thresholds were doubled for couples.
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As with the first round, the new payments will only be sent to people below a certain income level, though it wasn’t immediately clear Sunday where that would be set.
It took two weeks after that bill was passed for the IRS to start distributing the money — but some eligible recipients still haven’t received it, months later.
Who gets the money fastest

The payments do not go all out at once. Those whose bank information is on file with the IRS will likely get the money first because it will be directly deposited into their account. Others will receive paper checks or prepaid debit cards in the mail.

About 90 million people — more than half of those eligible — received their payments within the first three weeks of April after the March deal was signed. Most people had their money within two months.

Still, about 12 million eligible Americans were at risk of not getting the money at all because the IRS had no way to reach them. While most people received the money automatically, very low-income people who don’t normally file tax returns had to register online before November 21 to provide their address or bank account number.

IRS under pressure

If Congress keeps the eligibility requirements the same as they were for the first round of checks, the process may be nearly as easy as hitting a button. But it could complicate things if the parameters are changed — especially if Congress adds restrictions aside from income.
Additional checks may delay the start of the 2020 tax filing season. A second stimulus check means the agency will have to make changes to the tax return forms, some of which have already been sent to the printers.

December is not an ideal time to add to the IRS’s workload. It’s typically the month when work is done to prepare for the upcoming filing season and more staff may be on leave than usual due to the holidays.

“I believe the IRS will deliver the stimulus checks in a timely manner. It just might be at the expense of the filing season start date,” said Chad Hooper, the executive director of the Professional Managers Association, which advocates for more than 30,000 non-union IRS workers.

This story has been updated with details of the stimulus deal reached Sunday.

Protesting Indian Farmers Call For 2nd Strike In A Week By SHONAL GANGULY (AP News)

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Tens of thousands of protesting Indian farmers called for a national farmers’ strike on Monday, the second in a week, to press for the quashing of three new laws on agricultural reform that they say will drive down crop prices and devastate their earnings.

The farmers are camping along at least five major highways on the outskirts of New Delhi and have said they won’t leave until the government rolls back what they call the “black laws.” They have blockaded highways leading to the capital for three weeks, and several rounds of talks with the government have failed to produce any breakthroughs.

Scores of farmer leaders also conducted a token hunger strike on Monday at the protest sites. Heavy contingents of police in riot gear patrolled the areas where the farmers have been camping.

Protest leaders have rejected the government’s offer to amend some contentious provisions of the new farm laws, which deregulate crop pricing, and have stuck to their demand for total repeal.

At Singhu, a protest site on the outskirts of New Delhi, hundreds of farmers blocked all entry and exit routes and chanted anti-government slogans. Some of them carried banners reading “No farmers, no food.”

About two dozen leaders held a daylong hunger strike at the site, while a huge communal kitchen served food for the other protesters.

“It’s the government’s responsibility to provide social benefits (to people.) And if they don’t give those, then people will have to come together” to protest, said Harvinder Kaur, a government employee who came from her home in Punjab state to help at the kitchen.

Another protester, Rajdeep Singh, a 20-year-old student who helps his farming family back home in Punjab, said the protest would continue until their demands are met.

“Now it’s their (government’s) ego and the question of our pride,” he said.

Farmer leaders have threatened to intensify their actions and have threatened to block trains in the coming days if the government doesn’t abolish the laws.

The farmers filed a petition with the Supreme Court on Friday seeking the quashing of the laws, which were passed in September. The petition was filed by the Bharatiya Kisan Union, or Indian Farmers’ Union, and its leader, Bhanu Pratap Singh, who argued that the laws were arbitrary because the government enacted them without proper consultations with stakeholders.

The farmers fear the government will stop buying grain at minimum guaranteed prices and corporations will then push prices down. The government says it is willing to pledge that guaranteed prices will continue.

With nearly 60% of the Indian population depending on agriculture for their livelihoods, the growing farmer rebellion has rattled Prime Minister Narendra Modi’s administration and its allies.

Modi’s government insists the reforms will benefit farmers. It says they will allow farmers to market their produce and boost production through private investment.

