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Newsweek
4 days ago
- Business
- Newsweek
How rising US national debt impacts the average American
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The federal debt in America is rising, and financial analysts are warning that it could have a substantial impact on everyday Americans. The U.S. national debt stands at 36.9 trillion today. While many Americans may not think about how the federal deficit affects their lives, America's excessive borrowing can drive up interest rates and increase the risk of inflation. Why It Matters The federal debt plays a role in interest rates, which can have significant effects on the larger U.S. economy. If the government is forced to print more money to handle its debt, inflation can skyrocket for Americans as well. U.S. President Donald Trump delivers remarks during a meeting with German Chancellor Friedrich Merz in the Oval Office at the White House on June 05, 2025 in Washington, DC. U.S. President Donald Trump delivers remarks during a meeting with German Chancellor Friedrich Merz in the Oval Office at the White House on June 05, 2025 in Washington, To Know Concerns over the budget deficit have been increasing for Americans in recent years. A 2023 Pew Research survey found that 57 percent believed reducing the budget deficit should be a 'top priority,' a 12-point jump from just the year prior. Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, said not all deficits are bad, but America's has surpassed that level. "A government deficit often leads to a private sector surplus—meaning more money in the hands of consumers. That dynamic can work well as long as inflation stays in check and interest rates remain low, keeping the cost of servicing the debt manageable," Thompson told Newsweek. "Right now, however, the cost of servicing the debt has surpassed even the cost of funding our military—and it's only getting worse as interest rates stay higher for longer." For the average American, the debt will likely be a "pain point" as investors demand a higher rate of interest on their economic debt, forcing mortgage rates higher. "The tax debate is pivotal since the majority of government inflows come from those very taxes, and if we continue to lower taxes or keep them low, we won't have the money to cover the outlays, which will invariably increase. This will have to be resolved with higher future taxes to bring down the deficit—effectively robbing the future to pay for today," Thompson said. With President Donald Trump in office, many are waiting to see how new Republican leadership could affect America's looming debt pile. In the Pew Research poll, Republicans were far more likely to prioritize reducing the debt at 71 percent compared to Democrats at 44 percent. A more recent Gallup poll discovered that 53 percent of Americans say they worry about the budget deficit a "great deal" in March. Meanwhile, 28 percent said they worried about it "a fair amount." However, the debt is already likely hitting Americans' wallets, said Michael Ryan, a finance expert and the founder of "That grocery trip that used to run $100? We're talking about losing $300 to $1,250 in actual buying power over the last few years," Ryan told Newsweek. "It's not just you, it's not just inflation. It's partly because when the government keeps borrowing money, it drives up prices for everything." Those looking to buy a house will also face higher mortgage rates as a result of the deficit, but fixing it would likely require higher taxes, according to Ryan. "The job market will get tighter," Ryan said. "When businesses have to pay more in taxes and deal with higher interest rates, they hire fewer people and give smaller raises. So even if you keep your job, that promotion or raise you're hoping for? It will be harder to come by." Retirement accounts would also likely experience a "rollercoaster" as the government gets back on track. "We're basically stuck between a rock and a hard place. Keep ignoring the debt, and it slowly strangles everything. Higher prices, fewer opportunities, less money in your pocket," Ryan said. Trump's One Big Beautiful Bill is predicted to add $2.4 trillion to the U.S. federal debt, likely exacerbating the concerns over interest rates and the larger economy. "The Congressional Budget Office just confirmed that Donald Trump's Big Beautiful Bill is, in Elon Musk's words, a 'disgusting abomination,'" Sen. Elizabeth Warren (D-MA) said in a statement. "This independent analysis blows a hole through Congressional Republicans' lies—this bill will rip health care away from millions of people and still jack up the debt to fund trillions in tax breaks for billionaires and billionaire corporations." When it comes to Americans' views on Trump's proposed tax cuts in the past, 52 percent said that the tax cuts in 2017 would increase the deficit in the long run because the government would take in a lot less money that it won't be able to recover. Meanwhile, 38 percent believed the tax cuts would decrease the deficit in the long run because they would stimulate the economy and bring in more money for the government, according to Gallup. What People Are Saying Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "Government spending is contributing to our national debt as tax revenues and economic growth aren't keeping pace with rising outlays, leading to increasing deficits over time." Michael Ryan, a finance expert and the founder of told Newsweek: "You know that feeling when looking at your credit card bill, wondering how you're gonna dig out of this hole? That's basically where we are as a country. And just like when you're drowning in debt at home, we've got two main choices: make more money or spend less." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "The national debt is in many ways a phantom thief, as it slowly steals away buying power by being a key contributor to inflation over time even if Americans don't physically see its effects. In past decades, the impact of the deficit was more muted, as relatively small amounts of additional funding were needed to keep the government functional. In recent years, however, this has escalated dramatically due to multiple wars, the Great Recession, and the pandemic which called for additional government spending." What Happens Next As the debt continues to grow, future Americans may suffer, financial analysts warn. "The longer-term implications may be dire for future generations, having to be saddled with monumental debts they cannot outrun and becoming a debtor nation," Thompson said. "I know it sounds like some Orwellian nightmare, but if we continue down this path, this is the future we are destined to become. All once-great nations come to an end—it will just happen more quickly for the U.S. if this continues." For many Americans, it's a situation of "the longer we wait, the more painful it will be," Ryan said. "The debt isn't some abstract problem for future generations to worry about," Ryan said. "It's in your grocery bill today, your mortgage payment this month, and your tax return next year. And when we finally get around to dealing with it—and we will, because math always wins in the end—it's gonna cost you even more."
