Author: Service2Client

Robotics Carves Out Niche in Various Businesses

4 min read

Robotics Carves Out Niche in Various BusinessesAway from the movies, robots are becoming a reality in everyday life.

Robots have played a major role in manufacturing industries to perform basic tasks that are either dangerous or laborious for humans. As technology becomes relatively cheaper – through the availability of components such as processors, sensors, batteries, and cameras – robots are now making an entrance in industries apart from manufacturing, such as in marketing, inventory, telecommunications, and entertainment.

Why Robotics in Business?

To avoid confusion, it’s important to mention at this point that robotics often refers to software configured to carry out tasks done by humans, so it’s not always about physical robots.

Businesses are under endless pressure to be more efficient and reduce costs. As a result, many are turning to robotic process automation (RPA) to take up repetitive and routine tasks that don’t require frequent updates. RPA has been useful to take care of things such as call center operations, help desks, customer service chatbots, expense management, data entry, onboarding employees, and scheduling systems, among other tasks that are repetitive, rule-based and structured.

This is important for businesses as it frees employees from mundane tasks so they can focus on high-value work.

The unexpected COVID-19 pandemic cannot be ignored as an accelerator for robotics in the business environment. Consider businesses such as restaurants, retail stores, and all others seeking alternatives that will withstand disruptions and at the same time are durable and adhere to hygienic operations.

An Exciting Yet Worrying Phenomena to Some

Many people accept the use of intelligent systems and small robots such as robotic vacuum cleaners. But when it comes to the workplace, employees often don’t accept such systems as they are considered threats to their jobs. However, there is little difference between the robot used for household aid and the intelligent production system.

Financial institutions have been on the frontline in implementing robotic process automation. This has enabled them to automate and build platforms for the front office, back office and support functions. For a business, this means reduced costs while achieving efficiency and accuracy.

Another interesting concept is: robot as a service (RaaS). This is aimed at enabling small- and medium-sized businesses to enjoy the benefits of robotic process automation when they lease the services of a robot rather than incur the cost of purchasing one and handling maintenance for the system. It also helps businesses experiment with different robotic solutions.

With such innovations, businesses have no option but to adapt to technological advances. As a matter of fact, the possibility of robots taking up full process tasks is feasible with big names such as Bill Gates voicing support for a robot tax (a levy on work done by robots in a bid to replace tax that collected from work done by humans).

Be Prepared

So how do businesses handle this trend? Both employees and employers have no option but to be prepared. For an employer considering robotics, this should be done gradually with clear guidelines that the systems are only to assist and not replace the employees. At the same time, employees should be involved in the early stages of developing the new systems so they get accustomed to the format and avoid later resistance.

As businesses seek to improve their processes, employees should be ready to learn new skills as some duties are replaced by robots. It also goes way back to the education system, where students should be encouraged to take up subjects that will help enhance their digital competence. It will also prepare them for new job structures.

A Word of Caution

RPA has enabled business processes to evolve. Its results provide better accuracy, lower cost, efficiency, and high productivity. However, entrepreneurs should not rush to implement the robotic process automation without proper research. Although it is praised to reduce labor costs and other benefits already mentioned, the implementation – if not well done – will fail.

A big mistake would be to assume that the installation of robotic systems is easy. This is especially true when a business concentrates on ROI rather than solving actual problems.

Robotics for businesses involves time, cost, and complexity. It is not about moving processes into RPA as they are; only with lean techniques can this be successful.

Help for People Struggling to Pay Bills

3 min read

Help for People Struggling to Pay Bills Covid-19The impact of COVID-19 has caused many Americans to suffer hardships, one of which is struggling to make ends meet. But take heart; there are solutions. Here are a few areas in which creditors are working with people to alleviate some of the stress.

