#Consumer Banking Service Market 2024

[mostlysignssomeportents]

Denise Hearn and Vass Bednar’s “The Big Fix”

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/12/05/ted-rogers-is-a-dope/#galen-weston-is-even-worse

The Canadian national identity involves a lot of sneering at the US, but when it comes to oligarchy, Canada makes America look positively amateurish.

If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/12/05/ted-rogers-is-a-dope/#galen-weston-is-even-worse

Canada's monopolists may be big fish in a small pond, but holy moly are they big, compared to the size of that pond. In their new book, The Big Fix: How Companies Capture Markets and Harm Canadians, Denise Hearn and Vass Bednar lay bare the price-gouging, policy-corrupting ripoff machines that run the Great White North:

https://sutherlandhousebooks.com/product/the-big-fix/

From telecoms to groceries to pharmacies to the resource sector, Canada is a playground for a handful of supremely powerful men from dynastic families, who have bought their way to dominance, consuming small businesses by the hundreds and periodically merging with one another.

Hearn and Bednar tell this story and explain all the ways that Canadian firms use their market power to reduce quality, raise prices, abuse workers and starve suppliers, even as they capture the government and the regulators who are supposed to be overseeing them.

The odd thing is that Canada has been in the antitrust game for a long time: Canada passed its first antitrust law in 1889, a year before the USA got around to inaugurating its trustbusting era with the passage of the Sherman Act. But despite this early start, Canada's ultra-rich have successfully used the threat of American corporate juggernauts to defend the idea of Made-in-Canada monopolies, as homegrown King Kongs that will keep the nation safe from Yankee Godzillas.

Canada's Competition Bureau is underfunded and underpowered. In its entire history, the agency has never prevented a merger – not even once. This set the stage for Canada's dominant businesses to become many-tentacled conglomerates, like Canadian Tire, which owns Mark's Work Warehouse, Helly Hansen, SportChek, Nevada Bob's Golf, The Fitness Source, Party City, and, of course, a bank.

A surprising number of Canadian conglomerates end up turning into banks: Loblaw has a bank. So does Rogers. Why do these corrupt, price-gouging companies all go into "financial services?" As Hearn and Bednar explain, owning a bank is the key to financialization, with the company's finances disappearing into a black box that absorbs taxation attempts and liabilities like a black hole eating a solar system.

Of course, the neat packaging up of vast swathes of Canada's economy into these financialized and inscrutable mega-firms makes them awfully convenient acquisition targets for US and offshore private equity firms. When the Competition Bureau (inevitably) fails to block those acquisitions, whole chunks of the Canadian economy disappear into foreign hands.

This is a short book, but it's packed with a lot of easily digested detail about how these scams work: how monopolies use cross-subsidies (when one profitable business is used to prop up an unprofitable business in order to kill potential competitors) and market power to rip Canadians off and screw workers.

But the title of the book is The Big Fix, so it's not all doom and gloom. Hearn and Bednar note that Canadians and their elected reps are getting sick of this shit, and a bill to substantially beefed up Canadian competition law passed Parliament unanimously last year.

This is part of a wave of antitrust fever that's sweeping the world's governments, notably the US under Biden, where antitrust enforcers did more in the past four years than their predecessors accomplished over the previous 40 years.

Hearn and Bednar propose a follow-on agenda for Canadian lawmakers and bureaucrats: they call for a "whole of government" approach to dismantling Canada's monopolies, whereby each ministry would be charged with combing through its enabling legislation to find latent powers that could be mobilized against monopolies, and then using those powers.

The authors freely admit that this is an American import, modeled on Biden's July 2021 Executive Order on monopolies, which set out 72 action items for different parts of the administration, virtually all of which were accomplished:

https://www.eff.org/deeplinks/2021/08/party-its-1979-og-antitrust-back-baby

What the authors don't mention is that this plan was actually cooked up by a Canadian: Columbia law professor Tim Wu, who served in the White House as Biden's tech antitrust czar, and who grew up in Toronto (we've known each other since elementary school!).

Wu's plan has been field tested. It worked. It was exciting and effective. There's something weirdly fitting about finding the answer to Canada's monopoly problems coming from America, but only because a Canadian had to go there to find a receptive audience for it.

The Big Fix is a fantastic primer on the uniquely Canadian monopoly problem, a fast read that transcends being a mere economics primer or history lesson. It's a book that will fire you up, make you angry, make you determined, and explain what comes next.

[gingerofsuburbia]

BDS Consumer Boycott Targets

Everything here is copied over from the BDS website.

Hewlett Packard Inc (HP Inc)

HP Inc (US) provides services to the offices of genocide leaders, Israeli PM Netanyahu and Financial Minister Smotrich. HPE, which shares the same brand, provides technology for Israel’s Population and Immigration Authority, a pillar of its apartheid regime.

Chevron (including Caltex and Texaco)

US fossil fuel multinational Chevron is the main corporation extracting gas claimed by apartheid Israel in the East Mediterranean. Chevron generates billions in revenues, strengthening Israel’s war chest and apartheid system, exacerbating the climate crisis and Gaza siege, and is complicit in depriving the Palestinian people of their right to sovereignty over their natural resources. Chevron has thousands of retail gas stations around the world under the Chevron, Caltex, and Texaco brand names.

Siemens

Siemens (Germany) is the main contractor for the Euro-Asia Interconnector, an Israel-EU submarine electricity cable that is planned to connect Israel’s illegal settlements in the occupied Palestinian territory to Europe. Siemens-branded electrical appliances are sold globally.

PUMA

Since 2018, we have called for a boycott of PUMA (Germany) due to its sponsorship of the Israel Football Association (IFA), which governs teams in Israel’s illegal settlements on occupied Palestinian land. In a major BDS win in December 2023, PUMA leaked news to the media that it will not be renewing its IFA contract when it expires in December 2024. Until then, it is still complicit, so we continue to #BoycottPUMA until it finally ends its complicity in apartheid.

Carrefour

Carrefour (France) is a genocide enabler. Carrefour-Israel has supported Israeli soldiers partaking in the unfolding genocide of Palestinians in Gaza with gifts of personal packages. In 2022, it entered a partnership with the Israeli company Electra Consumer Products and its subsidiary Yenot Bitan, both of which are involved in grave violations against the Palestinian people.

AXA

Insurance giant AXA (France) invests in Israeli banks financing war crimes and the theft of Palestinian land and natural resources. When Russia invaded Ukraine, AXA took targeted measures against it. Yet, Axa has taken no action against Israel, a 75-year-old regime of settler-colonialism and apartheid, despite its ongoing genocidal war on Gaza.

SodaStream

SodaStream is an Israeli company that is actively complicit in Israel's policy of displacing the indigenous Bedouin-Palestinian citizens of present-day Israel in the Naqab (Negev) and has a long history of racial discrimination against Palestinian workers.

Ahava

Ahava cosmetics is an Israeli company that has its production site, visitor center, and main store in an illegal Israeli settlement in the occupied Palestinian territory.

RE/MAX

RE/MAX (US) markets and sells property in illegal Israeli settlements built on stolen Palestinian land, thus enabling Israel’s colonization of the occupied West Bank.

Israeli produce in your supermarkets

Boycott produce from Israel in your supermarket and demand their removal from shelves. Beyond being part of a trade that fuels Israel’s apartheid economy, Israeli fruits, vegetables, and wines misleadingly labeled as “Product of Israel” often include products of illegal settlements on stolen Palestinian land. Israeli companies do not distinguish between the two, and neither should consumers.

Non-BDS Grassroots Boycotts:

McDonald’s (US), Burger King (US), Papa John’s (US), Pizza Hut (US), WIX (Israel), etc. are now being targeted in some countries by grassroots organic boycott campaigns, not initiated by the BDS movement. BDS supports these boycott campaigns because these companies, or their branches or franchisees in Israel, have openly supported apartheid Israel and/or provided generous in-kind donations to the Israeli military amid the current genocide. If these grassroots campaigns are not already organically active in your area, we suggest focusing your energies on our strategic campaigns above. 

Recently, McDonald’s franchisee in Malaysia has filed a SLAPP lawsuit against solidarity activists, claiming defamation. Instead of holding the Israel franchisee to account for supporting genocide, we are now witnessing corporate bullying against activists. For both these reasons, we are calling to escalate the boycott of McDonald’s until the parent company takes action and ends the complicity of the brand.

Remember, all Israeli banks and virtually all Israeli companies are complicit to some degree in Israel’s system of occupation and apartheid, and hundreds of international corporations and banks are also deeply complicit. We focus our boycotts on a small number of companies and products for maximum impact.

[dreaminginthedeepsouth]

Supreme Court poised to appoint federal judges to run the US economy.

January 18, 2024

ROBERT B. HUBBELL

JAN 17, 2024

The Supreme Court heard oral argument on two cases that provide the Court with the opportunity to overturn the “Chevron deference doctrine.” Based on comments from the Justices, it seems likely that the justices will overturn judicial precedent that has been settled for forty years. If they do, their decision will reshape the balance of power between the three branches of government by appointing federal judges as regulators of the world’s largest economy, supplanting the expertise of federal agencies (a.k.a. the “administrative state”).

Although the Chevron doctrine seems like an arcane area of the law, it strikes at the heart of the US economy. If the Court were to invalidate the doctrine, it would do so in service of the conservative billionaires who have bought and paid for four of the justices on the Court. The losers would be the American people, who rely on the expertise of federal regulators to protect their water, food, working conditions, financial systems, public markets, transportation, product safety, health care services, and more.

The potential overruling of the Chevron doctrine is a proxy for a broader effort by the reactionary majority to pare the power of the executive branch and Congress while empowering the courts. Let’s take a moment to examine the context of that effort.

But I will not bury the lead (or the lede): The reactionary majority on the Court is out of control. In disregarding precedent that conflicts with the conservative legal agenda of its Federalist Society overlords, the Court is acting in a lawless manner. It is squandering hard-earned legitimacy. It is time to expand the Court—the only solution that requires a simple majority in two chambers of Congress and the signature of the president.

