Finance Debt – Sznurki Sat, 12 Jun 2021 04:26:40 +0000 en-US hourly 1 Finance Debt – Sznurki 32 32 The Numbers Behind the Risks of China’s Overseas Development Lending Mon, 22 Mar 2021 09:38:18 +0000

LONDON – From a predominantly recipient country to one of the world’s largest foreign aid donors, China has built a complex web of relationships with its development partners around the world.

But, according to the analysis of one of the most comprehensive studies of Chinese development assistance to date, not all partners appear to be treated equally.

AidData, a research lab at the College of William & Mary in the United States, tracked more than 4,000 files of official Beijing funding projects between 2000 and 2014.

Nikkei Asian Review assessed the interest rates attached to aid programs received by different countries based on AidData figures, and compared them with numerical credit risk scores compiled by data analysis company Trading Economics.

The figures for the Americas were correlated to a standard loan model of higher rates for higher risk loans. Those for Africa and Asia, however, did not show the expected pattern.

The results suggest that factors other than creditworthiness may have played a role when Beijing made investment decisions between 2000 and 2014.

Weighted interest rates were estimated taking into account the loan amounts. The rates were then plotted against the risk assessments for a sample of 46 countries. Trading Economics default risk scores range from 0, Probably Default, to 100, or No Risk.

Bradley C. Parks, chief researcher for the project and executive director of AidData, suggested a potential explanation for the imbalance.

Beijing provides public funding for highly concessional development projects that meet the Organization for Economic Co-operation and Development criteria for official development assistance, which includes grants and soft loans with a large grant element.

It also provides funding through what the OECD calls “other official flows”. These are official transactions that do not meet the organization’s ODA criteria, and are either primarily for commercial purposes or for development, but for which the grant element is less than 25%.

ODA usually comes with lower interest rates, which means that a country receiving more ODA than the OFA tends to have a lower borrowing rate.

Kenya, for example, had a risk score of 20, well below the sample average of 37. But only three out of 26 projects qualified as OFA. This had the effect of lowering the weighted average borrowing rate to 2.38%.

According to Parks, China’s decisions on ODA subsidies appear to be largely guided by two principles.

On the one hand, the poorest and most populous countries tend to receive a higher amount of Chinese ODA. On the other hand, foreign policy considerations have a significant bearing on where money is loaned. A country that recognized Taiwan diplomatically would automatically be excluded from consideration, for example.

Parks and his colleagues recently published a study analyzing the electoral behavior of beneficiary countries at the United Nations General Assembly.

The results indicate that countries that align their votes with China often receive ODA.

“The Chinese OFA is more trade-oriented and as such tends to go to more creditworthy countries, while also going to China’s trading partners and countries rich in natural resources,” he said.

The risks involved are contrasted when one considers Beijing’s recent investment strategy.

Findings released by the Washington-based think tank, the Center of Global Development, suggest that of the 68 countries hosting projects related to China’s Belt and Road Initiative, 23 are currently at risk of debt distress. eight planned projects significantly increasing the risk.

Even when it comes to commercial-oriented OFA, Parks said, there are a number of instances where nonconcessional or low concessional loans have been made to countries with questionable ability to repay them.

“Venezuela may be the canary of the coal mine,” he said.

As one of the 10 richest countries in the world in iron, natural gas and oil, the country received very few classified ODA loans from China between 2000 and 2014. Beijing has, however, provided significant amounts of ODA. ‘OOF.

“China has loaned billions of dollars to the Venezuelan authorities, where it now seems very unlikely that they will repay these loans given the country’s precarious economic situation.”

In cases like Lebanon, commercial interest may become more difficult to disentangle from official aid. The country is a neighbor of war-torn Syria and has received interest-free ODA loans.

It also sits at the crossroads of Africa, Asia and Europe, in a place of enormous strategic importance, especially with regard to the Belt and Road and, according to Financial Times reports, China is considering opportunities of a more commercial nature. The country is seeking funding for many projects, including a $ 58 billion project to expand and deepen the port of Tripoli.

Datawatch is a new series produced jointly by Nikkei Asian Review and FT Confidential Research.

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Saugerties man accused of coronavirus scam arrested in New Jersey area Mon, 22 Mar 2021 09:38:18 +0000

ALBANY – The FBI on Thursday morning arrested a Saugerties man in the New Jersey area he allegedly bought after he stole nearly $ 5 million in COVID-19 relief loans from the federal government.

