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Opinion Editorials

For the first time, U.S. kids won’t outearn parents – but does it really matter?

(EDITORIAL) Does it really matter that the American Dream is supposedly dying? Let’s discuss generational earning and dreams.

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Trouble for younger generations

The American Dream depends on future generations being better off than those that preceded them, but new data released by the Equality of Opportunity Project suggests that idea may have faded away years ago. While some are praising this new finding as eye-opening and revolutionary, it wasn’t hard to see the data coming.

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The study comes from a team of sociologists and economists at Stanford, the University of California, Berkeley, and Harvard. It suggests that only one half of American 30-year-olds will earn more money than their parents did at the same age. “It’s basically a coin flip as to whether you’ll do better than your parents,” said Stanford economics professor Raj Chetty in a news release.

A gradual decline

The study also found there has been a gradual decline in the likelihood that a child will outearn their parents by age 30. This dropped from around 90 percent of children born in the 1940s to just about 50 percent for children born in 1985. While this trend is national, Chetty explained the largest drops occurred in the eastern Midwest, especially in industrial states like Michigan and Illinois. All these statistics, while disappointing, should not come as a surprise.

A slowdown in GDP growth is a partially blamed for this trend, but the concentration of wealth increase among the rich is a more significant factor. While some pockets of America may be getting richer, the middle class is not benefiting from economic growth.

Today, the top 1 percent of America earns 81 times more than the bottom 50 percent, compared to 27 times more in the 1980s.

Traditional GDP growth simply does not have the same impact it once did.

The decline of the American Dream

David Leonhardt of the New York Times called the Equality of Opportunity Project’s findings “deeply alarming,” and others have echoed his sentiment. But for young Americans like me, this report simply serves as more evidence of something we grew up knowing. A coincidentally parallel statistic came about in 2015, when the Harvard University Institute of Politics found that 48 percent of 18 to 29-year-olds felt the American Dream was already dead. In the end, the Equality of Opportunity Project ended up reinforcing something we already knew about our country, our education system, and the future of younger generations.

Ultimately, working to curb the declining possibility of income mobility will come from focusing on policy actions that will lead to widespread economic growth. For many young Americans, it’s no surprise that the keys to financial success are access to good schools, from early childhood education to college. Equal investment from the government in the wealthy and poor alike is also a key factor.

As high-paying jobs move to the globalized, high-tech economy, a good first step is to help more young people acquire the skills that will help them qualify for these jobs.

President Obama passed incentives like the Computer Science for All initiative to address these issues. Introduced in his 2016 State of the Union Address, the initiative would lead to “offering every student the hands-on computer science and math classes that make them job-ready on day one.” This went along with other initiatives, pushing for the importance of improving all schools and working to reduce student debt following college. Now, following the election, it seems like there may be less incentive to make change.

The murky road forward

While President-elect Trump campaigned as a fighter for the people, I think his plans for economic growth that may work to help propel younger generations are few and dubious. Still, the study concludes that “cities with high levels of upward mobility tend to have five characteristics: lower levels of residential segregation, a larger middle class, stronger families, greater social capital, and higher quality public schools.” At least the study has laid out some sort of plan of what may help.

Ultimately though, the Equality of Opportunity Project research may be most helpful in helping young Americans realize that the notion that every generation should earn more than the previous is fundamentally flawed. The idea that we need to make more than those before us, or even those around us, is likely what got us in this mess in the first place, and what may at least temporarily keep us moving in the wrong direction.

#GenerationalSuccess

Brian is a staff writer at The American Genius who lives in Brooklyn, New York. He is a graduate of Washington University in St. Louis, and majored in American Culture Studies and Writing. Originally from California, Brian has a podcast, "Revolves Around Me," and enjoys public transportation, bicycles, the beach.

Opinion Editorials

The truth about unemployment from someone who’s been through it

(EDITORIAL) Unemployment benefits aren’t what you thought they were. Here’s a first-hand experience and what you need to know.

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Have I ever told you how I owed the government over two grand because of unemployment in 2019, and only just finished paying it back this year?

