Articles by Steven Gilchrist

In June 2021, the American Legislative Exchange Council's (ALEC) Center for State Fiscal Reform released its annual publication regarding state government's unfunded pension liabilities. The Council's annual publication titled: Unaccountable and   Unaffordable, 2020  found that the combined unfunded pension liability for state governments in the United States is $5.82 trillion. This amount averages to $17,748/person.  "Unfunded pension liabilities are a looming threat to states' financial health," says ALEC CEO Lisa B. Nelson. "Unfunded public pension liabilities represent a massive risk for state taxpayers, as well as state workers and retirees. Fortunately, states like Wisconsin, Michigan, Tennessee and Oklahoma have all enacted pension reforms in recent years that will ensure promises to workers and retirees are honored, provide flexibility for young workers and protect hardworking taxpayers," says ALEC executive vice president of policy Jonathan ...

For the past several decades in the United States, wages for average American workers have stagnated. However, while the wages for average workers have flatlined; compensation for American executives have significantly increased over the past several decades.  Currently, the federal minimum wage in the United States is $7.25 per hour. At $14 per hour, the state of California has the highest minimum wage of any state in the U.S. In California, the $14/hr. rate pertains to only large employers. At $15/hr. only Washington, D.C. has a higher minimum wage than California.  According to U.S. News & World Report, in 2021, 25 states will see a minimum wage increase. According to research from the Economic Policy Institute, the rapid rise in CEO wages in the United States has caused increased economic inequality. The significant increase in CEO salaries started in the 1970s. In the 1960s and 1970s the ratio of CEO pay compared to that of a typical worker was 20- or 30-to-1. In rec...

World-wide debt reached an all-time record high of $253 trillion as of the end of September 2019, according to research from the financial advocacy and research group the Institute of International Finance (IIF). In the IIF report it states: “Spurred by low interest rates and loose financial conditions, we estimate that total global debt will exceed $257 trillion in the first quarter of 2020, driven mainly by non-financial sector debt.” Economists believe that the drastic world-wide debt increase can be attributed to record-low interest rates in nations across the globe. The historically low interest rates have caused consumers, corporations, and governments to borrow more – which leads to increased debt levels. The report also noted that the governments of the United States and Australia hit all-time debt highs in the 3 rd quarter of 2019. The IIF report also shows that the global-debt-to-global-GDP ratio reached an all-time high of 322% as of the 3 rd quarter of 2019. Sources...

In February 2020, the Federal Reserve Bank of New York announced that U.S. household debt surpassed $14 trillion for the first time in American history. As of the end of 2019, national consumer debt is approximately $1.5 trillion higher than the previous high mark which was set in 2008. The Federal Reserve Bank’s quarterly household credit and debt report indicated that Americans have increased their rates of borrowing for 22 consecutive quarters. According to the Federal Reserve, total household debt balances rose $601 billion in 2019. Roughly $667 billion of the overall national debt is delinquent, including $424 billion that is seriously delinquent – meaning the debt is at least 90 days late. Americans have the majority of their debt contained within 4 sectors: automotive, credit cards, housing, and student loans. Mortgage borrowing totaled $9.56 trillion, up $120 billion from the previous year.   Mortgage loans for young adults are at the highest level since 2007. Th...

O n Thursday night at the University of Denver, Governor Mitt Romney and President Barack Obama had their first debate of the 2012 Presidential election season.   For the majority of the debate the candidates discussed their views about the economic and jobs outlook for the future of America.   It is clear that the effects of the most recent recession are still lingering.   Watching the debate made me think of the resources that Americans have depended on during the worst economic situation since the Great Depression.   These resources include Social Security and Unemployment Insurance (UI). August 14, 2010 marked the 75 th anniversary of the Social Security Act.   The act was signed into law on August 14, 1935 by President Franklin D. Roosevelt.   The act has various provisions for workers who retire, suffer a death of a family member, lose their job, become disabled, or need welfare assistance.   The federal Social Security Act encouraged sta...