Episode 45: Family Tradition
Goodbye Q1 and hello Q2! And Happy Good Friday! Easter weekend is a special date on the Christian calendar, and I hope each of you finds time this weekend to be with the people that mean the most to you. Whether you like to spend this holiday worshiping, playing, or resting, enjoy your family tradition.
POLITICS
President Biden unveiled a $2.3 trillion “American Jobs Plan,” calling it “a once-in-a-generation investment in America.” This plan follows the $1.9 trillion American Rescue Plan signed into law last month by President Biden. And that was preceded by the Consolidated Appropriations Act, signed into law by President Trump in December, which allocated $900 billion in coronavirus aid. And in March 2020, President Trump signed into law the CARES Act, giving $2 trillion in relief to the US economy to combat the pandemic’s economic impact. For those counting at home, that’s over $7 trillion in planned spending over the past year.
President Biden promotes his newest plan as an “infrastructure investment,” despite less than half of the money going to items traditionally considered infrastructure. Senate Republicans are vocal in their opposition to the plan, noting that less than “6% of the massive proposal goes to roads and bridges,” items most associated with infrastructure. On the other end of crazy, Congresswoman Alexandria Ocasio-Cortez (Democrat) said the price tag was woefully insufficient and that the government should spend closer to $10 trillion. Below is a breakdown of how Biden would like to spend the $2.3 trillion:
Infrastructure: $932 billion
Improve highways, bridges, ports, airports, and transit systems ($621 billion). Improve and repair 20,000 miles of highways and roads, fixing the nation’s ten most “economically significant” bridges (the administration has not provided a list) along with thousands of smaller ones, and updating buses and rail cars. This part of the plan also includes the creation of a network for charging electric vehicles.
Provide clean drinking water ($111 billion). Replace lead pipes and service lines known to cause serious health problems in water systems nationwide. A recent report found more than one-third of the country’s drinking water reportedly has arsenic, lead, and other toxic chemicals.
Renew the electric grid and provide high-speed broadband internet service to all Americans ($100 billion). It also promises “affordable, reliable, high-speed broadband to every American,” noting that 35% of Americans living in rural areas don’t have reliable access to the internet.
Update the US power grid ($100 billion). Develop a more efficient and resilient grid to withstand natural disasters and potential terrorism.
Housing, Schools and Health Care: $766 billion
Raise wages and benefits for home health care workers ($400 billion). The plan would create job opportunities for home health care workers and provide more options and availability for people needing these services. Access to home and community-based health services would expand under Medicaid.
Increase affordable housing options ($213 billion). Build or update more than 2 million housing units, including more than 500,000 homes for low- and middle-income homebuyers.
Modernize public schools and community colleges ($100 billion).
Modernize Veterans Affairs hospitals and federal buildings ($28 billion).
Improve access to child care ($25 billion).
Manufacturing, Small Business, and Job Training: $590 billion
Strengthen American manufacturing ($300 billion). Funding to create jobs and prevent job losses caused by potential future pandemics. It also focuses on creating jobs and manufacturing items purchased by the federal government, including electric vehicles.
Invest in R&D ($180 billion). Investment in emerging technology fields and climate science and establish the US as a leader in these areas. This earmark includes a $10 billion investment for research and development at Historically Black Colleges and Universities (HBCUs) and Minority-Serving Institutions (MSIs)
Invest in workforce development ($100 billion). Create training programs for workers who have lost their jobs and need to learn new skills in the economy’s growing sectors. The plan will prioritize job creation for training for underserved communities, formerly incarcerated people, people with disabilities, and the long-term unemployed.
Protect workers($10 billion). Enforce fair pay and workplace safety efforts, including protection from racial discrimination and harassment.
President Biden held the first Cabinet meeting of his presidency yesterday, and he opened the meeting encouraging Cabinet secretaries to help sell his infrastructure plan to the American people. Biden hopes to pay for the plan over 15 years by raising taxes on corporations and eliminating tax loopholes and exemptions. Republicans slammed the bill as a “Trojan horse” for tax hikes on individuals. President Trump reduced the corporate tax rate to 21% from 35% in 2017. President Biden’s proposal would increase the corporate tax rate to 28% and eliminate all loopholes and exemptions. At least 55 of America’s largest corporations, including FedEx, Nike, Archer-Daniels-Midland, and Salesforce, paid no federal taxes last year on billions of dollars in profits. Twenty-six of the companies listed, including FedEx, Duke Energy, and Nike, were able to avoid paying any federal income tax for the last three years even though they reported a combined income of $77 billion. Historically, the Republican Party supports infrastructure investments. Still, this plan will face an uphill battle due to the price tag and allocation. Democrat lawmakers hope to get the plan approved by July 4th.
