http://www.theguardian.com/money/2014/jan/12/soaring-cost-of-childcare
According to The Guardian, child care in Britain has risen by 19 percent in the past year. 24 percent of unemployed parents said the reason they could not work was because of the cost of childcare. Among the age group of 18 to 24 year olds the percentage rises to 38 percent. The article said that all of this causes a triple problem. Parents are staying on government benefits, mothers are not able to move up in the workforce and it slows down the economic recovery because potential works are unable to enter the workforce. The article also stated that the majority of families thought that child care centers were not family friendly because of the strict schedules they had.
The price of child care is very important for parents to consider. If a parent has a low paying job and two or more kids, it actually makes more financial sense for them to stay home and take care of their kids. The cost of child care greatly affects the parent's cost of living. It means they now have less money to spend on rent, food and other needs. Some of the state government in the United States offer subsidized child care programs. It reduces the amount the parents have to pay for child care and the parents can go to work. I am not sure if Britain has any programs similar to that, but they should have some sort of subsidized child care.
Wednesday, January 15, 2014
South Jersey reflects on minimum wage increase effective Jan. 1, 2014
http://www.nj.com/cumberland/index.ssf/2014/01/minimum_wage_increase_effective_jan_1_2014.html
New Jersey increased their minimum wage from $7.25 to $8.25 an hour effective 2014. This will impact almost a quarter of a million workers in the state. The article said that people who were against the raise cited their beliefs that small business owners would have to cut employee hours or hire less employees due to the increase in the minimum wage. But the New Jersey Policy Perspective said the increase will actually add hundred's of millions of dollars into the general economy. Low wage earners will get an additional $922 dollars a year.
I believe that small increases to the minimum wage, like this one, are essential for people to maintain a basic standard of living. It must be very hard for people working minimum wage jobs to afford the basics. This will help them afford more and perhaps it will bump up their income so they no longer have to rely on welfare as well. I think that Pennsylvania should follow New Jersey's example and bump up our minimum wage at least by 50 cents.
New Jersey increased their minimum wage from $7.25 to $8.25 an hour effective 2014. This will impact almost a quarter of a million workers in the state. The article said that people who were against the raise cited their beliefs that small business owners would have to cut employee hours or hire less employees due to the increase in the minimum wage. But the New Jersey Policy Perspective said the increase will actually add hundred's of millions of dollars into the general economy. Low wage earners will get an additional $922 dollars a year.
I believe that small increases to the minimum wage, like this one, are essential for people to maintain a basic standard of living. It must be very hard for people working minimum wage jobs to afford the basics. This will help them afford more and perhaps it will bump up their income so they no longer have to rely on welfare as well. I think that Pennsylvania should follow New Jersey's example and bump up our minimum wage at least by 50 cents.
Cost of Living Crisis: 67,000 UK Tenants Two Months Behind on Rent
http://www.ibtimes.co.uk/cost-living-crisis-67000-uk-tenants-two-months-behind-rent-1432225
In the UK many tenants have recently fallen behind on their rent payments. The second quarter had 27,784 people who were two months behind on their rent payments according to a survey conducted by Tenant Arrears Trackers. The third quarter had a record 67,000 people who are two months behind on rent payments. The number of tenants facing eviction rose 11 percent during the third quarter as well. The article blames the high numbers of people missing payments on debt and the low wages in the UK.
It appears that the UK is facing similar problems as the United States. Although in the US these problems are commonly blamed on the slow economy and the unemployment rate. In the UK and the US there is a noted sense that people are underemployed and should try to find higher paying jobs. Many people in the US have also fallen on hard times and have had to use credit cards to survive, which leads to a mountain of debt. I think both the US and the UK are having similar problems do to the economy.
In the UK many tenants have recently fallen behind on their rent payments. The second quarter had 27,784 people who were two months behind on their rent payments according to a survey conducted by Tenant Arrears Trackers. The third quarter had a record 67,000 people who are two months behind on rent payments. The number of tenants facing eviction rose 11 percent during the third quarter as well. The article blames the high numbers of people missing payments on debt and the low wages in the UK.
It appears that the UK is facing similar problems as the United States. Although in the US these problems are commonly blamed on the slow economy and the unemployment rate. In the UK and the US there is a noted sense that people are underemployed and should try to find higher paying jobs. Many people in the US have also fallen on hard times and have had to use credit cards to survive, which leads to a mountain of debt. I think both the US and the UK are having similar problems do to the economy.
Teachers’ cost-of-living raise gets backing from governor
http://www.theolympian.com/2014/01/15/2931326/teachers-cost-of-living-raise.html
In the state of Washington, teachers have been fighting for a cost of living raise. This is different from a regular raise because it adjusts their wages against inflation. If passed, the teachers would receive a 1.3 percent increase. The teachers in Washington have not had a raise since 2008 when the Great Recession hit. The article says that because of inflation the teacher have lost about 15 percent of their buying power because their wages have not kept up. The democrats support the bill while the republicans oppose it.
I believe it is a great idea and it is one that should be implemented in our state. If the teachers get a cost of living raise they will also be able to buy more than just basic comforts. Cost of living raises are needed in many fields besides teaching. However I am pleased that Washington has recognized this as an issue. since the economy is getting better, I'm sure more places will have the funds to support giving cost of living raises.
