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The Graphic Truth: America's racial wealth gap
Juneteenth celebrates June 19, 1865, the day the last Black slaves in America were emancipated after the end of the Civil War. In the century and a half since, segregation, Jim Crow laws, and other forms of overt discrimination against Blacks have all contributed to a persistent wealth gap between Black and non-Black Americans. Here, we take a look at a few indicators that illustrate the divide.
"For Rent, For Sale" sign is seen outside of a home in Washington, U.S
Home sales slow down as mortgage rates bite
High mortgage rates are causing real-estate slowdowns in both the United States and Canada, raising worries about the broader economic impact – as well as hopes that central banks will stop hiking rates.
The number of existing home sales in the United States in August was the lowest since January, and the September numbers are expected to be lower still. The Wall Street Journal reports that sales are likely at a level not seen since the end of the 2008-2011 financial crisis.
In Canada, existing home sales fell in September for the third straight month. “Expect a quieter than normal winter with all eyes on the Bank of Canada,” said Canadian Real Estate Association senior economist Shaun Cathcart.
This is likely to put downward pressure on prices, as some homeowners, unable to keep up with higher mortgage payments, are forced to sell their homes.
The slowdown in the recently superheated real estate market, and the decline in inflation in both countries, has analysts expecting central banks to stop raising rates.
Economists can’t predict how it will all wash out, but both Justin Trudeau and Joe Biden, as incumbents, will bear the brunt of continued inflation, or an economic downturn from central banks tightening money supply to fight inflation. On Thursday, Federal Reserve Chair Jerome Powell said that the central bank is unlikely to raise interest rates again unless he sees signs of the economy overheating, which may give both Biden and Trudeau hope that the fundamentals will change before they face reelection.
Insurance companies are feeling the heat of climate crisis
To understand how bad the problem of climate change has become, it helps to follow the money.
On GZERO World, Ian Bremmer breaks down the impact of climate change on property insurance premiums, which effectively quantifies the growing risk of catastrophic weather events. Last year alone, extreme weather damage cost the world a staggering $165 billion. Formerly once-in-a-generation weather events like the California wildfires of 2017 or Hurricane Harvey in 2018 are becoming more and more common, leading to devastating financial consequences for homeowners and hikes in insurance premiums.
Insurance companies are raising rates in high-risk areas like California, warning that soon, the state may be impossible to insure altogether. It’s another reminder that even though climate change has become a political issue, those with a financial interest in the impact of extreme weather can’t afford to be complacent. Sometimes, the coolest head in the room is the one stuck in the sand.
Watch the full interview on GZERO World: Climate change: are we overreacting?
Catch GZERO World with Ian Bremmer every week at gzeromedia.com/gzeroworld or on US public television. Check local listings.
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