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Prices of goods in 2022: looking back at the result of inflation

Jamal Murphy Jamal Murphy on January 3, 2023

Image source: CNN

Prices: Inflation in the United States last year was at its highest level in decades.

Since the beginning of 2022, the Federal Reserve has been fighting inflation with every tool, including raising interest rates.

Price hikes

The Bureau of Labor Statistics recently released data on inflation, which showed a drop in price increases to 7.1% for 2022 through November.

Between November 1 and December 24, retail prices rose 7.6% (inflation unadjusted), making it impossible for consumers to buy gifts without breaking the bank.

The Mastercard Spending Pulse gave the data, which examines retail purchases aside from auto sales.

Throughout 2022, the price of holiday meals soared while food costs rose faster than inflation.

While some products saw double-digit, phenomenal growth, others saw little change or even a decline.

Electronics

Retailers became aware of a shift in consumer behavior as soon as the demand for pricey electronics declined.

Major electronics prices fell during the year ending in November.

  • Smartphones plunged 23.4%
  • TV prices dropped 17%
  • Computers rolled back prices by 4.4%
  • Major appliances fell by 1%

In anticipation of supply chain issues and projected increases in consumer demand, several retailers, including Best Buy and Walmart, stocked up at the start of 2022.

However, the rising costs and dwindling customer confidence scuttled their plans.

Additionally, early in the epidemic, when confined, consumers made sizable purchases or upgrades.

Read also: Minimum wage in US will increase this year

Apparel & toys

Although slowly, apparel prices rose last year.

  • Clothing prices rose by 3.6%
  • Footwear increased by 2.3%
  • Sporting goods climbed 2.7%
  • Toys had a meager 0.6% increase

Despite the modest price increase, the items were a bargain because inflation outpaced them.

Doug McMillon, the CEO of Walmart, said the following in December:

“In toys, sporting goods, categories like that, prices have come down more aggressively.”

“We’re still inflated, but we’re not inflated nearly as much as we are in the other categories.”

However, because retailers overestimated customer demand, there was a stockpile of additional goods.

Offers to shift inventory were made by stores, encouraging customers to make purchases.

As a result, retailers were able to regulate prices.

Plane tickets

The pandemic caused demand for air travel to fall to an all-time low in 2020, but it rose again in 2022.

However, the price of flying rose by 36% annually.

In March, Delta’s president, Glen Hauenstein, referred to the rise as “unprecedented.”

“I have never seen… demand turn on so quickly as it has over Omicron,” said Hauenstein.

Due to high fares and crowded flights, airlines made a record amount of money in April, May, and June.

They made a full-force resurgence two years after the pandemic-induced lockdowns thanks to travelers.

Gas prices

Meanwhile, the price of land transportation rose.

Gasoline prices rose by 10.1% but have since dropped from their all-time highs.

The Russian invasion of Ukraine and geopolitical strategies that relied on the oil supply were to blame for the volatility in gas prices.

According to GasBuddy’s predictions, the national average’s likelihood of returning to the $4 per gallon price level could come as early as May.

GasBuddy, a mobile app that tracks fuel prices, does not forecast another year of severe volatility.

Read also: Tax Credit for Electronic Vehicles Usher in Confusion

Food prices

In 2022, the cost of food rose by 10.6%, above general inflation.

Through November 2022, several factors contributed to price increases for specific grocery items.

Due to the catastrophic avian virus, a scarcity of supplies, and high demand, egg prices increased by 49.1%.

Price changes brought on by the Russian invasion of Ukraine resulted in a rise in margarine of 47.4%.

In addition, as the global milk supply decreased, butter prices rose by 27%.

Another victim of the crisis in Ukraine is flour.

The worldwide grain market disruption and high US transportation costs caused a 24.9% increase in flour prices.

Due to crop disease, lettuce prices increased by 19.8% in California.

During that period, there was a 12% increase in the price of food.

Starting in 2022, eating out became steadily more expensive; thus, many customers accepted higher prices as an alternative.

As restaurants boosted menu pricing to offset their increasing input costs, the cost of eating out jumped by 8.5% last year.

Reference:

What got really expensive this year, and what got cheaper

Tax Credit for Electronic Vehicles Usher in Confusion

Kelly Matthews Kelly Matthews on January 2, 2023

Image source: PC Mag

Tax credit: Several electric vehicle models from General Motors and Tesla could qualify for tax incentives in 2023, which is only a few days away.

Some EVs weren’t qualified for tax credits worth $7,500 this year.

Although the change is positive, the eligibility might only be in effect for a short while.

The August Inflation Reduction Act’s limitations are to blame for the eligibility’s continuance.

The Treasury Department declared this week that the Act’s limitations on brand-new tax credits wouldn’t take effect right away.

As a result, for the first few months of 2023, the rules will be temporarily more lenient and permit bigger tax credits on more EVs.

The rules

The restrictions on the new tax credits were delayed, according to the US Treasury Department, until at least March 2023.

The location of the battery pack’s production and the sources of its minerals are covered by the new restriction.

