What we’re reading (9/17)
“Death On A Train: A Tragedy That Helped Fuel The Railroad Showdown” (Washington Post). “[D]iscontent among rail workers is still brewing. They say few details have been made available about the agreement, which leaves the points-based attendance policy in place for other types of emergencies. And some say they doubt the deal will address their fundamental concerns about quality of life amid painful labor shortages and the continued spread of covid-19.”
“Parsing Pessimism On Retail Sales” (Fisher Investments). “Whenever the economic outlook gets shaky, headlines dwell on retail discounts as evidence households are having a tough time—today’s reaction is a very well-trod one. In our experience, it is more of a sociological observation than anything else, as why and where people are shopping matters less to the economic data than the simple question of how much. Heck, people often tend to get more bang for their buck early in economic recoveries—not unlike businesses’ continuing cost-cutting for a while after economic output hits its low. Doing more with less is a big recovery hallmark.”
“Who Will Inherit The Family Business? Often, It’s Private Equity” (Wall Street Journal). “Family businesses hold particular appeal for buyout firms, and they are throwing out the traditional private-equity playbook to attract them. Management is often left intact. Owners keep big stakes. Buyout firms pledge to retain employees and plow more money into the businesses. Still, some buyout targets end up carrying heavy debt burdens that can turn a once-profitable company into a money-losing one. Families might ultimately cede control when the business is later sold so their private-equity owners can realize gains. Communities and workers, by extension, can lose their personal ties to a company’s ownership.”
“The US Is Moving One Step Closer To Letting Americans File Their Taxes Online For Free Directly To The IRS, Cutting Out Private Companies Like TurboTax And H&R Block” (Insider). “Filing your taxes could soon be free and relatively painless. The US is inching closer to modernizing how Americans file their taxes and breaking the grip that private tax-prep companies, like TurboTax and H&R Block, have over the process. In the future, tax filing may require only a few clicks — or even simply replying to a text message, as is done in some European countries like Estonia.”
“What Is The Average American Net Worth By Age?” (U.S. News & World Report). “Both median and average family net worth increased between 2016 and 2019, according to the U.S. Federal Reserve. Average net worth increased by 2% to $748,800 between 2016 and 2019, the bank reported in September 2020, the most recent year it publicized such data. Median net worth, however, rose 18% over that same time period to $121,700.”
