In Case You Missed It: August 12-18

After a few week hiatus, we are back! (Writing up Personal Finance and preparing for the new school year took me away, I am so sorry to all of my loyal follower)

On the Site

People’s Tax Page has created and published a set of lessons on how we should be thinking of our personal finances! They walk us through what we need to do in order to build personal wealth, the basic strategies therein, and how that plays out. For the future, we are also working on lessons that focus on things like when it is smart to take debt or other books you could look out for to educate yourselves in a more detailed way.

Around the Web

US Budget Deficit Rises 27% through July

CNN - The Laffer Curve (which was scribbled on a napkin) promises that cutting taxes will spur growth, more than making up for the smaller percentage of the economy that the government is claiming as revenue by increasing the overall size of the economy. It is so smart, President Trump even gave the eponymous Laffer a Presidential Medal of Freedom for popularizing this idea.

Too bad it didn’t work.

Trump’s Tax Cut isn’t Giving the US Economy the Boost it Needs

CNBC - The tax cut may have helped the economy but the economy is still victim to his impulsive trade decisions, among other issues.

Lowe’s Spent Billions on Share Buybacks, Zero on Severance for Laid-Off Workers

CBS News - Lowe’s has been very profitable recently so, naturally, when they laid off 300,000 employees with no warning, they also gave them less than 2 weeks pay rather than severance. Instead, they purchased $10 Billion buying back stock.

Trump has turned the government against the middle class

MarketWatch - Trump has created a marketplace in which middle- and lower-class consumers are ripe for hurting; through tariffs that have offset their tax cuts, leaving only the wealthy donors with any net benefit; through abandoning the fiduciary rule designed to protect savers from unscrupulous advisers (I guess you will have to go here instead); and through weakening fuel efficiency standards. As you can imagine, the benefits of these actions run uphill.

CEOs rake in 940% more than 40 years ago, while average workers earn 12% more

CBS News - CEO pay has increased dramatically, especially with innovations like stock packages, while worker pay hasn’t. This has also meant that CEOs are investing profits in things like stock buybacks, which increase the value of the stock they are holding, rather than severance or pay increases for their employees (or former employees); which is not news, since we already knew that companies like Lowe’s were doing it.