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Tag: consumer news

  • 5 costly mistakes to avoid before buying your next car, according to Edmunds

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    Buying a new car has never been more financially daunting. A 2025 analysis from Edmunds found that a record 19.3% of consumers who financed a new vehicle in the second quarter of 2025 committed to a monthly payment of $1,000 or more. That’s nearly one in five buyers taking on what was once considered an extreme car payment — driven by high interest rates and rising vehicle prices.

    While it might be tempting to stretch your budget for the car you want, locking yourself into a high-cost loan can be a painful mistake. Before you sign, here are five common car-buying missteps to avoid.

    1. Buying outside your means

    There’s a difference between being able to buy something and being able to afford it wisely. With an average new vehicle transaction price of approximately $49,000, many buyers are truly stretching their budgets. It’s not uncommon to see buyers opt for extended 72-month or 84-month financing terms.

    That shiny SUV might seem within reach thanks to flexible financing, but the long-term hit to your financial health could be considerable. Buying within your means — ideally targeting a loan term of no more than 60 months and keeping your car-related expenses under 15%-20% of your monthly take-home pay — is smart shopping in an era of rising interest rates and ever-increasing car prices.

    2. Getting a dealership loan

    One of the most costly and common mistakes car buyers make is waiting until they’re sitting in the dealership finance office to think about a loan. Dealerships may offer convenience, but their financing may include marked-up interest rates or hidden fees.

    Instead, walk into the dealership with a preapproved loan offer from your bank, credit union or an online lender. According to the Consumer Financial Protection Bureau, this move can save buyers hundreds to thousands of dollars over the life of the loan. When you do this, the dealer can still try to beat the rate — and sometimes will. But now you’re negotiating from a position of strength, not desperation.

    3. Trading in a car with negative equity

    If you owe more on your current car than it’s worth — a situation known as negative equity — trading it in for a new vehicle can be a financial landmine. This commonly happens when people take out a six-year loan, trade in the vehicle after just three or four years, and carry the previous balance into the new vehicle. Rolling that deficit into a new loan just worsens the problem, guaranteeing that you’ll be underwater for even longer.

    According to Edmunds, 28.2% of trade-ins in July 2025 involved negative equity, and the average amount buyers owed above the vehicle’s value was $6,902. That sets the stage for a vicious cycle, especially if buyers trade cars frequently or face unexpected job loss or repair costs. If you’re in this situation, consider keeping your car longer or making extra payments. If you can get a better rate, even refinancing can get you back to breakeven.

    4. Not working with internet sales team first

    Most major dealerships now have dedicated internet sales teams that exist to sell you a car quickly and often at better prices than you’ll get face-to-face. If you already know what make, model and trim you want, you can save hours — and hundreds or even thousands of dollars — by working with the internet sales department instead of walking onto the lot.

    Sites such as Edmunds can help you compare pricing between multiple dealers, and many will show you real-time inventory, rebates and incentives. This lets you shop from the comfort of home and make dealers compete for your business. It also gives you a written quote you can bring with you — a powerful tool when negotiating.

    5. Overlooking used car options

    Buying new is tempting — it smells great, it’s under warranty, and no one else has touched it. But it’s not always the smartest financial move. Today’s certified pre-owned vehicles often come with extended factory warranties, undergo rigorous inspections, and cost thousands less than their new counterparts. The rapid depreciation of most new vehicles only worsens the picture. Most lose 20%–30% of their value in the first year alone, according to Edmunds. Avoiding that depreciation hit can save thousands.

    Buying a new car is one of the biggest financial decisions most people make — second only to purchasing a home. Avoiding these five common mistakes won’t just save you money — it has the potential to help ensure your long-term financial security. Take your time and do your homework. The right deal isn’t just about the car — it’s about the life you want to live after you drive it off the lot.

    ____

    This story was provided to The Associated Press by the automotive website Edmunds. Josh Jacquot is a contributor at Edmunds.

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  • Tracking gas and grocery store prices across the Twin Cities

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    A walk down a grocery aisle can be a bit unpredictable these days after years of rising prices.

    Molly Doyle of Mendota Heights, Minnesota has three hungry boys. She said back in January, “The biggest thing, I’d say eggs, it’s probably triple the amount it used to be 4 years ago .”  

    She’s not the only one. For months, WCCO has been hearing many Minnesotans complain about rising prices.

    Since January, WCCO has been monitoring and averaging prices at Aldi in Apple Valley, Minnesota, Cub Foods in North Minneapolis and Target in Fridley, Minnesota. We tracked four items and in general have found, bread is down slightly, milk is up slightly, eggs are down and chicken is about the same.  

