Just in Case it Matters to You
Weekly Report 20-35
- THE COMING U.S. ELECTION WILL BE UNLIKE ANY PRIOR, especially since this is the year that Millennials have overtaken Boomers & GenXers in population. While statistics suggest that 25 – 40 year olds are less attached to political parties and less than half even bothered to vote in prior elections, this year’s difference is because both (1) Party Platforms offer strikingly different directions for the country, and (2) they generally do not like Donald Trump. Most Millennials hold Left Leaning views on racial/gender diversity, social consciousness, religious relevance, marriage necessity, corporate avarice, cultural expectations, environmental concerns, etc. etc. Moreover, they effectively “grew up on a different planet” than earlier generations – traumatized by 9/11, by the financial and Covid crises, with little, if any, perspective on life before the ‘digital world,’ and the vast majority today getting their perception on world events from texts, twitters, blurbs & banners published by extremely biased media organizations. For 2½ decades, the country has elected Boomer Presidents, and will again as they’re the only choices, but “Millennials do have the numbers to reset American politics.” [ECONOMIST – WORLD IN 2019]
- THE IMPACTS OF COVID SHUTDOWN HAVE CREATED EXTRAORDINARY CHALLENGES FOR MANY FAMILIES who were already living in stressful relationships, now further exacerbated by being stuck at home, especially if caring for children or elders suddenly without traditional support systems. Those already in pending or actual separation/divorce circumstances may now be dealing with new routines, absence of personal escape balance, cash flow reduction, asset value dissipation, potential for ongoing unemployment or shuttering of businesses – any or all of which can foster levels of anxiety & stress that are dangerous to health & sanity for all family members. Additionally, “isolation presents parents with some of the unhealthiest of options for dealing with stress (including binge eating, alcohol consumption, etc.), and many non-custodial parents also find themselves in the untenable position of missing their children as result of prohibited travel & visits.” [BLANK ROME – 5/21/20] DCG Mediation services encompass strategies for communication and prioritization which can help minimize stress & friction levels. Clients & Contacts are welcome to call us for courtesy consultation which may help.
- STRATEGIC PLANNING FORWARD, FOR BUSINESSES OF ALL SIZES, should recognize that “imminent restructure of the global economic order” is already in progress. “Over three billion people live in countries whose borders are now totally closed to non-residents, 93% of which have imposed new limits on entry,” as result of the Covid-19 pandemic. And, while telecom and web-based technologies have prompted & facilitated efficiency in communication and worker productivity without need for physical proximity over the past few decades, increasing resistance to globalization from concern for economic protectionism (i.e. reducing dependence on supply chains outside American control), combined with most likely enduring restrictions on travel for protection of health, strongly suggest that curtailment of cross-border activity is virtually certain. Particularly for businesses reliant on travel, “eventually, tourists will come back and borders will reopen” but assumptions about such an uncertain timeline should be exceptionally cautious. [McKINSEY – 4/14/20]
- “THE ENDURING DOMINANCE OF THE U.S. DOLLAR IS REMARKABLE – especially given the rise of emerging markets and the relative decline of our economy to just 25% of world GDP… Being the primary global Reserve currency enables us to run larger trade deficits, reduces exchange-rate risk, and makes American financial markets more liquid… But preserving the dollar’s primacy is dependent on maintaining a vibrant economy rooted in sound macroeconomic & fiscal policies, a transparent & open political system, economic/political/security leadership abroad…and innovative financial technologies, particularly digital currencies and mobile payments (in which China is presently leading). Inspiring global credibility & confidence also require a political system capable of implementing policies that allow more people to achieve economic prosperity and maintaining fiscal health by putting America on a sustainable path to manage the national debt and structural fiscal deficit.” Based on current congressional direction (albeit ostensibly focused on pandemic response), meeting these criteria are becoming more questionable every day. [FOREIGN AFFAIRS – 5/19/20]
- WORKING AT HOME DUE TO COVID RESTRICTIONS may qualify for a ‘home office expense’ deduction on this year’s income tax returns, provided that the work area is serving as a regular and exclusive place to conduct business operations or to meet with clients/customers. The deductible amount, for period of the year utilized, can be either (1) actual direct plus ‘indirect expenses’ (rent, utilities, insurance, mortgage interest & property taxes, maintenance, etc.) based on percentage of total square feet or total rooms; or (2) a safe harbor rate of $5 per sq. ft. up to 300 sq. ft. maximum.
- THOUGHTS FOR THE WEEK: “The world is changed by your example, not by your opinion…”
Why California Is In Trouble: 340,000 Public Employees With $100,000+ Paychecks Costing Taxpayers $45 Billion: