Latest news with #middleClass
Fox News
4 days ago
- Business
- Fox News
CNN polling expert marvels at collapse of Democratic advantage with middle class in Trump era
CNN senior political data reporter Harry Enten Monday marveled at how Democrats continue to face a stark lack of confidence from voters on the economy and middle class issues. Voter dissatisfaction with former President Biden's management of the economy was one of the major issues that led to President Donald Trump's return to the White House. While Trump may have stirred controversy with his tariff and immigration policy shakeups since then, the economy appears to be one key area where he retains voters' trust. CNN host Kate Bolduan observed as she spoke to Enten that, according to CNN's own polling, Republicans are actually gaining ground in terms of being trusted to help America's struggling middle class. "Yeah, you know, historically speaking, 'Which is the party of the middle class?' has been a huge advantage for Democrats," Enten said, referring to one question from the polling. He said Democrats had a 23-point advantage on this question in 1989 and a 17-point advantage in 2016, "But by this decade, we already started seeing declines back in 2022, where you saw that Democrats led, but only by four points, well within the margin of error." Now it's tied. "This, I think, speaks to Democratic ills more than anything else," he argued. "They have traditionally been the party of the middle class. No more! Donald Trump and the Republican Party have taken that mantle away, and now a key advantage for Democrats historically has gone 'adios, amigos,' and now there is no party that is the party of the middle class. Republicans have completely closed the gap, Kate." Enten also said while one might think Trump's rocky experimentation with tariffs might shake voters' faith in Republicans and make them consider the opposition, but, "It ain't so. It ain't so!" The data reporter noted that in November 2023, Republicans had an 11-point advantage as "the party that is closest to your economic views." He noted, "Now it's still within that range, still within that margin of error, plus eight point advantage for the Republican Party. How is that possible, Democrats?" Enten continued to break down the numbers, wondering, "How is it possible after all the recession fears? After the stock market's been doing all of this, after all the tariffs that Americans are against, and Republicans still hold an eight-point lead on the economy? Are you kidding me?" He argued that CNN's poll was echoed by similar findings from Reuters/Ipsos, showing that confidence in Republicans to handle the economy has risen. "And again, this is after months of supposed economic uncertainty in which the stock market's been going bonkers, in which tariff wars that Americans are against have been going on. And yet, despite all of that, the Democrats are down by 12 points on the economy," he said. "This speaks to Democratic problems on the economy better than basically anything that you could possibly look at," Enten continued, arguing that even if approval ratings are slightly lower than they once were, Republicans maintain a clear advantage with public opinion on their management of the economy.
CNA
28-05-2025
- Business
- CNA
‘Small benefit': Indonesia's banking on consumers to boost its economy but latest perks fall short, say analysts
JAKARTA: Indonesia is rolling out a slew of stimulus measures to get its people to spend more in the next two months, but these may not be enough to revive sluggish domestic consumption and lift economic growth, analysts say. Instead, broader moves are needed to help the country's dwindling middle class and protect businesses from the effects of higher United States tariffs, they add. With the school holidays set to take place between Jun 28 and Jul 12, the government is looking to boost domestic tourism and consumption. The government announced on Tuesday (May 27) discounts on electricity bills and transportation costs as well as cash and food handouts to selected households that will begin on Jun 5. Indonesians will enjoy a 30 per cent discount on train tickets as well as a 50 per cent discount on sea transport. In addition, the government will cover the 6 per cent value-added tax (VAT) on airfares from early June to mid-July. A 50 per cent discount on electricity bills will be given to around 79.3 million households with a maximum usage of 1,300 volt-amperes from Jun 5 to Jul 31. The government will also provide 150,000 rupiah in wage subsidy for two months to about 17 million workers earning up to 3.5 million rupiah (US$215) a month. It will give an additional 200,000 rupiah a month in staple food assistance to 18.3 million households. With the majority of the incentives set to benefit low-income families and not the middle class, experts are questioning just how effective the stimulus will be. 