HARRISBURG, Pa. – Democratic presidential nominee Joe Biden and President Donald Trump spent Monday diminishing each other’s credentials on the economy and understanding of the American worker as the presidential campaign entered its final, post-labour Day stretch.
While workers live by an “American code,” Biden said Trump “lives by a code of lies, greed and selfishness” as he met with labour leaders in Harrisburg, Pennsylvania, a key swing state. Trump, meanwhile, tried to put the halting economic recovery under the best light in a White House press conference where he said Biden and his running mate, Sen. Kamala Harris, would “destroy this country and would destroy this economy.”
Labor Day typically marks the unofficial start to the fall campaign season as candidates accelerate their activity for the final sprint to Election Day. Both campaigns reflected that urgency Monday, as Harris and Vice-President Mike Pence each campaigned in Wisconsin, a state Trump narrowly won in 2016. The events played out against the background of the pandemic, which has upended campaigning and pushed Biden and Harris in particular to conduct much of the traditional election activity online.
While the health of the American economy and status of workers were dominant Labor Day themes, both campaigns also focused on recent protests that have roiled Wisconsin and the rest of the nation after police shot Jacob Blake, a Black man, in Kenosha last month.
Harris, the first Black woman on a major party presidential ticket, met privately with Blake’s family at the Milwaukee airport after arriving in the state, where she spoke with Blake by phone from his hospital bed. Harris told Blake she was proud of him and individually spoke to each of his family members, in person and on the phone, urging them to take care of their physical and mental health, Blake’s lawyers said in a statement.
Biden met with Blake’s family during a visit to Wisconsin last week. Trump did not during a trip of his own last week, instead meeting with law enforcement and business owners whose property had been damaged during protests. Nor did Pence, who touched on the protests during a speech in La Crosse, where he toured an energy facility.
“We will have law and order in every city in this country for every American of every race and creed,” Pence said.
Out on the trail, signs of the pandemic were evident. While Pence didn’t speak with a mask on, workers from the power company he toured did as they stood behind him. Harris was careful not to stray far from blue “X” marks taped on the floor to encourage social distancing as she toured an International Brotherhood of Electrical Workers training facility. While supporters gathered outside the candidates’ stops, they had minimal interaction with members of the public beyond the people invited to their events.
After meeting with Black business owners, Harris greeted a crowd of about 50 supporters outside as she left, removing her mask briefly while telling them, “We have to get this done, I need your help in Milwaukee.” She noted in-person absentee voting begins in the state on Oct. 20, which is her birthday.
Harris also met with Black business owners in Milwaukee, where she said her day of campaigning was focused on “the dignity of work and the dignity of human beings.”
Biden spoke to a small group of labour leaders in a backyard in Lancaster, where he criticized Trump for “refusing to deal with the problems that affect ordinary people” and called for strengthening unions. His campaign announced endorsements from the Laborers’ International Union of North America, the International Union of Elevator Constructors and the National Federation of Federal Employees, collectively representing hundreds of thousands of union workers nationwide.
Later, at an AFL-CIO virtual town hall with union President Richard Trumka, Biden called Trump’s alleged remarks about fallen soldiers being “losers” and “suckers” un-American and said Trump would never understand why Americans serve. Trump has denied the remarks.
“He’ll never understand you, he’ll never understand us, he’ll never understand our cops, our firefighters, because he’s not made of the same stuff,” Biden said.
Earlier in the day, Trump painted Biden as a leader incapable of handling the coronavirus and reviving the economy and pledged his own “undying loyalty to the American worker.”
He boasted of adding more than 10 million jobs since May, without mentioning that’s only about half of the jobs lost since the pandemic began. He also said the unemployment rate “plunged” to 8.4%. It was a sharper decline than many economists expected from the prior month, but economists broadly view the latest report as evidence that further economic improvement will be sluggish.
He alleged Biden and Democrats would “immediately collapse the economy.”
The day marked Harris’ first solo foray onto the campaign trail for in-person events since she became Biden’s running mate nearly a month ago. Biden himself has stepped up his campaigning over the past week, travelling to Pittsburgh and Kenosha and holding two news conferences. Aides say to expect both Biden and Harris to increase their campaigning for the remaining weeks.
Polls consistently show the economy as an issue at the top of voters’ minds.