    In January, the total average of the four items without tax, was $19.20. In May, it went down to $17.97. As of August, the average is down to $15.66. 

    As for produce, the prices are down too.

    “If you are looking to avoid tariffs or some of the price hikes you are seeing,” said Jill Holter, marketing director of Wedge Community Coops. “Buy local produce wherever you can, its peak, its fresh, all comes within 100 miles of our store so farmers markets and coops are gonna be your best bet.”  

    When it comes to getting to the market, the average for regular back in January was $2.95. In May, it went up to $3.17. The average for gas slightly went back down, and now stands at $3.09.

    CBS News tracking national price trends for many top grocery items

    CBS News has been keeping tabs on the change in prices of household expenses nationwide. Their price tracker is based on data released by the U.S. Bureau of Labor Statistics for food, household goods and services. They are utilizing Zillow for rent and home-purchase prices.

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    Susan-Elizabeth Littlefield

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  • Fake Labubu dolls pose safety hazard to kids, Consumer Product Safety Commission warns

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    Viral plush toys called Labubus are taking over the internet, but it has also inspired counterfeits. According to the Consumer Product Safety Commission, the fraudulent dolls can break apart easily and are small enough to lead to choking hazards.

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  • Amazon expands same-day grocery delivery to 1,000 cities

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    Amazon is expanding its same-day grocery delivery service to 1,000 cities and towns across the U.S., the company said Wednesday. 

    It’s also introducing thousands of perishable grocery items to its offerings, and will expand services to a total of 2,300 new locales by the end of 2025. The move positions Amazon as a strong competitor to Instacart and Walmart+, both of which offer same-day grocery delivery services. 

    The new delivery offerings include options from the produce, dairy, meat, seafood, baked goods and frozen foods departments. Additionally, customers can have households goods, electronics, apparel and more, delivered on the same day that the orders are placed. 

    The service is available to Amazon Prime members for free, for orders that total at least $25. Nonmembers are also eligible for same-day delivery, but for a $12.99 fee. 

    According to the company, more than 150 million Americans rely on Amazon, where they’ve spent $100 billion on groceries and household goods in 2024 alone — which doesn’t include sales from Whole Foods Market and Amazon Fresh.

    “Overall, this expansion to offer same-day delivery of perishable groceries creates a one-stop shop for an array of customer needs,” Telsey Advisory Group analysts said in a research note.

    They added, “Importantly, we believe this is a strong move for Amazon, deepening relationships with and share of wallet among its Prime member customers, as well as positioning the company to compete better with other leaders in the grocery space, like Albertsons, Kroger, Target and Walmart.”

    “Order milk alongside electronics”

    The expansion marks one of Amazon’s largest since it launched its grocery delivery service, and is aimed at making grocery shopping even more convenient for the online retail giant’s customers, the company said. 

    “By introducing fresh groceries into our Same-Day Delivery service, we’re creating a quick-and-easy experience for customers,” Doug Herrington, CEO of Worldwide Amazon Stores said in a statement. “They can order milk alongside electronics; oranges, apples, and potatoes with a mystery novel; and frozen pizza at the same time as tools for their next home improvement project—and check out with one cart and have everything delivered to their doorstep within hours.”

    The service has proved so popular in existing cities that strawberries have knocked AirPods out of the top five best-selling products in regions where it’s already available, Amazon said. 

    Raleigh, North Carolina; Milwaukee; Tampa, Florida and Columbus, Ohio; are among the new cities that Amazon is extending bringing same-day delivery to.

    The same-day grocery delivery service is distinct from Amazon’s existing grocery delivery offerings including Amazon Fresh and through Whole Foods Market and local purveyors, the company said. 

    The company said it’s able to deliver perishable and temperature-sensitive goods by using insulated bags and more to ensure groceries remain at necessary temperatures throughout the delivery process. 

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  • "Mrs. Dow Jones" suggests consumers follow these steps to boost wealth

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    Founder and CEO of Finance is Cool Haley Sacks, known online as “Mrs. Dow Jones,” joins “CBS Mornings” to share some actionable steps consumers can take to help boost their wealth and spend smarter. (Sponsored by Verizon)

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  • More than a dozen states sue TikTok over children’s mental health

    More than a dozen states sue TikTok over children’s mental health

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    More than a dozen states sue TikTok over children’s mental health – CBS News


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    Fourteen attorneys general have sued TikTok claiming the social media app harms teens and their mental health. They allege the Chinese-owned app violates consumer protection laws and claim TikTok relies on “addictive features” that keep users on the app.