Newsweek
02-06-2025
- Business
- Newsweek
Map Shows Cities With Highest Number of Adults Living With Their Parents
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A new analysis from LendingTree found that the share of young adults living with their parents in the United States varied drastically across metropolitan areas. An average of 11.8 percent of working adults across the 50 largest metros lived with their parents. Riverside, California, had the highest percentage, with more than one in five (21.9 percent) working adults ages 25 to 40 living with their parents. Los Angeles (20.0 percent) and Miami (17.8 percent) were ranked second and third. The findings were based on data from the American Community Survey (ACS), examining living arrangements across metropolitan areas from 2018 to 2023. Why It Matters The latest data highlighted persistent regional differences in how young American adults navigate financial independence and living arrangements. The prevalence of young adults living at home can indicate underlying economic factors, cultural norms and disparities across states and communities, affecting millions of households and local economies. The trend also influences national debates over housing affordability, job opportunities and changing patterns in adulthood. What To Know Many California cities made the top 10 for highest percentage of working adults still living with their parents. The top five cities saw between 15 percent and 22 percent of working adults still living at home and included (in addition to Riverside, California) Los Angeles, Miami, New York City and Fresno, California. Next were Detroit, Memphis, Las Vegas, Providence and Philadelphia. Austin, Texas (5.8 percent), Raleigh, North Carolina (6.7 percent) and Denver (7.0 percent) had the lowest rates. Altogether, the number of working adults living with their parents fell 8.3 percent across the 50 metros from 2018 to 2023. Only 13 metros saw an increase, led by Las Vegas at 22.1 percent. Salary and cost of living may factor into why some working adults continue to stay with their parents, as the report found those living at home make 43.5 percent less on average than their independent peers. "Wages don't keep up with the cost of living," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. "In theory, economics would suggest that employers need to pay more to offset rising housing costs. But that's just not happening. Wages are sticky, they don't move as fast as housing prices. And when prices eventually drop, no one is lining up to take a pay cut." Working adults who live with their parents make an average of $39,622 yearly compared to $70,137 for working adults who do not live with family. Moving truck in New York City. A new analysis from LendingTree found that the share of young adults living with their parents in the United States varied drastically across metropolitan areas, with New York in... Moving truck in New York City. A new analysis from LendingTree found that the share of young adults living with their parents in the United States varied drastically across metropolitan areas, with New York in the top five. More What People Are Saying Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "Cities with a higher cost of living, especially in major metro areas, are seeing this trend because rent and homeownership have become unsustainable. In many of these places, people are spending over 40 percent of their income just on rent. That's not viable for most individuals, especially if they're living alone." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "The common trait of cities where working adults living with their parents is common—like Los Angeles and Miami—and where rates of this demographic are rising—like Atlanta and Las Vegas—is the cost of living is either already high or has been rising dramatically. The price of housing, in particular, is much higher in these cities, and with both home ownership and rent prices still hovering at or near all-time highs, financially it makes more sense for these adults to live with family than to move out on their own." What Happens Next While getting your first place has historically been seen as a rite of passage as you gain financial independence, the younger generations are likely to stay at home if they feel the benefits outweigh the cons in today's economy. "While obviously most working adults would rather live on their own, this move could be the most fiscally responsible one," Beene said. "Being able to keep your head above financial water while also saving some of your income is the right move to make if you have the option, even if you'd prefer to be on your own."