A strong economy that was Trump’s biggest asset for reelection has now become a potential liability, brought down by the coronavirus. Biden says Trump has had an inadequate response to the pandemic, resulting in more loss of life and jobs than necessary.
The U.S. economy has been steadily rebounding from its epic collapse in the spring as many businesses have reopened and rehired some laid-off employees. Yet the recovery is far from complete. Only about half the 22 million jobs that vanished in the pandemic have been recovered.
Economic inequalities also appear to have widened, with lower-income and minority workers suffering disproportionately while affluent Americans have lost fewer jobs and even benefited from rising stock and home prices.
Ronayne reported from Sacramento, California, and Nasir reported from Milwaukee. Associated Press writer Amy Forliti contributed from Minneapolis.
German economy to shrink by 5.2% this year, grow by 5.1% next year – Ifo – TheChronicleHerald.ca
BERLIN (Reuters) – Germany’s Ifo institute on Tuesday said Europe’s largest economy would likely shrink by 5.2% this year, raising its previous estimate for a 6.7% drop, in the latest sign the damage caused by the COVID-19 pandemic could be smaller than initially feared.
“The decline in the second quarter and the recovery are currently developing more favourably than we had expected,” Ifo chief economist Timo Wollmershaeuser said.
For 2021, Ifo cut its economic forecast for Germany to 5.1% growth from its previous estimate of 6.4%. It expects the economy to expand by 1.7% in 2022.
The number of people out of work is seen rising to 2.7 million this year from 2.3 million in 2019, before edging down to 2.6 million in 2021 and then to 2.5 million in 2022.
That would translate into a jump in the unemployment rate to 5.9% this year from 5.0% last year. The rate would then drop to 5.7% percent in 2021 and 5.5% in 2022, Ifo said.
The Ifo institute cautioned that there was an unusually high degree of uncertainty attached to the forecasts. It pointed to the rising number of coronavirus infections, the risk of a disorderly Brexit and unresolved trade disputes.
(Reporting by Michael Nienaber; Editing by Michelle Adair)
Coronavirus economy: The 'banker ladies' saving friends from debt – BBC News
Minority communities in the US and elsewhere have sometimes turned to traditional money saving methods outside the formal banking system. The economic shock from the coronavirus pandemic could spur renewed interest in those savings clubs.
When Hilda Robles recalls her first years in America, tears come to her eyes.
“I cried and even wanted to leave at one point because I felt alone,” she says. “I would ask people for help and they couldn’t help me because they didn’t understand Spanish and I didn’t understand English.”
When she came to San Antonio, Texas some 20 years ago, even daily duties like getting to work or going to the doctor were feats of bilingual diplomacy and logistical planning – she had no car, no English and almost no one to turn to for help.
Opening a bank account seemed impossible. “When I stepped into a bank for the first time, I was told I couldn’t open a bank account because I had no social security number,” she says.
“Someone told me about a bank where I could open an account with no social security number, but the language barrier stopped me from going.”
So Ms Robles, 49, went a different route – she started a tanda, an informal savings club popular in Latin America, with contributions from her extended relatives.
Members of the club each contribute a fixed sum to a pool of money on a regular, periodic schedule, with the lump sum going to one member each round until everyone gets paid.
This means that members get back what they put in over the course of the scheme, but by getting it in the form of a lump sum, the money can be put to use for purchases, investments or debt payments they otherwise could not afford. Members who get their “hand” early are effectively receiving an interest-free loan, while those who receive theirs later in the cycle are essentially withdrawing a lump of “saved” cash.
With the $5,000 lump sum she received for her turn of her tanda, Ms Robles bought her first car. Her relatives and friends in the savings club were able to put down payments on houses, pay for university tuition – and now, amid the Covid-19 pandemic, survive when their families have been out of work or sick.
Since that first savings club 14 years ago, Ms Robles has run them continuously with only a few months break to organise the next one.
“It gives me a lot of joy to see people reach their goals because of the tandas without having to drown in debt from loans,” she says. “It’s proof that among us Hispanics, we can get ahead here.”
Hispanic-Americans are not alone in their use of this ancient savings mechanism that has parallels all over the globe, known generally as a rotating savings and credit association, or roscas.
In Mexico, they are popularly called tandas, but they are also known as huis, susus or ballot committees in various parts of the world. Immigrant communities continue their practice in the US.