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  • Early deals for holiday shopping

    Early deals for holiday shopping

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    Early deals for holiday shopping – CBS News


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    Major retailers are offering early deals for your holiday shopping, even before Halloween arrives. Consumers are expected to spend more than $240 billion online this holiday season, which is up 8% from last year. CBS News’ Nancy Chen breaks down the bargains you can find at places like Amazon, Target and Walmart+.

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  • What do dockworkers do, and which parts of the job are automated?

    What do dockworkers do, and which parts of the job are automated?

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    The three-day dockworker strike that crippled East and Gulf Coast ports put a spotlight on one of America’s most important jobs: loading and unloading the billions of products — from food to cars — that keep the U.S. economy humming.

    Although the work stoppage has ended for now, the labor dispute reflects how robots, artificial intelligence and other potent technologies are changing the nature of operations in the nation’s supply chains and in other industries. 

    “We’re really at a moment here where we’re taking about the future of work and what that looks like in America and around the world,” John Samuel, managing director with consulting firm AlixPartners, told CBS News. “And so, how do we combine the natural evolutions of technology with the right to human decency and human work?”

    The tentative agreement announced on Friday between the International Longshoremen’s Association — which led last week’s strike — and the United States Maritime Alliance, bridges the divide on wages, giving dockworkers an immediate $4 per hour raise and a $24 per hour pay hike over a six-year labor contract. 

    Yet the pact doesn’t resolve worker concerns over automation. Read on to learn about what dockworkers do and how new technologies are changing the job. 

    From boxes, bails and bundles to containers

    In recent decades, longshore work has been transformed by technology, a key sticking point in the labor dispute that pitted unionized workers against shipping companies and port operators.

    Dockworkers handle freight by loading and unloading cargo ships that come to port. Up until the late 1950s, that meant carrying boxes, bails and bundles of goods by hand from incoming ships into storage, before loading them onto trains for transport to their final destination. 

    Today, cargo is stored in large, standardized containers — designed to be transported by ship, rail or truck — that dockworkers handle with cranes and other equipment. 

    “It’s all about operating the lifting equipment that’s required to move the containers around. A lot of it is transferring containers from ship to shore, and vice versa,” Kent Gourdin, professor and director of the global logistics and transportation program at College of Charleston, told CBS MoneyWatch. “They handle containers on the terminals where ships dock, and keep track of what container needs to go where.”

    These days, the job largely involves operating machinery, as well as tracking cargo and keeping records. For example, dockworkers coordinate with trucking companies that come to port to retrieve containers and transport them to their next stop. Dockworkers are also responsible for securing cargo on ships. Containers are stacked on top of one another, and it’s dockworkers’ job to make sure the containers are latched together. 


    Port strike ends as dockworkers union reaches tentative deal

    02:10

    Although operating heavy machinery is less physically arduous than toting boxes, nearly all dockworkers “are out in the weather to some degree and working in an environment where they are surrounded by heavy equipment,” Gourdin said. 

    “Whereas back in the day it was labor-intensive, today it’s mainly about operating machinery,” Henry Sims Jr., a fourth-generation longshoreman and president of the ILA local 3,000 in New Orleans, told CBS MoneyWatch. “Now, you have to be skilled. You can’t hire someone off the street, because they wouldn’t be able to do it without killing somebody, or themselves.”

    U.S. behind in automation

    The 10 largest U.S. ports all use some kind of automation technology to move cargo, according to a Government Accountability Office report in March. These include automated gates, which let trucks and containers move through cargo terminals with limited worker interaction; so-called port community systems, which are digital platforms that automatically streamline logistics and supply-chain data; and technologies used in “internet-of-things” systems, such as RFID, GPS and cameras, to operate equipment and track containers. 

    Semi-automated terminals employ people to operate machinery that moves containers from the cargo berth — the area where a ship is moored — to the yard. Equipment used to stack containers on top of one another is fully automated. 

    But only three domestic ports — Long Beach Container Terminal in Long Beach, Calif., and TraPac and APM Terminal Pier 400 in Los Angeles — are fully automated.

    At fully automated ports, both horizontal and vertical container movement is handled by machines. Other technologies put to use at automated ports include AI-powered sensors, so-called digital twins — or identical, digital replicas of ports — and blockchain to automate the recording of transactions and track container locations. 

    Automated cargo-handling equipment eliminates the need for humans on site to operate a crane, for example, according to a GAO report on port automation

    “Ports in other parts of the world are much more advanced than in the U.S., partly because the unions have been blocking the adoption of technology and automation,” global supply chain management expert Chris Tang told CBS MoneyWatch.