'It is difficult to achieve the expected consumption boost with such (a) small benefit given to such a small number of beneficiaries,' Achmad Nur Hidayat, an economics and public policy lecturer from the Jakarta National Development University, told CNA. Almost all of the planned incentives will benefit lower-income households, he noted. According to the Indonesian Statistics Bureau, there are 25.2 million Indonesians who live below the poverty line, surviving on less than 600,000 rupiah (US$36) monthly. 'Houses with 1,300VA (maximum electricity usage) are typically found in housing complexes for low-income families. Workers with a salary of less than 3.5 million (rupiah) are low-income workers,' he explained. 'If the intention is to boost consumption, then the government should target the middle class with disposable income,' he said. 'The middle class has been responsible for much of Indonesia's domestic consumption and their purchasing power has been dwindling for the last few years,' concurred Yusuf Rendy Manilet, an economist from the think tank Center of Reform on Economics (CORE). 'And yet, incentives for the middle class are limited to transportation fares.' RISK OF MORE JOB LOSSES Household consumption contributes around 54 per cent of Indonesia's economy, according to official data. However, consumption appears to be slowing over the last few years. In the first quarter of 2025, consumption grew by 4.89 per cent compared to the same period in 2024 despite major festivities like Chinese New Year and Idul Fitri occurring during the period. The year-on-year growth was Indonesia's weakest for a first quarter in more than three years: The rate was 5.11 per cent in 2024, 5.03 per cent in 2023 and 5.01 per cent in 2022. Indonesia clocked 4.87 per cent gross domestic product (GDP) growth in the first quarter, and is aiming for around 5 per cent growth for the second quarter. Meanwhile, import of household goods in January and February this year stood at US$1.64 billion and US$1.47 billion respectively. The figures were 10.6 and 21 per cent lower year-on-year, another sign of sluggish household consumption in Southeast Asia's largest economy. One major factor is the shrinking of Indonesia's middle class population, which has been responsible for around 40 per cent of the country's total consumption. The country is still reeling from the effects of the COVID-19 pandemic, which caused thousands of businesses to shutter. The number of people categorised as middle class dropped from 57.33 million in 2019 to 47.85 million in 2024. During the same period, Indonesia's population increased from 267 million to 280 million. Experts believe that Indonesia's middle class could shrink further with the US' threat of 32 per cent tariffs on goods from Indonesia. The Trump administration has put higher 'reciprocal' tariffs on hold until July. The Indonesian government's latest economic stimulus incentives will only cut household expenses temporarily, said Tauhid Ahmad of the think tank Institute for Development of Economics and Finance (INDEF). 'But if we want something which is long-lasting, then we need to do much more, starting from creating new jobs to preventing existing jobs from disappearing,' he said. Indonesia's Manpower Minister Yassierli said in parliament on May 12 that more than 24,000 people lost their jobs between Jan 1 and Apr 23 this year. He said tens of thousands more are at risk because of the trade war. This is particularly so in the textile and furniture sectors, where goods are mostly bound for overseas markets. The Indonesian Employers Association (APINDO) has painted a more alarming picture, saying on May 14 that at least 70,000 people have been laid off between January and March. APINDO warned that if the looming impact of the trade war is not mitigated well, 250,000 people could lose their jobs by the end of the year. INCENTIVES FOR 'LONG-TERM GOOD' NEEDED Some experts like Tauhid said it is important that Indonesia gears government stimulus and incentives towards mitigating the impact of a punishing trade war. But they noted the government funding to be allocated to President Prabowo Subianto's signature programmes like free meals for millions of school children, breastfeeding and expectant women. This year, Indonesia is earmarking US$7.4billion for the initiative, with plans to nearly double the budget to US$13.3 billion next year. Aside from the free meal initiative, Prabowo also plans to build 3 million houses for the poor every year, which is expected to cost taxpayers US$7 billion annually. To cover the costs of the programmes, the government initially planned to increase its VAT from 11 to 12 per cent from Jan 1. The plan, however, was cancelled after fierce public backlash. Without the VAT hike, these programmes are predicted to cause a government deficit of around US$37billion or 2.53 per cent of the GDP by the end of 2025. '(These programmes) give little room for the government to provide meaningful incentives to revive our economy,' said Achmad, suggesting that these programmes be postponed or reviewed. 