It also disclosed draft regulations pertaining to the requirements.

The publication of the “proposed guidance” will initiate the reductions in tax credits, according to the language of the legislation.

Vehicles can later be qualified for higher tax credits over a three-month window.

For instance, General Motors stated that its electric vehicles will only be eligible for a $3,750 tax benefit once the full restrictions are in effect.

Two to three years will pass before the company’s automobiles are eligible for the $7,500 tax credit.

Read also: Sam Bankman-Fried update: $250 million bail after hearing

Downside

Despite the buying opportunities it would bring in early 2023, the restrictions also have a drawback in that they will make the rules more ambiguous.

Chris Harto, a senior policy analyst for Consumer Reports, stated that he was hoping for more clarification rather than less.

“It seems like things just seem to get more confusing each time they say something,” said Harto.

The tax regulations are designed to encourage manufacturers to produce their electric vehicles (and their parts) in the US or other countries with which they have trade relations.

Additionally, they ensure that wealthy Americans who purchase luxury cars do not receive tax credits.

The most recent announcement certainly brings consumers good news because it temporarily makes more tax credit money available.

Qualifications

One of the Act’s many ambiguous elements is the skewed tax credit for early 2023.

The new EV tax credit regulations make the Chevrolet Bolt EV and EUV eligible for tax credits the next year.

They were built in North America, but they were previously ineligible.

The sales cap for any manufacturer under the previous tax credit rules was 200,000 electric vehicle, which was exceeded by General Motors and Tesla.

The limit will be lifted by the new regulations, which are a part of the Inflation Reduction Act.

Despite the change, not all buyers (or electric vehicles) will be qualified for credits.

For instance, in addition to the North American production requirement, there will be price limits.

The sticker price of an SUV cannot exceed $80,000, whereas the price of a vehicle cannot exceed $55,000.

Therefore, most Tesla models (such as the Model X SUV, Model S sedan, and Model 3) won’t qualify for tax credits at their current prices.

The US-built Mercedes EQS SUV, which is currently eligible for tax incentives, will no longer be qualified starting in 2023.

“It shuffles the deck as to who’s eligible, and then the deck will get shuffled again when this guidance comes out [in March],” said Chris Harto.

“And it makes a giant mess for consumers, and automakers, and dealers.”

Read also: Solar power on roofs found to have double benefits

Buyers

Purchasers are prohibited from flipping due to the restrictions on tax credits.

This implies that the end user must be the one who purchases the car.

The credit is not available to people who buy cars to resell them.

Additionally, the buyer’s income is subject to limitations.

Buyers aren’t allowed to have “modified adjusted gross income” of more than $225,000 for a head of household, $150,000 for an individual, or $300,000 for a couple filing jointly.

The limitations will prevent buyers of high-end electric vehicles from getting tax rebates.

The best thing buyers can do, according to Andrew Koblenz, vice president of the National Automobile Dealers Association, is inquire as to whether the car they are considering is eligible for the tax credit.

Due to the fact that some models are produced in many factories, identical-looking SUVs purchased from the same dealer might not be eligible for the same level of credit.

“It’s a great time to be shopping,” said Koblenz.

“It’s great that there will be more vehicles eligible now, but you’ve still got to make sure the one you’re interested in is eligible.”

“You need to ask your dealer and your manufacturer that question, and you’ve got to make sure that you qualify too.”

Reference:

Tax credit confusion could create a rush for electric vehicles in early 2023

TikTok ban seems impossible with wide reach

Joshua Porter Joshua Porter on January 2, 2023

Image source: The Pay at Home Parent

TikTok: The video-sharing app has come under much scrutiny over the past few years, and a ban seems imminent.

Since the early years of former President Donald Trump’s administration, security issues have been a recurring problem for TikTok.

The company, however, has survived the Trump administration.

Since then, it has only been more popular, rising to the top spot for app downloads in the US (and staying there).

Countless business owners who found success on TikTok would be impacted if the ban were to take effect.

The future of TikTok

The video-sharing app had more than 100 million users in 2020.

TikTok’s importance to American culture and influencers’ and business owners’ lives increased over the following years.

Republican governors had grown wary of the app during that time.

They recently declared that using government-owned gadgets by state personnel is prohibited.

While this was happening, a Republican-led FCC (Federal Communications Commission) panel pushed Apple and Google to take stricter measures against TikTok.

Sen. Marco Rubio and two other US legislators recently introduced a bill to ban the app in the US.

The political witch-hunt is taking place as a major evaluation of TikTok’s and other social media platforms’ effects on younger users is underway.

There are disagreements on the suitability of TikTok’s material for teenage audiences.

Concerns about the TikTok algorithm have also been brought up regularly since it could result in the posting of potentially harmful content.

Criticism

Due to TikTok’s connections to China through its parent business, Washington has criticized the company.

After a Buzzfeed News report this year claimed that some US user data had been accessed from China, the criticisms intensified.

An employee was cited in the article as saying that China could see everything.

In the meantime, TikTok acknowledged that some Chinese staff members had access to US user data.