    “If you go to modern ports in China, you hardly see any humans,” he said. “They use automated cranes, and when a ship comes in a crane picks up the containers to stack them.”

    Qingdao Port Foreign Trade Container Terminal
    Cargo ships are seen loading and unloading containers at the fully automated terminal of Qingdao Port in Qingdao, Shandong province, China, on August 7, 2024. 

    Costfoto/NurPhoto via Getty Images


    Despite the shift toward automation, Sims Jr. said human workers remain essential to the industry. 

    “We move things more efficiently and productively than automation does. The machines are slower, and when they break down, they can’t go back to work until we get someone out there to look at it and fix it.”

    Gourdin, the professor, backed up that claim. 

    “Machines, I think, can do the job as well, but people are faster. I’ve been to automated terminals and it’s just slower,” he said, while acknowledging that more fully automated ports in the U.S. may be inevitable. 

    “An extremely difficult problem”

    Given the close coordination that is required between ships, trucking companies and their customers, artificial intelligence and data analytics can play a big role in getting a container from point A to point B, logistics experts say. 

    “Dockworkers communicate with trucking companies to find cranes to use to retrieve their containers when they’re arriving,” Tang explained. “But sometimes a trucker will show up and they’ll need a container that’s at the bottom of the pile. This is a problem.”

    That’s where artificial intelligence and data analytics come in. These technologies help dockworkers track when a given container will arrive and coordinate with trucking companies for pick-up, affecting how containers are stacked. 

    “It’s an extremely difficult problem to solve — to synchronize when the container and truck are coming in. This is where automation comes into play,” Tang said.  

    Robert Atkinson, president of the Information Technology and Innovation Foundation, said automation is well suited to the port system given how routine the nature of the work is. 

    “Ship comes in, they have all these containers loaded up, you take off the container and move it somewhere. Then you put it on an intermodal train or truck,” he said. “It’s the same thing over and over again. That’s something that technology can do really well because there is little variation.”

    Atkinson favors cutting the amount of human labor in U.S. ports by 50% over the next 10 years, while he notes that remaining workers who survive would see their wages rise and consumers would save on shipping costs. Of course, that’s just the kind of major workforce reduction the dockworkers’ union is intent on preventing.

    “If you automate a port, that means you buy something form a furniture store online and it costs less,” he said. That leads to savings for middle-class Americans.”

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  • Lunds and Byerlys recalls Lone Star Dip over mold concern

    Lunds and Byerlys recalls Lone Star Dip over mold concern

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    Morning headlines from Oct. 4, 2024


    Morning headlines from Oct. 4, 2024

    02:04

    MINNEAPOLIS —Lunds and Byerlys is recalling around 500 containers of their Lone Star Dip because of potential mold contamination.

    In a release, the store said the concern was noticed by employees, who notified their quality assurance team. No illnesses have been reported. 

    copy-of-yt-thumb-example-2024-10-04t153922-815.jpg

    Lunds and Byerlys


    The voluntary recall applies to products with a best by date of 10-15-24 or 10-17-24 and a product code 18169-74197. 

    Customers who recently purchased this product are encouraged to return it for a full refund or throw it away. A receipt is not required for a return.

    The store says customers with questions about the recall can call 952-548-1400.

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    Nick Lentz

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  • Tyson Foods misleads shoppers about its carbon emissions, climate group says

    Tyson Foods misleads shoppers about its carbon emissions, climate group says

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    Tyson Foods is misleading shoppers and investors by saying it would hit net-zero emissions by 2050 and marketing climate-friendly beef without having an actual strategy to do either, allege advocates suing the world’s second-biggest meat processor. 

    Tyson should have to curtail its climate claims or release a substantial plan to support its claims, according to a lawsuit filed on Wednesday by the Environmental Working Group. The complaint is part of an effort to “hold the biggest, most powerful contributors to the climate crisis — across industries — accountable for greenwashing,” EWG stated.

    Tyson Foods has said since 2021 that it would hit net-zero emissions — the point at which the amount of greenhouse gases a company emits is offset by the emissions that are removed from the atmosphere — by 2050 by using more renewable energy and no longer contributing to deforestation. 

    The Arkansas-based meat company also sells a brand of “climate-friendly” beef that Tyson says is made with 10% fewer emissions than conventional meat.

    A spokesperson said Tyson does not comment on litigation, but defended the company’s “long history of sustainable practices.”