The “administrative state” sounds bad. Is it?

No. The administrative state is good. It refers to the collective body of federal employees, regulators, and experts who help maintain an orderly US economy. Conservatives use the term “administrative state” to denigrate federal regulation and expertise. They want corporations to operate free of all federal restraint—free to pollute, free to defraud, free to impose dangerous and unfair working conditions, free to release dangerous products into the marketplace, and free to engage in deceptive practices in public markets.

The US economy is the largest, most robust economy in the world because federal regulators impose standards for safety, honesty, transparency, and accountability. Not only is the US economy the largest in the world (as measured by nominal GDP), but its GDP per capita ($76,398) overshadows that of the second largest economy, China ($12,270). The US dollar is the reserve currency for the world and its markets are a haven for foreign investment and capital formation. See The Top 25 Economies in the World (investopedia.com)

US consumers, banks, investment firms, and foreign investors are attracted to the US economy because it is regulated. US corporations want all the benefits of regulations—until regulations get in the way of making more money. It is at that point that the “administrative state” is seen as “the enemy” by conservatives who value profit maximization above human health, safety, and solvency.

It is difficult to comprehend how big the US economy is. To paraphrase Douglas Adams’s quote about space, “It’s big. Really big. You just won't believe how vastly, hugely, mindbogglingly big it is.” Suffice to say, the US economy is so big it cannot be regulated by several hundred federal judges with dockets filled with criminal cases and major business disputes.

Nor can Congress pass enough legislation to keep pace with ever changing technological and financial developments. Congress can’t pass a budget on time; the notion that it would be able to keep up with regulations necessary to regulate Bitcoin trading in public markets is risible.

What is the Chevron deference doctrine?

Managing the US economy requires hundreds of thousands of subject matter experts—a.k.a. “regulators”—who bring order, transparency, and honesty to the US economy. Those experts must make millions of judgments each year in creating, implementing and applying federal regulations.

And this is where the “Chevron deference doctrine” comes in. When federal experts and regulators interpret federal regulations in esoteric areas such as maintaining healthy fisheries, their decisions should be entitled to a certain amount of deference. And they have received such deference since 1984, when the US Supreme Court created a rule of judicial deference to decisions by federal regulators in the case of Chevron v. NRDC.

What happened at oral argument?

In a pair of cases, the US Supreme Court heard argument on Tuesday as to whether the Chevron deference doctrine should continue—or whether the Court should overturn the doctrine and effectively throw out 17,000 federal court decisions applying the doctrine. According to Court observers, including Mark Joseph Stern of Slate, the answer is “Yes, the Court is poised to appoint federal judges as regulators of the US economy.” See Mark Joseph Stern in Slate, The Supreme Court is seizing more power from Democratic presidents. (slate.com)

I recommend Stern’s article for a description of the grim atmosphere at the oral argument—kind of “pre-demise” wake for the Chevron deference doctrine. Stern does a superb job of explaining the effects of overruling Chevron:

Here’s the bottom line: Without Chevron deference, it’ll be open season on each and every regulation, with underinformed courts playing pretend scientist, economist, and policymaker all at once. Securities fraud, banking secrecy, mercury pollution, asylum applications, health care funding, plus all manner of civil rights laws: They are ultravulnerable to judicial attack in Chevron’s absence. That’s why the medical establishment has lined up in support of Chevron, explaining that its demise would mark a “tremendous disruption” for patients and providers; just rinse and repeat for every other area of law to see the convulsive disruptions on the horizon.

The Kochs and the Federalist Society have bought and paid for this sad outcome. The chaos that will follow will hurt consumers, travelers, investors, patients and—ultimately—American businesses, who will no longer be able to rely on federal regulators for guidance as to the meaning of federal regulations. Instead, businesses will get an answer to their questions after lengthy, expensive litigation before overworked and ill-prepared judges implement a political agenda.

Expand the Court. Disband the reactionary majority by relegating it to an irrelevant minority. If we win control of both chambers of Congress in 2024 and reelect Joe Biden, expanding the Court should be the first order of business.

[Robert B. Hubbell Newsletter]

[sourcreammachine]

GREEN PARTY MANIFESTO 2024 SUMMARY

tldr: there's a feeling of tension in this manifesto, between youthful zennial climatic ecosocialism and old-guard hippy-liberal environmentalism. this year the greens may well go from 1 MP to the dizzying heights of 2 (there's whispers on the wind that they may even get 3...), and the green council delegation is at 800-odd now, so this could easily be a changing-of-the-guard moment

with the great Berry and the ok Denyer in parliament the party could have more momentum in battling the starmerite government, and with that, it has the ability, the possibility to pick up more momentum. this is a big opportunity in the party's history - over the next five years it can and could be pushed into a holistic ecosocialist movement by the centrally influential mass party membership, and remove the last dregs of its tunnel vision to provide a lefty movement for everyone, green and pink, a Newfoundland coalition. with votes at 16 on the cards and this potential evolution of the party, 2029 could be a big moment for this country's left. whether or not the greens play the role of keystone is up to them

it is also the only manifesto to use the term 'neurodivergent'

💷ECONOMY

wealth tax of 1% on individuals with assets over §10m and 2% for assets over §1b (an extremely humble proposal), reform capital gains and investment dividend taxation to be at the same rates as income taxation, remove the income-based bands on national insurance contributions, ie raising total income taxation by 8% at §50k/a, – altogether raising government revenues by upwards of §70b/a

stratify VAT to reduce it for consumer stuff and hike it for stuff like financial services

permanent windfall tax on banks for whenever they get windfalls

perform a holistic land survey to get the data needed for a new, effective Land Tax

abolish the tax relief on existing freeports and SEZs

heavy carbon tax to raise a boatload of billions, rising progressively over a decade to allow industrial adaptation, for a ~§80b state windfall for five years that'll be for green investment as this windfall starts to recede

renationalise water and energy

§15 minimum wage, 10:1 pay ratio for all organisations public and private (ie §150 sort-of maximum wage, ~§300k/a), mandatory equal pay audits, 'support' lower hours and four-day weeks [clarification needed]

unambiguously define gig workers as workers with contract rights from day one, repeat offenders of gig-slavery will be banned from operating in the country

every City bank required to produce a strategy with a clear pathway to divestment of all fossil fuels "as soon as possible and at least by 2030", every City non-banking organisation simply to be banned from having fossil fuel in their portfolios, credit to be banned for repeat City climate offenders, mandate the BoE to fulfil the funding of the climate transition and climate leadership of the City, FCA to develop measures to ban fossil fuel share trading in the City and immediately prohibit all new shares in fossil fuels

"we will explore legal ways for companies to be transformed into mutual organisations"😈

develop regional cooperative banks to invest in regional SMEs, coops and community enterprises

diversify crop growth, promote local agricultural cooperatives and peripheral urban horticultural farms, give farmers a sort of collective bargain against grocers

aim towards a circular economy: require ten-year warranties on white goods, rollout of right-to-repair

tighten monopoly laws on media with a hard cap preventing >20% of a media market being owned by one individual or company and implement Leveson 2

🏥PUBLIC SERVICES

abolish tuition fees and cancel standing debt

surge nhs funding by §30B, triple labour's spending plans for everything, the entire budget, the entire state, everything

free personal care, with occupational therapy being part of this

35h/w free child care (eg seven hours over five days, or seven days of five hours)

renationalise many academies under local authorities, abolish the "charity" status of private schools and charge VAT

surge funding for smoking-cessation, addiction support and sexual health service

surge funding for public dentistry with free care for children and low-earners

free school breakfasts in primary school and free school lunches for all schools

one-month guarantee of access to mental health therapies

online access to PrEP

let school playing fields be used in the evenings by local sports clubs

greater funding for civic sports facilities and pools

🏠HOUSING

unambiguously-under-the-law nationalise the crown estate for an absolute fuckton of land and assets for housing and for green energy and rewilding for FREE

rent control for local authorities, ban no-fault evictions and introduce long-term leases, create private tenancy boards of tenants

local authorities to have right of first refusal on the purchase of certain properties at aggressive rates, such as unoccupied or uninsulated buildings

all new homes to be Passivhaus standard with mandatory solar panels and heat pumps

§30B across five years to insulate homes, §12B of which is for social homes, and §9B more for heat pumps, and §7B more for summer cooling

planning law reform: council planning mechanisms to priorities little developments all over the place rather than sprawling blobs, demolitions to require as thorough a planning application as erections, new developments required to not be car dependent

planning laws to require large-scale developments feature access to key community infrastructures such as transport, health and education, often mandating the construction of new key infrastructures, support nightlife and local culture in planning regulations

exempt pubs and local cultural events from VAT

building materials to be reusable, builders' waste rates to be surged to encourage use of reuse

750k new social homes in five years

🚄TRANSPORT

'a bus service to every village', restore local authority control and/or ownership of their busses

renationalise rail via franchise-concession lapsing, slowly assume ownership of the rolling stock (currently leased, and would continue to be so under labour's implementation of renationalisation) by buying a new train when the stock needs to be replaced

electrification agenda across the rail network, strategic approach to rail line and station reopenings

bring forward (sorta, the tories suspended it but labour says they'll reinstate it) the new petrol car ban from 2030 to 2027, existing petrol cars targeted to be off the road by 2034, investigate road-price charges as a replacement for petrol tax, hike road tax proportionally to vehicle weight, drop urban speed limits from 50kph to 30kph (or from 30mph to 20mph if you only speak Wrong), mass funding for freightrail and support logistics firms transitioning away from lorries

§2.5b/a for footpaths and cycleways, target of 50% of urban journeys to be extravehicular by 2030

frequent-flyer levy, ban on domestic flights within three-hour rail distance, remove the exemption of airline fuel from fuel tax, prioritise training of airline workers into other transportational jobs