Mortgages

Fortunately, the Coronavirus Aid, Relief, and Economic Security Act, allows for mortgage forbearance, which if you’re financially compromised because of COVID-19, you can temporarily suspend payments. Also, the Federal Housing Finance Agency is allowing mortgage servicers to permit homeowners to delay payments if the notes are backed federally or by a Government Sponsored Enterprise, which includes Fannie Mae or Freddie Mac, FHA, VA or USDA. If you don’t know who services your loan, you can check Mortgage Electronic Registration Systems. If your mortgage isn’t federally backed, ask your lender about your options. If you need more help, contact a Housing and Urban Development approved housing counselor or local legal aid organizations.

Rent

The good news here! The CARES Act also includes a 120-day moratorium on evictions if you rent from a landlord who has a federally backed mortgage. If your landlord doesn’t fall into this category, contact them immediately. If you have any assets to sell, that’s an option. Hop on eBay or Craig’s List. If you have a 401(k), the IRS allows you to make an early hardship withdrawal. When all else fails, contact Just Shelter, an organization that advocates for affordable housing.

Student Loans

More good news! The Department of Education is granting students a payment waiver for at least 60 days with zero percent interest. But you have to do some legwork; it’s not automatic. Call your loan servicers to make sure your loan is eligible. This exception doesn’t apply to private student loans. However, Sallie Mae, one large private lender, said it’s offering suspension of payment for up to three months. Get in touch as soon as possible with whoever holds your loan to start the conversation.

Utility Bills

Some utility providers are refraining from cutting off services for nonpayment, which is a relief. Also, quite a few Internet companies like AT&T and Charter Communications have agreed not to end service for residential or small-business customers who can’t pay their bills. To find out the details and policies from your providers, check their website, or call.

Credit Cards

Major credit card issuers are offering relief to customers who’ve been affected by COVID-19. American Express, for example, is providing assistance through its financial hardship program. But beware of scammers who send out fake emails from said creditors about the virus; they’re trying to steal your personal and financial information and/or infect your computer with malware. If you have doubts about any communication you receive from your financial institution, email, or call. Don’t take any chances.

Right now, life might feel overwhelming. But know this: we’re all in this together. And the upside is that many companies are stepping up to lend a hand.

Sources

https://www.cnn.com/2020/04/16/success/cant-pay-rent-bills-help-coronavirus/index.html

https://www.nytimes.com/interactive/2020/world/coronavirus-tips-advice.html#money

https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/mortgage-relief/

IRS Gears Up for Aggressive Enforcement

2 min read

IRS Gears Up for Aggressive EnforcementRecently, the IRS Commissioner testified before the Senate Finance Committee, sending the message that the IRS is committed to catching intentional tax evaders. There was no ambiguity in the message of his testimony to Congress; he noted that under his watch, the IRS will aggressively pursue those purposely evading their tax obligations with civil and criminal enforcement. The commissioner made sure to mention that those who were not defrauding the system intentionally had nothing to worry about; they are not the target of stepped-up enforcement.

The IRS will be targeting five major enforcement initiatives:

  1. Technology – The IRS will put a new focus on their use of technology as an enforcement tool; specifically, advanced data and analytical strategies. With this data-driven approach, the IRS believes it will be able to catch tax fraud impossible to spot even just a few years ago.
  2. Offshore Tax Evasion – Offshore tax reporting enforcement is a long-standing priority of the IRS, but the current commissioner reiterated the focus on this area, so don’t expect to see any easing here.
  3. Tax Shelters – The IRS believes many taxpayers are abusing two tax shelters, syndicated conservation easements, and micro-captive insurance arrangements. They plan on stepped-up enforcement on both those who arrange these shelters and taxpayers who participate in them.
  4. Cryptocurrency – The IRS believes there is mass non-compliance in the world of cryptocurrencies through either underreporting or nonreporting of taxable transactions.
  5. Wealthy Taxpayers – Enforcement actions take time and are resource-intensive, so it should be no surprise that the IRS is going after non-compliant taxpayers with the biggest ROI. The IRS is considering anyone with an income level of over $100,000 to be high-income. 

