US-China Auto Trade Clash and Its Consequences | Weekly Business Briefs w/ Martin Perdomo

What if the Federal Reserve's recent rate cut is the very move that could save or doom our economy? As we explore this high-stakes decision, we'll weigh the potential rewards and risks, including the possibilities of rising unemployment and inflation. Join us as we question whether the Fed's bold strategy will stabilize the market or create long-term challenges. We'll offer our perspective on why we think the Fed should have acted sooner and more aggressively.

Next, we turn our attention to the latest income statistics, which show an average American household income rise to $80,610, but not everyone is celebrating. We break down the disparities in income growth across different demographics and provide practical tips on how to boost your earnings, whether through negotiating a raise or starting a side hustle. Lastly, we discuss the US government's proposed ban on Chinese-made cars and trucks due to national security concerns, examining its potential impact on the auto industry and US-China trade relations. Tune in for a deep dive into these pressing issues and discover what they mean for you.

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Transcript

Speaker 1: 0:29

It's Wednesday, september 25th 2024, and it's time to get down to business and dive into the top three news in this week's Weekly Business Breach. First up, we finally had a rate cut back. What's next for the economy? The Federal Reserve recently took a significant gamble at slashing interest rates. While this move aims to prevent an economic downturn, historical data shows that recessions often follow such cuts. Additionally, there's a risk of increased unemployment and inflation. Past rate cuts have typically led to higher unemployment rates and the pandemic distorted this trend. Meanwhile, there is a concern that lower interest rates might fuel inflation by increasing demand. The Fed's decision is a calculated risk and only time will tell whether it will pay off.

Speaker 1: 1:22

Critics of the Fed's decision argue that its short-term solution may exaggerate long-term economic problems. They warn that excessive monetary stimulus could lead to asset bubbles and financial instability. Well, I say to those guys what's the other option? You continue to keep rates high and unemployment continues to go up the way it has been, and I think they're a little bit too late at this point. So I disagree with these guys. I think the Fed should have cut sooner and it should have cut deeper, and they need to make more cuts in order to continue to stimulate the economy, in my opinion, to avoid a larger unemployment problem, as unemployment sits right now at about 4.3%.

Speaker 1: 2:06

In other news, the average American income just got a big boost, but not for everyone. The average American household income has increased by 4% to $80,610 in 2023, according to the Census Bureau. However, this increase isn't the same for everyone. Some people are making significantly more than others, and there's still a big gap between men and women earnings. For example, while incomes have increased for all income levels, white and non-Hispanic Americans saw the most significant gains, while Black Asians and Hispanic households didn't see much of a change. Additionally, the female-to-male earning ratios decreased 82.7% in 2023 from 84% in 2022, making the first substantial decline since 2003. If you're feeling left behind, don't worry. There's things you can do to boost your income, like finding a new job, negotiating a raise or starting a side hustle. Remember, it's not just about how much you make, but how you manage to invest your money. Investing your earnings can help you build wealth at a good time, even if your income is below average. If you're interested in learning more about achieving financial freedom and learn the basics of investing in real estate, I can help you get started by checking out my website, wwwmartinrimasterycom.

Speaker 1: 3:28

Biden is not out of the clear yet, because this week in Biden Watch, biden wants to ban Chinese cars in a possible auto let. The US government is taking a hard stance against Chinese-made cars and trucks. They're concerned that these vehicles could be used by the Chinese government to spy on Americans and potentially even harm them. The government is proposing a new rule that would effectively ban the sale of Chinese-made cars and trucks in the US. This means that American car companies will have to find new suppliers for parts that are currently made in China. It's a big deal, because many modern cars rely on technology that's made in China. The US government is worried that Chinese cars could be remotely controlled or used to collect data on drivers and infrastructure. There are also concerns that the Chinese government could use these vehicles to launch cyber attacks. The new rule is a significant escalation in the US-China trade war. It's likely to spark protests from Chinese car companies and the Chinese government. However, the US government is determined to protect the safety and security of Americans.

Speaker 1: 4:36

Good for you, president Biden, good for you, senator, good for you for putting the American interests first. Absolutely approve this message Personally. Your job as the President of the United States is to protect the American people and if China is a threat, then be it. Too bad for them. You're not going to spy on us in America here. Too bad for you. So I've got to give it to the Democrats here. Good for you for freaking, protecting us, standing up for us. Don't sell us out. Protect us. That's the job of the president, that's the job of the government to protect the American people. And for me, that's who I'm voting for, for, who I think is going to have the best interest of the American people. America goes first. Period of the story. This is my house, this is where I live, and if China is a threat to me and my family and my neighbors, then that's what it is. It is what it is and that has been your weekly business brief. I'll see you guys next week.