Read also: Caroline Ellison exposes SBF in FTX collapse

Negotiations

The Committee on Foreign Investment in the United States (CFIUS) and the video-sharing app have been in negotiations for years.

They have been attempting to come to an agreement to address worries about national security while still allowing the app to operate.

There have been rumors of negotiation delays, however.

National security experts claim that TikTok’s popularity just makes it more difficult to ban the app.

Critics of TikTok have weighed in, questioning whether a ban is the best course of action.

Senator Josh Hawley wrote a bill prohibiting TikTok from US government devices.

He stated last week that he would be fine with a compromise between the US government and TikTok that protects user data in the US.

“But if they don’t do that then I think we’re going to have to look at more stringent measures,” said Hawley.

The community

TikTok users have been fostering a sense of community even as lawmakers have stepped up their requests for harsher regulations on the app.

Many people have made a living off of the video-sharing app.

The following were made possible through TikTok:

  • Culinary habits
  • Fashion and beauty trends
  • Reviving old music
  • Popularizing new songs

Additionally, TikTok has been used by US politicians to promote their campaigns for the midterm elections.

To reach new audiences, the historic news company Associated Press, which has been around for 176 years, recently joined the app.

“So many people, myself included, are always on TikTok,” said user Kahlil Greene.

“That’s where we get our entertainment from, our news from, our musical taste from, our social inside jokes we make with friends come from memes that started on TikTok.”

With more than 580,000 followers, Green is known as the Gen Z historian thanks to his chronicling of social and cultural issues.

He was eventually summoned to a White House press conference about the Russian invasion of Ukraine after the Biden administration took notice of his popularity.

“So much of our culture and lives are driven by TikTok,” Greene added.

“Now that it’s not just something you can rip away easily.”

Popularity

Undoubtedly, one of the most widely used social networking sites in the US is TikTok.

The business, which Beijing-based ByteDance controls, is committed to transferring user data to Oracle’s cloud platform.

Additionally, it is making substantial changes to separate US user data from other business sectors.

Weeks earlier, TikTok announced it would work with a special internal committee headed by US-based authorities to reorganize its US-focused legal, policy, and content moderation teams.

A representative for TikTok commented on the bill, saying:

“It’s troubling that rather than encouraging the Administration to conclude its national security review of TikTok, some members of Congress have decided to push for a politically-motivated ban that will do nothing to advance the national security of the United States.”

“We will continue to brief members of Congress on the plans that have been developed under the oversight of our country’s top national security agencies – plans that we are well underway in implementing – to further secure our platform in the United States.”

Additionally, highlighting TikTok’s success, the representative said:

“TikTok is loved by millions of Americans who use the platform to learn, grow their businesses, and connect with creative content that brings them joy.”

Read also: TikTok app banned on government devices

Other notes

TikTok continues hiring employees, especially American engineers, while other tech companies have been laying off staff.

According to recent job postings, the company may be attempting to surpass Amazon as the leading online retailer by setting up its own domestic warehouse network.

According to Rick Sofield, a partner at Vinson & Elkins LLP who specializes in export controls, national security reviews, and economic sanctions, TikTok’s immense size presents problems for the federal government.

“I think their minds are made up that ByteDance owning is a national security concern,” said Sofield.

“The reason that we’ve been hung up is it’s too big to fail, and they’re trying to figure out a soft landing.”

“There’s a whole lot of things I think that would have to happen first, before there’s a ban.”

Reference:

TikTok might be too big to ban, no matter what lawmakers say

REAP Inc. Continues to Mold Visionary Leaders Through Its Roster of Revolutionary Programs

Jamal Murphy Jamal Murphy on December 27, 2022

Great leaders are not born; they are made. Guided by this philosophy, REAP Inc. enters its 21st year, shaping young leaders to fit into the molds of success. 

This year, this trailblazing institution has recently finished its Young Entrepreneurs Program. Last December 10, 2022, REAP USA held its 2022 Young Entrepreneurs Program Showcase, celebrating the newest cohort of YEP students who finished the ten-month program. The incredible roster of young leaders has now launched their own businesses, proving the program’s potency in transforming its vision into action.

The Young Entrepreneurs Program was established in 2019 with the goal of harnessing the potential of middle and high school students. It offers a curriculum that enables the youth to explore and achieve entrepreneurial victories and assists them in carving a success-enabling path of their own. Through this initiative, REAP aims to serve as a launching pad for young aspiring go-getters across the globe.

Since its inception, REAP has been dedicating itself to establishing programs that create leaders who are not only bright and brilliant but also resilient. In this day and age, where industries have grown more fierce, it has become inevitable for aspiring visionaries to become highly adaptable to change. For this reason, REAP offers a wide variety of programs and services, such as YEP, that empower students to become changemakers of tomorrow.

Aside from the Young Entrepreneurs Program, REAP has also created an opportunity for its students by enabling them to participate in the 20th Annual Oregon Leadership Summit. It was held last December 12, 2022, at the Oregon Convention Center. The summit brought together leaders from various industries to address issues that are vital to Oregon’s economy. On a mission to unleash the potential of young hopefuls across the state, REAP is co-hosting the Third Annual Oregon Students United Summit. Anyone who is interested may join the summit this January 10, 2023, via Zoom by registering here.