Expect to see increased tax enforcement efforts ahead, with a focus on those who are intentionally evading the system. If you haven’t purposely defrauded the system, you have little to worry about.

HEROES ACT Can Combat Economic Downtown

3 min read

HEROES ACT, Health and Economic Recovery Omnibus Emergency Solutions Act The HEROES Act, otherwise known as the Health and Economic Recovery Omnibus Emergency Solutions Act, can greatly improve the benefits for the earned income tax credit (EITC) for eligible workers who don’t have children. This legislation would also help wage earners in the business-to-consumer and leisure sectors of the economy impacted severely by the coronavirus pandemic.

Looking at the HEROES Act legislation and how it would help childless wage earners, we need to examine the rules surrounding the EITC and how many additional filers may qualify. While childless students pursuing formal education are still required to be 25 for EITC eligibility, filers as young as 19 (down from 25 years old), as well as filers aged up to 67 (up from 64), are now able to apply for the childless EITC. This legislation would also increase the credit’s ceiling to $1,487, from $538.

Looking at these proposed amendments to the tax code, this would act as a one-time stimulus to the economy when the credit is disbursed to eligible filers, specifically focused on low-income wage earners. Based on a review by the Tax Policy Center, 75 percent of the benefits created by the HEROES Act legislation for the EITC would be directed toward the lowest fifth of U.S. earners. Sectors of the economy that will benefit from this effect include health care, manufacturing, construction, and professional services.

However, there is one consideration that must be taken into account, especially in periods of low economic growth. If eligible wage earners see their earnings fall, then the EITC also will become smaller. There is a possibility that the U.S. House and Senate may work together to modify this legislation to speed up or get rid of the phasing-in process, thereby correcting this flaw.   

Another piece of the HEROES Act changes how people can claim the EITC when they file their 2020 taxes. The legislation will allow filers to claim their EITC according to their 2019 or 2020 income, permitting filers to choose the tax year that gives them a more favorable credit. This takes inspiration from other tax years when victims of natural disasters were able to obtain more favorable tax credits. The HEROES Act will give this choice of tax years to all filers eligible for the EITC, not exclusively for childless workers.

Regardless of the process, this could aid in stabilizing economic conditions now or in the future, regardless of why the economy suffers. This is because this legislation would ensure a falling EITC doesn’t increase a wage earner’s overall losses.

Making this type of change to how the EITC is awarded to childless workers would give greater certainty for more predictable financial help and streamline things for legislators and government officials to distribute monies during the next economic downturn.

No matter what form this legislation ultimately takes, if and when it’s signed into law, there are other pieces of legislation containing similar amendments to the EITC found within the HEROES Act. Elements proposed for improving the EITC for eligible filers are contained within the Working Families Tax Relief Act, the Middle-Class Act, and the Cost-of-Living Refund.

Hiring in the Age of Coronavirus

4 min read

Hiring in the Age of CoronavirusThe U.S. job market gained 2.5 million jobs during the month of May, dropping the unemployment rate to 13.3 percent, according to the U.S. Bureau of Labor Statistics. There’s likely been a lot of rehiring, with more to come as the economy continues reopening. However, until social distancing becomes a thing of the past, hiring effectively will take some pivoting during the pandemic.

Finding Candidates Virtually

Employers looking to interview and hire candidates can take advantage of LinkedIn during the pandemic. Along with providing a branding opportunity, the platform gives businesses a hybrid social media and marketing tool. Leveraging 1st Connections on LinkedIn, participating in discussion groups, demonstrating one’s industry knowledge, or simply looking for prospective candidates are effective uses of LinkedIn.

Much of the LinkedIn user base is comprised of people looking for work, either as an employee or on a contract basis. Businesses can reach and retain an audience by distributing content through LinkedIn. Along with taking advantage of using LinkedIn advertising, sharing new content with existing followers can be direct and unimpeded. The site also provides a connection to a business webpage to start the application process, in addition to listing the job requisites on the business’s LinkedIn profile.   