COVID
First, good news. New data suggests that vaccinated people don’t appear to carry or transmit the virus to other people. This research refutes an earlier belief that vaccinated people were protected from coronavirus but could pass the virus to non-vaccinated people. The US is currently administering an average of 2.83 million shots per day. Over 100 million Americans, or roughly 40% of the country age 18+, have received at least one shot of a vaccine.
Furthermore, the CDC further relaxed guidelines for vaccinated individuals, saying today that those who’ve received a COVID vaccine can travel safely. Despite the policy change, individuals arriving in the US from outside the country will still need to show a negative COVID test to travel. The European Union has announced plans for a mobile-based “Digital Green Certificate,” or so-called vaccine passport, which would be proof that a person has either been vaccinated against COVID, received a negative test result, or recovered from COVID. The concept of a vaccine passport isn’t new: to travel to certain countries, for example, you already need inoculations against yellow fever and other infectious diseases. President Biden has said that he will leave the development of a vaccine passport in the US to the private sector. At least 17 initiatives are underway to do so, The Washington Post reported. The CDC maintained that unvaccinated individuals should still avoid traveling within the US.
After months of testing, Pfizer said that its COVID-19 vaccine was 100% effective in kids 12 to 15 and created “robust” antibody responses. The company also announced its vaccine is 91% effective against the South Africa variant—the one that has shown the greatest sign of being able to evade antibodies. Vaccine makers are testing boosters as the virus continues to mutate. Plus, studies show that the Pfizer vaccine remains effective after six months and most experts believe protection could last years.
Now the bad news. After more than two months of steep declines, coronavirus infections are rising again in the US. In the past seven days, the US reported more than 65,000 new cases per day, a jump of 20% from two weeks earlier. These signs all point to the growing threat of another surge in cases, with regional differences. The Midwest registered a 58% increase in new cases over the past 14 days, and cases in the Northeast climbed by 30%. However, the West rose by only 5%, and the South shows a slight decline. The driver of the increase is a combination of loosening restrictions, increased travel and pandemic fatigue—less vigilance about mask-wearing and social distancing. But the big driver is the emergence of the highly contagious B.1.1.7 variant. The strain, which emerged in the UK, is up to 50% more infectious, and new research suggests it’s more likely to result in severe illness and death. Earlier this week, CDC Director Dr. Rochelle Walensky said that despite the positive momentum on vaccinations, she described feeling a sense of “impending doom” as the number of variant cases climbs.
J&J reported disappointing news. Yesterday, the drugmaker said a manufacturing facility in Baltimore, MD, that makes its one-shot vaccine did not meet quality standards. Now, there are reports the mixup in ingredients ruined up to 15 million doses. The facility did not have FDA approval to make the vaccine. And this mishap will delay the factory’s FDA approval. Just 3.3 million J&J vaccines have been administered so far in the US compared to around 77 million Pfizer and 70 million Moderna doses.
Some countries continue to struggle with COVID. France will enter its third national lockdown as vaccinations lag, and a new wave of cases (38,000 per day) is straining the country’s hospitals. The lockdown will last for four weeks, and primary schools will be closed for three. The lockdown includes a 7 pm to 6 am curfew and bans people from venturing more than six miles away from their homes, as well as domestic travel. And Brazil is seeing a spike in COVID deaths, surpassing 4,000 in a single day this week.
ECONOMY & MARKETS
The US economy generated 916,000 jobs in March, the highest surge in new jobs since August, The economy created 233,000 new jobs in January and 468,000 in February. Despite the surge in job creation so far this year, there are still 9.7 million unemployed people in the US, more than 4 million more than before the pandemic.
US government-bond yields ticked higher after the strong jobs report, giving investors further cause for optimism about the economic outlook (and fear about down the road inflation). Yesterday, the Institute for Supply Management said its index of factory activity rose to 64.7, the highest in almost 40 years. The 10-year US Treasury note settled the week at 1.72%.
The US stock market was closed today for Good Friday, but it ended yesterday at a record high, breaching 4,000 points for the first time. (It was at 2,300 about one year ago.) The Q1, 2021, performance of the major indexes: Dow (~8%), S&P (~7%), and Nasdaq (~4.6%).