Jean Lavanture, 47, also known as “Rudy”, has been charged with bank fraud in the alleged scam, in which he obtained $ 4.9 million in loans through the federal check protection program. payroll and a disaster relief fund using bogus companies that had no operations.

Federal prosecutors allege that between June 16 and July 22, Lavanture received $ 4.9 million in loans under the Paycheck Protection Program and the Federal Economic Disaster Loan Program.

Lavanture obtained the loans from two banks for five bogus Saugerties-based companies that he created and which had no business, according to the US attorney’s office. Lavanture, however, reportedly submitted false tax documents that appeared to show the companies had employees, “substantial income” and payroll costs.

However, none of the purported companies controlled by Lavanture have ever reported income to the IRS in recent years, nor have they ever reported any employees to the state Department of Labor.

Federal authorities allege Lavanture used the $ 4.9 million in loans to buy a motel in Rockaway Beach, Missouri, and a $ 1 million estate in New Jersey that included a “Tuscan style” mansion of 18 rooms.

There has been a lot of criticism that real businesses and big businesses that don’t deserve PPP funds got them when the money should have gone to smaller, struggling family businesses.

However, the Lavanture case shows that some malicious actors may have attempted to take advantage of the system by using shell companies and bogus tax returns.

Lavanture faces 30 years in prison and a $ 1 million fine.

The investigation was aided by the FBI’s COVID-19 Fraud Response Task Force, as well as the IRS and the Office of the Inspector General of the Small Business Administration. The case is being pursued by Deputy US Prosecutors Michael Barnett and Joshua R. Rosenthal.

Lavanture, who could not be reached for comment, has a long criminal record and has been convicted by both the federal and state governments of trafficking in counterfeit devices, robbery and misuse of business names. federal agencies. The FBI also says Lavanture has not filed tax returns since 2017.

Prosecutors allege Lavanture created five bogus companies with names like the Woodstock Torch Awards and Dreamcast Entertainment to secure the loans from Bank of America and Kabbage, an online small business lender. The SBA guarantees the loans through the PPP.

In a request for a $ 1.5 million PPP loan from Bank of America, Lavanture reportedly submitted tax returns for 2019 for an entity called Project Youth Experience which Lavanture said had 73 employees and $ 7.2 million in annual salary. These tax returns were never submitted to the IRS, prosecutors found.

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As Confederate monuments crumble, American museums rethink the way they tell history Mon, 22 Mar 2021 09:38:18 +0000

While disposal can be a healthy part of the collection’s housekeeping, works are rarely removed for difficult content – more often than not, they are recontextualized and reinterpreted. Art museums, unlike public spaces, have the mission to study how images and aesthetic objects can contain a whole range of ideologies, some of which serve nefarious purposes and others more noble purposes ” , Piper said. “It comes down to an object-by-object basis – if they give better insight into the intent of those who created them. “

The National Portrait Gallery, for example, has no plans to exile its portraits of people with toxic histories, whether it be Confederate slave-owning General Robert E. Lee or one of the 10 American presidents who owned slaves or supported slavery. “The stories of these characters are still part of the history of our country and are important to preserve in national museums, including the Portrait Gallery, which are places of education dedicated to providing historical and contemporary context”, said Gwendolyn DuBois Shaw, director of museum history, research, scholarship and senior historian.

This context is usually provided by didactics, which can give a balanced perspective of a person’s harmful accomplishments and practices. A spokesperson for the museum, which is currently closed due to the COVID-19 pandemic, declined to share specific examples of effective contextualization, but stressed that the review process is constant and never-ending.

“The National Portrait Gallery is not a hall of heroes,” added Shaw. “Including the stories of those who supported slavery and segregation shows how racism and the choices to support the oppression of others can be extremely destructive and restrict the principles of freedom on which this nation was founded. “

(At least one city — Houston, Texas — is Planning move a Confederate statue to a local museum; Meanwhile, President Trump is trying to create a sculpture park to “American heroes.”)