A good way to engage applicants virtually is by encouraging interested candidates to produce one-way video interviews through digital and social media requests that they can record on their own, detailing experience, education, etc. Then hiring managers can review these submitted videos remotely on their own time and arrange initial (or additional) interviews for select candidates. Other recommendations include refreshing job postings and posting links to jobs via the company’s social media.

Safely Finding and Interviewing Candidates

Because the ongoing pandemic requires certain safety practices, such as social distancing, interviewing candidates in-person might not be practical or safe. Instead, conducting interviews remotely is the next best thing. Speak with candidates over real-time video conferencing, such as Zoom or Skype.

A survey from Gartner found that 48 percent of employees will work at least some portion of the time remotely, post COVID-19. This is compared to 3 in 10 workers who performed some of their work remotely pre-pandemic. Gartner has a few ideas on how Human Resources professionals can on-board employees virtually to increase efficiency and optimize their performance.

Another way to help employees is to recommend different modes of communication. For example, if there are too many email exchanges when working on a project, it might be more effective to hold a brief virtual meeting.

When working remotely, especially for the long-term, employees might not have adequate technology at home. It might sound intuitive, but if the company is dropping off/sending laptops/phones/microphones to remote workers, they must first ensure that all software and apps are downloaded and working. While this may be a one-time use of time for employees, it’s an important point to reduce distractions for workers when they could be spending their time on productive work. As the University of California-Irvine found, it can take 23 minutes for someone to refocus their attention after being distracted. This shows just how destructive distractions are to workers, especially when they are working remotely and in a less structured environment.

Onboarding Recommendations During COVID-19

While the following recommendations are applicable for remote workers, they can be helpful even if there are employees in the office when social distancing is in force.

Leveraging video for new employees is a useful approach. Along with taking advantage of non-verbal language, this will help share information, schedule meetings, and build trust by facilitating the ability to ask questions. Video can be a good introductory meeting, with a follow-up email that provides links to resources, how-to guides, etc. Depending on how people learn, these resources will reinforce their knowledge.

While each organization will have different needs for work arrangements during the COVID-19 pandemic, businesses can use technology to work safely and efficiently during these times to maintain business continuity.

Sources

https://www.forbes.com/sites/vickyvalet/2020/03/12/working-from-home-during-the-coronavirus-pandemic-what-you-need-to-know/#5615d77d1421

https://www.bls.gov/news.release/empsit.nr0.htm

https://www.gartner.com/smarterwithgartner/9-tips-for-managing-remote-employees/

https://business.linkedin.com/marketing-solutions/blog/best-practices–thought-leadership/2016/5-free-ways-to-build-your-personal-brand-on-linkedin

How Businesses Can Help Protect Themselves Against Civil Unrest

3 min read

How Businesses Can Help Protect Themselves Against Civil UnrestIf the COVID-19 pandemic isn’t a big enough strain on businesses trying to engage in commerce, whether it’s retailers, restaurants, manufacturers, or those in the service sector, civil unrest puts another strain on surviving the downturn. Based on recommendations from the U.S. Department of Homeland Security and the U.S. Small Business Administration, businesses can prepare for civil unrest.

While the British firm Verisk Maplecroft predicts that 75 countries will see civil unrest in 2020, the United States has already seen its fair share recently. While the future intensity of civil unrest can’t be predicted, businesses can take steps to plan and mitigate such events.

For businesses, the first priority is to ensure employees and customers are not put in harm’s way. If a dangerous situation happens quickly and without warning, there are some steps business owners can take to mitigate the threat.

  • Plan ahead for travel disruptions by keeping an eye on local media reports and online/social media. This information can be helpful for informing employees and customers not to go to work or order online if a retail outlet or office location is subject to civil unrest.
  • Ensure that all workers are familiar with emergency and security plans. This might include having current contact information to reach employees before they go to work or giving them time to leave before the situation escalates.