OTHER NEWS
Meet Ryan Kaji, age 9, “child influencer,” and self-made multimillionaire. He is the highest-earning YouTuber of the last three years. He made approximately $30 million last year from “unboxing” and reviewing toys and games on YouTube. The children’s YouTube section is lucrative: half of the ten most popular videos on the platform are for children, and the catchy kids’ song “Baby Shark” is its most-viewed video. However, Ryan’s big money comes from his merchandising empire, where he has racked up over $200 million from Ryan’s World branded toys. Kaji’s parents have made deals with Walmart and Target for toys and clothes and TV deals with Amazon and Nickelodeon. A footwear line with Sketchers is in the works.
America’s pastime is open for business. Yesterday was Opening Day for Major League Baseball, and fans are back in the stands. The Texas Rangers are the only team allowing their ballpark at capacity at the start of the season. Fans are required to wear masks when they aren’t actively eating or drinking at their seats. The Dodgers are the favorite to win the World Series again this year, according to VegasInsider at 7/2 odds. The New York Yankees are second at 11/2 odds.
Two pairs of bald eagles have become YouTube celebrities thanks to live cams in their nests. Guardian (male), age 7, and Liberty (female), age 22, care for three newly-hatched chicks at their perch atop a cottonwood tree in Turtle Bay, Redding, CA. During her lifetime, Liberty has raised 22 eaglets, including three sets of triplets. Allegedly, the secret to her longevity and success is her affection for younger men.
I. Below are the articles I found interesting the past week:
The most valuable skill in difficult times is lateral thinking
How has the past year changed you and your organization?
How to start healing during a season of grief
Why climate change is making seasonal allergies worse
II. Stats that made me go WOW!
- The Wells Fargo survey found 54% of all partnered women have greater or equal earnings to their spouse. As for millennial and Gen X women, 32% are the primary breadwinner of their household, compared with 20% of women from the baby boomer and traditionalist generation. The survey defines millennials as people born between 1981 and 1996; Gen Xers, 1965-1980; baby boomers, 1946-1964; and traditionalists, 1928-1945.
- A Bald Eagle usually flies at about 35-45mph as it travels. While hunting, the bird can reach speeds of 100mph. Bald Eagles fly high and reach altitudes of 10,000 feet in the air.
- About a third of US container imports come through Los Angeles and Long Beach's neighboring ports.
- The Federal Reserve Bank of St Louis released an analysis on wealth gaps among older millennials (those born in the '80s). It showed white millennial families in 2019 had a median wealth of $88,000 – more than 17 times that of Black millennial families' $5,000 median wealth. One potential culprit: student loan debt. Roughly 87% of Black students borrow money for a higher education vs 60% of white students.
- Scientists have detected X-rays being emitted from Uranus. (Not an April Fool joke but damn funny.)
III. Name that Tune!
As I write this email, I am listening to “Family Tradition” by Hank Williams, Jr.
Randall Hank Williams, known professionally as Hank Williams Jr. or Bocephus, is an American singer-songwriter. He is the son of country music founding father Hank Williams, who bestowed the nickname Bocephus to his only son. His godmother was June Carter Cash, wife of Johnny Cash.
Williams began his professional music career at age eight. He appeared on the Grand Ole Opry at age 11, following his father’s footsteps, covering his father’s songs, and imitating his style. Williams’ first TV appearance was in 1964 at the age of 14 on the “Ed Sullivan Show.” His first No. 1 hit came in 1970 at age 21 with “All for the Love of Sunshine.”
Williams struggled with drug and alcohol addiction. After he attempted suicide in 1975 at the age of 26, he moved from Nashville to Cullman, Alabama, to heal and record his breakthrough album, Hank Williams Jr. & Friends. The album marked Williams’ move from the traditional “lonesome” country style made famous by his father to the country-rock sound he would build a hall-of-fame career around.
The legend of Bocephus almost didn’t occur. On August 8th, 1975, Williams went hiking on rugged terrain near Ajax Lake, Montana, and slipped and fell about 500 feet, sustaining severe head injuries as he struck jutting rocks. Five doctors performed seven hours of reconstructive surgery, followed by two years of successive procedures. The accident left Williams with profound and severe facial scars—the principal reason Williams would grow his beard and wear sunglasses in all appearances. Fortunately, Williams healed and resumed his music career. After 50 albums—23 Gold and Platinum and four claimed Emmy Awards--spanning 50 years, he was inducted into the Country Music Hall of Fame in 2020, nearly sixty years after his father’s induction. Only Eddy Arnold, Johnny Cash, George Jones, Willie Nelson, Dolly Parton, Ray Price, and George Strait have more country charting hits.
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