Pounding the pavement with its desire to continue molding great leaders, REAP has recently decided to focus more on school communities, with many families experiencing challenging economic circumstances. According to this REAP, children should never be faced with hardships that limit them from discovering and unleashing their true potential. After all, they are the future, making it society’s priority to equip them with the much-needed tools to transcend limitations and go beyond.

“Youth are the future of our society. So much of how the world will turn out is in their hands. However, countless children are born into underprivileged communities, which prevents them from reaching their true potential. The world is often unfair, but that doesn’t always mean there aren’t ways to ensure a young person’s success. REAP Inc. has dedicated itself to becoming the beacon of light for youth from underprivileged communities,” its website wrote.

As REAP Inc. continues to transform its vision into action, it seeks to witness a drastic rise in the number of change-making leaders in the years to come. Through this, it wishes to see a society filled with young visionaries whose passion strongly leans towards making the world a better place.

 

Caroline Ellison exposes SBF in FTX collapse

Jamal Murphy Jamal Murphy on December 27, 2022

Image source: Daily Mail

Caroline Ellison:Before a judge, the former CEO of FTX’s sister company, Alameda, alleged that she and Sam Bankman-Fried gave lenders misleading financial information.

Ellison concurred with the former FTX CEO that “materially misleading financial statements” were given to Alameda’s lenders.

The news

The transcript of Caroline Ellison’s trial testimony wasn’t made public until SBF was released on a $250 million bond three days after it was delivered on December 19.

The former CEO of Alameda told US District Court Judge Ronnie Abrams, “I am truly sorry for what I did – I knew that it was wrong.”

“Did you also know that it was illegal?” the court asked her to clarify.

“Yes,” Ellison answered.

Federal charges

Caroline Ellison and Gary Wang, the other co-founder of FTX, entered guilty pleas to federal charges last week for their participation in the frauds that led to the company’s collapse.

On Wednesday, attorneys for the Southern District of New York said that the two had been charged.

According to the Securities and Exchange Commission, they were accused of taking part in a fraud on equity investors.

According to the Commodities Futures Trading Commission (CFTC), its fraud complaint had been revised.

US Attorney Damian Williams said that Ellison and Wang filed guilty pleas.

Williams also thanked the Bahamas, the US Embassy in the Bahamas, and the Justice Department’s Office of International Affairs for their help.

Gary Wang and Caroline Ellison are working with the Southern District of New York.

Up until Sam Bankman-Fried was on his way from the Bahamas to the US, they kept their plea agreements a secret.

Read also: Sam Bankman-Fried update: $250 million bail after hearing

The financial statements

According to Caroline Ellison, the misleading financial statements came from “quarterly balance sheets that concealed the extent of Alameda’s borrowing and the billions of dollars in loans that Alameda had made.”

“I agreed with Mr. Bankman-Fried and others not to publicly disclose the true nature of the relationship between Alameda and FTX, including Alameda’s credit arrangement,” said Ellison.

After reading the transcript, the following individuals reported about it:

  • New York Times
  • Reuters
  • Bloomberg

Inner City Press’ Matthew Russell Lee shared some of the transcript on Twitter.

Early reports

According to reports that surfaced last week, FTX and Alameda employees were either aware of or unaware of what was happening between the two companies.

The uncertainty was the focus of speculation prior to Ellison and Wang pleading guilty to their charges.

Caroline Ellison’s comments, however, verified rumors that FTX had given Alameda special treatment.

Alameda was permitted to withdraw funds from its sister company.

Ellison said:

“I understood that FTX executives had implemented special settings on Alameda’s FTX.com account that permitted Alameda to maintain negative balances in various fiat currencies and crypto currencies.”

“In practical terms, this arrangement permitted Alameda access to an unlimited line of credit without being required to post collateral, without having to pay interest on negative balances and without being subject to margin calls or FTX.com’s liquidation protocols.”

The former CEO of Alameda said that she and other others were aware of the company’s excessive debt and what it meant.

“I understood that if Alameda’s FTX accounts had significantly negative balances in a particular currency,” she continued.

“It meant that Alameda was borrowing funds that FTX’s customers deposited onto the exchange.”

Read also: Solar power on roofs found to have double benefits

SBF

Caroline Ellison claims that Sam Bankman-Fried and other executives took out loans from Alameda while making numerous “large illiquid venture investments.”

She said that in order to repay the loans, she and others had agreed to borrow from FTX in the billions of dollars.

“I understood that FTX would need to use customer funds to finance its loans to Alameda,” Ellison shared.

“Most FTX customers did not expect that FTX would lend out their digital asset holdings and fiat currency deposits to Alameda in this fashion.”

Caroline Ellison also addressed the victims of the FTX collapse, saying:

“I want to apologize for my actions to the affected customers of FTX, lenders to Alameda, and investors in FTX.”