👮FORCE

abolish the home office, transfer its police/security portfolio to the justice ministry and its citizenship/migration portfolio to a new migration ministry separate from the criminal justice system

abolish the kill the bill bill and restore the right to protest

recognise palestine, push for immediate ceasefire and prosecution of war crimes, back the south africa case, "[support] an urgent international effort to end the illegal occupation of palestinian land"

grant asylum-seekers the right to work before their application is granted

end the hostile environment

abolish Prevent

end routine stop-and-search and facial recognition

commission to reform 'counterproductive' drug regime, decriminalise personal possession

amend the Online Safety Act to "[protect] political debate from being manipulated by falsehoods, fakes and half-truths", ie actually protecting 'fReE sPeEcH' and not everything that rightists imply by that phrase

decriminalise sex work

reform laws to give artists IP protections against ai

cancel trident and disarm

push for nato reforms (in its and our interest, they're not russophiles, they're not galloway, it's ok): get it to adopt a no-first-use nuclear policy, get it to prioritise diplomatic action first rather than military reaction, get it to adopt a stronger line on only acting for the defence of its member states

right to roam🚶‍♂️

🌱CLIMATE

zero-carbon by 2040, rather than the ephemeral ostensible government target of 2050

stop all new oil/gas licenses, end all subsidy for oil/gas industries, regulate biofuels to end greenwashing, end subsidies for biomass

decarbonise energy by 2030, minimum threshold of energy infrastructures to be community owned, "end the de facto ban on onshore wind" with planning reform

massively expand the connections between the insular grid and the UCTE continental grid to increase electricity import and export and prevent the need for energy autarky

more targeted bans on single-use plastics

"give nature a legal personhood" ok grandma let’s get you to bed

§2b/a to local authorities for local small-business decarbonisation

"cease development of new nuclear power stations, as nuclear energy is much more expensive and slower to develop than renewables. we are clear that nuclear is a distraction from developing renewable energy and the risk to nuclear power stations from extreme climate events is rising fast. nuclear power stations carry an unacceptable risk for the communities living close to facilities and create unmanageable quantities of radioactive waste. they are also inextricably linked with the production of nuclear weapons. green MPs will campaign to phase out existing nuclear power stations." because some people just can't let go of the seventies. nuclear is good. nuclear is our friend

invest in r&d to find solutions to decarbonise 'residual' carbon in the economy, such as HGVs or mobile machinery

increase unharvested woodland by 50% (no time frame given), grants to farmers for scrub rewilding, rewet Pete Boggs, make 30% of the EEZ protected waters and ban bottom trawling

§4b/a in skills training to stop gas communities getting Thatchered, prioritising shifting these workers into offshore wind

a.. licensing scheme for all pet animals? you guys sure about that one

regulate animal farming with a goal of banning factory farms, ban mass routine antibiotics, ban cages/close confinement and animal mutilation

ban all hunting including coursing and "game", ban snaring, ban hunt-landscaping such as grouse moors, end the badger cull, mandate licensing of all animal workers with lifetime striking off for cruelty convictions, compulsory hedgehog holes in new fencing, 'push' for 'ending' horse and dog racing [clarification needed], new criminal offences for stealing and harming pets, 'work towards' banning animal testing

🗳️DEMOCRACY

proportional representation for parliament and all councils

abolish voter ID

votes at sixteen

votes for all visa'd migrants

restore the electoral commission's prosecutory powers and remove the cap on fines it can impose on parties

increase Short Money, especially for smaller parties

create a manifest legal category of organisation for think tanks, to allow better enforcement of lobbying and funding restrictions

consider fun new measures for political accessibility such as MP jobsharing and allowing public provision of offices for all parliamentary candidates

🎲OTHER STUFF

Self-ID including nonbinary recognition, including with an X passport marker

"work towards rejoining the eu as soon as the domestic political situation is favourable", join the eea now (with restored free movement)

let local authorities invest shares in sports teams, including professional ones, dividends ringfenced for public sports facilities and coaching

right to die

[sunshinesmebdy]

Uranus Awakens: How the Rebellious Bull Shakes Up Business and Finance in 2024

Prepare for disruption, fellow stargazers! As the revolutionary planet Uranus stations direct in the grounded sign of Taurus on January 27, 2024, a cosmic earthquake ripples through the world of business and finance. Get ready for unexpected twists, innovative breakthroughs, and a complete reshaping of the economic landscape. Buckle up, entrepreneurs, investors, and everyone in between — Uranus is here to shake things up!

The Cosmic Cocktail:

Imagine the stoic, earth-loving Taurus as a well-established bank, steeped in tradition and conservative practices. Now, picture the rebellious Uranus, bursting in with a briefcase full of digital currency and blockchain ideas. That’s the essence of this transit — a clash between old and new, stability and revolution, practicality and radical transformation.

Impacts to Expect:

Technological Disruption: Brace yourself for a wave of innovation in finance and business. Cryptocurrency, blockchain, and decentralized finance (DeFi) will take center stage, challenging traditional banking systems and pushing the boundaries of what’s possible.

Prepare for a digital gold rush as Uranus throws open the vault of financial innovation! Cryptocurrency will erupt into mainstream commerce, blockchain will become the new ledger, and DeFi will democratize finance like never before. Traditional banks better dust off their abacus and learn to code, because digital cowboys are charging onto the financial frontier, redefining how we value, exchange, and invest. From peer-to-peer microloans to fractionalized real estate ownership, the possibilities are as limitless as your imagination. Buckle up, because the tectonic plates of finance are shifting, and the digital revolution is rewriting the rules of the game!

Shifting Market Dynamics: Expect volatility and unexpected shifts in established industries. Old guard companies might scramble to adapt, while nimble startups with innovative ideas flourish. Think green energy disrupting fossil fuels, or AI revolutionizing the service industry.

Be prepared for market earthquakes! Uranus, the cosmic trickster, will send shockwaves through established industries, causing titans to tremble and upstarts to dance. Picture fossil fuels choking on the dust of solar panels, brick-and-mortar stores gasping as virtual bazaars boom, and customer service bots replacing flustered clerks. AI will infiltrate every corner, from crafting personalized shopping experiences to streamlining logistics, while sustainable solutions crack open resource-hungry giants. It’s a Darwinian playground for businesses — adapt or face extinction. This isn’t just a market shuffle, it’s a complete reshuffle of the deck, and the cards are dealt anew. Get ready for the thrill of the unexpected, because the only constant in this dynamic landscape is change itself!

Evolving Values: Sustainability, ethical practices, and social responsibility will become increasingly important for consumers and investors alike. Businesses that prioritize these values will thrive, while those stuck in outdated models might struggle.

Get ready for a values revolution! Consumers and investors will turn from price tags to purpose tags, demanding businesses that go beyond profit and prioritize sustainability, ethical sourcing, and social responsibility. Imagine carbon-neutral factories replacing smog-belching behemoths, fair-trade coffee beans eclipsing exploitative practices, and employee well-being becoming a non-negotiable bottom line. Businesses that cling to outdated models will find themselves gasping for air as ethical alternatives steal the oxygen. It’s not just a trend, it’s a tidal wave of conscious consumerism sweeping away the tide of greed. So, businesses, listen up: embrace responsible practices, champion inclusivity, and weave sustainability into your very fabric, or risk being swept away by the rising tide of conscious capitalism. The future belongs to those who do good, not just those who do well!

Collaborative Entrepreneurship: Collaboration and community-driven ventures will rise in prominence. Shared workspaces, cooperatives, and peer-to-peer platforms will gain traction, challenging the traditional top-down corporate structure.

Picture the corporate pyramid crumbling as the cosmic crane hoists the collaborative flag! Uranus, the revolutionary, encourages a seismic shift: from isolated silos to thriving beehives. Shared workspaces buzz with creative collisions, cooperatives blossom out of shared passions, and peer-to-peer platforms become the new marketplace, fueled by trust and mutual aid. The top-down hierarchy shivers as horizontal networks rise, blurring the lines between boss and worker, replacing command with consensus. Collaboration takes center stage, not competition, as communities band together to tackle challenges and build innovative solutions. So, entrepreneurs, shed your solopreneur capes and embrace the power of the collective! In this new social business ecosystem, where synergy triumphs over supremacy, the future belongs to those who share, empower, and co-create a brighter tomorrow. Let the collaborative revolution begin!

Focus on Personal Values: Individuals will increasingly prioritize work that aligns with their personal values and passions. Entrepreneurship fueled by purpose and authenticity will flourish, shaping a more diverse and fulfilling business landscape.

Prepare for a workplace metamorphosis! Uranus, the cosmic butterfly, flutters wings of purpose, urging individuals to shed the career chrysalis and soar towards fulfilling their true potential. Gone are the days of soul-sucking jobs; now, personal values take center stage as the compass guiding career choices. Imagine passionate bakers opening community cafes, eco-conscious designers launching upcycled fashion lines, and tech whizzes crafting apps that tackle social issues. Authenticity becomes the new currency, with entrepreneurs weaving their passions into the fabric of their ventures, creating a mosaic of purpose-driven businesses that cater to every corner of the human experience. This isn’t just a career shift, it’s a heart shift, transforming the business landscape into a vibrant tapestry of diverse talents and fulfilled souls. So, listen to your inner compass, embrace your unique spark, and let your passion ignite the world — the future of work belongs to those who dare to be true to themselves!

Tips for Navigating the Cosmic Chaos:

Embrace innovation: Don’t cling to the old ways. Stay open to new technologies, trends, and business models. Be curious, explore, and experiment.

Adapt and evolve: Be prepared to change course quickly. Agility and responsiveness will be key to success in this dynamic environment.

Prioritize sustainability and ethics: Integrate environmental and social responsibility into your business practices. Consumers and investors are increasingly drawn to values-driven companies.

Collaborate and connect: Build partnerships, join communities, and leverage the power of collective action. Collaboration will be crucial for navigating the changing landscape.

Follow your passion: Don’t be afraid to pursue your entrepreneurial dreams. Uranus encourages authenticity and purpose-driven ventures.