    The suit against Tyson was filed in Washington, D.C., which has a consumer protection law in place that lets consumer groups sue companies for false advertising. 

    The same claim of greenwashing — a term attributed to environmentalist Jay Westerveld that refers to making false or misleading statements about the environmental benefits of a product or service — was made in February in a suit filed by New York State Attorney General Letitia James against JBS, the world’s largest beef producer, over its claim it would reach net-zero emissions by 2040. 

    James’ suit against the Brazilian meat conglomerate came after Earthjustice successfully challenged JBS’ environmental messaging before an ad industry self-regulatory organization in 2023. 

    Livestock production accounts for 14.5% of all greenhouse gas emissions globally, with cattle responsible for two-thirds of the total, according to the United Nations Food and Agriculture Organization

    The Science-Based Targets Initiative, a UN-backed agency that reviews net-zero goals, is calling for the food and agricultural sector to reduce its emissions by 3% annually between 2020 and 2030.

    Delta Air Lines last year dismissed as “without legal merit” a suit filed by a passenger that alleged the airline’s claim to be “the world’s first carbon-neutral airline” to be marketing spin. Coca-Cola is currently defending itself in a similar case in which the beverage maker is accused of overstating its recycling efforts. 

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  • Chipotle Mexican Grill tries out robots that halve avocados — and possibly prep time

    Chipotle Mexican Grill tries out robots that halve avocados — and possibly prep time

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    Chipotle’s new Autocado

    01:58

    Chipotle Mexican Grill is piloting robots to help prep avocados for guacamole and build burrito bowls in two of its California eateries. 

    The chain on Tuesday announced it is testing two machines in its restaurants for the first time, with the company looking for feedback from employees and customers before deciding on whether to expand the technology to other Chipotle restaurants. 

    Dubbed Autocado, the guac helper robot can cut, core and peel avocados in 26 seconds on average, halving the time it takes human workers to make guac. Though the company’s human employees will still have to mash the fruit by hand, the technology could spare them a fair amount of toil, as Chipotle expects to use roughly 5.2 million cases of avocados — the equivalent of 129.5 million pounds of fruit — this year at locations across the U.S., Canada and Europe.

    A second collaborative robot, or “cobot,” called the Augmented Makeline, will use automated technology to build bowls and salads, which make up 65% of the chain’s digital orders, according to Chipotle. The automated assembly system disperses a set amount of each ingredient in an order. Chipotle in July said it would train workers on ensuring customers received generous portions after a company probe confirmed 1 in 10 of its restaurants were too meager with their servings

    “These cobotic devices could help us build a stronger operational engine that delivers a great experience for our team members and our guests while maintaining Chipotle’s high culinary standards,” Curt Garner, Chipotle’s chief customer and technology officer, said.

    screenshot-2024-09-16-at-2-05-34-pm.png
    A Chipotle employee uses the “Autocado,” a robot the restaurant chain is testing and that it says halves the time required to make guacamole compared with human workers.

    Chipotle


    The Autocado is now operating at a Chipotle location in Huntington Beach, California, while the Augmented Makeline is helping build bowls and salads for digital orders at a Chipotle restaurant in Corona del Mar, California. Almost two-thirds of Chipotle digital orders involve bowls or salads, according to the company. 

    Chipotle developed the robots with tech firms Vebu and Hyphen. The company operates more than 3,500 restaurants globally.

    Other restaurant bots

    Salad chain Sweetgreen last year began tested automating some food preparation after acquiring robotic kitchen startup Spyce. 

    Outside the kitchen, restaurant chains including Taco Bell are trying out voice AI technology in drive-thru locations across the country, even as McDonald’s temporarily halted its use of the technology, with the burger selling saying it yielded mixed results.

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  • Harris and Trump have competing tax plans. Here’s how your paycheck would change under both.

    Harris and Trump have competing tax plans. Here’s how your paycheck would change under both.

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    Presidential candidates commonly trot out new tax proposals as part of their campaign platforms, often pledging to help ease the financial burden on taxpayers. This year, the plans emerging from rivals Kamala Harris and Donald Trump could affect voters’ paychecks in very different ways. 

    Former President Donald Trump would seek to extend the tax cuts enacted through the Tax Cuts and Jobs Act, his signature 2017 legislation that reduced taxes for most Americans, although research has shown the top earners received the biggest benefits. He’s also proposing to eliminate taxes on tips and on Social Security income, while also lowering the corporate tax rate.

    Vice President Harris has proposed introducing more generous tax benefits for families, as well as hiking the corporate tax rate to help offset spending from bigger tax credits. 