This isn’t exactly the forum for memoirs, but this is relevant to everyone. So I’ll tell y’all anyway.

It all started back in 2018 when I came into work early, microwaved my breakfast, poured coffee, and got pulled into a collaboration room to hear, “We love you and your work, April, but we’ve been bought out and you’re being laid off.”

It was kind of awkward carrying my stuff out to the car with that Jimmy Dean sandwich in my mouth.

More awkward still was the nine months of unemployment I went through afterwards. Between the fully clothed shower crying, the stream of job denial, catering to people who carried rocks in their nostrils at my part-time job (yes, ew, yes, really), and almost dying of no-health-insurance-itis, I learned a lot!

The bigger lesson though, came in the spring of the following year when I filed my taxes. I should back up for a moment and take the time to let those of you unfamiliar with unemployment in Texas in on a few things that aren’t common knowledge.

1: You’re only eligible if you were laid off. Not if you had quit. Not fired. Your former company can also choose to challenge your eligibility for benefits if they didn’t like your face on the way out. So the only way you’re 100% guaranteed to get paid in (what the state calls) “a timely manner”, is a completely amicable split.

2: Overpayments have to go back. Immediately. If there’s an error, like several thousand of Texans found out this week, the government needs that cash back before you can access any more. If you’re not watching your bank account to make sure you’re getting the exact same check each time and you have an overpayment, rest assured that mistake isn’t going to take long to correct. Unfortunately, if you spent that money unknowingly–thought you got an ‘in these uncertain times’ kinder and gentler adjustment and have 0 income, you have a problem. Tying into Coronavirus nonsense is point three!

3: There are no sick days. If ever you’re unable to work for any reason, be it a car accident, childbirth, horrible internal infection (see also no-health-insurance-itis), you are legally required to report it, and you will not be paid for any days you were incapacitated. Personally, my no-health-insurance-itis came with a bad fever and bedrest order that axed me out of my part time job AND killed my unemployment benefits for the week I spent getting my internal organs to like me again. But as it turned out, the payment denial came at the right time because–

4: Unemployment benefits are finite. Even if you choose to lie on your request forms about how hard you’re searching for work, coasting is ill-advised because once the number the state allots you runs out…it’s out. Don’t lie on your request forms, by the way. In my case, since I got cut from my part-time gig, I got a call from the Texas Workforce Commission about why my hours were short. I was able to point out where I’d reported my sickness to them and to my employer, so my unpaid week rolled over to a later request date. I continued to get paid right up until my hiring date which was also EXACTLY when my benefits ran out.

Unemployment isn’t a career, which is odd considering the fact that unemployment payments are qualified by the government as income.

Ergo, fact number five…

5: Your benefits? They’re taxed.

That’s right, you will be TAXED for not having a job.

The stereotype of the ‘lazy unemployment collector burdening society’ should be fading pretty quickly for the hitherto uninformed about now.

To bring it back to my story, I’d completely forgotten that when I filed for unemployment in the first place, I’d asked for my taxes NOT to be withheld from it–assuming that I wasn’t going to be searching for full time work for very long. I figured “Well, I’ll have a tax refund coming since I’ll get work again no problem, it’ll cancel out.”

Except, it was a problem. Because of the nine month situation.

I’d completely forgotten about it by the time I threw myself into my new job, but after doing my taxes, triple checking the laws and what I’d signed, it was clear. Somehow…despite being at my lowest point in life, I owed the highest amount in taxes, somewhere around the 2k mark.

Despite being based on a system that’s tied to how much income you were getting before, and all the frustrating “safeguards” put in place to keep payments as low and infrequent as possible, Uncle Sam still wants a bite out of the gas-station Hostess pie that is your unemployment check. And as I’m writing this, more and more people are finding that out.

I’d like to end this on a more positive note…so let’s say we’ve all been positively educated! That’s a net gain, surely.

Keep your heads up, and masked.

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Opinion Editorials

COVID-19 acts are unfortunately too short sighted

(BUSINESS NEWS) The biggest flaw in the CARES act is simply that it won’t last. Numerous issues have extended the life of COVID-19 but the act hasn’t matched it.