Another recommendation is to take steps against arson, break-ins, and damage sustained to the property. Examples include maintaining employee vigilance against the out-of-the-ordinary activity. Review security and fire protection systems, how alarm companies will notify business owners, and what steps the monitoring companies will take to mitigate against burglary and/or fire. Reinforce locks and board up areas vulnerable to damage or provide easy points of access during civil riots (e.g., protect glass doors and windows).

If first responders take longer than normal to arrive, it’s important to take measures to reduce the chance of serious and unintended damages from the civil unrest. Be it water, gas, electrical or related systems, turning off all but necessary utilities (e.g., water for sprinklers; enough heat to prevent freezing pipes; power for an alarm system) could reduce the risk of additional damage.

Along with having a commercial insurance policy that includes looting as a covered peril, one other important part of a business continuity plan is how important documents are stored. Will they be stored on-premises in a safe? Will they be stored online, in the cloud and encrypted? Will they be stored offsite in a secure location?

Much like other disasters that often happen with little to no warning, businesses that prepare before civil unrest occurs can help reduce the amount of property damaged and help get their operations back to pre-crisis levels.

Sources

https://www.sba.gov/blog/seven-ways-start-your-business-continuity-plan

https://www.ready.gov/business-emergency-preparedness-social-media-toolkit

https://www.cnbc.com/2020/01/16/40percent-of-countries-will-witness-civil-unrest-in-2020-report-claims.html

Best Part-Time Jobs During Corona

4 min read

Best Part-Time Jobs During CoronaEven though unemployment is still relatively high, there are still some great part-time jobs you can do that will help cover basic expenses. Here’s a list of the industries that are hiring right now:

Paid Survey Participant

If you like to share your opinions (and who doesn’t), this job is perfect for you. Companies are always looking for consumer opinions on a variety of things such as products, services, etc. Best of all, it’s completely online, so you can work from anywhere. Here’s a list of companies that are looking for your feedback: Swagbucks, PrizeRebel, SurveyJunkie, SurveyPolice, Inbox Dollars, and Toluna. Grab your laptop, kick back, and start earning!

Freelance Writers

If you’re a writer of any kind, this industry is really taking off right now. All you need is impeccable grammar and the ability to put together clear sentences. While having prior experience is always good, some companies might require candidates to have a bachelor’s degree in journalism, creative writing, or a related field like communications. Here are some sites for freelance writers to check out: Fiverr, Upwork, Freelancer, and PeoplePerHour.

E-Commerce

This is easier to pull off than you might think. While you need an initial investment, the cost of opening an online store is low – and it’s perfect for the entrepreneur or artist. Are you a life coach? Can you help college seniors write resumes? Do you make hand-poured candles? Really, anything can become an online business and this sector will only continue to grow as the pandemic prevents in-store purchases. Some sites to help you get started include Big Commerce, Shopify, and LinkedIn Learning.

Web Designers/Developers

If you have design or development experience, then you can make money online with this part-time gig. In addition to design, other skills you need include knowing how to create layouts and how to code. Knowledge of graphic design software and consumer recognition is necessary, as well as understanding the users, aka “personas,” of the audience. If you don’t know how to code, there are online classes you can take at Coursera, Pluralsight, and FreeCodeMap. What better time to pick up a new skill that can help you earn a living?

Delivery Jobs

Since many people are still sheltering in place, supermarket fresh delivery jobs are booming. Two places to inquire are Walmart and Amazon Fresh. All you need is a driver’s license and an ID. Food industry drivers are also in high demand. Check out Postmates, Uber Eats, Grub Hub, and Door Dash. Customers pay for their meals online or over the phone. All you have to do is leave the food on the front porch; the same is true for supermarket fresh deliveries. This way, you won’t have to interact with people face-to-face. Both of these are great interim jobs until you return after a furlough and/or get full-time employment. Plus, getting out and about just might do you a world of good.