“Since FTX and Alameda collapsed in November 2022, I have worked hard to assist with the recovery of assets for the benefit of customers and to cooperate with the government’s investigation.”

“I am here today to accept my responsibility for my actions by pleading guilty.”

References:

Caroline Ellison ‘knew that it was wrong,’ implicates Sam Bankman-Fried

Caroline Ellison, Gary Wang plead guilty, cooperating in FTX investigation

SEC says Ellison, Wang ‘knew or were reckless in not knowing’ about FTX fraud

Google employees concerned about new rating system

Finny Adams Finny Adams on December 26, 2022

Image source: HCA Mag

Google: According to internal discussions, only a few Google employees are anticipated to obtain excellent performance ratings, with many more potentially facing low ratings.

A new performance review system that will be implemented by the company next year will also put the safety of underperforming employees at risk.

The news

During a meeting and a separate presentation last week, Google executives recently gave more details on the company’s new performance review procedure.

According to the company, 6% of full-time employees will fall into low-ranking groups under the new strategy, boosting their likelihood of undergoing remedial action from the past 2%.

Obtaining high marks will also be more difficult.

Google forecasts that 22% of employees will be rated in one of the top two categories, down from the previous 27%.

To be in the highest-rated category Transformative Impact), employees must do the “near-impossible” and give more than “thought possible.”

Reaction

Google Reviews and Development (GRAD), the company’s new performance assessment process, was unveiled earlier this year.

Employee complaints regarding GRAD’s procedural and technical difficulties have reportedly increased as year-end deadlines have drawn near.

Many people worry that the ratings they’re given won’t be accurate.

Recent layoffs within the technology sector particularly heighten the concern.

Despite Google avoiding significant job layoffs like Meta, some employees are worried they may be next.

Read also: Sam Bankman-Fried update: $250 million bail after hearing

Headcount

The executives at Google have long touted transparency, but staff members have complained that they haven’t adequately addressed questions about headcount.

Some employees believe the new review system will result in a staff reduction at the company.

In the latter months of 2022, headcount has been employees’ primary source of anxiety.

Google CEO Sundar Pichai was forced to explain Google’s shifting attitude in September after years of rapid growth.

Although there would be minimal savings, executives did not completely rule out the potential of layoffs.

Several employees asked the management about their headcount plans at an all-hands meeting in November.

Additionally, when Google boosted its personnel by 24% year over year in Q3 2022, employees questioned whether officials had poorly controlled staffing.

As of the third quarter, the company had 186,779 full-time employees and a similar number of contractors.

Recent GRAD filings state that the business will examine equity, pay, and bonuses.

The new system expects paying out more money overall per person.

Finally, it states that Google will continue to pay between the top 5% and 10% market values.

Stress

The stress around year-end performance reviews was a major topic of many of the most popular questions from the recent all-hands conference.

According to the questions, employees don’t trust Google’s management to be transparent about its headcount.

“Why did Google push support check-in quotas in front-line managers days before the deadline?” one employee asked.

“I’ve been through a lot in Google in 5+ years, but this is a new low.”

Another said:

“It seems like a lot of last-minute support check-ins were forced through part of Cloud in order to meet a quota, causing a lot of distress.”

“With only two weeks to correct course, how is this helpful feedback? How do we prevent this from happening in the future?”

A top-rated employee said:

“The support check-in process is confusing, increasingly becoming a cause of stress and anxiety in Googlers, especially given the current economic situation and rumors around layoffs.”

Read also: The Federal Reserve 2022 influence, stock market movement

Course

Reports of “support check-ins” for staff arose earlier this month.

Support check-ins are commonly associated with poorer performance ratings on the days leading up to year-end deadlines.

Employees alleged that administrators altered various steps of the process on the closing days.

During a recent meeting, Fiona Cicconi addressed the GRAD issues, saying, “I know it’s been bumpy.”

“It’s not ideal to have support check-ins occur so late in the review cycle, and we know that people need time to absorb the feedback and take action on it.”

Cicconi noted that Google employees need more time to change their course.

Employees have questioned executives about whether they have quotas for moving workers to lower performance categories to reduce headcount in 2023.

Although the management repeatedly insisted that there were no quotas, the employees weren’t entirely convinced.

Executives were also asked if Google was turning into a “stack-ranking” business like Amazon, which classifies workers’ performance using quotas.

“Uncertainties around GRAD processes have been putting a lot of pressure on lower-level managers to pass down information,” said a highly-rated question.

“Layoffs across the industry has been a topic impacting Googlers, raising stress, anxiety, and burnout,” another read.

“There’s been no official comms on this, which raises even more concern around this. When will the company address this topic?”

Direct questions from the public have been avoided, and CEO Sundar Pichai stressed that he is unsure of what the future holds.

“What we’ve been trying hard to do is, we are trying to prioritize where we can so we are set up to better weather the storm, regardless of what’s ahead,” said Pichai.

“We really don’t know what the future holds, so unfortunately, I cannot making forward looking commitments, but everything we’ve been planning on as a company for the past six to seven months has been: do all the hard work to try and work our way through this as best as possible so, that’s all I can say.”