In the state of Washington, teachers have been fighting for a cost of living raise. This is different from a regular raise because it adjusts their wages against inflation. If passed, the teachers would receive a 1.3 percent increase. The teachers in Washington have not had a raise since 2008 when the Great Recession hit. The article says that because of inflation the teacher have lost about 15 percent of their buying power because their wages have not kept up. The democrats support the bill while the republicans oppose it.
I believe it is a great idea and it is one that should be implemented in our state. If the teachers get a cost of living raise they will also be able to buy more than just basic comforts. Cost of living raises are needed in many fields besides teaching. However I am pleased that Washington has recognized this as an issue. since the economy is getting better, I'm sure more places will have the funds to support giving cost of living raises.
Thursday, November 21, 2013
Home Prices Climb in 88% of U.S Cities
According to an article by Bloomberg, housing prices have been rising. The article says that this is because there are less foreclosures to buy and a lower number of homes up for sale. However the article also says that some of the areas are overvalued. So not all of the gains in price made recently are the truth. The median price for a single family home rose 12.5% to $207,300 nationwide. The highest gained percentages were in Sacramento, California, Punta Gorda, Florida and Las Vegas. The article stated that rising home costs and the difficulty to get financing for a home was holding buyers back. there are currently more buyers than sellers in the real estate market. The most affordable homes were found to be in Toledo, Ohio.
Rising home costs means that the cost of living will increase. The article mentioned that buyers are having a hard time finding loans. That could also be linked to the higher interest rates in my opinion. It's not good that some of the houses are overvalued. If the prices continue to rise, they will create a bubble that will eventually burst. That would be bad for the home market as well as the local economy. Hopefully, financing for homes will become easier to secure in the near future. (But not too lax, we don't want a repeat of the housing crash.)
http://www.bloomberg.com/news/2013-11-06/home-prices-climb-in-88-of-u-s-cities-as-recovery-spreads.html
Rising home costs means that the cost of living will increase. The article mentioned that buyers are having a hard time finding loans. That could also be linked to the higher interest rates in my opinion. It's not good that some of the houses are overvalued. If the prices continue to rise, they will create a bubble that will eventually burst. That would be bad for the home market as well as the local economy. Hopefully, financing for homes will become easier to secure in the near future. (But not too lax, we don't want a repeat of the housing crash.)
http://www.bloomberg.com/news/2013-11-06/home-prices-climb-in-88-of-u-s-cities-as-recovery-spreads.html
Payoff in Waiting to Collect Social Security
The cost of living increases almost every year. Many Americans have put off saving for their retirement, most plan to rely on the money they get from Social Security. Americans are able to collect money from Social Security when they reach the age of 62. However the amount of money that they receive increases if they wait a few years to collect Social Security. Because the cost of living will increase over the years, it makes economic sense to put off collecting Social Security at least until the age of 65. For people born after 1959, the full retirement age is 67. In the article an example was given of a man who would receive $12,000 at the age of 65. If he delayed collecting the benefits for one year, he would get an additional $820 per year. Since many people are relying on Social Security for the majority of their retirement savings, it makes sense that they should delay it. Especially since the cost of living will continue to increase.
I believe that if it is possible, people should delay collecting Social Security for as long as possible. That way they get more money. I don't think that most people are willing to delay collecting social security for financial reasons. People who collect Social security will get a cost of living adjustment per year, but I don't think that extra money really helps because of inflation. So their best bet is to wait as long as possible. I know I would wait so that I could receive more money.
http://www.nytimes.com/2013/11/16/your-money/the-payoff-in-waiting-to-collect-social-security.html?_r=0
I believe that if it is possible, people should delay collecting Social Security for as long as possible. That way they get more money. I don't think that most people are willing to delay collecting social security for financial reasons. People who collect Social security will get a cost of living adjustment per year, but I don't think that extra money really helps because of inflation. So their best bet is to wait as long as possible. I know I would wait so that I could receive more money.
http://www.nytimes.com/2013/11/16/your-money/the-payoff-in-waiting-to-collect-social-security.html?_r=0
Friday, November 1, 2013
Social Security raise to be lowest in years
Due to the predicted low inflation rates, the COLA (Cost of Living Adjustment) for Social Security will be historically lower than ever before. The increase is estimated at a 1.5% at this time. About 58 million retirees and disabled people receive Social Security. The increase will correspond to a average month increase of $17. This has caused the recipients to complain because they worry about wiggle room in their checks.
The low inflation rates are good because it means that the cost of living has not gone up very much. It is slightly bad for the people receiving Social Security because they will not get much of an increase. However they should be happy that there is an increase at all.
http://www.usatoday.com/story/money/business/2013/10/13/social-security-raise-to-be-among-lowest-in-years/2975567/
The low inflation rates are good because it means that the cost of living has not gone up very much. It is slightly bad for the people receiving Social Security because they will not get much of an increase. However they should be happy that there is an increase at all.
http://www.usatoday.com/story/money/business/2013/10/13/social-security-raise-to-be-among-lowest-in-years/2975567/
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