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Gossypion Investments wants to create more diverse artistic communities Mon, 22 Mar 2021 09:38:18 +0000

While it may not be as recognized as New York, Los Angeles, and Chicago, the Dallas-Fort Worth (DFW) area is a major player in the art world. Not only is it home to the largest contiguous arts district in the United States, but the scene of world-class galleries, museums and Dallas Arts Fair brought an international assortment of art, artists and collectors. As in many arts communities, DFW’s arts institutions have not always emphasized diversity, whether representing diverse artists or providing exhibitions and programs for the city’s diverse communities. For example, it was not until 2019 that the Dallas Museum of Art has appointed its first Latin American art curator, which is surprising considering the city’s population is 40 percent Latin American.

In recent years, local artists like David-Jeremiah and Molly Sydnor, instructors and cultural leaders like Morgana Wilborn and Sanderia Faye, small art spaces like WAAS Gallery and Ash Studios, and various groups like Muse Collective and De Colores Collective led initiatives and discussions on diversity in the arts. This gave rise to two distinct artistic worlds in the region: powerful artistic institutions and commercial entities; and smaller, socially conscious artistic initiatives. Gossy seeks to merge the two, in Dallas and beyond.

Gossy’s story began when Ratcliff and Crawford met at Ash Studios, a space Ratcliff opened with artist Fred Villanueva in South Dallas in 2012.

“I make Dallas a more livable place for artists,” Crawford said. This sentiment and Crawford’s love for advocacy sealed his friendship and business partnership with Ratcliff. For his part, he has long been an advocate for the Dallas arts community – as an art space owner, art writer, and through his leadership on projects like Creating Our Future, which he says has awarded awards. grants to artists totaling over $ 3.2 million. dollars.

In 2017, Ratcliff worked on a project called “Decolonize Dallas” with Michelada think tank, a group of artists focused on the issues people of color face. Through this project, he realized: “We need our own money. We can’t always ask the institution, ask the rich white people for their money to do the drastic things we want to do to reshape our world.

The idea that artists of color need their own money and equity led Ratcliff and Crawford to create Gossypion Investments.

“With Gossy, we wanted to try to approach… how can we make the cultural ecosystem our own? We talk about fairness, but very rarely a black or brunette person owns one of the sites, the publications, the actual infrastructure, ”Ratcliff said. “People of color, black people have been innovators and great people for hundreds of years – forever, but often have not been able to own their content, to own the structures in which it is presented.”

Since its launch in April, Gossy has grown rapidly. With eight employees, it is now an international company with clients as far as Boston, New York and Cairo, Ratcliff said, and plans to open an office on the West Coast in October. And just as their clients span many cities and cultural scenes, Gossy’s work includes a surprising range of activities.

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An Artist’s Business Guide for Commissions Mon, 22 Mar 2021 09:38:18 +0000

Success takes time – a resource artists struggle to create. In the unpredictable world of the art business, sales can be sporadic and often in waves, making it difficult to create and maintain a budget. This challenge frequently pushes artists to find other work, earning money, but wasting time and delaying creative progress. Stability is essential for any entrepreneur. A valuable way to generate a predictable level of income is by commissioning works of art.

Standard commission terms provide for a payment of 50% upon signing and 50% upon completion. If an artist is able to secure six commissions in a year, they can expect twelve incoming payments. This allows for the creation of a budget, which is essential for forecasting income, adjusting to a proper lifestyle, and removing significant baseline stress.

Let’s take a look at how to land, create, and deliver a series of commissions.

Provide a clear overview

Collectors often find the idea of ​​commissioning an artist intriguing, yet intimidating. They could reach out and say, “I’ve never done this before and have no idea where to start”.

To allay their doubts and secure the commission, you need to take the lead and clearly articulate your process. In your first response, include the following information:

  • Contract: Suppose all orders are made under contract and include the basic terms: 50% to 50% payment structure, visual references, reproduction and exhibition rights.
  • Prices: Clearly describe your prices for a commissioned work – you can divide them according to size and / or style. Address any applicable sales taxes and / or duties, plus shipping charges, if not included.
  • Price references: It’s a good idea to include a master price list of your existing work as a point of reference. If your prices are higher for commissions, explain why. If you have a price increase on the horizon, tell them what to expect. If someone wants to make a commission within six months, it’s never a bad idea to lock someone into the existing pricing structure to secure the deal.
  • Chronology: Cover everything – how long it will take to revolve around the contract, a payment schedule, the deadlines for receiving materials from the collector, when you will preview the composition, how long it will take to create the work, define a process approval, discuss shipping options and provide an overall time estimate.
  • Initial creative process: Elaborate on thoroughness, including: collating source images and selecting composition. Clearly describe what you need the collector to get started with (if this is a portrait of his or her spouse, include detailed picture requirements “please send four or more clear pictures in a position of contrapposto, d ‘at least 1000 pixels wide “).
  • Creation process: Will you be sharing visual updates throughout the creation process? If so, let the collector know when they can expect updates and how they will be sent (jpeg to email every four days, etc.).
  • Wrap: Clearly discuss final payment, approval protocol, and shipping strategy.

