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In State of the Union address, Biden will highlight his dishonest take on the economy

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In State of the Union address, Biden will highlight his dishonest take on the economy

President Biden appeared extraordinarily completely satisfied to take credit score for the booming January jobs report, “We’ve got created extra jobs in two years than any presidential time period inside two years. That’s the strongest two years of job development in historical past, by an extended shot,” Biden boasted.

Sadly, Biden couldn’t go away effectively sufficient alone. Requested by a reporter whether or not he took duty for manufacturing the very best inflation in 40 years, he snapped “Do I take any blame for inflation? No. As a result of it was already there after I bought right here, man.”

He went on: “Bear in mind what the economic system was like after I bought right here? Jobs have been hemorrhaging, inflation was rising, we weren’t manufacturing a rattling factor right here … that’s why I don’t.”

Oh my; Biden wonders why individuals assume he’s dishonest.

Biden both has extreme short-term reminiscence issues or he’s purposefully mendacity about how the economic system has trended over the previous few years.

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Right here is the reality: The economic system was in nice form in 2019 however then bought hit arduous by COVID-19 in early 2020, whereas Donald Trump was president. Trump’s administration listened to the well being consultants and closed down the nation to “cease the unfold” of the virus. In April 2020, the nation misplaced 20.5 million jobs, and the economic system plunged into recession.

However due to what the Committee for the Accountable Federal Finances describes as “applicable” spending, Congress handed $3.4 trillion in reduction payments meant to maintain workers on the payrolls and American households afloat.

It labored, and fairly quickly – extra rapidly than most corporations anticipated – demand rebounded, and within the third quarter of 2020 GDP grew at an astonishing 38 p.c clip. Progress continued by way of the top of the 12 months, and when Joe Biden assumed the presidency, jobs have been coming again and the economic system was increasing at a stable 6 p.c charge. Briefly, opposite to what the president claims, the economic system was recovering properly.

However the greatest lie from the president is that inflation was “already right here.” Not so.

Inflation was operating at a low 1.4 p.c when Biden took workplace. By the top of 2021, it had elevated five-fold to 7 p.c, on its method to 9 p.c a number of months later.

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These details haven’t prevented Biden over the previous 12 months from boasting that “his financial insurance policies are working.” We’ll hear extra of that in his State of the Union Handle on Feb. 7. The stunning employment report for January, displaying that 517,000 jobs have been added regardless of a slowdown in lots of sectors of the economic system, has given the president a lot to crow about, and crow he’ll.

Biden’s rose-colored rendition of the economic system can even give attention to his absurd claims of getting diminished our federal deficits and boosted incomes.

Right here’s what Biden won’t spotlight:

1) That extra authorities handouts have brought on tens of millions to take a seat on the sidelines, driving wages and inflation greater and inflicting the Federal Reserve to push our nation in the direction of recession;

2) That Individuals within the decrease and middle-income brackets have seen their actual incomes clobbered underneath this president, regardless of his insistence that he’s rising the economic system “from the underside up and the center out”;

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3) That Biden’s ongoing spending is driving our federal debt, and the curiosity on that debt, to unsustainable and harmful ranges.

It’s true that extra jobs have been added since Joe Biden took workplace than has occurred underneath some other president. However additionally it is true that Biden’s insurance policies have labored towards that return to regular.

Contemplate: In January 2020, simply as COVID-19 started to unfold by way of the USA, the Bureau of Labor Statistics says there have been 259 million individuals in our civilian “noninstitutional” inhabitants. Immediately, there are 266 million, a rise of seven million individuals. However the variety of employed individuals has elevated only one.4 million over these three years. The place are the remaining 5.6 million individuals? Why are they not working?

This lack of employees is the Achilles heel of Biden’s presidency. Low unemployment is not any nice victory if tens of millions are selecting to not work, residing off expanded authorities advantages that more and more require no work and no job coaching. Federal Reserve Chairman Jerome Powell describes the labor market as “out of steadiness”; he’s proper.

It’s unconscionable that Biden continues to be creating speedbumps to elevated employment by, for instance, not requiring individuals to pay their pupil loans.

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In his upcoming handle, Biden will repeat his latest boast that “take-home pay for employees goes up.” Politifact refuted that declare, stating that wage positive aspects have been wiped away by inflation. The end result, based on the Dallas Fed, was the largest hit to center class incomes in 25 years.

The president will say, as he has accomplished on a number of events, that he has lowered our funds deficit. That is laughable in that he has diminished spending and the deficit solely from the horrifying emergency ranges to which it rose as our nation battled the pandemic. Because the non-partisan Committee for a Accountable Federal Finances studies, “Congress and the White Home ought to have stopped participating in new borrowing” in 2021 however as an alternative, Biden expanded our funds deficits by $4.8 trillion by way of administrative actions and laws.

The president will tout the decline in inflation for the reason that peak of 9 p.c hit final 12 months. He can be proper, however the discount comes with rising anticipation of a recession. In a latest Gallup ballot, Individuals put the economic system as a chief concern, topped solely by worries concerning the authorities. Some 72 p.c mentioned they thought the economic system was getting worse, and confidence within the economic system was decrease than on the top of the pandemic. That’s the actual state of the union.

Liz Peek is a former associate of main bracket Wall Road agency Wertheim & Firm. Observe her on Twitter @lizpeek.

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Online event: Digital Finance Platform – Launch of phase II & data hub

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Online event: Digital Finance Platform – Launch of phase II & data hub

When: 21 March 2024 between 09:30 and 11:00

Don’t miss this online event that will launch the second phase of the Digital Finance Platform, a collaborative space bringing together innovative financial firms and national supervisors to support new thinking in the EU’s financial system.