Reference:

Google tells employees more of them will be at risk for low performance ratings next year

Solar power on roofs found to have double benefits

Finny Adams Finny Adams on December 26, 2022

Image source: Pew Research Center

Solar: One of the best methods for people to lessen their carbon impact is through solar energy, which has also considerably increased their ability to save money.

Recently, net metering usage was restricted by a utility regulator in California.

It will consequently decrease overall savings for homes from selling electricity to the grid by at least 60%.

Additionally, it alters the economic balance, which has an impact on the entire country.

What solar brings

Three factors drove Josh Hurwitz, a Connecticut native, to install solar energy at his home:

  • Reduce his carbon footprint
  • Store electricity in a solar-powered battery in the event of a blackout
  • Save money

Thanks to his decision, Hurwitz will be able to pay for his system in six years, and he will also be able to save tens of thousands of dollars over the subsequent fifteen years.

He is also protected from rising utility expenses, thanks to it.

Hurwitz is preparing to construct a Tesla battery to store the energy he generates because solar has so far performed flawlessly.

“You have to make the money work,” said Hurwitz.

“You can have the best of intentions, but if the numbers don’t work, it doesn’t make sense to do it.”

Inflation Reduction Act

Josh Hurwitz’s experience suggests that the Inflation Reduction Act, passed in August this year, is beneficial.

One benefit of extending and increasing tax incentives is that it will promote the use of solar power systems installed on residential properties.

According to Wood Mackenzie and the Solar Energy Industry Association, the law will expedite adoption growth by 26%.

The tax credits, whose deadline is set for 2024–2035, have also been extended.

The credits will pay for 30% of the price of the system.

Batteries that can store recently generated electricity for later use are also eligible for a 30% credit.

The following statements were given to a bipartisan coalition of state government groups by Warren Leon, executive director of the Clean Energy States Alliance:

“The main thing the law does is give the industry, and consumers, assurance that the credit will be there today, tomorrow, and for the next ten years.”

“Rooftop solar is still expensive enough to require some subsidies.”

Read also: Mortgage rates won’t increase this week if Fed has another rate hike

California solar market

The most challenging aspect of solar is having certainty about anything.

Sector analysts have termed the market a “solar coaster” due to the constant regulatory changes.

On December 15, the day after the new federal tax credits went into effect, California eliminated a significant inducement.

Homeowner solar energy systems can sell any extra power they produce back to the grid.

The calculations were confusing as a result, as was California’s massive solar energy industry.

However, it will function in April 2023.

If the state and federal changes are implemented simultaneously, the solar sector will experience a massive 39% decline in 2024, according to Wood Mackenzie.

The consultancy company estimates a 50% decrease due to the California policy change, even without considering the incentives provided by the Inflation Reduction Act.

Home solar is also coming off a historic quarter, according to Mackenzie.

California now accounts for 1.57 GW, or slightly more than one-third of the total, a 43% rise from the previous year.

Growth

Potential switchers may swiftly recoup some initial expenditures of turning green with tax credits.

Josh Hurwitz used the federal tax credit to install his solar system.

He is currently getting ready to add a battery because it is tax-favored.

Some contractors provide packages that allow consumers to pay the entire amount ahead and receive credit for subsequent rentals of the same equipment while they wait.

When tax benefits are combined with savings on electricity that homeowners don’t buy from utilities, rooftop solar systems can pay for themselves in as little as five years.

Additionally, it can save more than $25,000 if the initial investment is repaid in 20 years.

Veronica Zhang, the Van Eck Environmental Sustainability Fund’s portfolio manager, said:

“Will this growth have legs? Absolutely.”

“With utility rates going up, it’s a good time to move if you were thinking about it in the first place.”

Read also: Twitter and Elon Musk sued by former workers

Energy storage

For any excess electricity generated by household solar systems during peak output or utilized to recharge home batteries, utilities may have to pay higher pricing in some locations.

However, these states also have more generous subsidies and pro-consumer laws.

California has some of the loosest regulations before this week.

However, after power companies complained that the prices were too high and increased the cost of electricity for other customers, state utility regulators opted to let utilities pay less for any additional power they were compelled to purchase.

According to Wood Mackenzie, the specifics of California’s ruling made it appear less demanding than the business had anticipated.

According to EnergySage, California’s payback period without a battery will be ten years rather than six when the new laws go into effect.

The business also anticipates a 60% decrease in savings over the coming years.

EnergySage claims that battery-powered systems won’t be as negatively impacted because owners retain the majority of the surplus power instead of selling it to the grid.

“The new [California rules] certainly elongate current payback periods for solar and solar-plus-storage, but not by as much as the previous proposal,” said Mackenzie.

“By 2024, the real impacts of the IRA will begin to come to fruition.”

Reference:

Rooftop solar: how homeowners should do the math on the climate change investment

The Federal Reserve 2022 influence, stock market movement

Kelly Matthews Kelly Matthews on December 26, 2022

Image source: Investopedia

The Federal Reserve: After more than a century of operation, the Federal Reserve has long been established as a critical player in the stock market.