Farmers have been protesting the laws for nearly two months in Punjab and Haryana states. The situation escalated three weeks ago when tens of thousands marched to New Delhi, where they clashed with police.

GOPIO-CT Organizes Experts Panel On 2021 Tax Planning and Tax Saving Tips

Staff ReporterCommunity, Finance/Economy 0

With the year 2020 with all the uncertainties due to the Covid pandemic coming to a close, most of us, especially the Indian Americans are getting ready to file the annual Tax Returns. With ever changing Tax Laws, and in the context of the Covid pandemic and the ushering in of a new administration led by President-Elect Joe Biden and Vice President Elect Kamala Harris preparing to lead the nation, there are several unanswered questions on how best to use the prevailing tax laws to benefit individuals, families and businesses.

 

GOPIO-CT, the most active Chapter in the world, under the leaderships of Dr. Thomas Abraham, Chairman of GOPIO International and Ashok Nichani, the local Chapter president and the Exceptive Committee organized a Virtual Zoom Session on Friday, Dec. 4, 2020, with the objective of educating Indian Americans on 2021 Major US Tax Reform, Tax Planning and Tax Saving Tips, International Taxes, Estate & Gift tax and Retirement Plans. Attended by hundreds of members and leaders of GOPIO, the educative session was led by several experts on Tax law in the US, with particular focus on international Taxes.

 

Cecil Nazareth, ACA, CPA, MBA addressed the audience on Tax Planning 2020-’21 and International Taxes with particular focus on: IRS enforcement; Biden proposed tax plan; Year-end Tax planning; and, Other proposals/planning tools. He recommended tax filers to avoid “red flags” that could potentially lead to one greater scrutiny. Under Biden administration, Nazreth stated, “Chances of tax cut is greater for lower and middle class Americans, with tax rate possibly to go up for those earning over $400,000.” He was of the opinion that “No tax hike in Covid times” and “New credit for people providing long term care to relatives with incentive to offer more retirement savings.” He suggested small businesses to “Apply for PPP loan forgiveness NOW” while cautioning that “Expenses are not deductible if loan is forgiven.”

 

Cecil Nazareth CA, CPA is a partner with Nazareth CAs & CPAs, Cecil worked at Ernst & Young and the AICPA in key strategic positions. Cecil is an Indian Chartered Accountant and a U.S. CPA. Cecil is a leading authority on Indo–US tax issues. Cecil has an M.B.A. in Finance from Fordham University and Information Technology from Columbia University. His is also an author of “International tax and compliance handbook” with special emphasis on India-U.S. taxes.

 

In his address, Michael Markhoff. Esq., spoke about Estate, Gift taxes and Trust Options for Children, while educating the audience on “changes you should consider to your estate plan in 2021 due to the election; Planning to minimize state estate taxes; and Trust options for children.”

Markhoff said, the new Administration under Biden is likely to lower the exemption, resulting less returns for people with higher income. He suggested to “make gifts before the end of the year” and highlighted the options for making gifts from one person to another within family to avoid higher taxes. Suggesting that Life Insurance is a good planning and will help pay for estate plans, he recommended “charity plans will leave with lower state taxes.”

 

Attorney Michael Markhoff, a partner at Danziger & Markhoff LLP, is a graduate of Columbia College and Brooklyn Law School and is listed in Best Lawyers in America – Trusts and Estates and Category and Super Lawyers – Trusts and Estates Category. Michael was named Trusts and Estates Lawyer of the Year for White Plains, New York for 2016 and 2018 by Best Lawyers in America.

 

Andy Roth, Esq., addressed the audience on “Looking into Key CARES Act and SECURE Act – Retirement Plan, including on taxes for those with Coronavirus infections. Under CARES ACT, he said, “You, or your spouse or dependent, are diagnosed with coronavirus by a CDC-approved test (including a test authorized under the Federal Food, Drug, and Cosmetic Act;) and, or our experience adverse financial consequences as a result of your, or your spouse or a member of your household that is, someone who shares your principal residence. “Qualified individuals can elect in their tax return to treat allowable in-service distributions in 2020 as CRDs even if their employer’s plan does not adopt CRDs,” he told the audience.