'Must we do them now? Can we scale them down? The government needs to think about these options,' he said. Tauhid of INDEF suggested also offering help to companies. 'Instead of providing incentives to individuals, why not provide incentives to businesses so they can stay afloat? Why not provide tax breaks so investors are willing to build factories here and create jobs?' he said. 'The plan to provide discounts on electricity bills and distribute cash handouts are popular with the general public and can give quick results but the results are temporary and superficial. We need something for the long-term good of our economy.' Bhima Yudhistira, executive director of the think tank Center of Economic and Law Studies (CELIOS), said the government could consider reducing the VAT, currently at 11 per cent, to 9 per cent. 'By keeping prices low, people will be encouraged to spend more on goods and services," he said. "This will in turn help small and medium enterprises providing these goods and services,' Bhima said, highlighting that many countries like Ireland and Germany have lowered their VATs to aid recovery from the effects of the pandemic.
Yahoo
25-05-2025
- Business
- Yahoo
5 Ways Trump's Suggested Income Tax Elimination Could Hurt the Middle Class
Income taxes may seem like one of those unchangeable facts of life that you just have to deal with as long as you work. However, one of President Trump's tax reform proposals is to consider doing away with income tax altogether for people who make less than $150,000 per year. Trump has also proposed eliminating taxes on overtime pay, Social Security Benefits and tips. Find Out: Learn More: While the initial result might seem positive — keeping more of your earnings — Christopher Stroup, CFP and president of Silicon Beach Financial, warned that there could be financial downsides that might actually hurt middle-class wallets down the line. While it's unclear if and when any of these proposals might move beyond theory, Stroup explained what might come of eliminating income taxes for this segment of American workers. If income tax disappears, expect higher sales taxes, property taxes and other fees to make up the difference, Stroup said. 'Middle-class households, who spend a greater percentage of their income on essentials, would bear the brunt.' A 10% national sales tax, for example, would make everyday necessities significantly more expensive while benefiting wealthier Americans with lower tax burdens. Be Aware: Income tax plays a major role in funding Social Security and Medicare. Without it, where does that money come from? Stroup explained that 'a tax overhaul could lead to benefit cuts, delayed eligibility or even privatization.' Middle-class workers and retirees who rely on these programs the most could face financial instability just as they need guaranteed income the most. If there's no income tax on a certain level of earnings, then some entrepreneurs and small-business owners who benefit from income tax deductions on expenses like health insurance, retirement contributions and home offices would not have these deductions. 'Without an income tax, these deductions disappear,' Stroup said. 'This could increase net tax burdens and make it harder for self-employed professionals to reinvest in their businesses while larger corporations find new loopholes.' Most states rely on federal funding for infrastructure, education and public safety — much of which comes from income taxes, Stroup explained. 'If those funds dry up, states would likely increase property and local taxes, disproportionately affecting middle-class homeowners. The result? Higher costs without the benefits of improved public services.' Eliminating income tax primarily benefits high earners who derive most of their wealth from investments rather than salaries, Stroup said. 'Middle-class professionals who rely on wages would still face taxes in other forms, whether through consumption or payroll taxes.' This shift could exacerbate income inequality, making it harder for working families to build long-term wealth. These are all just speculations at the moment, as no official tax reforms have been passed either by executive order or through an act of Congress. More From GOBankingRates 6 Hybrid Vehicles To Stay Away From in Retirement 7 Luxury SUVs That Will Become Affordable in 2025 This article originally appeared on 5 Ways Trump's Suggested Income Tax Elimination Could Hurt the Middle Class
Telegraph
25-05-2025
- Business
- Telegraph
The Black Death didn't destroy Britain
After the devastation of the Great Plague came a wave of prosperity and innovation, not to mention the birth of the middle class
Yahoo
24-05-2025
- Business
- Yahoo
How much Social Security do middle-class retirees get?
