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US Economy Post Midterm Polls

We are in the midst of challenging times with a few predicting a looming economic crisis and some experts expressing that we are already in recession after two tough consecutive quarters. There seems to be no quick fix in sight.

If the Ukraine crisis added to the global financial, energy and food supply woes, the US economy along with regulators of other economies are all battling this high inflationary trend and to handle the harsh reality of slowdown.

The recent job cuts announced by some of the major tech and non tech firms has only added to this growing concern, with political slug fest seen during the recent elections. While US President Joe Biden has a tough act on hand of fixing the economy, he continues to contend that the economy is in fine fettle even as people feel the pinch of inflation and high interest rates.

As if the two years of struggle against the Covid pandemic was not enough, the spiralling prices have only added to these inflationary trends. While the Biden admin had stated that more than 10 million jobs were created since he assumed office, Republicans contend that real wages and purchasing power is down due to high inflation.Even as issues relating to fixing the economy were central to the US elections and economy, just as it was in the UK leading to change in guard with Rishi Sunak taking over, fixing it and addressing the mounting cost of living, continues to be top on the agenda.

The concerns over mounting inflation and the Russia-Ukraine crisis has become less important over finding a solution to the issues on hand . Even as people grapple with job losses, mounting inflation due to energy and food prices, it has become an uphill task to communicate the current issues to the people.With some pegging the inflation at a 40-year high, experts and investors are treading cautiously on government bonds and discretionary spending.

During the year, the Fed hiked interest rates at least half a dozen times to tame inflation, and yet it has become a hard nut to crack. The Fed and the administration will have to do more than merely increasing rates. Innovative steps need to be taken across disciplines to keep the economy moving and growing.

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When Your Income Is Subject to Self-Employment Taxes

If you own an unincorporated business, you likely pay at least three different federal taxes. In addition to federal income taxes, you must pay Social Security and Medicare taxes, also called the self-employment tax.    Self-employment taxes are not insubstantial.

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