Translator

Do you speak a foreign language? If so, this industry is ripe with possibilities. Plus, you can work at home (or anywhere) online and create your own schedule. Here are a few sites to look into: Gengo, Language Line, and Verbalizelt.

With all these industries that have grown in the past few months (and will continue to grow), it seems as if there should be plenty of job opportunities to go around. However, the key to landing a part-time job is persistence. Keep on keeping on. Never give up! There’s something out waiting for you.

Sources

https://www.salary.com/passages/recommended-part-time-jobs-during-coronavirus-outbreak/2/

https://www.creativebloq.com/web-design/online-coding-courses-11513890

How To Use Qualified Charitable Distributions For Charitable Giving

3 min read

How To Use Qualified Charitable Distributions For Charitable GivingEach year, millions of Americans make donations to charitable organizations and receive something in return – a tax break. However, the 2017 Tax Cuts and Jobs Act curbed this tax advantage because it reduced the number of people eligible to claim a charitable deduction by raising the standard deduction. For 2020, the standard deduction is $12,400 for individuals and $24,800 for married couples filing jointly. If your list of deductions is not greater than those amounts, there is no tax benefit to itemizing – which means you might not be able to claim your charitable donation.

Without the ability to claim a deduction, some retirees just take their normal required minimum distribution (RMD) and bank the money, pay taxes on it and then make charitable gifts or tithe to their church on a monthly basis. For example, say your RMD is $10,000 and you pay 15 percent in taxes on this distribution. If you want to donate the money as a charitable gift, you’ll have only $8,500 left to do so.

However, there is a way to do this that will give you a tax advantage. A Qualified Charitable Distribution from an IRA enables retirees to claim their standard deduction and receive a tax benefit for their gift. The key is to arrange for the distribution to be made directly from your account custodian to the qualified 501(c)(3) charitable organization so that you do not take possession of the assets.

IRA owners may gift up to $100,000 each year, or $200,000 for a couple that files a joint tax return. Note that this option is available only for IRA owners over age 70½; it is not allowed for 401(k)s, 403(b)s, thrift savings plans, or other qualified plans. The QCD will be reported to the IRS and should be claimed by you on Form 1040 as an IRA distribution, but it will not be taxable. Another perk of this strategy is that the QCD can satisfy your annual Required Minimum Distribution (RMD). Be aware that if your QCD does not meet the full distribution amount required, you will have to withdraw and pay taxes on the remaining balance.

Another benefit of using an RMD for a charitable donation instead of receiving it as income is that this could keep you in a lower tax bracket. Consequently, it can help minimize taxes on Social Security benefits and keep your Medicare premiums low.

Thanks to the Coronavirus Aid, Relief and Economic Security (CARES) Act, RMDs are not mandatory in 2020. That’s because the initial market losses triggered by the COVID-19 outbreak were substantial; by not requiring distributions this year, retirement accounts have more time to potentially recover those losses.

Since it isn’t necessary to take an RMD this year, you might want to just make charitable gifts in cash. The CARES Act also enables this option by increasing the adjusted gross income (AGI) limit for individuals who qualify to itemize on their tax return. In 2020, you may deduct up to 100 percent of donations (up from 60 percent) against your AGI. For example, if you earn $500,000 in income, you may donate $500,000 and the entire amount is tax-deductible. This strategy is available to people younger than age 70½ and offers a benefit similar to the QCD.

Even if you don’t qualify to itemize, you may claim up to a $300 charitable gift deduction on your 2020 tax return. As always, it’s best to seek the advice of a tax professional in order to figure out what is best for your situation.

How Likely Would a Second Coronavirus Wave Negatively Impact the Stock Market?

4 min read

Second Coronavirus Wave Negatively Impact the Stock MarketAs Johns Hopkins University of Medicine’s Coronavirus Resource Center revealed a recent increase of coronavirus cases in the Southern and Southwestern United States, the VIX ticked up. With fears of the outbreak curve not flattening, how will this impact markets?