Remember, Uranus isn’t about chaos for chaos’ sake. It’s about dismantling outdated structures and paving the way for a more progressive, sustainable, and fulfilling economic future. By embracing the change, staying adaptable, and aligning your business with your values, you can not only survive this cosmic revolution but thrive in the exciting new world it creates. So, let your inner rebel loose, embrace the disruption, and ride the wave of innovation — the economic future is bright for those who dare to dream big!

[reyaint]

economy of HAIQIN

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date: november 24, 2024

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The Economy of Haiqin

Currency

Haiqian (HQN):

The currency symbol, HQN, is recognized regionally for stability and is commonly pegged against the USD. With a favorable exchange rate of 1 HQN to 0.75 USD, the Haiqian serves as a benchmark for economic health in neighboring countries.

Digital Currency:

As a forward-thinking nation, Haiqin has integrated digital currency into daily life. Roughly 80% of transactions are conducted digitally, promoting a cashless economy and streamlining payment methods for both domestic and international trade.

Banking & Financial Inclusion:

A highly developed banking sector offers easy access to financial services through mobile banking, particularly aiding small businesses. Public investment in financial education is substantial, aimed at improving fiscal literacy among citizens.

Trade Relations

Exports

Agricultural Products:

Due to fertile land and a favorable climate, Haiqin exports high-quality agricultural products, particularly fruits, vegetables, and grains during Iktoia. Specialty items, such as exotic herbs and teas unique to Haiqin, have a growing global market. These products are particularly sought after during harvest seasons, aligning with major festivals like Iktoia.

Artisanal Crafts:

Renowned for handmade textiles, clothes, pottery, and jewelry, the craftsmanship of Haiqin is a cornerstone of cultural exports, with a significant sales boost during the Festival of Arts. 

Technology:

Leading the way in green energy, Haiqin exports solar panels, software, and sustainable tech solutions to several nations.

Imports

Raw Materials:

Haiqin imports metals, oil, and minerals essential to its manufacturing sectors.

Luxury Goods:

High-end fashion, imported automobiles, and gourmet foods are popular among the elite, highlighting Haiqin’s demand for imported luxury.

Wealth Distribution

Income Disparities:

While Haiqin as a whole is wealthy, income inequality is evident, with urban centers like Stellis holding the majority of economic wealth, while more rural areas face economic challenges. The wealthy class largely consists of business magnates, tech industry leaders, and high-ranking government officials.

Middle-Class Growth:

Urban centers, particularly Stellis, have seen a rise in middle-class citizens, contributing to consumer spending and economic diversification.

Regional Disparities:

While urban areas enjoy greater access to services and infrastructure, rural areas have fewer economic opportunities, relying heavily on agriculture and artisanal crafts.

--scripted out poverty <333

Taxes & Tithes

Income Tax:

A progressive income tax scales from 10% to 35%, ensuring that higher earners contribute more significantly. Revenues from taxes fund public services, healthcare, and social programs.

Property Tax:

Property taxes are assessed based on land value and are used to fund local infrastructure projects. 

Trade Taxes & Tariffs:

Sales taxes on goods and services, coupled with protective tariffs, help sustain local industries, particularly in agriculture and manufacturing. A national sales tax applies to consumer goods and services, with specific tariffs on imports to protect Haiqin’s domestic industries.

Corporate Tax Incentives:

To encourage growth in key sectors, the government offers tax breaks and incentives to companies in tech and renewable energy fields, helping drive innovation and economic diversification.

Major Industries

Technology:

The tech sector is a powerhouse, with a focus on sustainable solutions, AI, and renewable energy technology. Haiqin has invested heavily in research and development, becoming known for cutting-edge advancements that are exported worldwide.

Agriculture:

Haiqin’s agriculture not only supplies its people with fresh produce but also generates export income. Farming is closely tied to cultural festivals like Iktoia, with agriculture supported by governmental subsidies and modernized techniques.

Tourism:

Festivals and natural beauty attract a steady influx of tourists, making tourism a primary economic driver. Events such as the Iktoia harvest festival, Nera Day, and Lunar Fest draw visitors year-round. The government promotes eco-tourism, highlighting Haiqin’s forests, mountains, and coastal regions.

Employment & Labor

Diverse Job Market:

The Haiqin labor market is diverse, with jobs spanning agriculture, technology, tourism, and manufacturing. The tech sector alone has led to a surge in jobs, while seasonal agricultural work remains important for rural populations.

Labor Laws & Unions:

Labor unions are active and influential, protecting fair wages and working conditions. Seasonal labor opportunities peak during harvest and festival seasons, with temporary roles often filled by students and short-term workers.

Social Safety Nets:

Haiqin’s social safety nets include universal healthcare, unemployment benefits, and retirement funds. The government aims to prevent poverty, supporting citizens in need with housing assistance, job retraining, and social programs for the elderly and disabled.

Sustainability Initiatives

Green Policies:

With eco-friendly initiatives spanning multiple sectors, Haiqin leads in sustainable agriculture, renewable energy, and waste reduction programs.

Circular Economy:

Recycling and resource-efficient production are emphasized. Industries are incentivized to minimize waste, with taxes on high-pollution businesses encouraging green alternatives.

Environmental Partnerships:

Collaboration with environmental organizations has facilitated eco-tourism and green business practices, creating jobs focused on conservation and sustainable development.

Infrastructure and Transportation

Transportation Networks: Haiqin boasts a modernized transportation system, with high-speed railways connecting major cities, public electric buses, and bike-sharing programs in urban areas. The government has invested heavily in infrastructure to reduce congestion and support eco-friendly transport.

Energy Sector: Haiqin generates most of its energy from renewable sources, including solar, wind, and hydroelectric power. Its commitment to reducing carbon emissions has led to advanced green energy technologies, some of which are exported.

[mariacallous]

On July 26, Russia’s Central Bank decided to raise the key interest rate from 16 to 18 percent. This decision was driven by unexpectedly high lending rates that previous regulatory measures had failed to curb. Russians are borrowing money and spending more, leading to a surge in prices. Inflation over the past year reached nine percent, far exceeding the government’s target of four percent. Meduza explains just how indebted Russians are and if this surge in lending is a serious issue for the authorities.

Why are Russians taking out loans?

According to Russia’s Central Bank, the volume of loans issued in the country has been steadily increasing since the spring of 2022. A few days after Russia launched its full-scale invasion of Ukraine, the bank raised its key rate to a prohibitive 20 percent, effectively halting all lending. However, it soon began bringing it back down. In April of that year, banks across the country issued loans totaling 859 billion rubles ($9.9 billion); by December, this figure had grown to two trillion ($23.1 billion).

In mid-2023, the Central Bank began raising the key rate again. Russians, realizing that loans were becoming more expensive, started applying for them sooner, causing overall loan volumes to jump to 2.4 trillion rubles ($27.8 billion) per month. This growth continued into 2024, driven by further government measures. Early this year, Russian authorities discussed curtailing preferential programs, primarily subsidized mortgages (a highly advantageous program for borrowers: while market rates were around 20 percent, the government offered loans at eight percent). Additionally, the Central Bank signaled a potential key rate increase. In response, Russians rushed to secure loans before rates increased. While the Central Bank has yet to release its official June report, analysts from Frank RG estimated that the volume of loans issued to individuals in that month increased by 13.74 percent (up 202.1 billion rubles, or $2.3 billion, compared to May 2024).

Another significant factor is income growth. Central Bank Head Elvira Nabiullina noted that people take out loans because “they’re confident in their future incomes” and feel they can “finance an improved life now.” According to Russia’s Federal State Statistics Service (Rosstat), real disposable incomes grew by more than five percent in 2023 and continued to grow in 2024. Independent analysts indirectly confirmed this, noting that consumer confidence indices are near historical highs.

The main driver of this income growth is the rapid increase in wages across many sectors of the Russian economy. As of April this year, nominal wages at large and medium-sized companies increased on average by 17 percent compared to April 2023, while real wages, adjusted for inflation, rose by 8.5 percent. Russian companies have to raise wages to attract employees as there’s a severe labor shortage in the job market.

Wages are growing fastest in industries fulfilling government defense orders. For example, in the production of “metal products” (as non-classified military goods are referred to in official statistics), wages increased by 24 percent in the span of a year. In the production of electronic products, which are also mainly supplied to the Russian army, wages rose by 28 percent.

As of May 2024, Russians owed banks more than 35.2 trillion rubles (over $408 billion). According to Meduza’s calculations, this represents an increase of nearly 22 percent in just one year. However, it’s not a record figure: in April, the amount owed was 36.6 trillion rubles ($423.6 billion). The payday loan segment grew even more rapidly, increasing by 28 percent in 2023, with Russians taking out 900 billion rubles ($10.4 billion) in loans. This growth continued into the first quarter of 2024, although the average loan amount remains around 10,000 rubles ($117).

Consumer lending has grown by 18 percent year-on-year, which economists attribute to the popularity of credit cards. Additionally, car loans have increased by 26 percent since the beginning of the year, which isn’t surprising given the record low availability of cars. Even pawnshops are showing positive trends: while there isn’t an increase in contracts, the average sum paid out gone up due to the rise in cost of precious metals.

As a result, the number of Russians with loans has reached 50 million. This is 40 percent of the country’s adult population. Over a quarter of these borrowers have more than three simultaneous loans, according to the Scoring Bureau credit history bureau. And that’s not the limit: 8.6 percent have taken out five or more loans, and the share of such debtors has doubled in two years.

One explanation is the popularity of mortgages. Eight out of 10 people with a mortgage also took out an additional loan, either for the down payment or for renovations. However, Scoring Bureau, attributes the increase to something else: the growing popularity of credit cards. In Russia, 27 million people have opened 91 million credit cards. Still, Central Bank representatives have expressed concern over the high level of indebtedness among Russians and mentioned “extreme cases,” including one person with 27 loans.