    The two proposals reflect different views of how best to support U.S. families and fuel economic growth. On the one hand, Trump’s plan would provide tax cuts for all income groups, but the biggest winners would be higher-income Americans. The greatest benefits under Harris’ plan would go to the lowest-income Americans, while she would up the taxes of the top-earning households. 

    “It’s true that Trump looks like he’s winner for everybody, but he’ll provide much bigger giveaways to the top 1% and top 0.1%, whereas Harris will be negative for these people,” said Kent Smetters, faculty director of the Penn Wharton Budget Model, a group within the University of Pennsylvania’s Wharton School that analyzes the budgetary impact of government policies. 

    Ultimately, both plans would come with significant price tags, although the combination of Trump’s tax cuts for corporations and individuals would prove more expensive, Penn Wharton forecast. It estimates that his proposal would add $5.8 trillion to the federal deficit over the next decade, compared with $2 trillion for Harris’ plan. 

    In an email, Republican National Committee spokesperson Anna Kelly said that Trump’s tax policies will “shrink deficits” as well as “lower long-term debt levels” through cuts in federal spending, increasing energy production and deregulation.

    The Harris-Walz campaign, meanwhile, is pointing to the Penn Wharton Budget Model’s analysis as evidence that Trump would create a “deficit bomb agenda.” 

    “Donald Trump’s campaign may want to mute Donald Trump on the debate stage, but they can’t mute our strong economy and Trump’s disastrous agenda that will explode the deficit, increase costs on the middle class by nearly $4,000 a year, and send our economy hurtling into a recession by mid-next year,” Harris-Walz spokesman James Singer said in an email.

    “Explosive” deficit?

    Although Harris’ tax proposal would potentially have a smaller impact on the nation’s deficit than Trump, Smetters noted that both parties would ultimately add to the nation’s growing fiscal burden. 

    The federal budget deficit in fiscal year 2024 is projected to hit $1.9 trillion, the Congressional Budget Office forecast in June. That represents a 27% increase from its prior February forecast, due partly to new funding provided to Ukraine, Israel and other countries. 

    Deficits may seem abstract to many taxpayers, but at the simplest level they show the country is spending more than it’s taking in through tax revenue. That, in turn, increases the national debt to finance the deficit. Many economists warn that comes with a cost, such as higher interest payments to service that growing debt. 

    “Essentially we’re on this explosive path right now,” Smetters said. 

    At some point, soaring U.S. debt could sow doubt in capital markets about the federal government’s ability to either raise taxes or cut spending enough to avoid defaulting on that debt, he added.

    “Neither candidate is being serious about addressing the big issue —the house is burning down and the candidates are arguing over the furniture,” Smetters said. “They are just making things worse and harming the economy.”

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  • Dow plunges more than 1,000 points amid fears of U.S. economic slowdown

    Dow plunges more than 1,000 points amid fears of U.S. economic slowdown

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    Stocks in the U.S. plunged for a third consecutive trading day, with the Dow Jones Industrial Average tumbling more than 1,000 points amid growing fears of an economic downturn sparked by a slowdown in hiring and consumer spending. 

    The S&P 500 slid 160 points, or 3%, to 5,186 on Monday, the index’s biggest one-day drop in nearly two years, according to FactSet. The tech-heavy Nasdaq Composite sank 3.4% as investors fled some of the Big Tech players that until recently had powered the U.S. market higher — Apple shed 4.8%, while Meta and Nvidia, fell 2.5% and 6.4%, respectively. 

    The Dow Jones Industrial Average tumbled 1,034 points, shedding 2.6% of its value. Earlier in the day, it had lost as more than 1,200 points, but the markets regained some of their early losses as Wall Street digested Monday data from the Institute for Supply Management (ISM) Services index, which showed that service employment picked up in July. 

    “The details of the ISM report were encouraging, with business activity, new orders and employment all rebounding markedly in July,” Oxford Economics said in a Monday research note. The report “aligns with our view of an economy in transition rather than one on the brink of collapse.”

    Even with Monday’s rout, U.S. stocks still remain in positive territory this year. The S&P 500 has gained 9.4% in 2024, even after including its recent slide, while the Dow remains up by 2.6%.

    What’s driving down stocks

    Stocks lost ground on Thursday after weak reports on manufacturing and construction, which stoked fears the U.S. economy may finally be buckling under the pressure of high interest rates. 

    Then on Friday, government data showed that hiring last month was far weaker than expected, adding to Wall Street’s fears that a “soft landing,” in which the U.S. economy could avoid a recession despite the highest interest rates in 23 years, could instead become a hard landing. 

