Latest news with #economicProsperity
Daily Mail
06-07-2025
- Business
- Daily Mail
Exact amount you need to earn for a 'minimum quality of life' in America revealed... and the percentage who do
A family-of-four needs to earn over $100,000 a year just to maintain a 'minimal' quality of life in the land of the American Dream - yet less than half US households can afford to reach that threshold. A recent study by the Ludwig Institute for Shared Economic Prosperity explored what it takes for Americans to maintain a 'minimal quality of life' (MQL) - defined as the ability to afford basic necessities like housing, food, healthcare and modest leisure activities. But the results revealed that the bottom 60 percent of households across the country fall far short of the income needed to reach even the baseline. Over the past two decades alone, the study found that the cost of living in the U.S. has nearly doubled - soaring by a staggering 99.5 percent. A single working adult with no children needs nearly $45,000 a year just to cover basic living expenses - while a working couple with two children must shell out a staggering $120,302 annually just to meet essential needs. 'The MQL reveals the harsh reality that the American dream, with its promises of well-being, social connection, and advancement, is out of reach for many,' the study's conclusion read. 'Rising costs in essential areas like housing, healthcare, and education significantly outpace wage growth, leaving millions struggling to attain even a minimal quality of life.' The sobering study, published in May, put the American Dream under a harsh spotlight - asking whether the reality of today's economy still lives up to the promise of a fulfilling life for those who work hard. To get to the truth, the institute zeroed in on what it calls a 'minimal quality of life' - a no-frills basket of must-have goods and services that cover everyday expenses, letting families live decently and build a better future. The essentials factored in included raising a family, housing, transportation, healthcare, food, technology, clothing and basic leisure - the core building blocks of everyday life. Leisure costs were defined as simple 'free-time' activities - including access to cable TV and streaming services, plus enough money for six movie tickets and two baseball game tickets annually. 'MQL Index goes beyond traditional cost-of-living measures to provide a more comprehensive understanding of what it takes to secure a foothold on the bottom rung of the American dream ladder and have a real opportunity to climb it over time,' the authors explained. However, the study painted a grim, harsh reality: the American Dream is slipping away, already out of reach for more than half of the country's lower-income households. The culprit? Soaring costs across nearly every aspect of life over the past two decades. Shockingly, more than half of Americans can't even afford something as critical as a $2,000 medical emergency, the study revealed. Since 2001, the costs of housing and healthcare needed to maintain even a baseline quality of life have skyrocketed - soaring by 130 percent and 178 percent respectively. This crisis is clearly reflected in the growing number of young adults still living with their parents - with the percentage of 25- to 34-year-olds in multigenerational households jumping from just 9 percent in 1971 to 25 percent by 2021. The number of Americans delaying medical treatment hit a record high in 2022, with 38 percent admitting they put off care due to the cost - a troubling sign of just how unaffordable basic health needs have become, according to the study. More than half of US adults - specifically 53 percent - have reportedly delayed major life goals due to financial hardships. Lower-income workers often turn to convenient options like eating out - but even that has become a luxury. Since 2001, the cost of dining out has skyrocketed by 134 percent, outpacing overall food price increases by a staggering 92 percent, the study revealed. Grocery store prices have surged even more dramatically, jumping by 24.6 percent since 2019 - putting even basic meals further out of reach for many families. Raising a family is yet another area hit hard by rising costs, making it increasingly difficult for even a small, traditional household to reach the minimal standard of living. Daycare costs have skyrocketed by more than 130 percent since 2001, the study revealed. Meanwhile, the price of year-round care for school-aged children has surged 106 percent over the past two decades - placing an even greater burden on working families. Since 2001, the average amount needed to attend an in-state college has soared by 122 percent, while even the cost of a simple trip has jumped 35 percent just since 2019. 'I get tired of the 'Stop your Starbucks latte habit' advice, because in reality it's not people's fault,' financial planner Laura Lynch told CNBC in regards to the study. 'The structures around us have created an expectation of a lifestyle that is increasingly becoming unreachable for folks,' she added.