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The CARES act gives an additional $600 weekly to those on unemployment assistance. The idea being that, combined with the $380 already granted by unemployment, the payments would roughly equal the wage of the average worker prior to the pandemic- about $1,000 weekly.

But on July 31st, the expansion that CARES provides will expire, and benefits will return to pre-pandemic amounts. Those currently receiving the maximum payment will see a 61% decrease in their income. In states that offer lower benefit payments, that percentage goes even higher. All of this comes during a national rental crisis, and moratoriums on evictions across the country are also nearing their ends or being extended last minute.

This isn’t the first or only “yuge” hole in the federal government’s COVID-19 safety net. Many Americans (this writer included) have seen neither hide nor hair of their promised stimulus checks. The HEROES act, which is being billed as a second round of stimulus money, remains under debate- as it has been for several weeks.

And the Families First Coronavirus Response Act, which requires certain businesses to provide two weeks of paid leave to workers who may be sick (or caring for someone who is) has plenty of problems too, namely the laundry list of exceptions to it.

This is just the most recent push to return to the pre-virus economy before effective protective measures have been put in place for workers and consumers alike. After all, with cases of COVID-19 spiking again in the US, it’s apparent that the act is still absolutely necessary. Our lawmakers either lack patience, or compassion – take your pick. Frankly, I say it’s both.

Not only have countless health experts warned that reopening too early will be disastrous, but if a second lockdown is in our future, all of the time, money, and human lives that went into reopening will be wasted.

There is a silver lining among the storm clouds on the horizon. Because ballooning unemployment has created long wait times for benefit applicants, unemployment assistance programs are shelling out retroactive back payments to those deemed eligible.

Good news, at least, for laid off workers who have been waiting months to hear their fate.

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Opinion Editorials

Women-owned businesses make up 42% of all businesses – heck yeah!

(EDITORIAL) Women-owned businesses make a huge impact on the U.S economy. They make up 42% of all businesses, outpace the national growth rate by 50%, and hire billions of workers.

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Women entrepreneurs make history in the U.S as female-owned businesses represent 42% of all businesses, while continuing to increase at DOUBLE the national growth rate!

Women are running the world, and we are here for it! The 2019 American Express State of Women-Owned Businesses Report, states 13 million women are now self-employed entrepreneurs. From 2014 to 2019, women-owned businesses grew 21%. Think that’s impressive? Well, businesses owned by women of color grew 43% within the same timeframe, with a growth rate of 50%, and currently account for 50% of all women-owned businesses! Way to go! What this also means is that women employ over 2.4 million workers who together generate $422.5 billion in revenue.

What can we learn from these women that’ll help you achieve success in your businesses?

  1. Get informed: In a male-dominated business industry, women are often at a disadvantage and face multiple biases. So, know your stuff; study, research, and when you think you know it all…dig deeper!
  2. Stay hungry: Remember why you started this journey. Write down notes and reminders, goals, and inspirations, hang them up and keep them close.
  3. Ask for advice: Life is not meant to go through alone, so ask questions. Find a mentor and talk to people who have walked a similar path. Learning from them will only benefit your business.

Many of these women found ways to use their passion to drive their business. It may not be exactly what they thought it would be when they started out, but is it ever? Everyone has to start off small and rejection is part of the process. In fact, stories of rejection often serve as inspiration and encouragement to soon-to-be self starters.

Did you know J.K Rowling’s “Harry Potter” book was turned down TWELVE times? Seven books later with over 400 million copies sold, the Harry Potter brand is currently valued at over 15 billion. While you might not become a wizard-writing fantasy legend like J.K Rowling, you sure as heck can be successful. So go for it, and chase your dreams.

If you want to support women-owned businesses, start by scrolling through Facebook or doing some research to find women-owned businesses in your community. Then, support by buying or helping to promote their products. Small businesses, especially women-owned, black women-owned, and women of color-owned, are disproportionally affected by the current economic crisis ignited by a health pandemic. So if you can, shop small and support local. And remember, there’s a girl (or more) doing a happy dance when you checkout!

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