 

Attorney Andrew E. Roth is a partner of Danziger & Markhoff LLP with over 35 years of experience as an ERISA attorney.  He is a frequent lecturer in the areas of pension, profit-sharing and employee benefits law.  Mr. Roth attended University College of Arts and Science of NYU and graduated magna cum laude from Brooklyn Law School. Mr. Roth also received an LLM in Taxation from NYU School of Law.

 

Shiva Bhashyam CFP®, AEP®, APMA® emphasized the importance of Financial Planning in Retirement and offered Market update and outlook, Retirement planning checklist, and Behavioral investing – how and why to manage emotions during volatile markets.

 

Shiva Bhashyam received his undergraduate degree in economics from Tufts University and a Masters Degree in Management and Finance from the London School of Economics and Political Science. Shiva is a Certified Financial Planner (CFP®) practitioner, Accredited Estate Planner (AEP®), and Accredited Portfolio Manager Advisor (APMA®). Shiva has been a financial advisor with an Ameriprise Financial Private Wealth Advisory Practice, Bhashyam Wealth Management Associates. Shiva has been named a Forbes Best-in-State Wealth Advisor for 2019 & 2020.

 

Kim Ramchandani spoke about Long-Term Care Planning Options, and on ways to help you to have a conversation with your loved ones about making a plan now about your wishes. “It is important because your life and your health don’t just affect you; they affect all the people who love and care for you,” she said.

Kim Ramchandani, CHFC® is Senior Vice President, Financial Consultant, Webster Investments. Kim provides holistic wealth management services that address he full spectrum of her clients’ financial concerns, including investments, life insurance, family finances, retirement and estate planning. She has 13 years’ experience in investment services and is a Chartered Financial Consultant. ®

David Folley, who works closely with Webster Investments, in his presentation spoke about Tax Incentives to us in 2020. Pointing to the fact that a third of our society is in retirement, he said, they can be used to reimburse age related caps in the tax laws. While educating the participants on the long-term care, he said, Long Term Care, he said, it is the option to live in the community rather than be institutionalized when one is old or disabled. He warned that when one is older, Medicare and Medicaid will run their course soon, and one’s savings will end and one’s family will not be there to care for you. He suggested using Long Term Care Plans as   a way to prepare to cover the cost of treatment when you need it the most.

In his brief introductory remarks, GOPIO International Chairman Dr. Thomas Abraham reminded participants of the many efforts by GOPIO, which has led a delegation to the IRS representing Indian Americans and their many concerns, especially on the FBAR issue in the year 2011.

GOPIO-CT President Ashok Nichani welcomed the panelists and the participants. In his remarks, he highlighted the many initiatives, especially educating Indian Americans on Taxes and Tax Laws in the US. GOPIO-CT Vice president Prasad Chintalapudi moderated the Q/A after each speaker. GOPIO-Central Jersey Vie President Vijay Garg served hosted the Zoom event for GOPIO-CT. Other GOPIO leaders present at the Webinar included GOPIO-CT Secretary Rajneesh Misra. GOPIO International officers including Vice President Ram Gadhavi, Treasurer Kewal Kanda, Associate Secretary Jaswant Mody and Media Council Chair Nami Kaur, GOPIO-Manhattan President Shivender Sofat and GOPIO-Central jersey President Kunal Mehta.

Over the last 14 years, GOPIO-CT, a chapter of GOPIO International has become an active and dynamic organization hosting interactive sessions with policy makers and academicians, community events, youth mentoring and networking workshops, and working with other area organizations to help create a better future. GOPIO-CT – Global Organization of People of Indian Origin – serves as a non-partisan, secular, civic and community service organization – promoting awareness of Indian culture, customs and contributions of PIOs through community programs, forums, events and youth activities. It seeks to strengthen partnerships and create an ongoing dialogue with local communities.

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