Economic News Investigations

"When Will the Next Recession Hit?"

An article written on October 8th, 2015 by Andrew Soergel. This article shows how economists try and anticipate when the next recession will hit, and why it will happen. Andrew compared a recession to a flu, in that some cases of financial turmoil can be worse than others. But when it comes to the knowing of when one will strike, that is completely unpredictable. Tara Sinclair, chief economist for employment site Indeed, said,"Most recessions happen because of different reasons each time, so if we are to focused on what caused the first one, another recession might quickly happen. John Canally a vice president and economist at LPL Financial stated that, "Every day that passes, we're a day closer to the recession and we're a day closer to the Fed tightening. It may not be knowing when the next recession will hit because one will hit again, the real question should be how do we quickly and efficiently get out of it. The thing about this article that interested is how economists have no clue when or where another recession is going to strike because it's such a difficult topic to predict.


http://www.usnews.com/news/the-report/articles/2015/10/08/is-the-us-due-for-another-recession

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National Debt

In this article written by Mike Patton, Patton discusses the U.S. debt and how it came to what it is today. Debt is using money that you don't have, saying that you will pay for it later. In 2004, the federal debt was $7.3 trillion. Today that number has risen to $18 trillion. The debt-to GDP ratio compares the amount of money that is the public debt to the size of the economy. In 1980 the percentage was around 35%, today the number is just a little above 100%! The next closest country for debt compared to the US is The UK and theres is only $9.5 trillion. Right now the average taxpayer is experiencing a annual increase of 7.16% of debt for every taxpayer. We talked about GDP and Debt this whole 3rd unit so that's how it's relevant to the class. Something that interested me from this article was how quickly the debt to GDP ratio rose so fast over like a 25 year span. Going all the from 35% in 1980 to over 100% in 2012.


http://www.forbes.com/sites/mikepatton/2015/04/24/national-debt-tops-18-trillion-guess-how-much-you-owe/

US Army Cuts

In a USA today article written by Tom Brook it is introduced that the Army is proceeding to cut back by 40,000 soldiers in the next 2 years. This comes as the Obama administration is questioning it's next move against ISIS in Iraq and Syria. Obama has not said said anything about sending additional soldiers to the Islamic state countries as reinforcements. Currently there are only 3,500 soldiers currently in Iraq. Some of these cuts have been predicted after the immense amount of soldiers during the 2009-2011 period. The lowest number expected to get to is 450,000 army members. Cutting anymore would be pushing it, causing people to get nervous. I really don't understand Obama's thoughts on cutting the army population because of ISIS reasons, when we should be taking those that are going to be cut and taking them to the regions where ISIS is attacking and minimizing their damage.


http://www.usatoday.com/story/news/nation/2015/07/07/army-plans-to-cut-40000-troops/29826423/?scrlybrkr=049a4d79

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"How retirees live under $1 million dollars"

In an article by Greg DePersio he explains retirement for elders above 65. When you think of a millionaire you think of lavish wealth and an expensive lifestyles. But actually the definition of being a millionaire is when a person's net worth, or assets without liabilities, is $1 million or greater. Today, due to inflation, retiring on $1 million requires smart use of your money to ensure it last for a retiree's remaining years. Although retiring with $1 million now a days doesn't provide the luxury's that it used to be. If they are under that amount they can rely on social security checks every month. If you wisely use your money when you are retired you should easily not run out of money and have to rely on social security. Although social security benefits those who are retired, when you are young and paying those bills you don't understand the luxury it is to have as a backup when you are retired.


http://www.investopedia.com/articles/personal-finance/102715/how-retirees-live-1-million-dollars.asp

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Neymar's assets froze by alleged tax evasion.

CNN reports that Barcelona soccer star Neymar has been accused of evading his taxes and on Friday froze assets worth $47.6 million belonging to his family and businesses. From 2011-2013 Neymar is being investigated on suspicion of evading $16 million worth of taxes. The judge said that Neymar failed to report income coming form abroad, and failed to report payments from his Barcelona team. The Brazilian court estimated the value of Neymar's assets was around $57 million at the end of 2013. Neymar countered to the court that he was not in partnership with the business that was evading it's taxes. One thing that I don't understand about the Neymar tax evasion situation is that how he can make all these millions from playing soccer and he can't pay all his taxes fully.


http://edition.cnn.com/2015/09/25/football/brazil-neymar-tax-evasion-investigation/

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