    “The main factor that has staying power is the economy’s slowdown,” wrote Wells Fargo head of global investment strategy Paul Christopher in a report. “Investors have been watching household financial stress build for the past two years, but during that time, job growth remained above its December 2009-December 2019 average of 180,000 new jobs per month.”

    But Friday’s jobs report showed that employers added only 114,000 new jobs last month, far fewer than the 175,000 jobs expected by economists, he noted. 

    Tech stocks have been hit particularly hard in recent weeks as investors pull back from artificial intelligence companies amid questions about when the emerging sector will deliver profits. 

    “It has been a tough few weeks for the AI group as earnings were reported,” analysts with Melius Research wrote. ‘Microsoft, Meta, Google and Amazon were all asked about payoffs from AI investments. While pretty clear that they all need to keep spending, the market remains skeptical of the pace.”


    Financial adviser on stock market drop following spike in unemployment rate

    07:48

    The market rout extended to Asian and European markets, with Japan’s benchmark stock index plunging 12.4% on Monday. The Nikkei had dropped 5.8% on Friday, making this its worst two-day decline ever. 

    Stocks in Korea and Taiwan also fell sharply, with all three Asian markets damaged as investors pull back from companies focused on artificial intelligence out of concern the sector has been overhyped.

    When will the Fed cut rates?

    With the disappointing economic data, Wall Street is worried the Federal Reserve may have kept its benchmark interest rate too high for too long, heightening the risk of a recession. The central bank kept the federal funds rate unchanged when it met on July 31 to discuss economic conditions and whether and when it should begin cutting rates.

    A rate cut would make it less expensive for U.S. households and companies to borrow money, but it could take time for the effects to boost the economy. On Monday, some investors called for the Fed to start cutting rates sooner rather than later to stave off an economic downturn.


    How likely is the Federal Reserve to cut interest rates in September?

    04:14

    “The Federal Reserve needs to start easing monetary policy more aggressively than had been anticipated, in order to head off a looming recession in the world’s largest economy,” said Nigel Green, CEO of deVere Group, an independent financial advisory and asset management firm, in an email. “The Fed was behind the curve at the beginning of the cycle, it cannot afford to be behind the curve this time too.”

    Economists still don’t expect a recession

    Although worries over weakness in the U.S. economy and volatile markets have rippled around the world, domestic economic activity remains solid, with many analysts saying that a recession remains unlikely. Stephen Brown, deputy chief North America economist with Capital Economics, still expects a soft landing, while acknowledging that the risk of a sharper downturn is rising. 

    The economy has accelerated this year, with the nation’s gross domestic product jumping to 2.8% in the second quarter, blowing past forecasts. A recession is typically marked by two consecutive quarters of negative GDP. And although July’s jobs report was disappointing, analysts point out that it reflects just one month of data, while also noting that the depressed hiring figures in July could have also been impacted by Hurricane Beryl

    “It can be a mistake to read too much into a single data release,” noted Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management, told investors in a research note. “The number of people who reported being unable to work [in July] due to the weather was 436,000; this compares to an average of 33,000 for July since 2000.”

    contributed to this report.

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  • CBS News price tracker shows how much food, utility and housing costs are rising

    CBS News price tracker shows how much food, utility and housing costs are rising

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    Voters feeling frustrated with inflation


    Voters feeling frustrated with inflation and overall economy

    02:11

    As consumers cope with lingering inflation, CBS News is tracking the change in prices of everyday household expenses — from food at the grocery store to utilities and even rent — across the country.

    Drawing from a wide range of government and private data, the tracking charts below show how the cost of goods and services have changed since from before the pandemic to the most recent information available. That’s last month for most items.

    The price tracker is based on data released by the U.S. Bureau of Labor Statistics for food, household goods and services and Zillow for rent and home-purchase prices. Every chart notes, and links to, the source of the original data.

    In the case of recurring household costs, rents and home sales, the 2024 data cited is current through last month and it is compared to the same month in prior years dating back to 2019.

    The real estate data in the tracker is gathered by Zillow, which deeply studies home sales prices, rents and other housing costs using a combination of the listings on its own sites, public records and economic trends.

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  • Why is the global supply chain so fragile and how can it be fixed?

    Why is the global supply chain so fragile and how can it be fixed?

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    Why is the global supply chain so fragile and how can it be fixed? – CBS News


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    The COVID-19 pandemic dislodged the global supply chain, but the vulnerabilities in the system had already been building up for decades. A new book titled “How the World Ran Out of Everything” examines how the health crisis exposed the fragility of a system that was always at risk of collapse. Author Peter Goodman joins to discuss.