The Independent
17-06-2025
- Business
- The Independent
Will the US-UK trade deal make Starmer popular again?
To general surprise, at least as to the location and the timing, the British prime minister and the American president have confirmed that the US-UK economic prosperity deal (EPD) has indeed been signed and will now be in force. It is the first, and only, trade deal of any kind to have been signed by the Trump administration since 'Liberation Day' on 2 April. It was a notable moment, but for Keir Starmer, one question will be how far it will go in helping his government recover from its rapid fall from grace since the general election... What's with the optics? Obviously, someone – possibly in the British embassy in Washington – came up with the idea of the president and his counterpart springing the announcement on the world's media when they were least expecting it, for maximum impact. So instead of the usual photo-op in the Oval Office, with Trump signing the executive order and then posing with it for the cameras, it was displayed in the open air at an impromptu press conference. The pages fell out of the presidential folder, to be retrieved by Starmer, but that just seemed to add to the easy informality of the occasion. The prime minister was allowed to address the president as 'Donald', and Trump said nice things about him. The British are to be shielded from further tariffs because, as Trump put it, 'I like them', and he thinks Starmer's team are 'great people'. What's missing? Steel, most urgently. The Americans insist that steel 'made in Britain' should be virgin and not dependent on raw materials from, let us say, China or the EU. For the steel works at Port Talbot that implies trouble, because the capacity to make such steel has been lost with the closure of the last blast furnace, now replaced with electric arc technology. So the ruinous 25 per cent tariff on UK steel exports to the US will stay, after all, and will rise to a prohibitive 50 per cent on 9 July. Politically, if Starmer can get the right conditions over the line by then and the threat of such tariffs subsides, it will mean a great deal to the voters in south Wales, who are being enthusiastically, if cynically, courted by Reform UK ahead of next year's Welsh parliament elections. Scunthorpe, too, should benefit from the deal, with a comparable electoral dividend. Any other winners? The car industry, especially Jaguar Land Rover, BMW and Aston Martin in the Midlands, plus Bentley in Crewe, Rolls-Royce in Sussex, and similar centres for export production. Aerospace actually escapes US tariffs completely, which is excellent news for manufacturing centres in Derby, the northwest, north Wales and Bristol. With the orders going in for new rails, girders, and the defence industry, the government can make some claim to be rebuilding the industrial base – although high energy prices remain an obstacle to competitiveness. The government, particularly Ed Miliband, has probably yet to win the argument that renewables are a cheaper and reliable alternative to fossil fuels. Even the farmers, badly disadvantaged in the Australian and New Zealand trade deals, have some protections against low-cost US imports. The economy as a whole? Broadly, on US trade, things are worse than they were under Joe Biden, but better than they would be without a deal. It's only fair to add that if the UK were still in the EU then a trade deal would not yet have occurred, although the EU's collective bargaining strength may in time prove to be a strategic advantage in securing better terms. In terms of growth, the net effects will be small, given that the 10 per cent US 'baseline' tariff implemented by the Trump administration remains on all other UK goods. But, again, the situation is undoubtedly better than it would otherwise have been. For a government and a nation desperate for growth, this partial relaxation of US taxes, the Indian free trade deal, and, most of all, the EU 'reset', should boost overall growth by a modest but useful amount. The EPD also has the promise of more cooperation on everything from financial services to AI. What could go wrong? The NHS uses its huge purchasing power to drive a hard bargain with US pharma giants, and these companies, along with the president, resent the way in which so much of the production of final products, and of the compounds used to manufacture them, has been outsourced by the US. There are vague but ominous-sounding words in the EPD about this: 'The United States and the United Kingdom intend to promptly negotiate significantly preferential treatment outcomes on pharmaceuticals and pharmaceutical ingredients. The United Kingdom confirms that it will endeavour to improve the overall environment for pharmaceutical companies operating in the United Kingdom.' The treatment of US pharma giants has long been a complaint of Trump's. A net gain in the domestic political balance of trade? Yes. Starmer has done well on the international stage, and all these deals show that his government can actually get things done. It adds some lustre to Starmer's dullish image, and also adds to his 'prime ministerial' air, which contrasts with that of the more inexperienced Badenoch and the 'unserious' Nigel Farage. Starmer could plausibly claim to be the kind of steady, dependable leader needed to steer the country through stormy times, even if he sometimes needs to adjust course. The local economic boost in areas most affected will help, as well as the contribution to growth at the national level. But, as ever, a demanding electorate will want to feel the tangible benefit of growing real wages, stabilised taxes, and improving public services before Labour can dream of catching up with Reform UK. Deals such as this, alongside some dramatic U-turns on the winter fuel payment and the grooming gangs, give the government hope that it's at least possible to win some voters back.