A key novelty in this second phase is the Data Hub, which provides participating firms with access to synthetic supervisory data for the purpose of testing new solutions and training artificial intelligence and machine learning models.

The event will also take stock of the current state of play of digital finance and look forward to the way ahead.

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Charting the AI revolution: Accelerating adoption of AI in finance – The CFO

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Charting the AI revolution: Accelerating adoption of AI in finance – The CFO

The finance function within organizations is undergoing a significant transformation as the pace of technological advancement is unprecedented, with CFOs at the forefront of this change. They are faced with navigating through the complexities of integrating Artificial Intelligence (AI) into their operations. The adoption of AI in finance is not merely a trend but a strategic imperative that promises enhanced efficiency, accuracy, and insights. This article delves into the ways CFOs can accelerate AI adoption in their finance functions, the challenges they might face, and strategies to overcome these hurdles for a seamless transition into the AI-powered future.

Strategies for Accelerating AI Adoption

To expedite the integration of AI within finance functions, CFOs can adopt several strategic approaches.
Initially, focusing on automating the financial fundamentals is paramount. By automating manual processes across accounting and finance functions, organizations can significantly enhance productivity. This step is crucial in addressing the ongoing accountant talent shortages and improving business visibility through more frequent reporting.
Furthermore, centralizing data and training your own AI models is another vital strategy. An integrated solution, such as a cloud ERP system, can unify data across the business, providing a single source of truth. This approach not only saves time on manual data integrations but also ensures that AI can be as effective as possible.
By starting small and encouraging AI experimentation, CFOs can gradually build a robust foundation for AI within their finance functions, driving long-term change and efficiency.

Overcoming Challenges in AI Integration

Integrating AI into finance functions is not without its hurdles. One significant challenge is the lack of understanding and trust in AI technologies among small businesses, as highlighted by UK Tech Minister Saqib Bhatti. To overcome this, promoting trust and transparency in AI applications is essential. This involves providing increased support and educational resources to help businesses navigate the complexities of AI. Additionally, addressing environmental concerns associated with AI, as noted by Tom Dunning, CEO of Ad Signal, is crucial. Businesses must be mindful of the carbon emissions caused by AI and seek solutions to mitigate its environmental impact. Collaborating with industry and government to ensure the safe development of AI and equipping staff with the necessary skills to harness AI’s benefits positively are also key strategies. By tackling these challenges head-on, CFOs can facilitate a smoother integration of AI into their finance functions, unlocking new avenues for growth and efficiency.

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The Future of AI in Finance

The integration of AI into finance heralds a transformative era of efficiency, insight, and growth. As CFOs navigate this journey, the focus on strategic adoption, overcoming challenges, and learning from success stories will be pivotal. The future of finance is undeniably intertwined with AI, promising a landscape of unprecedented opportunities.

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Teacher using 'Lattimore Bucks' to teach personal finance

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Teacher using 'Lattimore Bucks' to teach personal finance

CHARLOTTE, N.C. — Every Monday, Renaissance West STEAM Academy math teacher Shelby Lattimore starts her class by charging her students for their seats, not with U.S. currency but with “Lattimore Bucks.” It’s a project she started last year as a way to improve attendance.

“It’s not just about having them here,” Lattimore said. “It’s about having them here for the whole day from start to finish, ready to rock and roll. On top of the fact, just to get them accountable for their behavior and taking accountability for certain things in the classroom.”


What You Need To Know

  • Shelby Lattimore started using “Lattimore Bucks” in her classroom to help curb attendance problems
  • Each student has a classroom job, they get paid every week with Lattimore Bucks
  • With their bucks they pay for rent, as well as fines if they misbehave.
  • They also can buy rewards to teach them personal finance lessons

Each student is assigned a job in the classroom, which rotates every two weeks.

“These are their jobs,” Lattimore said. “If they’re underlined, they get paid $10. So those are the harder jobs they have to do every day. And then the ones that are not underlined, like this one, he just has to change my calendar. He just has to change the day on the board, like once in the morning so he doesn’t get paid as much.”

With their salaries, her students pay their rent for their seats. 

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“Their rent was inflated as of January, from $5 to $7,” Lattimore said.

And if students misbehave, they’re fined. 

“Like if you purposely lose your pencil, rip your notebook, things of that sort and then of course disrespect,” Lattimore said. “And their fines are a dollar.”

The more Lattimore Bucks they save, the more rewards they can buy. That is, as long as they have enough to pay their rent.

“Let’s say they have $10, but they want to buy lunch with a friend. If I do 10 minus 5, you’re not, you don’t have $7 for your next rent. So they cannot buy anything past their rent that they have to keep in their wallet,” Lattimore said.

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While the project may have started to improve effort in the classroom, Lattimore says it’s morphed into a much bigger lesson for her students. 

“Some of their parents, you know, thank me all the time,” Lattimore said. “We talk about all the time in Charlotte, generational poverty is a huge statistic here, especially in the kids and the families that we serve in my school.” 

She’s instilling lessons of personal finance and budgeting into the lessons every day.

“So just starting the mindset of how can I hold onto money? How can I make long-term decisions with my money? It all starts from a very young age in a safe environment before they’re out in the real world,” Lattimore said.  

It’s done in hopes of setting up her students for the future.

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“Even my students from last year, they are telling me that they’re saving their money, and they’re budgeting their Christmas money for a pair of sneakers or whatever they want,” Lattimore said. “So they’re holding onto the lesson. So I can only imagine a couple of years from now when they’re adults, how that will affect their family.”

Lattimore says other teachers she knows have started similar programs in their own classrooms. She says the concept can be used at any school for any grade level as a simple way to teach basic finances.

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