Newsweek
20-05-2025
- Business
- Newsweek
Map Shows Home Values Dropping in Half the Country as Housing Market Shifts
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Home values shot down in half the country as the housing market faces a nationwide downturn. According to Zillow, monthly home values dropped in 27 out of the 50 states this year. While Florida, Colorado, Washington, D.C., California and Washington state experienced the greatest value declines from March to April, the data could foreshadow a larger housing market shift. Why It Matters The low inventory in the U.S. housing market has pushed prices upward in recent years. But as markets across the country now note an uptick in inventory, home values are coming down. Still, many potential homebuyers have been priced out of the market due to historically high mortgage rates and economic uncertainty. What To Know The Zillow data revealed that real estate prices were shifting downward in more than just a few markets. While the post-pandemic era brought lower prices to Texas and Florida markets due to higher inventory and lower demand, home values across the country reflect a shifting market. Behind Florida, Colorado, Washington, D.C., California and Washington state, which saw the most notable decreases in value this past year, were Arizona, Louisiana, West Virginia, Texas and Georgia. These states saw as much as 0.37 percent decreases in home values, while Florida saw the worst value loss at 0.55 percent. "The broadening of this housing decline suggests there's a shift occurring in the U.S. Housing Market right now," Nick Gerli, founder and CEO of the real estate Reventure app, wrote on X, formerly Twitter, on Tuesday. "Inventory is starting to rise in most parts of the country, and sellers are beginning to wake up to the fact that prices are overvalued, and they need to cut." Even states like California, where home prices have historically been some of the highest and demand continues to surge, experienced some course correction in home values. While values are up 1.3 percent over the last year, California home prices dropped 0.42 percent in the last month alone. "I think this data holds key implications for housing market analysts, homebuyers, and investors in 2025," Gerli said. "The question isn't becoming 'if' prices will drop. But rather: where the drops are occurring. And by how much." A "For Sale" sign is displayed in front of a home on February 22, 2023, in Miami. A "For Sale" sign is displayed in front of a home on February 22, 2023, in People Are Saying Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast, told Newsweek: "Housing prices have declined due to their rapid rise after the pandemic. The economic shift from migration out of the West to now, a slowing of that same migration and overbuilding in places like Austin, TX, is now seeing an equilibrium shift downward. The median cost of homes rose sharply coming out of the pandemic, and that rise was unsustainable." Hannah Jones, senior economic research analyst with told Newsweek: "This summer's housing market is expected to display familiar seasonal patterns, such as increased home sales and rising prices, but overall activity may remain subdued as buyers contend with elevated housing costs and lingering economic uncertainty. In regions like the South, where inventory is more abundant, these conditions could entice some buyers to enter the market." "Still, persistently high mortgage rates mean affordability remains top of mind, and many shoppers will be looking for more bang for their buck. Builders have pivoted toward offering smaller, more affordable homes and a range of incentives to entice buyers, but this strategy may be tested if the cost of construction inputs continues to rise." Michael Ryan, finance expert and founder of told Newsweek: "It's fascinating how we've gone from "your home is worth what?!" to "reality check" territory now. The housing market isn't crashing dramatically, more like it's finally coming back down to earth from a sugar high." Nationwide title and escrow expert Alan Chang told Newsweek: "For the last few years, I have been saying that property values have been at an unsustainable growth trajectory. It appears that portions of the market have started to correct themselves. I also believe that sellers are starting to ask a more realistic sales price as they see time on market being longer than what was seen a year or two ago. I don't see this as a housing crash like some have, but more of a normalization of the market." Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "Over the past two years, we've seen a major shift in the housing markets of certain cities and states that enjoyed a significant increase in purchases during the pandemic. As people have relocated due to "back to office" decisions, we've seen an exodus from some of those locations. Subsequently, the high prices and interest rates of homes are keeping many potential buyers out of the marketplace. It's a bad combination of factors that are causing housing values to trend downward, even if we have yet to see that impact in home sale values and declining interest rates." What Happens Next While many analysts believe interest rates are the housing market's main problem today, Thompson said prices of homes play a larger role in improving the market. "It is the cost of the homes that remains the issue and prices need to correct to make it more affordable for new buyers. I expect prices to continue to fall while rates remain higher, reaching a level where buyers and sellers can come to a good price in the future," Thompson said. "The timing of that is still up in the air, but it will definitely happen as all markets tend to correct where demand and supply meet." Some markets will continue seeing price drops while others are still growing, Ryan said. "It's not a one-size-fits-all story anymore," Ryan said. "Here in most of Florida, Texas, and Arizona are seeing bigger corrections while places like Charlotte, Denver, and even Miami are still posting gains." Still, on a larger scale, buyers will likely have more choices and "less frantic competition," Ryan said. "And for sellers? Gone are the days when you could slap any old price on your house and expect a bidding war," Ryan said. "Pricing right from the start is crucial now. Overpriced listings are just sitting there collecting dust."