Bloomberg
24-05-2025
- Business
- Bloomberg
Trump Forces Switzerland to Question Its Love for Farmers
Switzerland's bid for a US trade deal risks sparking a showdown with one political force at least as feisty as President Donald Trump: its own farmers. A country whose lush Alpine pastures, cowbells and cheese underpin the national identity, and whose agricultural lobby wields outsized influence to match, is in danger of a tough reckoning over what that's worth when economic prosperity is at stake.
Jordan Times
14-05-2025
- Business
- Jordan Times
Syrians hail lifting of US sanctions as start of 'new era'
A Muslim man prays in Damascus near a billboard displaying Syria's interim president Ahmed al-Sharaa and US President Donald Trump with a slogan thanking Saudi Arabia and the United States, on Wednesday (AFP photo) ALEPPO, SYRIA — The sound of fireworks and applause rang out in Syria's major cities overnight, as Syrians celebrated US President Donald Trump's decision to lift sanctions on the devastated country. In Syria's second city Aleppo, dozens of men, women and children took to the central Saadallah al-Jabiri Square, waving the new Syrian flag and earlier in Riyadh, Trump announced he would lift sanctions on Syria, as the country seeks to rebuild after the December ouster of longtime president Bashar factory owner Zain al-Jabali, 54, rushed to the square as soon as she heard the news."These sanctions were imposed on Assad, but... now that Syria has been liberated, there will be a positive impact on industry, it'll boost the economy and encourage people to return," she told the sound of cars honking in celebration, 26-year-old Ghaith Anbi described the news as "the second joy since the fall of Assad"."Lifting the sanctions on the Syrian people will have a very positive impact on reconstruction and rebuilding infrastructure, especially in Aleppo as an economic city," the civil engineer told AFP."There will be great economic prosperity for the Syrian people," he said.'Turning point'In the Saudi capital on Tuesday, Trump announced he was lifting the "brutal and crippling" Assad-era sanctions, in response to demands from new Syrian leader Ahmed al-Sharaa's allies in Turkey and Saudi said it was Syrians' "time to shine" and that easing sanctions would "give them a chance at greatness".The Syrian foreign ministry called Trump's decision a "pivotal turning point" that would help bring stability, draw in investment and reintegrate the country into the global Minister Mohammed Barnieh said Trump's lifting of sanctions "will help Syria in building its institutions, providing essential services to the people and will create great opportunities to attract investment and restore confidence in Syria's future".The United States imposed sweeping restrictions on financial transactions with Syria during the brutal civil war that began in 2011, targeting the ousted president, his family members and key government and economic 2020, new sanctions came into effect under a US law known as the Caesar Act, punishing any companies linked to Assad in efforts to force accountability for human rights abuses and to encourage a political solution."These sanctions only ever hurt the Syrian people, not the regime," 63-year-old Taqi al-Din Najjar told AFP from Damascus, dozens more gathered in the capital's iconic Umayyad Square, chanting and singing in joy."My joy is great. This decision will definitely affect the entire country positively. Construction will return, the displaced will return, and prices will go down," said Hiba Qassar, a 33-year-old English Asma, 34, expressed hopes that "now that the sanctions are lifted we can live as we did before, or even better". "We hope this is the start of a new era for Syria," he told AFP as he drove through the square.
