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  • Joined: July 9, 2024
  • Articles: 975

Small Businesses, Big Impact: Powering Jobs and Pay in a Tough Economy

Small businesses are playing a big role in keeping the U.S. economy strong, even during uncertain times. Between March 2023 and March 2024, nearly 90% of all new jobs came from small businesses, showing just how important they are for employment. While larger companies are holding back due to inflation and high interest rates, small businesses continue to grow and hire. Today, they employ over 62 million people. Wages are also rising—workers at small businesses saw their average hourly pay go up by almost a dollar, reaching $33.51. This shows that small businesses are not only creating jobs but also helping workers earn more.

“Tax Relief Ahead: OBBBA Boosts SALT Deductions for 2025!”

In 2025, major tax changes are happening that could greatly affect people who live in high-tax states like New York, California, and New Jersey. Thanks to the new One Big Beautiful Bill Act (OBBBA), the limit on how much you can deduct for state and local taxes (called SALT deductions) is going up from $10,000 to $40,000. That means many people will be able to lower their taxable income more, saving them money on their federal tax bill. However, this benefit starts to shrink if you make over $500,000, and it's mostly gone if you make over $600,000. The new rules are expected to make tax planning more important for higher earners and give middle-income families a bit of relief.

“Holiday Spending 2025: Gen Z’s Transformative Shift from Gifts to Meaningful Moments”

Holiday spending in the U.S. is taking a new turn in 2025, with a surprising 5% drop in projected spending—the first major decline since the pandemic. This shift signals more than just tightening wallets; it reflects a deeper change in how Americans, especially younger generations, view and manage their money. Generation Z, those born roughly between 1997 and 2012, are leading this trend. They are cutting their holiday budgets by about 23%, choosing to spend less on traditional gifts and more on meaningful experiences like travel or purchases that match their values. Economic uncertainty, high prices, and a shifting global outlook are all playing a role in reshaping the way people celebrate and spend during the holidays.

“Economist Torsten Slok Flags ‘Inflation Mountain’ Threat Amid Fed’s Tough Balancing Act”

Economist Torsten Slok warns that the U.S. might face a new wave of inflation in the near future, calling it an “inflation mountain.” This second rise in prices could be caused by long-lasting issues like higher tariffs and limits on immigration, which may keep costs up for goods and services. Slok says Federal Reserve Chairman Jerome Powell is worried that the job market is acting in unusual ways, making it harder to control inflation. With pressure growing to lower interest rates, Slok warns that the Fed might act too soon—just like in the 1970s—leading to both high inflation and a possible recession. Right now, prices are still going up, though not as quickly, but the risk of inflation getting worse again remains a concern.

“Seeing is Deceiving: The Rise of Deepfake Scams and Your Safety”

Deepfake scams are becoming a serious problem as people misuse artificial intelligence (AI) to create fake videos, images, and voices that look and sound real. Scammers use these deepfakes to pretend to be trusted figures like police officers, government officials, or even a person’s own family members. Their goal is to make people panic and act quickly—like sending money or giving away personal information. The American Bankers Association Foundation and the FBI recently launched a warning campaign to help people spot these scams. With deepfake technology improving and spreading fast, it's more important than ever to be careful about what you see and hear online.

“Smart Savings: Crafting Your ‘Liquidity Bucket’ for Retirement Stability”

As retirees face rising inflation and unpredictable markets, many are rethinking how much cash they should keep in their emergency funds. While having a large cash reserve might feel safe, experts warn that too much money sitting in low-interest accounts can lose value over time. Instead, financial planners suggest using a mix of high-yield savings accounts and short-term certificates of deposit (CDs), which offer better interest rates and help protect your money from inflation. This strategy creates a “liquidity bucket” — a reliable cash reserve that can cover up to three years of living expenses. The goal is to avoid selling long-term investments during market downturns, helping retirees stay more financially stable in uncertain times.

“Thriving on the Side: Top Side Hustles Powering Financial Freedom in 2025”

As the economy faces challenges like slow wage growth, job cuts, and rising prices, many people are turning to side hustles to make extra money and stay financially stable. With growing concerns around job security and changes in work policies, having a second source of income is becoming more popular across all age groups. A side hustle is a flexible way to earn income outside of a regular job, and it can even grow into a full-time business. In 2025, some of the most in-demand side hustles include freelance writing, online tutoring, dropshipping, working as a virtual assistant, and creating digital content. These options are especially attractive because they’re easy to start, require little upfront cost, and can be done from home.

“Boosting Your Bottom Line: The One Big Beautiful Bill Redefines SALT Deductions!”

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, made major changes to the U.S. tax system by temporarily raising the SALT (state and local tax) deduction cap. This deduction lets taxpayers subtract the amount they pay in state and local taxes from their federal taxable income. From 2025 to 2029, the cap increases from $10,000 to $40,000 for individuals and to $20,000 for married people filing separately. However, this only fully applies to people earning less than $500,000 a year, with smaller increases for higher earners. The law also includes inflation adjustments and keeps current federal tax brackets as they are, avoiding an earlier plan that would have raised taxes on some households. This change is expected to help many taxpayers in high-tax states and could influence how people plan their finances over the next few years.

“Slowing Wallets: Tariffs Tighten the American Consumer’s Grip”

In 2025, American consumer spending is slowing down as higher import tariffs and global uncertainty change the way people use their money. Experts from major financial firms like Morgan Stanley and EY predict that spending growth will fall from 5.7% in 2024 to just 3.7% in 2025, with an even lower rate of 2.9% expected in 2026. One major reason is the sharp increase in tariffs—taxes on imported goods—which now average 18.6%, the highest in nearly a century. These costs make everyday items and big purchases like cars and appliances more expensive. As a result, people are thinking twice about spending and are shifting their lifestyles to save more and spend less.

UBS Sounds Alarm: 93% Chance of U.S. Recession Amid Growing Economic Strains

UBS, a major global financial firm, is warning that the U.S. economy is very likely heading toward a recession, giving it a 93% chance based on recent data. They looked at several economic indicators from May through July, such as an inverted yield curve (a sign that investors are worried about the future), growing stress in the credit market, and signs of weakness in the job market. UBS describes the situation as widespread but not yet severe—more like a slow decline than a dramatic crash. Even though the economy isn’t collapsing, ongoing inflation, especially shown by rising prices in the PCE index, adds more pressure to already uneasy conditions.

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