Newsweek
07-05-2025
- Business
- Newsweek
Over 8 Million Americans to Receive Up To $400 Direct Payment: Here's Who
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. More than 8 million New Yorkers are set to receive direct payments in the form of "inflation refund checks" this year, Governor Kathy Hochul announced. Why It Matters Americans have dealt with high inflation rates over the past few years amid the recovery from the COVID-19 pandemic, which caused a global economic slowdown. Inflation peaked in June 2022, with a 9.1 percent rate, and has steadily fallen ever since. Still, prices have not returned to pre-pandemic levels. Americans are also facing growing concerns about the recession amid President Donald Trump's tariffs. Hochul, a Democrat, said inflation, in addition to increasing consumer prices, has "also driven sharp increases in the State's collection of sales tax" that "belongs to hardworking New York families and should be returned to their pockets as an Inflation Refund." What To Know The initiative is expected to distribute $2 billion in direct payments to New Yorkers later this year, according to Hochul's office. The refund amounts are determined based on filing status and income. Joint filers with incomes up to $150,000 will receive a $400 check, while those earning between $150,000 and $300,000 will receive $300. Single filers with incomes up to $75,000 will receive $200, and those earning between $75,000 and $150,000 will receive $150. New York Governor Kathy Hochul speaks during a press conference about federal layoffs on March 3, 2025 in New York City. New York Governor Kathy Hochul speaks during a press conference about federal layoffs on March 3, 2025 in New York New York budget announced in late April also includes initiatives for expanding child tax credits, cutting taxes for the middle class, and providing free breakfast and lunch in schools. "The cost of living is still too damn high, so I promised to put more money in your pockets – and we got it done," Hochul said in a statement. New Yorkers are not the only Americans getting direct payments this year. Georgia Governor Brian Kemp, a Republican, announced last month that residents of his state will also be eligible for a payment. What People Are Saying Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek on Wednesday: "To say this isn't impactful would be disingenuous to those who could use the extra funds, so I'll acknowledge that for many, a no-strings-attached $400 is meaningful. If the alternative is receiving nothing, then this is clearly a win for New Yorkers. But there's a significant caveat. What does this do to inflation? You're putting $2 billion back into New Yorkers' pockets, which can be used to pay down debt or spend on goods and services at a time when we're still trying to control inflationary pressures. In the short term, it puts money in people's hands, but longer term, it may increase prices and stretch the inflation cycle even further." Laura Tamman, a professor of political science at Pace University, told Newsweek on Wednesday: "One of the challenges for Governors in midterm elections is that voters are unsure who to credit or blame for their circumstances. A check signed by the Governor is a way for her to communicate that she understands that New Yorkers are struggling financially, with a specific, tangible benefit. Unexpected checks in the mail are rare enough that I think voters will remember this gesture. However, the checks are simply not large enough to be the determining factor in whether she wins reelection in 2026. It does signal that she 'feels the pain' of struggling New Yorkers, but she will have to do more for them if she wants to be reelected Governor." What Happens Next It's not exactly clear when the payments will be sent out. The governor's office wrote that more details "will be announced in the near future."