The central bank’s unconventional policy actions throughout the 2000s, including large-scale asset purchases and forward guidance, helped the institution’s standing improve.

The policy tools

Emergency purchases of government debt and mortgage-backed securities by the Federal Reserve are large-scale asset acquisitions.

Forward guidance, on the other hand, refers to the Federal Reserve’s public statements regarding the course that its monetary policies will take.

The estimated federal funds interest rate aim before a policy change is also included in the guidance.

Inflation and economic landscape

As they battled inflation in 2022, central bankers warned the people to prepare for more challenging economic times.

Experts claim that the attempts were a factor in the S&P 500’s price decline.

Jeffrey Campbell, a former economist for the Federal Reserve and a professor of economics at Notre Dame University, said the following:

“I think they know they gambled and lost, and that they have to do something serious in order to get inflation back under control.”

“I fear that they took a gamble that inflation wasn’t too real a thing at the beginning of 2021.”

The Federal Reserve increased interest rates seven times in 2022 in anticipation of higher-than-expected inflation.

Publicly traded firms, especially growth shares in the technology sector, may feel the effects of rising rates.

Cautious warnings

The Federal Reserve’s asset portfolio has shrunk by more than $336 billion since April 2022.

According to experts, the complete cumulative impact of the economic tightening is still unknown.

As a result, there is a lot of optimism on Wall Street that the central bank would reconsider its approach and lower interest rates.

Many financial experts are urging caution at the same time.

G Squared Wealth Management’s founding partner and chief investment officer, Victoria Green, said the following:

“If you have somebody that has a thumb on the scale or has a decided advantage about what’s going to happen, whether we think good things or bad things are going to happen, it’s best not to fight that policy.”

According to experts, central bank policy is only one component of the puzzle.

The course of the market is also greatly influenced by investor sentiment and black swan events.

Former policy adviser John Weinberg of the Federal Reserve Bank of Richmond’s research division said:

“Sure, don’t fight the Fed, but… don’t believe too much that the Fed is all powerful.”

Stock movement

On Thursday, numerous companies made headlines with their stock movement during the trading period around lunch.

Airline 

Due to the Thursday notification of numerous flight cancellations, airline shares decreased.

The US American and United stocks dropped 3.6% and 1.9%, respectively, due to a severe winter storm.

There were 2% and 3% reductions for both Delta and Southwest.

AMC Entertainment

After the company announced a new $110 million capital issue and suggested a reverse stock split to reduce its debt, its shares fell 7.4%.

Shares of its preferred stock rose by more than 75%.

Read also: Solar power on roofs found to have double benefits

CarMax

The automobile retailer’s stock value dropped 3.7% after the most recent quarter’s earnings, and revenue fell short of Wall Street expectations.

In contrast to the experts’ projection of 70 cents per share on $7.29 billion in revenue, CarMax generated 24 cents per share on $6.51 billion in sales.

Micron Technology

The shares of the semiconductor manufacturer fell by 3.4% due to the quarter’s weak earnings and revenue.

The decline in demand, which was blamed for the revenue, is anticipated to continue through 2023.

Micron also disclosed a 10% personnel reduction for the upcoming year.

Other semiconductor stocks fell 7% and 5.6% for Advanced Micro Devices and Nvidia, respectively.

Marvell Technology lost more than 4%.

MillerKnoll

MillerKnoll experienced a rise of more than 14% after announcing earnings and revenue for the second quarter of fiscal 2023 that exceeded expectations.

According to the corporation, it decreased annualized costs by $30 to $35 million.

These savings would be realized in the fourth quarter, albeit marginally in the third quarter.

Mirati Therapeutics

Following the Food and Drug Administration’s designation of the pharmaceutical business’s colorectal cancer treatment as a “breakthrough therapy,” shares of the company rose by more than 5%.

Tesla

The company’s stock decreased by about 9% on Thursday.

On the Model 3 and Model Y vehicles that will be delivered in the US by the end of the year, a $7,500 discount was provided, according to the Tesla website.

The vehicles also come with a free supercharge, valid for 10,000 miles.

TuSimple

After the stock fell by more than 11%, TuSimple stated it would lay off 25% of its personnel.

The decision would impact over 350 employees at the self-driving truck startup.

Tyson Foods

After The Wall Street Journal revealed that the manufacturer of meat and poultry plans to fire hundreds of employees next year, the company’s shares ended the day unchanged.

The corporate offices of Tyson Foods will merge in 2023.

Read also: Elon Musk says macroeconomic factors to blame for Tesla shares decline

Under Armour

The company that makes athletic wear saw more than a 2.3% decline in share price on Thursday.

The company also disclosed that Marriott International’s Stephanie Linnartz would take over as CEO the following year.

References:

How the Federal Reserve affected 2022’s stock market

Stocks making the biggest moves midday: AMC Entertainment, Tesla, Micron, Under Armour and more

Twitter and Elon Musk sued by former workers

William Mason William Mason on December 26, 2022

Image source: Tech Crunch

Twitter: On Wednesday, a group of former Twitter workers who are suing Elon Musk won a preliminary victory.