About the contract

Like traditional sales, all commissions must be done under contract. Here are some important terms:

  1. introduction: Define the two parts (Artist and Collector) and clearly state the work to be created – specificity is important.
  2. Payment terms: Standard protocol is 50% on contract signing and 50% on completion (before delivery) – never deliver a work of art until it is fully paid.
  3. Visual references: Always reference 1 or 2 similar works next to the proposed composition you intend to create (ideally cropped exactly to frame); these details will provide protection in case of questions about the final product.
  4. Retain the rights: For each work of art, reserve the reproduction rights, as well as the right to exhibit the work with the permission of the collector.
  5. Signatories: Make sure both parties sign, each keeping an original copy.

here is a connect to a sample of my commission contract.

Promote the availability of your commissions

If you intend to offer commissions, keep this information clear and visible on your website. Beyond the site, let your audience know about any commission availability through social media. When a collector sees that you are genuinely busy, you create desirability and ultimately create a sense of urgency to plan when the window opens.

Share a commissioned work

Commissions can be sensitive and the collector may not wish to share the process or final piece publicly through your site and / or social media. Have this conversation up front to avoid any issues afterwards. It is a good idea to let the collector decide whether or not you will have this privilege.

Remember, if the commission is private, it is not unreasonable to ask for additional compensation as you will be spending a lot of time on this piece and sharing your work is a major part of business development.

Additional thoughts on pricing

On the one hand, a commission is guaranteed money. As a result, many artists, especially those who are just starting out, offer commissioned works at a lower price. However, as your market grows, this relationship should reverse as commissions are more expensive. Not only are the commissions difficult to navigate, but they take a bit longer compared to a spec part. This change is critical in the development of an artist, and for this reason, the increase is warranted.

The big challenge

The most important aspect of any commission is managing expectations. A collector will expect a certain result, and it is up to the artist to deliver it. Communication from start to finish is essential. You may find yourself in a situation where the part is delivered, but the answer is disappointing. As long as you created what the contract stipulated, you delayed your end of the transaction. There is a level of risk for any collector who commissions an artist, and this is something you should make clear from the start.

A failed commission

If you create enough ordered jobs, failure is inevitable. If you, as an artist, went out of spec and couldn’t get the job done, pay back the initial 50%. However, if you get approvals along the way and create to specification, but the collector doesn’t like the final, you should keep both the 50% deposit and the sell-right artwork. While this is a difficult conversation to have from the start, consider adding this elimination clause to your contract form.

Finally, remember that like any business, it’s all about taking care of your customers. In case of refusal, offer a similar creation of your work at the same price. Remember that positive words travel fast, but negativity travels at the speed of light.

Bonus: Check out the 2013 article by Forbes Contributor Rachel Hennessey: “3 keys to succeed as an artist (without starving). “

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‘Guardians’ of the Galaxy: Pence announces names of Space Force members Mon, 22 Mar 2021 09:38:18 +0000

Members of the Space Force have a new official name: Guardians, Vice President Mike Pence announced on Friday.

“Soldiers, Sailors, Airmen, Marines and Guardians will defend our nation for generations to come,” Pence said at a ceremony commemorating the Space Force’s 1st anniversary on December 20.

Pence was flanked by Chief of Space Operations Gen. John Raymond, Acting Defense Secretary Chris Miller and Aviation Secretary Barbara Barrett at the White House.

Space enthusiasts and the military were quick to point out the name “Guardians”, which evokes Marvel Comics’ “Guardians of the Galaxy” film franchise, about a motley team of superheroes in space.

The announcement comes a few hours later Aviation Astronaut Colonel Michael “Hopper” Hopkins transferred to space force aboard the International Space Station, and a few days after Raymond was made an official member Joint Chiefs of Staff.