As economic hardship accompanies the public health crisis caused by the Covid-19 pandemic, for some families, traditional methods of saving outside the banking system have become a lifeline, especially for hard-hit immigrant communities with little access to mainstream sources of capital.
Financial access and security in America has become an increasingly pressing subject of discussion in 2020. Even before the pandemic, the US was behind other rich countries when it comes to accessing money and credit.
Some seven percent of Americans over the age of 15 did not have any kind of bank accounts in the US in 2017, compared to less than one percent of Canadians, and less than four percent of Britons, according to the World Bank.
A quarter of American adults – more than 80 million people – were “unbanked” or “underbanked”, meaning either that they had no accounts entirely, or that they are forced to use alternative services besides traditional banks in order to get enough financial access to meet goals or obligations.
Households most likely to fall into the two categories were black or Hispanic, lack university qualifications and to be poor. To access loans, they must sometimes turn to non-bank lending options like payday lenders or loan sharks.
These shadow banking options can be risky, charge high interests and bring dire consequences for borrowers who struggle to pay – but a rosca can provide a safer, more trustworthy alternative.
“These systems are actually useful when we have bank systems that have a finite possibility,” says Caroline Hossein, a professor of business and social studies at York University who studies roscas in communities in Canada.
“Banks only have a certain amount of money, and if you only have a certain amount of money, you’re only going to dish it out to those that are less risky.
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“So it makes perfect sense that people would engage in these kinds of mutual aid or money pooling systems.”
Often, they are run by women, whom Dr Hossein calls the “banker ladies” of the community.
“The banker lady, who might be the one organising it – you can be in touch with her anytime of day, it may be someone who lives in your neighbourhood so [there’s] the ease of getting there.
“The paperwork is not as treacherous as it would be as a formal bank, so there’s a kind of kinship that exists because it’s people who voluntarily like and know each other.”
Though they tend to be “more of a life line for people who have difficulty accessing banking, particularly on the lending side,” such savings schemes are also used by more established members of communities who may have inherited knowledge about them from immigrant parents.
Beyond access to a pool of money, “a primary benefit is building ‘bonds of mutual trust’ within a network of trustworthy people,” says Lee Martin of the University of California, Davis. Roscas are primarily beneficial for people without access to mainstream forms of credit, he says.
But because they are used by marginalised communities, studying their overall prevalence and use has been difficult, says Dr Hossein, who participates in a rosca – known as a su-su in her Afro-Carribean community – as part of her research.
“A lot of these roscas, particularly in places like Canada, the US or Europe, tend to be underground,” she says, because many worry that the endeavour is seen as an unrespectable or even an illicit form of financing, only for those who are short of options. Clearly, unlike a savings account, they do not generate interest.
Yet economists believe they are probably quite common in the West. One survey of Korean-American garment business owners in Los Angeles from 2004 found that 77% of households had participated in a version of the lending scheme.
Self-lending within communities can have unexpected benefits. A rosca-like system among Chinese immigrants in Spain, for example, helped expatriate businessmen weather the Euro crisis of the late 2000s and 2010s.
The Chinese business community was “largely insulated from the vagaries of the country’s tottering retail banking system” – precisely because the system that shut them out meant they turned to each other, reported the Financial Times in 2014.
In the 2020 Covid-19 crisis, families who participated in the tanda Ms Robles is running were able to pay their bills when some fell ill and could not work.
For most, it was their only source of cash, Ms Robles says – only one of the families has received a cheque from the government for coronavirus relief because they lack the papers to get onto the dole.
Like any investment scheme, however, roscas are not risk-free. A participant could fail to pay their hand, or take their share and run.
Ms Robles says there have been rare times that she misplaced a contribution and had to make up the difference out of her own pocket, which can be costly.
As they operate on trust, usually within a deeply connected community, the social consequences of misdeeds dissuades wrong-doing.
But since they are run by privately, there is little legal recourse for cheating. And unlike putting money in a bank savings account, there is no interest paid.
Could roscas catch on and become more mainstream? The Federal Reserve Bank of Philadelphia asked just such a question in 2006, but was sceptical given the depth of trust it would require.
An attempt by Yahoo Finance to popularise a tanda app in 2018 was unsuccessful. The scheme shut down after only a few months due to, it would seem, lack of participation.
