If we slash trillions from the federal budget, what does that do to our GDP?
The summer of discontent stretches on. As July ebbs into August, we have no resolution on the federal debt limit issue. The possibility of default is still in play. Republican leaders want major cuts to entitlement programs as a condition of raising the debt ceiling; Democrats agree on the necessity of cuts but also want tax hikes for the wealthiest Americans to bring in added revenue.
A trillion-dollar divide. On July 14, CNBC.com reported that both parties had tentatively agreed on nearly $1.4 trillion worth of reductions to the federal budget. That’s not too surprising: $1.4 trillion is the projected size of the budget gap for the fiscal year ending in September. Republicans have called for $2.4 trillion in cuts.1,2
This federal belt-tightening is going to lead politicians, economists and consumers into the second part of the debt cap (more…)
Is there a chance that America could actually default on its debt?
When will the debt ceiling issue be solved? The NFL, the NBA, the EU, Congress … wherever you look, it seems people would rather wrangle these days than resolve their differences. The U.S. Treasury has set a hard deadline of August 2 for Congress to settle its divide on the federal debt ceiling, and if partisan bickering interferes, the world economy could suffer a severe hit.
What would happen if we miss the deadline? According to federal budget analysts at the Bipartisan Policy Center, the Treasury would only be able to make a slight majority of its 80 million monthly payments in August. Treasury Secretary Timothy Geithner would likely be put in the same position as a struggling consumer low on cash and behind on his bills: he would have to selectively decide which debts to pay for the month and which to ignore.1
Should August 2 come and go without a solution, Congress’s inaction (and Geithner’s subsequent decisions) would have dramatic global repercussions. Most likely, his big priority would be to pay off bond investors so that a formal (more…)
The phrase “impact investing” has become the lead moniker chosen to represent several purpose-driven or values-driven strategies that have evolved over the last two decades. Other names such as “sustainable investing”, “socially responsible investing or sustainable, responsible and impact (SRI)”, “corporate social responsibility (CSR)”, “environmental, social and governance (ESG)”, all seem to have been folded-up … Continue reading “Impact Investing: Performance, Purpose and Positioning”
“Conscious” Capitalism? An oxymoron it is not. It is a movement sweeping across the globe and growing in size, popularity and in the impact that it is having for those business leaders who embrace it. It, in my opinion, should become the standard by which businesses are evaluated for investment and judged in the court … Continue reading “Why We Embrace Conscious Capitalism®”
This is the first time that I’ve ever posted an article from someone else, but this particular article struck me. Maybe it’s because I still consider myself a fairly new father with a 19-month old and an “almost” 3-year old at home. Simply enough, I thought this was worth sharing. In fact I believe anything … Continue reading “How to Live a Beautiful Life”
Exactly one month ago today, I returned from a 12-day trip to Uganda. While there, myself and a group of 15 others did water projects such as building a rainwater harvest tank and making and distributing bio-sand filters. The organization that hosted the trip was a non-profit based out of Boone, NC called Wine to Water. … Continue reading “A Lesson from Uganda”
If #GivingTuesday wasn’t great enough on it’s own, Facebook ‘s founder and CEO Mark Zuckerberg stole the show with an absolutely extraordinary pledge to give away 99% of his Facebook fortune over his and his wife Priscilla Chan’s lifetime. That amount, as it stands today would total over 45 billion dollars. This will be done … Continue reading “The Zuckerberg Impact”