The name change – from space professionals or space fighters, the generic term used before official name announcement – follows service introduction official logo, which incorporates the use of the delta symbol of the seal and flag of the Space Force.

In July, officials introduced the logo along with its official motto, “Semper Supra”, which translates from Latin as “always on top”.

The seal of the Space Force, which also uses a delta, was unveiled by President Donald Trump in a tweet in January; in May, the president welcomed Barrett, Raymond and Chief Master Sgt. Roger Towbermann, Senior Enlisted Space Force Advisor, during a flag ceremony to the White House.

With each unveiling, social media users were quick to point out that the badge strongly recalls Starfleet Command’s “Star Trek” logo; but the military says the symbol is also part of its history.

The more recent military branch also launched a dark navy-colored name strip for its uniforms, a pin, advice on camouflage uniform (as the Army and Air Force, members of the Space Force wear the operational camouflage pattern as an official service uniform); three advertisements; and his organizational structure.

Space force on standby the decisions include formal updates to uniforms, badge patches, a row structure, among others.

– Oriana Pawlyk can be contacted at Follow her on Twitter at @ Oriana0214.

Related: Semper Supra: Space Force unveils long-awaited official logo

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Trump pushes for more generous stimulus bill as Americans wait for relief Mon, 22 Mar 2021 09:38:18 +0000

In the absence of a new stimulus deal and a recently rejected stingy proposal, the president is urging lawmakers to seriously invest in the next bailout.

Ever since a first round of stimulus checks were distributed to the public under the CARES Act, which was enacted in late March as a means of coronavirus relief, Americans have been eagerly awaiting the arrival of a second direct payment. But for that to happen, a formal relief bill needs to be enacted, and after months of negotiations, it still hasn’t happened.

Lawmakers spent much of the summer of 2020 haggling over a stimulus package, but ultimately failed to come to a deal that met the demands of Democrats and Republicans. Recently, Republicans introduced a simplified relief program that included do not include a follow-up cycle of direct stimulus payments. This proposal was defeated in the Senate, and while this is a good thing for the many Americans who really need that second stimulus check, it also means that lawmakers must once again get to the table and work out a bill. viable law.

But any follow-up proposal that emerges in the coming weeks could be more solid than the previous versions that Republicans have put forward. (From the start, Democrats have sought to spend significantly more money than Republicans on coronavirus aid.) In fact, on September 16, President Trump specifically urged lawmakers to adopt a more generous stimulus package. . And that could be the nudge they need to move in the right direction.

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Will Americans be in line for a bigger stimulus package?

Considering how lawmakers struggled to approve a stimulus deal, the idea of ​​passing any kind of bill is a positive development in and of itself. But Democratic lawmakers hope the president’s words will inspire Republican lawmakers to move further on a back-up plan.

In a written statement released Wednesday afternoon, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer said they were encouraged by the president’s directive. Meanwhile, White House chief of staff Mark Meadows said he was now more optimistic about the potential of a signed deal. In fact, he said he’s been encouraged more in the past 72 hours than he has been in the past 72 days.

What will a more generous stimulus package look like?

While it is a bit too early to speculate on what exactly a “generous” stimulus deal will include, President Trump has been pushing for another round of direct stimulus payments, so there’s a good chance those will be. here make a future proposal. Given that Democratic and Republican lawmakers initially agreed to a second stimulus check, it’s not unreasonable to think that eligible Americans could supplement their savings with an additional $ 1,200 per adult and $ 500 per child, though. before the end of the year.

In addition, due to the upcoming elections, lawmakers are under a lot of pressure to move quickly on a stimulus bill. So let’s hope they heed the president’s call and approve a package that brings the relief so many Americans desperately need.

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No Covid Testing Decision For Arrivals Before November, UK To Announce | Coronavirus Mon, 22 Mar 2021 09:38:18 +0000

A decision on plans to introduce Covid-19 testing for international arrivals to reduce quarantine times will only come next month at the earliest, with Downing Street instead setting up a global travel task force to review the proposals, according to the Guardian.

After months of lobbying from the besieged aviation industry, which was crippled by two-week quarantine restrictions, an announcement indicating whether tests for arrivals from at-risk countries would be introduced by the UK government was widely expected this week.

The Transport Secretary, Grant shapps, had indicated an imminent change, telling Monday at the virtual conference of the Conservative party that he would say more shortly.