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  • Dell announces data breach of customer names and addresses

    Dell announces data breach of customer names and addresses

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    Dell announces data breach of customer names and addresses – CBS News


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    The tech giant disclosed Thursday that a database was accessed through a Dell portal, which contains a database of customer information. CBS News’ John Dickerson has the details.

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  • Why U.S. law enforcement struggles to combat online romance scams

    Why U.S. law enforcement struggles to combat online romance scams

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    Why U.S. law enforcement struggles to combat online romance scams – CBS News


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    Local and federal authorities face challenges in investigating and prosecuting romance scammers because the scammers are often based overseas. Jim Axelrod explains.

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  • Secretary Buttigieg unpacks new rules on airline fees and refunds

    Secretary Buttigieg unpacks new rules on airline fees and refunds

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    Secretary Buttigieg unpacks new rules on airline fees and refunds – CBS News


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    The Transportation Department announced new rules Wednesday requiring airlines to issue automatic cash refunds for flight cancelations or delays, delayed baggage returns and services like Wi-Fi or seat selection that are paid for but not provided. Transportation Secretary Pete Buttigieg joins CBS News to discuss the changes and how airlines are reacting.

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  • Tesla sales drop as competition in the electric vehicle market heats up

    Tesla sales drop as competition in the electric vehicle market heats up

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    Tesla sales fell sharply last quarter as competition in the electric vehicle market increased worldwide and price cuts the company enacted months ago failed to entice more buyers.

    The Austin, Texas, company owned by Elon Musk, said Tuesday it delivered 386,810 vehicles from January through March, almost 9% below the 423,000 it sold during the same period last year. The company blamed the decline in part on phasing in an updated version of the Model 3 sedan at its Fremont, California factory. Plant shutdowns due to shipping diversions in the Red Sea, and an arson attack that knocked out power to its German factory also caused fewer deliveries, it said. 

    Last year, Tesla dramatically lowered prices by up to $20,000 for some models. In March, it temporarily knocked $1,000 off the Model Y, its top-selling vehicle. The reductions cut into the company’s profit margins, which spooked investors.

    The drop in Tesla’s sales marks the first time its number of vehicle deliveries has fallen since 2020, the Wall Street Journal reported. The company’s poor performance last quarter “was an unmitigated disaster that is hard to explain away,” Wedbush Securities analyst Dan Ives said Tuesday.

    In its letter to investors in January, Tesla predicted “notably lower” sales growth this year. The company added that it’s between two big growth waves — one from global expansion of the Models 3 and Y; and one from the Model 2, a new smaller and less expensive vehicle.

    “For Musk, this is a fork-in-the-road time to get Tesla through this turbulent period, otherwise troubling days could be ahead,” Ives said. “With the ongoing debacle around margins, production and ongoing macro events, Musk will need to quickly take the reins back in to regain confidence in the eyes of Wall Street with a big few quarters ahead.”

    Automakers around the globe have indeed rolled out EVs aimed at competing with the likes of Tesla’s Model Y and Cybertruck. As more Americans grow curious about owning EVs, companies like Ford and General Motors are investing billions of dollars to produce vehicles that are less expensive than Tesla cars. Between 2018 and 2020, Tesla accounted for 80% of EV sales in the U.S., but that figure fell to 55% in 2023, according to Cox Automotive.

    A record 1.2 million EVs were sold in the U.S. last year, according to Cox data. A semiconductor chip shortage three years ago kept some major automakers from running their EV factories at full capacity, but those woes have dissipated and companies are starting to rev up production, auto experts said. 

    During the quarter, Tesla lost production time in Germany after what is suspected to have been an arson attack cut its power supply. U.S. production was slowed by an upgrade to the Model 3, and Ives estimated that Tesla’s China sales slid 3% to 4% during the period.

    Deliveries of the Models 3 and Y, which are by far Tesla’s top sellers, fell 10.3% year over year to 369,783. Sales of the company’s other models, the X and S and the new Cybertruck, rose almost 60% to 17,027. Tesla produced 10% more vehicles than it sold during the first quarter.

    —The Associated Press contributed to this report. 

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  • Expert on maximizing your tax refund

    Expert on maximizing your tax refund

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    Expert on maximizing your tax refund – CBS News


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    As the tax season progresses, the IRS reports having received over 71.5 million tax returns, already issuing more than 49 million refunds to Americans. With the average refund amounting to $3,109, CBS News business analyst Jill Schlesinger offers advice on how Americans can make the most of their tax refund.

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