So Russians are saddled with debt?

Although more Russians are taking out loans, the average debt burden of the population — the share of household income spent on loan repayments — has remained relatively stable over the past few years. The Central Bank publishes data on this twice a year, and in the latest report from April, it noted that while the average debt burden has increased, it hovers around 11.2 percent. By comparison, in the first quarter of 2022, the average was even higher, peaking at 12.1 percent, and has since fluctuated within a two-percentage-point range. However, it’s important to note that this is an average, and some borrowers’ debt burden is significantly higher. Currently, 56 percent of borrowers in Russia have a debt burden of over 50 percent.

Another indicator of financial stability is the share of so-called bad debts — those with payments overdue by more than 90 days. In the consumer sector, this remains stable and doesn’t exceed eight percent, according to the Central Bank. According to a forecast from the ACRA rating agency, in 2024, the share of overdue debt in banks’ retail portfolios will not exceed three to four percent. The online lending service Moneyman calculated that Russians who take out payday loans actually repay their debts early in 43 percent of cases.

Frank RG analysts confirmed that the level of overdue debt and indebtedness indicators aren’t increasing. They pointed out that the ratio of the retail credit portfolio to GDP doesn’t exceed 30 percent, whereas in developed countries, the figure can reach up to 100 percent. Ivan Uklein, director of bank ratings at the Expert RA agency, believes that demographic factors alone may be driving the increase in the number of loans: in his opinion, Russia’s ���boomer generation,” unaccustomed to living on credit, is starting to make way for bolder millennials

Of course, there are also skeptics. The Communist Party (KPRF) described the level of indebtedness as “catastrophic” and called for a credit amnesty for families with children. The Central Bank has identified problematic mortgage practices, with banks issuing loans to borrowers who already had a high debt burden. Kommersant reported that problematic credit card debt is at an all-time high in Russia, though the publication clarified that this growth is proportional to the increase in the number of credit cards issued. And RBC pointed to the slow but steady growth of debts involving bankrupt or deceased borrowers, where collection is impossible.

Indeed, personal bankruptcies have increased. The Center for Macroeconomic Analysis and Short-Term Forecasting predicts this trend will continue, as current rates prevent borrowers from taking out new loans to repay old ones. According to a survey by the Higher School of Economics, 70 percent of large families in Russia have loans, often can’t save money, and are sometimes forced to forgo essentials due to a lack of funds. The Federal Tax Service also reported issues, stating that 1.3 trillion rubles ($15 billion) in payments for 2023 were overdue.

Is the government worried?

The main risk lies with borrowers who have a high debt burden, those who spend 50 or even 80 percent of their salary on loan repayments. Elizaveta Danilova, the head of the Central Bank’s financial stability department, explained: “When the economy is doing well, [when] there’s work, and wages are rising, people with a high debt burden manage to cope. During crises, everything changes. We saw this during the pandemic. There were many requests for loan payment deferrals and those with the highest debt burdens and off-the-books incomes faced the greatest challenges.”

Last year, the Central Bank set limits on how much banks and payday loan organizations can lend to high-risk clients. Under the updated rules, that amount can be zero in some cases. As a result, the share of new contracts with high-risk borrowers fell to 14 percent in the first quarter of 2024, down from 36 percent in 2022. Additionally, banks must now inform such borrowers about potential risks and difficulties, even if they plan to take out less than 10,000 rubles ($117). For payday loans, the total cost of credit, including principle and interest, has been capped at 292 percent per annum.

The financial authorities claim that the current debt burden of Russians “looks acceptable.” The focus is on gradually slowing down lending: preferential mortgages ended on July 1, and market rates should deter borrowers. Developers have reported that demand for new apartments has already slowed by 14 to 30 percent. Egor Susin, the managing director at Gazprombank Private Banking, wrote that similar trends can be expected in other areas: construction plays an important role in business loans, and consumer loans were growing because people needed to cover down payments.

A survey conducted by Sravni showed that two-thirds of Russians have put off buying real estate due to the end of preferential programs. The United Credit Bureau noted a slowdown in car loans after a recent peak, which was also driven by government support measures. VTB Bank expects a decrease in demand for consumer loans, and Russian banks’ profits have been falling for the second month in a row. Meanwhile, the Russian State Duma is preparing for a possible crisis. Deputies have passed a bill that will safeguard a bankrupt individual’s only home from being seized, even if it’s mortgaged.

[appicsoftwaresteam]

How To Develop A Fintech App In 2024?

FinTech, short for financial technology, represents innovative solutions and products that enhance and streamline financial services. These innovations span online payments, money management, financial planning applications, and insurance services. By leveraging modern technologies, FinTech aims to compete with and often complement traditional financial institutions, improving economic data processing and bolstering customer security through advanced fraud protection mechanisms.

Booming FinTech Market: Key Highlights And Projections

Investment Growth In FinTech

In 2021, FinTech investments surged to $91.5 billion.

This represents nearly double the investment amount compared to 2020.

The significant increase highlights the rapid expansion and investor interest in the global FinTech market.

Projected Growth In Financial Assets Managed By FinTech Companies

By 2028, financial assets managed by FinTech firms are expected to reach $400 billion.

This projection indicates a 15% increase from current levels, showcasing the potential for substantial growth in the sector.

Usage Of Online Banking

About 62.5% of Americans used online banking services in 2022.

This figure is expected to rise as more consumers adopt digital financial services.

Key FinTech Trends In 2024

1. Banking Mobility

The transition from traditional in-person banking to mobile and digital platforms has been significantly accelerated, especially during the COVID-19 pandemic. The necessity for remote banking options has driven a surge in the adoption of smartphone banking apps. Digital banking services have become indispensable, enabling customers to manage their finances without needing to visit physical bank branches. 

According to a report by Statista, the number of digital banking users in the United States alone is expected to reach 217 million by 2025. Many conventional banks are increasingly integrating FinTech solutions to bolster their online service offerings, enhancing user experience and accessibility.

2. Use Of Artificial Intelligence (AI)

AI in Fintech Market size is predicted at USD 44.08 billion in 2024 and will rise at 2.91% to USD 50.87 billion by 2029. AI is at the forefront of the FinTech revolution, providing substantial advancements in financial data analytics, customer service, and personalized financial products. AI-driven applications enable automated data analysis, the creation of personalized dashboards, and the deployment of AI-powered chatbots for customer support. These innovations allow FinTech companies to offer more tailored and efficient services to their users. 

3. Development Of Crypto And Blockchain

The exploration and integration of cryptocurrency and blockchain technologies remain pivotal in the FinTech sector. Blockchain, in particular, is heralded for its potential to revolutionize the industry by enhancing security, transparency, and efficiency in financial transactions. 

The global blockchain market size was valued at $7.4 billion in 2022 and is expected to reach $94 billion by 2027, according to MarketsandMarkets. These technologies are being utilized for improved regulatory compliance, transaction management, and the development of decentralized financial systems.

4. Democratization Of Financial Services

FinTech is playing a crucial role in making financial services more transparent and accessible to a broader audience. This trend is opening up new opportunities for businesses, retail investors, and everyday users. The rise of various digital marketplaces, money management tools, and innovative financing models such as digital assets is a testament to this democratization. 

5. Products For The Self-Employed

The increasing prevalence of remote work has led to a heightened demand for FinTech solutions tailored specifically for self-employed individuals and freelancers. These applications offer a range of features, including tax monitoring, invoicing, financial accounting, risk management, and tools to ensure financial stability. 

According to Intuit, self-employed individuals are expected to make up 43% of the U.S. workforce by 2028, underscoring the growing need for specialized financial products for this demographic. FinTech companies are responding by developing apps and platforms that address the unique financial needs of the self-employed, facilitating smoother and more efficient financial management.

Monetization of FinTech Apps

1. Subscription Model

FinTech apps can utilize a subscription model, which offers users a free trial period followed by a recurring fee for continued access. This model generates revenue based on the number of active subscribers, with options for monthly or annual payments. It ensures a steady income stream as long as users find the service valuable enough to continue their subscription.

2. Financial Transaction Fees

Charging fees for financial transactions, such as virtual card usage, bank transfers, currency conversions, and payments for third-party services, can be highly lucrative. This model capitalizes on the volume of transactions processed through the app, making it a significant revenue generator.

3. Advertising

In-app advertising can provide a consistent revenue stream. Although it may receive criticism, strategically placed banners or video ads can generate substantial income without significantly disrupting the user experience.

Types Of FinTech Apps

1. Digital Banking Apps

Digital banking apps enable users to manage their bank accounts and financial services without visiting a physical branch. These apps offer comprehensive services such as account management, fund transfers, mobile payments, and loan applications, ensuring transparency and 24/7 access.

2. Payment Processing Apps

Payment processing apps act as intermediaries, facilitating transactions between payment service providers and customers. These apps enhance e-commerce by enabling debit and credit card transactions and other online payment methods, supporting small businesses in particular.

To Read More Visit - https://appicsoftwares.com/blog/develop-a-fintech-app/

[ymw011]

Unveiling the Job Market: How Many Jobs Are Available in Finance Services in 2024?

In the ever-evolving landscape of finance, the job market plays a pivotal role in shaping career aspirations and industry trends. As we step into 2024, professionals and aspiring individuals  are eager to uncover the opportunities awaiting them in the realm of finance services, particularly in the United States. This article sheds light on the abundance of opportunities available in the finance services. 

Exploring the Finance Job Market Landscape:

Quantifying Opportunities:

How many jobs are available in finance in the USA?

Analyzing recent statistics and projections to gauge the scale of employment opportunities.

Factors influencing job availability, such as economic conditions, technological advancements, and regulatory changes.

Diverse Sectors, Diverse Opportunities:

Breaking down the finance sector into subcategories, including banking, investment management, insurance, and consumer services.

Highlighting the unique job prospects within each sector and the skill sets required to excel.

Identifying emerging roles and specialties that are gaining prominence in response to market demands and industry shifts.