However, in a blow to the aviation industry, rather than announcing the start of testing for international arrivals, the Guardian learned that the government instead planned to announce the launch of the task force – co-chaired by Shapps and the Health Secretary Matt Hancock – who was put in place at the behest of Boris Johnson.

An announcement is expected Thursday but could arrive earlier.

Part of his mandate, which broadly examines ways to reinvigorate overseas travel, will be to explore options to implement a testing regime for international arrivals to reduce quarantine times by 14 days. He is not expected to report until mid-November, which means that a decision on testing to reduce quarantine times would not be made until next month at the earliest.

A spokesperson for the Ministry of Transport insisted there was no delay in the plans, adding: “As we have made clear, work is underway with clinicians and experts from health on the practicalities of using the tests to reduce the period of self-isolation for international arrivals. “

In recent weeks, cabinet ministers have reportedly considered whether travelers should be tested once, five or eight days after arriving from countries at risk, allowing them to emerge from isolation earlier than the current requirement 14 days. Both options were reportedly submitted by officials in mid-September to the Covid-19 operations committee chaired by Cabinet Office Minister Michael Gove.

Either move would mean that the aviation industry’s initial proposals for a two-test system – in which travelers are tested at the airport upon arrival from countries at risk and again five or eight days later – with negative results allowing them to escape isolation sooner – would be overlooked in favor of a single test approach.

Another option submitted to the government involved travelers taking a test 48 hours before leaving an at-risk country, followed by a test on the fifth day after arrival, also allowing them to emerge from isolation earlier.

Shapps told the Conservative Party conference on Monday, “The next step is to allow testing, which people sometimes mistakenly think is a very simple thing -” Why don’t you just test people at the airport? If you know they’re clear, let people in, the job is done.

“The answer is that in an asymptomatic person, not showing any symptoms, this will not find a very large proportion of cases. In fact, studies show that if you check someone on the first day they arrive, you will likely only find 7% of people who actually have the virus.

“So we have to be a little smarter than that. The way to do that is to still have a quarantine period but also to test and be able to release people. I will say more about this shortly.

Shapps also stressed that any testing for international arrivals must be paid for privately. “If you are a vacationer you don’t want to take an NHS test because you got on a plane somewhere which is a discretionary thing to do,” he told i newspaper. “Anything we do with testing at airports or testing a week later has to be done through private capacity.”

General quarantine rules came into effect in early June, forcing international arrivals and returning passengers to spend 14 days in self-isolation.

Exemptions were introduced a month later with the creation of “travel corridors” for destinations with low Covid-19 rates. However, flights and travel have been plunged into chaos by sudden changes in the status of major tourist destinations, such as Spain and France, during the summer season. Since last Friday, people arriving from abroad who violate Covid-19 quarantine restrictions in England have faced tougher fines of up to £ 10,000.

The aviation industry has been largely pushed back in calls for the government for a special package of aid for the sector. The Treasury limited its aid to the broader leave scheme and Bank of England Covid-19 loans, while tens of thousands of jobs have been lost at airlines and airports.

Ministers announced the creation of a special aviation “restart, recovery and engagement unit” in early May, but the Commons transport select committee expressed concern over the lack of pace or detail of any action. Five weeks ago, the government responded that the unit would report in the fall.

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Student loan debt relief should target those in need Mon, 22 Mar 2021 09:38:17 +0000

The federal government should target any debt relief on those who really need it.

It’s important to remember that student loan borrowers are different from most Americans – they went to college. Students, as a group, earn more, are better educated, live longer, and come from better-off backgrounds than other Americans. These advantages are evident among student loan borrowers.

More than half of student debt – 56 percent – is owed by households with a graduate degree. This is in part because the programs where students get the most debt are mostly professional degree programs like the MBA, Faculty of Law, or medical school. Indeed, a disproportionate amount of student debt is owed by borrowers from a handful of elite colleges with prestigious graduate programs that charge astronomical tuition fees. As a result, approximately 36 percent of all student debt is owed by individuals in the richest 20 percent of income distribution.

And it’s not just that borrowers do well after college; they often grew up in well-off households. There is no income or wealth test for who can get a federal student loan, and affluent students are more likely to go to an expensive university, graduate, and go to college. university. The typical student who grew up in a high-income family should about 27 percent more than the typical student from a low-income family.