The Volatility Index (VIX) was established by the Chicago Board Options Exchange in 1993 to gauge volatility in the financial markets. Referred to colloquially as the “fear index”, it measures the next 30 days of anticipated volatility for the U.S. Stock Market via S&P 500 options. For reference, during the peak of the 2008 financial crisis, it topped out at 89.53. During periods of relative calm, it’s not unheard of to trade below 10. On March 16 of this year, the VIX reached 82, thus demonstrating how volatile investors expected markets to be due to the uncertainty of the coronavirus.

On February 12, 2020, the Dow reached 29,551.42 and the S&P 500 rose to 3,379.45. But by the end of February, these major indices experienced their greatest fall since 2008, ushering in a market correction.

Coronavirus and its Impact on the Markets

Starting in early March, the COVID-19 pandemic began taking a negative toll on stock markets worldwide, the worst since 2008. On March 9, the Dow fell 2,158 points, or 8.2 percent, during the day’s lows. Other major U.S. markets were not spared – the S&P 500 fell 7.6 percent and the Nasdaq dropped 7.3 percent.

On March 12, the U.S. stock indices dropped more. The S&P 500 fell another 9.5 percent, along with the Dow falling 2,353 points, almost 10 percent lower. For the Dow, it was the worse one-day performance since Oct. 19, 1987’s drop, bringing it back to 2017 levels. While there was hope of a sustained rally beginning on March 13, it was dashed when the Dow Jones fell nearly 13 percent or 2,997.10 points, and the S&P 500 dropped nearly 12 percent on March 16.

Factors Contributing to the Crash

While the stock market crash in 2020 was directly attributable to the coronavirus outbreak worldwide, many experts, including the International Monetary Fund (IMF), view the coronavirus as speeding up a global slowdown that was already in the works.

Despite the St. Louis Fed’s data that showed the United States had an unemployment rate of 3.6 percent in late 2019, the nation’s industrial output peaked in 2017, and experts noticed a declining trend at the start of 2018. The IMF also believed the United States-China trade war made global growth more challenging going forward.

There were other concerning factors about economic growth domestically and internationally, causing fear a worldwide recession was beginning. March 2019 saw the U.S. yield curve inverting – which means longer-term debts yield less than shorter-term debts. The ISM Manufacturing Index fell below 50 percent in August 2019, dropping to 48.3 percent in October 2019, and remaining below 50 percent through 2019.

When it comes to rising COVID-19 cases, the state of California saw 4,515 new cases over 24 hours, as reported on June 21. Florida’s reports on June 20 and 21 saw the number of cases increase by 4,049 and 3,494, respectively. Other Southern and Western states, such as Nevada, Missouri, and Utah, reported one-day records in increases of coronavirus cases as well.

With Georgia, Alabama, Florida, and California, among others, showing concerning trends for increased coronavirus infection rates, analysts at Deutsche Bank expressed concern about how the virus may keep spreading. According to the same research, there’s some trepidation on how it may negatively impact economic growth. Depending on the overall hospital capacity to handle a resurgence in severe COVID-19 cases, how well the medical infrastructure responds will influence how the economy functions going forward.

With the number of increasing cases shifting from the Northeast to Southern and Western states, it’s feared that there will be another panic on Wall Street as reopening the economy is postponed, further stunting economic activity.

Research from Jefferies Financial Group found that even though coronavirus cases are increasing, it’s not the only or the biggest worry. Jefferies’ research found that for investors, the biggest concern is how well and how fast the economy bounces back.

Analysts believe that there needs to be more than just action by The Federal Reserve to inspire market confidence. The research found four main concerns, which included the effects of COVID-19:

  • 6.6 percent of respondents said the upcoming election is the most important factor
  • 12.1 percent of respondents said a second wave of COVID-19 is the most important factor
  • 31.1 percent of respondents said The Federal Reserve’s decision is the most important factor
  • 50.2 percent of respondents said the shape of the recovery is the most important factor

As the economy reopens and medical experts become more knowledgeable and better prepared to deal with COVID-19 through therapies and equipment for hospitalizations, it seems that investors will be taking a more holistic investing approach.