Moneywise and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Social Security is an important piece of the retirement puzzle, particularly for middle-class retirees who count on the safety net to supplement their post-career income. But if you see Social Security as an income centerpiece, not just icing on the cake, a closer look at the numbers may prompt you to think again. U.S. Census Bureau data from 2022 shows the national middle-class income range is between $49,271 and $147,828 — a span heavily influenced by location and cost-of-living considerations. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) The Bureau says the median household income in the U.S. that year was $74,580. A 55-year-old earning that amount today and planning to take Social Security at age 62 would get an estimated monthly benefit of about $1,869 a month — or $22,428 a year. (This figure was reached using the AARP's Social Security calculator.) Presuming the retiree has no savings and would rely on Social Security alone, that's dangerously near the U.S. Department of Health and Human Services' 2024 poverty line ($15,060) for one person. Social Security benefits vary greatly but generally depend on how long one is willing to defer their benefit. Planning for a retirement that doesn't count on Social Security, some argue, makes sense given persistent questions about the safety net's sustainability. Getting the most from Social Security comes down to strategy, forethought and planning — along with a decent understanding of how the system works. Here are several strategies middle-class retirees can employ to increase their benefits: While starting your Social Security draw early may make sense in some scenarios, the most effective way to increase your monthly check is to delay the benefit. While retirees can start receiving benefits as early as age 62, doing so results in a reduced monthly benefit. Each year you wait, up until age 70, significantly increases the benefit amount. One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals. Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties. To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases. Social Security benefits can be taxable depending on the retiree's total income. It's essential to understand how other sources of income, such as pensions or investment withdrawals, impact the taxability of Social Security benefits. Proper tax planning can help minimize Uncle Sam's share of your money. With Vanguard, you can connect with a personal advisor who can help assess how you're doing so far and make sure you've got the right portfolio to meet your goals on time. Vanguard's hybrid advisory system combines advice from professional advisers and automated portfolio management to make sure your investments are working to achieve your financial goals. All you have to do is fill out a brief questionnaire about your financial goals, and Vanguard's advisers will help you set a tailored plan, and stick to it. Once you're set, you can sit back as Vanguard's advisors manage your portfolio. Because they're fiduciaries, they don't earn commissions, so you can trust that the advice you're getting is unbiased. While maximizing Social Security is important, it should be part of a broader retirement strategy. Middle-class retirees should also consider other sources of income, such as part-time work, rental income and investments to supplement their Social Security benefits. Read more: You're probably already overpaying for this 1 'must-have' expense — and thanks to Trump's tariffs, your monthly bill could soar even higher. Here's how 2 minutes can protect your wallet right now Both residential and commercial real estate have long been solid choices for investors looking to diversify and add stability to their portfolios — especially while saving for retirement. Since having a place to live is essential, real estate remains a stable, relevant asset. New investing platforms are making it easier than ever to tap into the real estate market. For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors. With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property. With risk-adjusted internal returns ranging from 12% to 18%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets. First National Realty Partners specializes in grocery-anchored commercial real estate properties with historically strong return potential. FNRP has developed relationships with the nation's largest essential-needs brands, including Kroger, Walmart and Whole Foods, and provides insights into the best properties both on- and off-market. Access to this $22.5 trillion asset class has traditionally been limited to elite investors — until now. Here's how to become the landlord of Walmart or Whole Foods without lifting a finger Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Are you rich enough to join the top 1%? Here's the net worth you need to rank among America's wealthiest — plus a few strategies to build that first-class portfolio This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