Finance in the Digital Age:

Examining the impact of technology on job creation and the transformation of traditional finance roles.

The rise of fintech companies and their contribution to job growth, particularly in areas like digital banking, payment processing, and financial analytics.

The demand for professionals with expertise in data analysis, cybersecurity, and artificial intelligence within the finance sector.

Investment Management: A Thriving Field:

How many jobs are available in investment management?

Unveiling the job opportunities within investment firms, asset management companies, and hedge funds.

The significance of skilled portfolio managers, financial analysts, and risk assessment specialists in driving investment strategies and maximizing returns.

Exploring the global reach of investment management careers and the potential for growth in international markets.

Consumer Services: Meeting the Needs of Individuals:

Evaluating the job market within consumer-focused finance services, including retail banking, wealth management, and financial advising.

The demand for client relationship managers, financial planners, and retirement advisors in assisting individuals with their financial goals.

The role of personalized financial services and digital platforms in catering to the diverse needs of consumers and enhancing their financial literacy.

Trends Shaping the Future:

Anticipating future job trends in finance services and the skills that will be in high demand.

The growing importance of sustainable finance and environmental, social, and governance (ESG) investing, leading to opportunities in green finance and impact investing.

The influence of geopolitical factors, regulatory reforms, and demographic shifts on the finance job market landscape.

Conclusion:

As we go through 2024, the finance job market in the United States continues to offer a lot of opportunities across various sectors. Whether aspiring to go into investment management, consumer services, or the dynamic world of fintech, individuals with the right skills and expertise are well-positioned to thrive in this ever-evolving industry. By staying abreast with market trends, honing relevant skills, and embracing innovation, professionals can seize the abundant opportunities awaiting them in the realm of finance services.

[kitty-pelosi]

leftists have gotta be a bit more diligent about understanding the economic system we are criticizing. because while yes, irrational greed and lust for growth permeate capitalism wholly, there are structural material explanations for this behavior as well that illuminate more contradictions within the system as a whole which will give you a more grounded foundation to participate in conversation

businesses do not seek constant growth because of surface level ideological notions that are irrational - they seek constant growth because the international financial system of capital punishes entities that do not behave this way.

take for example the entire tech industry in America. it emerges at a time where banks are granting loans with extremely low interest rates. this allowed companies like Uber, Doordash, Facebook, etc to emerge as market disrupters operating at a loss. essentially, banks and venture capitalists gave money to tech industrialists for free (well on loan, but you can’t collect if the venture fails), speculating that these industrialists could use that money during an economic boom cycle to establish infrastructure that may or may not have value in the future. it’s like a bet. all of these companies failed to be profitable at the beginning. but, when a billion people then use Facebook, advertisers see a market and a relationship between two industrial sectors began, now data collection, AdSense, and similar services are a multi billion dollar industry. or Uber - they took loans to operate at a loss in their formative years, charging incredibly low prices for private transport that undercut the existing taxi industry. they were not profitable nor did they have a path toward being profitable UNTIL they were able to secure a significant enough share of the taxi ride market that they were a competitor (using loan-backed funding to subsidize low prices to secure that position) . and then, once they have enough recognition and market capture, they change the pricing structure toward one that actually produces a profit. this is done after taxi companies go bankrupt and consumers have no other choice, securing Uber’s future profits.

back to constant growth. the reason a business is in need of exponential profit is because they require investment. they need revenue to operate, but also an initial amount of cash to establish their existence. it costs money upfront to make a company. a loan from a bank, selling shares to investors, etc.

NOW. inflation is a constant financial force with time, and this is the motivator - every year, the exchange value of $1 is worth less and less. using money as Power, quite literally $1,000,000 in 2015 is More Powerful than $1,000,000 in 2024. inflation, interest rates, and banking regulations are determined by the government. Loans are determined by banks, and investors buy stock depending on how liquid they are (cash flow). these are the tools of government and capital in their control of the proletarian and petty bourgeois classes. this entire scheme serves to clamp down on entities that try to find a niche in the market and serve it in a static way, for example - publicly funded services. see where I am going?

so, when periods of economic depression occur such as the one we are all in presently, the government increases interest rates and banks become more withholding about loans. this is why tech laid everyone off last fall, they no longer have the milk coming in to support the fat. they are encouraged to focus solely on profitability. the time to collect has come and we are seeing if investor speculation works in their favor or not. this explains layoffs, enshittification of web services, etc. banks and the government have signaled that the time for experimentation and speculation is over, and that raw value must be realized.

in America, coupled with 501(c) laws, this serves to terminate entities that serve a market while paying their employees fairly and not really making a profit. taxes, inflation, and loans are the sword the powerful use to cut down co-ops and worker owned enterprises. In this way, the government has monopolized the concept of a service that does not generate a profit. they have structurally eliminated the ability for entities that are not the government to do this. or at least, rendered it almost impossible.

it’s not just mouth breathing upper middle class folks being greedy, or an evil cabal of venture capitalists looking for profit. it IS those things, but there is an actual system at play enforcing this structure and it’s extremely important to be aware of it, otherwise you aren’t going to be able to effectively critique and combat it. otherwise, you’re just shouting at a cloud about greedy men. and that’s not going to produce a just revolution, just a force that seeks retribution.

Growth capitalism is a deranged fantasy for lunatics.

Year 1, your business makes a million dollars in profit. Great start!

Year 2, you make another million. Oh no! Your business is failing because you didn't make more than last year!

Okay, say year 2 you make $2 mil. Now you're profitable!

Then year 3 you make $3 mil. Oh no! Your business is failing! But wait, you made more money than last year right? Sure, but you didn't make ENOUGH more than last year so actually your business is actively tanking! Time to sell off shares and dismantle it for parts! You should have made $4 mil in profit to be profitable, you fool!

If you're not making more money every year by an ever-increasing exponent, the business is failing!

Absolute degenerate LUNACY

[visionarycios]

Inflation Rises to 2.3% in October, Aligning with Fed Expectations

https://visionarycios.com/wp-content/uploads/2024/11/1-Inflation-Rises-to-2.3-in-October-Aligning-with-Fed-Expectations-Source-moneyandbanking.co_.th_.jpg

Source: moneyandbanking.co_.th

Inflation rises slightly in October, aligning with expectations, as the Federal Reserve continues to evaluate how much it should reduce interest rates. According to a report released by the Commerce Department on Wednesday, the personal consumption expenditures (PCE) price index, the Fed’s preferred measure of inflation, increased by 0.2% on a monthly basis and reached an annual inflation rate of 2.3%. Both figures matched analysts’ forecasts, though the annual rate showed an uptick from September’s 2.1%.

Core Inflation Records a Higher Increase

When food and energy costs were excluded, core inflation saw a stronger rise. Core inflation increased by 0.3% for the month, resulting in an annual rate of 2.8%. These numbers also aligned with projections, but the annual figure represented a 0.1 percentage point increase from the prior month.

Inflation in October was largely driven by higher service prices, which rose by 0.4%. In contrast, the cost of goods declined by 0.1%, while food prices remained relatively unchanged, and energy prices fell by 0.1%.

Fed’s Inflation Target Remains Above the 2% Mark

Inflation rises above the Federal Reserve’s 2% annual target, but the PCE inflation rate has remained above that level since March 2021. Inflation peaked at 7.2% in June 2022, prompting the Fed to launch an aggressive series of interest rate hikes.

Despite the latest data, the Federal Reserve appears cautiously optimistic. Inflation has slowed significantly since the peak, but it remains a persistent issue for households, particularly lower-income consumers. Inflation’s cumulative impact over the past two years has become a critical factor in economic discussions and the ongoing presidential race.

Market Reactions and Rate Cut Speculations

Inflation rises slightly, and the financial markets showed mixed reactions following the report. The Dow Jones Industrial Average gained around 100 points, while the S&P 500 and Nasdaq Composite both recorded declines. Treasury yields fell in response to the inflation data.

Traders have increasingly bet on another rate cut by the Federal Reserve in December. As of Wednesday morning, the odds of a 0.25% reduction in the central bank’s borrowing rate stood at 66%, based on CME Group’s FedWatch measure.

Consumer Spending and Income Trends

Despite inflationary pressures, consumer spending remained steady in October, though it slowed slightly compared to September. Current-dollar expenditures rose by 0.4% for the month, meeting expectations, while personal income saw a notable increase of 0.6%, surpassing the 0.3% forecast.

The personal saving rate, however, slipped to 4.4%, its lowest level since January 2023.

Housing Costs Continue to Drive Inflation

Inflation rises in part due to housing-related costs, which were a significant contributor to the overall increase in October. Housing prices rose by 0.4% during the month, defying expectations of a cooling trend as rents begin to ease.

The Federal Reserve monitors a range of economic indicators to assess inflation, but it relies on the PCE index as its primary forecasting tool. This metric is considered broader than the Consumer Price Index (CPI) because it accounts for changes in consumer spending habits, such as substituting higher-cost goods with more affordable options.

While officials view core inflation as a better long-term gauge of price stability, both headline and core figures are factored into monetary policy decisions.

Fed’s Strategy on Interest Rate Reductions

The report comes after consecutive interest rate cuts by the Federal Reserve in September and November, totaling 0.75%. Although the most recent reduction occurred after the period covered by the report, markets widely anticipated the move.

During the November meeting, Fed officials expressed confidence that inflation is steadily moving toward the 2% target. However, policymakers emphasized a cautious approach, advocating for gradual interest rate reductions to account for uncertainties about how much further cuts may be required.

As inflation rises, the latest data will likely play a significant role in shaping the Federal Reserve’s monetary policy in the coming months.

[dreaminginthedeepsouth]

Pat Bagley, Salt Lake Tribune

* * * *

LETTERS FROM AN AMERICAN

January 19, 2024

HEATHER COX RICHARDSON

JAN 19, 2024

President Joe Biden today signed the continuing resolution that will keep the government operating into March.