A judge ordered the social media company to inform the sacked employees of the legal action.

This ensures that employees are informed before being asked to sign a severance agreement that incorporates a release of legal claims.

The lawsuit

Twitter fired thousands of workers last month after Elon Musk took over the business.

After buying the company, several former employees complained that Musk had breached his promise to allow remote work and provide dependable severance pay.

In this instance, class-action status is sought.

Furthermore, it asserts that the company failed to provide at least one recently laid-off employee enough notice.

The notice is required by both federal and Californian law.

Neither was the employee paid in lieu of the notice.

The order

The judge, Hames Donato, granted the motion on Wednesday.

The California district court judge hearing the case decided that Twitter’s conversations with employees “should not be rendered misleading by omitting material information about a pending lawsuit.”

The order indicates that the court is mindful of the employee’s perspective.

Read also: Sam Bankman-Fried contributed to lawmakers campaign with sizable donations

The layoffs

Starting in November, Twitter and Elon Musk fired thousands of employees.

The selection was made as a means of reducing expenses.

The night before the layoffs, workers started posting that they couldn’t access their work email accounts.

Some individuals announced their departure from the company using salute and blue hearts emojis.

By morning, numerous Twitter departments made their termination announcements.

The following departments are among those impacted:

  • Ethical AI
  • Marketing and communication
  • Search
  • Public policy
  • Wellness

The curation team, which promotes trustworthy content on Twitter concerning topics like elections, also lost several of its members.

Someone asserted that they had been remotely logged out of Slack and removed.

Numerous people revealed that they had access problems hours before Musk fired them.

Additionally, they received emails that contained no information regarding the layoff.

However, some workers who were let go felt relieved.

Explanation

Early in November, Elon Musk made an appearance at an investor conference, taking part in a friendly interview while Twitter employees announced their layoffs.

Musk just nodded in response to the interviewer’s assertion that he sacked half the staff.

The Tesla CEO then defended the firings by asserting that the company, like other social networking sites, had experienced “revenue challenges” before his acquisition.

Advertisers were rethinking their spending as recessionary fears remained throughout the year.

The cuts

Before the Musk takeover, Twitter employed over 7,500 people; as a result, 3,700 individuals were let go.

Twitter made the changes to bolster its financial position after taking on a sizable amount of debt to pay for the $44 billion acquisition.

The email informing staff of their status is as follows:

“If your employment is not impacted, you will receive a notification via your Twitter email.”

“If your employment is impacted, you will receive a notification with next steps via your personal email.”

To protect the security of Twitter’s employees and systems, it also declared that all credential access would be suspended and the offices would be temporarily closed.

Read also: TikTok study shown to introduce harmful content to teens

Other lawsuits

Shannon Liss-Riordan is filing a lawsuit against Twitter on behalf of former employees.

She stated that the order is a simple but crucial step that allows employees a chance to learn their rights instead of denying them money to which they are legally entitled as a result of Musk’s coercion.

This is one of four cases that Liss-Riordan filed on behalf of the former employees.

Additional cases include claims of claimed discrimination based on gender and disability.

Another is on behalf of Twitter-employed contractors who were fired.

The former employees are currently suing the corporation for alleged violations of the federal and California WARN Acts, which provide for early notification of mass layoffs and unspecified monetary damages.

In a press conference last week, engineer Emmanuel Cornet, one of those suspended from Twitter, said:

“It seems like the layoffs have been done in a way that’s really clumsy and inhumane and potentially illegal… and this is the aftermath.”

References:

Former employees suing Twitter over layoffs score an early victory

Elon Musk’s Twitter lays off employees across the company

IBINEX – a one stop crypto buying platform

Kelly Matthews Kelly Matthews on December 22, 2022

Investing in cryptocurrencies is a great way to make money. There are several cryptocurrencies available and their markets are very volatile. You can make a lot of money if you know what you are doing. However, you need to be careful as you may lose money if you are not careful. 

Crypto markets are very similar to stocks, but built on blockchain and operating like digital currencies in the Web3 space, these currencies are volatile and have a lot of potential. Investing in cryptocurrencies is a viable financial option. It has been one of the hottest investments of the decade and has turned many investors into millionaires in recent years. Cryptocurrencies are digital currencies that exist only in the virtual world and have no physical existence. A key feature of cryptocurrencies is that they rely on cryptography to control their formation and validate transactions.

If you’re excited about all the possibilities cryptocurrency offers and want to take your first steps into this world, you need to set up a crypto wallet. You can do this by signing up with a trusted crypto platform such as IBINEX.

WHY CHOOSE IBINEX Because it’s the perfect place for beginners. Fast, simple, secure and easy to use, unlike many other platforms the setup process is very quick and you can own your favorite cryptocurrency. You can get your token within just 5 minutes after reading this article. Simply download the app, sign up, verify your credentials, and purchase priority tokens using your credit card. No need to go through different crypto exchanges, no hassle, everything is very secure. try it yourself.