Helping Small Business Owners, Seniors and U.S. Hostages, and Limiting Intrusive Domestic Surveillance

4 min read

HR 7010, HJ Res 76, HR 6172, S 712, S 149Paycheck Protection Program Flexibility Act of 2020 (HR 7010) – Rep. Dean Phillips (D-MN) introduced this legislation on May 26. This Act modifies provisions related to small business loans issued under the original Paycheck Protection Program. Specifically, the bill permits forgiveness of loans used to pay expenses incurred over a 24-week period, longer than the original eight-week limit, and extends the timeframe to pay off unforgiven loans from two to five years. This bill also increases the limit on non-payroll expenses up to 40 percent when used to pay for rent, utilities, mortgage interest, and similar fixed costs. Loan recipients have until the end of 2020 to rehire employees with full access to payroll tax deferment. The bill was signed into law by the President on June 5.

Providing for Congressional Disapproval Under Chapter 8 of Title 5, United States Code, of the Rule Submitted by the Department of Education Relating to “Borrower Defense Institutional Accountability” (HJ Res 76) – This bill was introduced on Sept. 26, 2019, by Rep. Susie Lee (D-NV). In response to a September 2019 rule issued by the Department of Education (ED), this resolution sought to reverse a process that no longer allows a borrower to be discharged from a student loan if an educational institution misrepresented material facts. The new rule also requires individual borrowers to apply to ED for a defense to repayment, whereas in the past an application could be submitted on behalf of an entire group (e.g. veterans). This resolution passed in both the House and Senate but was vetoed by the President on May 29. No attempt has been made to override the veto.

USA FREEDOM Reauthorization Act of 2020 (HR 6172) – This bill would reauthorize (through November 2023) provisions related to the Foreign Intelligence and Surveillance Act (FISA). Updated provisions mandate that the FBI may not seek detailed phone records on an ongoing basis, cellular or GPS location information, or any evidence in which there is a reasonable expectation of privacy. Other mandates include certifying that the Department of Justice (DOJ) has received any information that might raise doubts about the application, and imposes additional requirements for FISA authorizations that target a U.S. person, federal elected official or candidate. The bill would increase criminal penalties for unlawful violations of FISA electronic surveillance and expands the criteria for when a FISA court decision shall be declassified. The bill was introduced by Rep. Jerrold Nadler (D-NY) on March 10. It was passed in the House in March and in the Senate, with alterations, in May. The bill was recently put on hold during its second pass in the House.

Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act (S 712) – This bill addresses the wrongful detainment of U.S. nationals abroad. It authorizes the President to appoint 1.) a Special Presidential Envoy for Hostage Affairs to engage in U.S. hostage policy recovery efforts; 2.) an interagency Hostage Recovery Fusion Cell to assess and track all cases and coordinate agency efforts to safely recover hostages; 3.) a Hostage Recovery Group to develop, implement and recommend hostage recovery policies. The bill also gives the President the authority to impose visa- and property-blocking sanctions against foreign nationals responsible for or complicit in the unlawful or wrongful detention of a U.S. national abroad. The bill was introduced by Sen. Robert Menendez (D-NJ) on March 7, 2019. It was passed by the Senate on June 15 and is currently with the House.

Stop Senior Scams Act (S 149) – Sponsored by Sen. Robert Casey Jr. (D-PA), this bill establishes a Senior Scams Prevention Advisory Group to develop educational materials to help employees of retailers, financial services companies and wire transfer companies identify and prevent scams that affect seniors. It was introduced on Jan. 16, 2019, and passed in the Senate on June 10. The legislation is currently under consideration in the House.