Meanwhile, the stock market roared as two of the three major indexes hit new record highs. The S&P 500, which measures the value of 500 of the largest companies in the country, and the Dow Jones Industrial Average, which does the same for 30 companies considered to be industry leaders, both rose to all-time highs. The third major index, the Nasdaq Composite, which is weighted toward technology stocks, did not hit a record high, although its 1.7% jump was higher than that of the S&P 500 (1.2%) or the Dow (1.1%).

Investors appear to be buoyed by the fact the rate of inflation has come down in the U.S. and by news that consumers are feeling better about the economy. A report out today by Goldman Sachs Economics Research noted that consumer spending is strong and predicted that “job gains, positive real wage growth, will lead to around 3% real disposable income growth” and that “household balance sheets have strengthened.” It also noted that “[t]he US has led the way on disinflation,” and it predicted further drops in 2024. That will likely mean the sort of interest rate cuts the stock market likes. 

The economic policies of the Biden-Harris administration have also benefited workers. The unemployment rate has been under 4% for more than two years, and wages have risen higher than inflation in that same period. Production is up as well, to 4.9% in the third quarter of 2023 (the U.S. growth rate under Trump even before the pandemic was 2.5%). 

The administration has worked to end some of the most obvious financial inequities in the U.S., such as the unexpected “junk fees” tacked on to airline or concert tickets, or to car or apartment rentals. On Wednesday the Consumer Financial Protection Bureau announced a proposed rule for bank overdraft fees at banks that have more than $10 billion in assets. 

While banks now can charge what they wish if a customer’s balance falls below zero, the proposed rule would allow them to charge no more than what it cost them to break even on providing overdraft services or, alternatively, an industry-wide fee that reflects the amount it costs to deal with overdrafts: $3, $6, $7, or $14. The amount will be established after a public hearing period.

Ken Sweet and Cora Lewis of the Associated Press note that while the average overdraft is $26.61, some banks charge as much as $39 per overdraft. The CFPB estimates that in the past 20 years, banks have collected more than $280 billion in overdraft fees. (One bank’s chief executive officer named his boat “Overdraft.”) Over the past two years, pressure has made banks cut back on their fees and they now take in about $8 billion a year from those overdraft fees. 

Bankers say regulation is unnecessary and will force them to end the overdraft service, pushing people out of the banking system. Biden said that the rule would save U.S. families $3.5 billion annually. 

The administration has also addressed the student loan crisis by reexamining the loan histories of student borrowers. An NPR investigation led by Cory Turner revealed that banks mismanaged loans, denying borrowers the terms under which they had signed on to them. Rather than honoring the government’s promise that so long as a borrower paid what the government thought was reasonable on a loan for 20 or 25 years (undergrad or graduate), the debt would be forgiven, banks urged borrowers to put the loan into “forbearance,” under which payments paused but the debt continued to accrue interest, making the amount balloon. 

The Education Department has been reexamining all those old loans to find this sort of mismanagement as well as other problems, like borrowers not getting credit for payments to count toward their 20 years of payments, or borrowers who chose public service not receiving the debt relief they were promised.

Today the administration announced $4.9 billion of student debt cancellation for almost 74,000 borrowers. That brings the total of borrowers whose debt has been canceled to 3.7 million Americans, with an erasure of $136.6 billion. Nearly 30,000 of today’s relieved borrowers had been in repayment for at least 20 years but never got the relief they should have; nearly 44,000 had earned debt forgiveness after 10 years of public service as teachers, nurses, and firefighters.

Biden has been traveling the country recently, touting how the economic policies of the Biden-Harris administration have benefited ordinary Americans. In Emmaus, Pennsylvania, last Friday he visited a bicycle shop, a running shoe store, and a coffee shop to emphasize how small businesses are booming under his administration: in the three years since he took office, there have been 16 million applications to start new businesses, the highest number on record.

Biden was in Raleigh, North Carolina, yesterday to announce another $82 million in support for broadband access, bringing the total of government infrastructure funding in North Carolina during the Biden administration to $3 billion.  

On social media, the administration compared its investments in the American people to those of President Franklin Delano Roosevelt’s New Deal in the 1930s, which were enormously popular. 

They were popular, that is, until those opposed to business regulation convinced white voters that the government’s protection of civil rights, which came along with its protection of ordinary Americans through regulation of business, provision of a basic social safety net, and promotion of infrastructure, meant redistribution of white tax dollars to undeserving Black people.

The same effort to make sure that ordinary Americans don’t work together to restore basic fairness in the economy and rights in society is visible now in the attempt to attribute a recent Boeing airplane malfunction, in which a door panel blew off mid-flight, to diversity, equity, and inclusion (DEI) efforts. Tesnim Zekeria at Popular Information yesterday chronicled how that accusation spread across the right-wing ecosystem and onto the Fox News Channel, where Fox Business host Sean Duffy warned: “This is a dangerous business when you’re focused on DEI and maybe less focused on engineering and safety.” 

As Zekeria explains, “this narrative has no basis in fact.” Neither Boeing nor its supplier, Spirit AeroSystems, is particularly diverse, either at the workforce level, where minorities make up 35% of Boeing employees and 26% of those at Spirit AeroSystems, or on the corporate ladder, where the overwhelming majority of executives are white men. Zekeria notes that right-wing media figures have also erroneously blamed last year’s train derailment in Ohio and the collapse of the Silicon Valley Bank on DEI initiatives.

The real culprit at Boeing, Zekeria suggests, was the weakened regulations on Boeing and Spirit thanks to more than $65 million in lobbying efforts.

Perhaps an even more transparent attempt to keep ordinary Americans from working together is the attacks former Fox News Channel personality Tucker Carlson has launched against Vice President Kamala Harris, calling her “a member of the new master race” who “must be shown maximum respect at all times, no matter what she says or does.” Philip Bump of the Washington Post noted yesterday that this construction suggests that Harris, who identifies as both Black and Indian, represents all nonwhite Americans as a united force opposed to white Americans. 

But Harris’s actions actually represent something else altogether. She has crossed the country since June 2022, when the Supreme Court overturned the 1973 Roe v. Wade decision that recognized the constitutional right to abortion, talking about the right of all Americans to bodily autonomy. That the Supreme Court felt able to take away a constitutional right has worried many Americans about what they might do next, and people all over the country have been coming together in opposition to the small minority that appears to have taken over the levers of our democracy. 

Driving the wedge of racism into that majority coalition seems to be a desperate attempt to stop ordinary Americans from taking back control of the country.  

LETTERS FROM AN AMERICAN

HEATHER COX RICHARDSON

[third-rook]

The calendar is flipping from 2024 to 2025, and whether you're looking to start off the new year with a cup of coffee, a sit-down breakfast, or looking for some retail therapy, consumers should have some options on New Year's Day. Most restaurant, grocery and retail chains will be open on Jan. 1, albeit some under adjusted hours. Banks, post offices, shipping services and the stock market, however, will be closed on the federal holiday. Here's everything you need to know about what's open and closed on Wednesday, Jan. 1. Remember, it's best to check with your local store or restaurant online before leaving home, as hours and closures can vary by location.

[tameblog]