In contrast, borrowers struggling with student loans are different. Almost 90 percent of borrowers in default of a student loan received a Pell grant because their income and wealth were low when they applied to college. About 46 percent of defaulting borrowers went to for-profit school, but they only represent 9% of all borrowers. Half of defaulters never graduated, but nationally, only 8% of student debt is owed by households without a degree. Other than having a student loan, the economic situation of struggling borrowers has little in common with their high-income peers.

Helping distressed borrowers shouldn’t require providing a boon to high-income, well-educated students from affluent backgrounds. In other contexts – such as when the federal government’s Supplemental Nutrition Assistance Program helps families get food on the table, or laid-off workers pay their bills with UI, or families off the hook. workers are supported by the labor income tax credit – student loan assistance is targeted to the poorest households. This is especially important for student loan relief because the dollar amounts are so important: the complete cancellation of student debt would cost more than the cumulative amount spent on each of these programs over the past 20 years.

Targeting the loan forgiveness to those in need is not complicated. There are income-based repayment plans that limit student loan repayments to 10 percent of a student’s discretionary income (income minus 150 percent of the poverty line) and write off undergraduate debt after 20 years. This program ensures that high-income borrowers contribute to the cost of their post-secondary education, but relieves those who are less fortunate. Too few students enroll in the program due to administrative hurdles, but these issues should be addressed so that current and future borrowers benefit.

More immediate relief could be offered to borrowers who fail to repay their loans through income-tested plans. Each student loan borrower has completed a financial aid application documenting their income and wealth so the government will know if the loan funded a well-paid professional degree. For students enrolled in income-based repayment plans, the government knows their financial situation after college. Information about a student’s income, economic status, and educational attainment could be used to focus relief on the groups of borrowers who need it most, in the same way that a judge might pay bills. onerous debts in bankruptcy court.

Deciding which students deserve federal government support and which do not is an unpleasant task that policymakers might delay with a one-size-fits-all approach to forgiveness, but it is a task they cannot postpone indefinitely. Every year the federal government is providing $ 100 billion in new loans, knowing that millions of new borrowers will struggle in the future, making the situation worse. To solve this problem, Congress must decide which students, institutions and study programs taxpayers should pay for and which should belong to future students. They should do the same for existing borrowers.

Adam Looney is Professor in the Department of Finance and Executive Director of the Marriner S. Eccles Institute for Economics and Quantitative Analysis, University of Utah.

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Arab buyers hit by soaring food and fuel prices Mon, 22 Mar 2021 09:38:17 +0000

A US-based food technology platform has announced a new $ 100 million Saudi joint venture targeting 550 outlets by 2026, with the first launching in Riyadh early next year.

The Creation of Culinary Communities (C3) Arabia has been valued at $ 100 million and will be 49% owned by parent company C3, with Saudi investment firm WK Holding holding the remainder.

Launched in 2019 by American serial entrepreneur Sam Nazarian, C3 currently operates approximately 250 food service stores across the United States. This year, the company also launched the Citizens Go app, which allows users to order from multiple restaurants as part of a single order.

C3’s expansion in Saudi Arabia will be fully funded by Smart Food Holding, a division of WK Holding.

Layla Abuzaid, Founder and CEO of WK Holding, said, “C3’s expansion across Saudi Arabia will democratize haute cuisine by owning the food technology space in the region and we will assemble a premier hospitality center. order in the Kingdom for the region, and for the world. We will unlock local talent, celebrate our vibrant culinary culture, and export globally. “

C3’s culinary brand stable already includes chefs Masaharu Morimoto, Dario Cecchini, Katsuya Uechi, Dani Garcia, Martin Heierling, Michael Israel, Vincenzo Rossy and Romain Fornell.

Nazarian said, “International expansion is the key to C3’s growth and there is no better partner to take us to the influential Saudi Arabian market.

“Through this partnership, we are excited to introduce C3’s popular digital restaurant brands such as Umami Burger, Sam’s Crispy Chicken, Krispy Rice, Kumi, Sa’moto, and more to the Saudi community.

The C3 Arabia partnerships aim to bring 40 brands to Saudi Arabia and the first, Citizens Food Hall, will open in Riyadh in the first quarter of next year.

In the long term, the joint venture plans to open 30 locations in the first year and reach 550 branded locations across the region in five years, including food halls, self-service outlets, drive-thru and mobile delivery services.

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