Newsweek
02-05-2025
- Health
- Newsweek
Medicare Update: What Trump's New Budget Request Says About Program
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Trump administration's newly released Fiscal Year 2026 budget proposal calls for targeted cuts to Medicare and Medicaid operations. The administration said it will eliminate "wasteful" and "woke" initiatives while maintaining direct benefits to tens of millions of Americans. Why It Matters More than 70 million people rely on Medicare and Medicaid for health coverage in the U.S. Democrats have long been raising concerns that President Donald Trump's administration and Republicans will make cuts to these popular programs, but Trump has insisted he will not. The administration has pledged to root out waste, fraud and abuse of these programs, which it says will save money. U.S. President Donald Trump speaks in the Cross Hall of the White House during an event on "Investing in America" on April 30, 2025 in Washington, DC. U.S. President Donald Trump speaks in the Cross Hall of the White House during an event on "Investing in America" on April 30, 2025 in Washington, To Know According to budget request released by the White House on Friday, the administration aims to "eliminate funding that had been used to carry out non-statutory, wasteful, and woke activities" and will end "unnecessary DEI and support contracts." It also proposes cuts to programs focused on health equity and public outreach related to the Inflation Reduction Act, which passed in 2022 during the administration of former President Joe Biden. The White House emphasized that none of the proposed changes will reduce benefits to Medicare or Medicaid beneficiaries. Under the new budget, congressional committees would be tasked with identifying administrative savings within Medicaid and Medicare—totaling up to $880 billion in reductions over 10 years. The Trump administration says the savings will come from eliminating nonessential contracts and focusing agency resources on core health service functions. "This cut will have no impact on providing benefits to Medicare and Medicaid beneficiaries," the administration's budget says. Critics have raised concerns that such large budget reductions could eventually affect service delivery. "You cannot materially cut spending strictly through administrative tweaks," Kevin Thompson, CEO of 9i Capital Group, previously told Newsweek. "The cost is embedded within the system itself—health care pricing, insurers, regulatory structures, all of it." At the same time, federal oversight of Medicare programs is ramping up in other ways. The Department of Justice recently opened investigations into alleged kickbacks between Medicare Advantage brokers and insurers. Prosecutors are examining whether middlemen improperly steered seniors toward plans based on the incentives they received, not on patient needs. Newsweek reached out to the Centers for Medicare and Medicaid Services for comment. What People Are Saying House Speaker Mike Johnson, a Louisiana Republican, to CNN: "The White House has made a commitment. The president said over and over and over, 'We're not going to touch Social Security, Medicare or Medicaid.' We've made the same commitment. Now that said, what we are going to do is go into those programs and carve out the fraud, waste and abuse, and find efficiencies." Michael Ryan, a finance expert and the founder of told Newsweek: "This is political sleight of hand, plain and simple. What they're calling 'woke activities' are actually programs designed to reach underserved communities. Why target health equity initiatives? Because they're easier to label as unnecessary than admitting to benefit cuts." "The math doesn't work. You can't slash billions without consequences. It's like removing the foundation but promising the house won't collapse." Smile Insurance Group CEO Chris Fong told Newsweek: "The new budget and the statements made by Trump is counterintuitive to each other in actual practice. There are currently numerous examples of government benefits that are being under utilized because lack of knowledge and education that those benefits exist. Additionally, an argument can be made that this budget is discriminatory towards certain groups of US citizens by making it much harder to know about and access these benefits." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "The new budget proposals do scale back from some of the bigger, broader cuts to Medicaid and Medicare that were originally proposed. Medicaid and Medicare are two of the most popular government programs, and there was a general belief that major cuts to them would trigger a backlash at the ballot box in future years." "Still, it's hard to imagine the cuts to administration and recipient resources would be enough to add up to the lofty funding the budget hopes to save. The jury is still out as to whether the final budget will impact recipients' coverage in any way." Senator Bill Cassidy, a Louisiana Republican, told CNBC: "The president has said, for example, that he doesn't want to touch Medicare and saying don't cut benefits to beneficiaries." Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "Every time I hear the word 'woke' used in a budget conversation, it hits like a dog whistle. A term that once stood for awareness and justice has been twisted into a pejorative. That kind of rebranding, turning something powerful into something weaponized is frustrating, but not surprising, but I digress." What Happens Next The Trump administration's budget still needs approval from Congress, where Democrats are likely to push back against reductions to health equity initiatives and DEI programs. Meanwhile, lawmakers on both sides of the aisle are expected to closely scrutinize how the administration defines and implements "wasteful" or "duplicative" spending. Legislative debate over the final budget terms is expected to continue through the summer, but there's doubt on how the budget could actually be enacted without shrinking benefits. "When politicians say cuts won't affect services, check your wallet and your pulse," Ryan said.