NEW YORK – The area rug market, once buoyed by the Covid-era home décor surge, finds itself facing substantial challenges in almost every facet of the business. Sales started to slow dramatically in the spring of 2024 as persistent inflation, political uncertainty and escalating costs for goods and services left a noticeable impact on both consumers and businesses. As the industry heads into 2025, the outlook remains complex, but there is cautious yet palpable optimism for recovery. Like most home product segments, the area rugs category saw a remarkable boost during the pandemic as consumers invested in home improvements. This trend thinly stretched into 2023. Retailers experienced flat to slight increases in business levels, albeit far below the pandemic peak. Consumers’ spending behaviors and preferences began to shift as the year progressed, with high inflation and economic uncertainty creating hesitancy among shoppers. “We saw a steady performance in 2023, but the enthusiasm from the pandemic has faded,” Cameron Capel, president of sales, marketing, and imports at Capel Rugs, told sister publication Home Textiles Today. By the first quarter of 2024, the rug category hit the wall. A tightening economy led to decreased spending, with rug sales nearing a standstill for many retailers. “It’s been a downturn across the board,” Capel continued. “The exception has been our high-end offerings, which are less affected by economic shifts.” Shifting up-market to chase sales  As economic pressures continue to shape consumer spending, high-end products are proving to be a saving grace for some companies. Capel Rugs, for example, is shifting focus toward more affluent customers who remain resilient in the face of economic uncertainty. The company’s high-end, handmade rugs — such as hand-knotted and tufted wool varieties — have shown resilience, as these shoppers are less affected by inflation. To manage shipping costs, the company has subtly shrunken large rug sizes to avoid surcharges from major freight carriers. “When and where possible, we’ve adjusted the sizes to hit just below eight feet,” Capel explained. “A rug that once shipped for $50 might now cost $250 extra to get out the door, so it’s helped to minimize those fees for the end consumer who gets stuck with that added expense.” Similarly, Kaleen has taken steps to make its products more appealing to luxury markets while avoiding exorbitant shipping costs. “Our Luxe Collection is crafted with foldability in mind, making it efficient for shipping without incurring surcharges,” said Monty Rathi, Kaleen’s chief operating officer. This trend toward higher-end products is expected to carry through early 2025, with some companies banking on a recovery in consumer confidence under the incoming presidential administration. For now, however, budget-conscious consumers remain hesitant to make discretionary purchases, particularly for home decor. A tougher environment for machine-made constructions Because of its vertically integrated business model built solely around domestic production, Maples Rugs benefits from several advantages over its competitors despite the challenged environment. “Business for machine-made rugs has not been strong, that’s true, but we are hopeful it will soon start to improve,” said Wade Maples, founder of Maples Rugs – which he claims is the “one true domestic producer of rugs left in the U.S.” The family-owned company manufactures tufted rugs made from pre-dyed yarn and printed area and accent rugs. “We make all of our product, we warehouse it and we ship it,” he continued. “Carrying that big inventory allows us to ship quicker and more reliably than our competitors because we ship direct so that the retailers pay the freight, not the consumers.” While high-end products are seeing some resilience, the machine-made rug sector faces a different set of challenges. The market is crowded, with an influx of lower-priced imports – particularly from Turkey – creating fierce competition and driving down prices. Machine-made rugs, once seen as cost-effective options offering variety and versatility, are now perceived more as commodity items with little differentiation, especially in online marketplaces. “It’s become a pure pricing war,” Bart Hill, senior vice president at Mohawk Industries, told HTT. “E-commerce has turned the category into a race to the bottom, making it difficult for suppliers to stand out.” As a result, some companies are reconsidering their investment in machine-made rugs, instead focusing on higher-quality specialty items that perform better in brick-and-mortar settings where consumers can appreciate them firsthand. Warehouse clubs and mass market retailers have emerged as major outlets for these volume-driven products, leaving independent home decor shops and department stores struggling to keep up. Looking for an upswing in the demand cycle Despite these challenges, manufacturers are hopeful that 2025 could bring a rebound in demand. Many consumers haven’t updated their home decor since the early pandemic years, and companies believe that once economic conditions stabilize, there may be pent-up demand for home updates. Larry Mahurter, senior vice president of marketing at Couristan, pointed out that interest in high-end and custom area rugs has been on the rise. Couristan, which introduced a full range of hand-loomed carpets in recent years, has seen strong demand for custom rug designs — a segment it is actively expanding. “There’s untapped potential among consumers who haven’t refreshed their home decor in years,” he said. “As stability starts to resume, we anticipate a resurgence in demand.” Another factor affecting consumer spending in the rug market is competition from other industries. According to Nourison’s vice president of marketing & creative, Giovanni Marra, changing consumer priorities post-pandemic have also played a role. “Some consumers are spending their disposable income on experiences, like travel and events, rather than home decor,” he said, noting that this shift has affected furniture and décor sectors as a whole. Amid the industry’s struggles, some companies are embracing diversification as a means of navigating a tough market. Mohawk Home, for instance, broadened offerings through its 2022 acquisition of Foss Flooring, moving beyond decorative rugs to include functional products like utility flooring in addition to doormats and rug pads. This diversification has allowed Mohawk to enter new retail channels and better weather the fluctuations in demand for fashion-oriented area rugs. “The rug industry is over capacity and over-inventoried right now,” Hill added. “We’ve adapted by expanding into non-traditional categories and adding value-driven products. We believe that diversification is essential for survival in this challenging environment.” In tandem with the macro economy, the area rug industry also finds itself at a crossroads. Inflation remains a factor and consumer confidence wavers, and manufacturers and retailers are having to face difficult choices. Rising shipping costs, competitive pricing pressures and shifting consumer priorities have made this year one of adaptation and resilience. For now, many companies are making strategic adjustments, from reducing sizes to avoid surcharges to focusing on luxury markets less affected by economic fluctuations. As manufacturers, wholesalers, and retailers adjust to this “new normal,” they’re banking on these changes to help weather the storm and prepare for the rebound they hope will come in 2025. “There’s light at the end of the tunnel,” said Hill. “We’re anticipating a more stable environment and believe that consumers will return to home decor purchases when the economy stabilizes. And that should be sooner rather than later.”       !function(f,b,e,v,n,t,s) if(f.fbq)return;n=f.fbq=function()n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments); if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0'; n.queue=[];t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t,s)(window, document,'script', ' fbq('init', '693453330863834'); fbq('track', 'PageView'); Source link

[ramestoryworld]

NEW YORK – The area rug market, once buoyed by the Covid-era home décor surge, finds itself facing substantial challenges in almost every facet of the business. Sales started to slow dramatically in the spring of 2024 as persistent inflation, political uncertainty and escalating costs for goods and services left a noticeable impact on both consumers and businesses. As the industry heads into 2025, the outlook remains complex, but there is cautious yet palpable optimism for recovery. Like most home product segments, the area rugs category saw a remarkable boost during the pandemic as consumers invested in home improvements. This trend thinly stretched into 2023. Retailers experienced flat to slight increases in business levels, albeit far below the pandemic peak. Consumers’ spending behaviors and preferences began to shift as the year progressed, with high inflation and economic uncertainty creating hesitancy among shoppers. “We saw a steady performance in 2023, but the enthusiasm from the pandemic has faded,” Cameron Capel, president of sales, marketing, and imports at Capel Rugs, told sister publication Home Textiles Today. By the first quarter of 2024, the rug category hit the wall. A tightening economy led to decreased spending, with rug sales nearing a standstill for many retailers. “It’s been a downturn across the board,” Capel continued. “The exception has been our high-end offerings, which are less affected by economic shifts.” Shifting up-market to chase sales  As economic pressures continue to shape consumer spending, high-end products are proving to be a saving grace for some companies. Capel Rugs, for example, is shifting focus toward more affluent customers who remain resilient in the face of economic uncertainty. The company’s high-end, handmade rugs — such as hand-knotted and tufted wool varieties — have shown resilience, as these shoppers are less affected by inflation. To manage shipping costs, the company has subtly shrunken large rug sizes to avoid surcharges from major freight carriers. “When and where possible, we’ve adjusted the sizes to hit just below eight feet,” Capel explained. “A rug that once shipped for $50 might now cost $250 extra to get out the door, so it’s helped to minimize those fees for the end consumer who gets stuck with that added expense.” Similarly, Kaleen has taken steps to make its products more appealing to luxury markets while avoiding exorbitant shipping costs. “Our Luxe Collection is crafted with foldability in mind, making it efficient for shipping without incurring surcharges,” said Monty Rathi, Kaleen’s chief operating officer. This trend toward higher-end products is expected to carry through early 2025, with some companies banking on a recovery in consumer confidence under the incoming presidential administration. For now, however, budget-conscious consumers remain hesitant to make discretionary purchases, particularly for home decor. A tougher environment for machine-made constructions Because of its vertically integrated business model built solely around domestic production, Maples Rugs benefits from several advantages over its competitors despite the challenged environment. “Business for machine-made rugs has not been strong, that’s true, but we are hopeful it will soon start to improve,” said Wade Maples, founder of Maples Rugs – which he claims is the “one true domestic producer of rugs left in the U.S.” The family-owned company manufactures tufted rugs made from pre-dyed yarn and printed area and accent rugs. “We make all of our product, we warehouse it and we ship it,” he continued. “Carrying that big inventory allows us to ship quicker and more reliably than our competitors because we ship direct so that the retailers pay the freight, not the consumers.” While high-end products are seeing some resilience, the machine-made rug sector faces a different set of challenges. The market is crowded, with an influx of lower-priced imports – particularly from Turkey – creating fierce competition and driving down prices. Machine-made rugs, once seen as cost-effective options offering variety and versatility, are now perceived more as commodity items with little differentiation, especially in online marketplaces. “It’s become a pure pricing war,” Bart Hill, senior vice president at Mohawk Industries, told HTT. “E-commerce has turned the category into a race to the bottom, making it difficult for suppliers to stand out.” As a result, some companies are reconsidering their investment in machine-made rugs, instead focusing on higher-quality specialty items that perform better in brick-and-mortar settings where consumers can appreciate them firsthand. Warehouse clubs and mass market retailers have emerged as major outlets for these volume-driven products, leaving independent home decor shops and department stores struggling to keep up. Looking for an upswing in the demand cycle Despite these challenges, manufacturers are hopeful that 2025 could bring a rebound in demand. Many consumers haven’t updated their home decor since the early pandemic years, and companies believe that once economic conditions stabilize, there may be pent-up demand for home updates. Larry Mahurter, senior vice president of marketing at Couristan, pointed out that interest in high-end and custom area rugs has been on the rise. Couristan, which introduced a full range of hand-loomed carpets in recent years, has seen strong demand for custom rug designs — a segment it is actively expanding. “There’s untapped potential among consumers who haven’t refreshed their home decor in years,” he said. “As stability starts to resume, we anticipate a resurgence in demand.” Another factor affecting consumer spending in the rug market is competition from other industries. According to Nourison’s vice president of marketing & creative, Giovanni Marra, changing consumer priorities post-pandemic have also played a role. “Some consumers are spending their disposable income on experiences, like travel and events, rather than home decor,” he said, noting that this shift has affected furniture and décor sectors as a whole. Amid the industry’s struggles, some companies are embracing diversification as a means of navigating a tough market. Mohawk Home, for instance, broadened offerings through its 2022 acquisition of Foss Flooring, moving beyond decorative rugs to include functional products like utility flooring in addition to doormats and rug pads. This diversification has allowed Mohawk to enter new retail channels and better weather the fluctuations in demand for fashion-oriented area rugs. “The rug industry is over capacity and over-inventoried right now,” Hill added. “We’ve adapted by expanding into non-traditional categories and adding value-driven products. We believe that diversification is essential for survival in this challenging environment.” In tandem with the macro economy, the area rug industry also finds itself at a crossroads. Inflation remains a factor and consumer confidence wavers, and manufacturers and retailers are having to face difficult choices. Rising shipping costs, competitive pricing pressures and shifting consumer priorities have made this year one of adaptation and resilience. For now, many companies are making strategic adjustments, from reducing sizes to avoid surcharges to focusing on luxury markets less affected by economic fluctuations. As manufacturers, wholesalers, and retailers adjust to this “new normal,” they’re banking on these changes to help weather the storm and prepare for the rebound they hope will come in 2025. “There’s light at the end of the tunnel,” said Hill. “We’re anticipating a more stable environment and believe that consumers will return to home decor purchases when the economy stabilizes. And that should be sooner rather than later.”       !function(f,b,e,v,n,t,s) if(f.fbq)return;n=f.fbq=function()n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments); if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0'; n.queue=[];t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t,s)(window, document,'script', ' fbq('init', '693453330863834'); fbq('track', 'PageView'); Source link