There are two big hurdles, as Dr Hossein sees it – the stigma attached to a non-traditional financial tool used by ethnic minority communities, and the barrier in trust that must be surmounted to put one’s faith in other people to handle money.
But with the Covid-19 pandemic, a younger generation of North Americans with an interest in sharing resources and the technology to do so efficiently – from crowdfunding to forms of “caremongering” – roscas are bound to be a savings method that continue and evolve and expand.
For Mayra Martinez, 30, a university administration professional in Dallas, Texas, being in tandas has helped her learn about trust and foster a sense of obligation to save, which can otherwise be hard for young people like herself she says.
“It’s not like your commitment to yourself, where you can easily say ‘hmm, I’m not going to do that this month because I just don’t want to,” she says.
It is an added layer of security in an economic world that has been particularly unpredictable for young professionals, which Ms Martinez says she has seen first-hand – her sister and brother-in-law each recently tested positive for Covid-19 and could not work.
“She just happened to get her tanda this week,” says Ms Martinez. Because of that, Ms Martinez says, her sister was able to tell her husband: “It’s ok”.
The tanda Ms Martinez is involved in now consists of family members from all generations and is run by her mother.
Would she ever take over and start one for her own cohort of siblings and cousins once the older generations retire from such schemes?
“I wouldn’t mind running one,” she says, adding with a laugh, “but it depends on which cousins.”
Trudeau Poised to Announce Three-Pillar Economic Recovery Plan – Yahoo Canada Finance
(Bloomberg) — Prime Minister Justin Trudeau is set to unveil a new plan to try to contain the spread of Covid-19 and recharge Canada’s pandemic-battered economy, according to a senior government official.
The broad themes in this week’s so-called Throne Speech — which outlines his government’s priorities — will be a focus on the immediate task of tackling the coronavirus, a medium-term commitment to support Canadians through the pandemic and a “resiliency agenda” to spur recovery and reconstruction.
Trudeau’s agenda won’t establish budget targets, which will be left for Finance Minister Chrystia Freeland to detail later this year in a fiscal update, the official said, speaking on condition they not be identified because the document isn’t yet public.
Wednesday’s speech is one of the most anticipated in Trudeau’s five years in power, with questions mounting over how his governing Liberals plan to navigate their next policy steps amid surging Covid-19 case numbers and soaring budget deficits.
The prime minister needs to balance the need for more health-care spending with pledges to engineer an ambitious and green post-pandemic agenda. And he needs to do it without further eroding the nation’s financial credibility after one major credit-rating agency downgraded Canada’s debt.
“This government has set certain expectations and now the pressure is on them to meet their own expectations,” pollster Shachi Kurl, executive director of the Angus Reid Institute, said by phone.
Health care spending will be the first pillar for the economic recovery, the official said. This includes spending for vaccines, Covid-19 testing and support to localize outbreaks to maintain control over a resurgence of cases.
The second will be a pledge to provide financial support to Canadians who are struggling economically due to the pandemic, with a focus on shifting people back into the workforce.
Economic recovery and reconstruction efforts are the third pillar. This will include a pledge to help foster green investments, resolve major health issues such as long-term care for seniors and bolster support systems for the most vulnerable, like low-income women and minorities.
Trudeau has spoken publicly about plans to overhaul the employment insurance system, provide support for childcare and long-term care and build a cleaner economy through climate initiatives like retrofitting buildings and electric vehicles.
The prime minister suspended all parliamentary business last month after a public rift with his previous finance chief prompted Freeland’s appointment, claiming he needed a new legislative slate in order to move ahead with a “bold” new spending plan to help drive the recovery.
Canada has already budgeted C$380 billion ($289 billion) in new debt this year as a response to the downturn, spending that will likely drive the federal government’s debt to about 50% of economic output, from 31% last year. That’s triggered a backlash from business groups and economists, who are calling on Trudeau to commit to specific new debt targets to impose discipline on the budgeting process.
To assuage those concerns, Freeland vowed last week to preserve Canada’s reputation for sound fiscal management as her government considers the next steps to drive the recovery.
Trudeau is prepared to spend whatever it takes to combat the immediate impacts of Covid-19, given the emergency expenditures will only be temporary, the official said. Any future spending deemed structural, however, would be within new “fiscal tracks” that will be laid out by the finance minister later this year.
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