Month: October 2023

I am a big music fan, although admittedly, pop music is not my thing.  That said, one would have to be living in seclusion not to notice what is going on with “Swifties,” aka Taylor Swift fans!

Before we get into “SWIFTonomics,”  I first noticed that Taylor Swift did something no other band or solo artist has ever done.  She had all 10 of the current top 10 songs on the Hot 100 Billboard charts.  Before Taylor, in 1964, only the Beatles occupied the top 5 songs on the charts at the same time.

It didn’t fully hit me how big Taylor Swift is until she recently started spending time with Travis Kelce.  Travis is the tight end on the Superbowl Champion Kansas City Chiefs and has been one of my favorite NFL pro football players for years.

The story goes, that Travis attended her concert with friends on her Kansas City stop of her “Eras Tour.”   He had a friendship bracelet made up and tried to get it to her during the show but was shut down by her security.  He mentioned it hurt his feelings a little bit during his podcast (with his brother Jason Kelce, NFL Center for the Philadelphia Eagles) radio show.  He said since Taylor rocked the arena, he invited her to Kansas City to watch him rock the stadium and she showed up on Sunday, September 24^.

Two days later, Travis Kelce’s red #87 K.C. Chiefs jersey sales were up almost 400%.  Fox Sports announced the following Tuesday that the Sunday game drew 24.3 million viewers making it the most-watched NFL game of that weekend.  That broadcast had the largest improvement in the females ages 12-17 category and led in female audience in every major demographic. 

Taylor started her current “Eras Tour” in March of 2023 and after 53 shows, she has been on break since August 9 until this November when she starts her 2^nd leg both in the USA and overseas, which runs to November 2024.  Although her ticket prices are high, there is value as she’s been known to belt out songs for 3.5 hours straight. 

The music industry (I blame “The Eagles” first reunion tour) had been trending with higher prices and shorter shows, many of which barely run for 90 minutes.

Below you will see the “Eras Tour” financial statistics and projections as the “Taylor Swift Movement” is having major economic effects on the cities she visits:

1. As per Time Magazine: Analysts estimate that the “Eras Tour” will likely surpass $1 Billion in revenues by next March, while Swift is touring internationally. 
2. Elton John’s Record will be Broken: Elton’s multiyear farewell tour wrapped up this summer and holds the current tour record at $939 million. 
3. Projected USA Consumer Spending:  This tour goes much further than just net profits.  The tour is projected to generate close to $5 billion in consumer spending, just in the USA!
4. Taylor Swift as an Economy: She would be bigger than 50 countries.
5. The “Eras Tour” Opening Night in Glendale, Az: Her tour’s opening night generated more local business revenue than the Super Bowl that was just played this past February in the same stadium!
6. Three to Five Times Ancillary Revenue: Typically, there is a $300 “ancillary revenue” for every $100 spent on performances.  This includes purchases such as hotels, food, transportation, merchandise etc.  Swifties are spending an average of $1,300-$1,500 at every event.
7. Taylor’s Slice of the Pie: Artists earn an average of 85% of the tour’s revenue, as per the Washington Post.  With the average ticket price of $456, Swift’s earnings from this tour exceed the output of 42 countries.
8. The Seattle Show: Swift set a record for single-day revenue for downtown Seattle hotels hitting $7.4 million, which is $2 million more than the MLB (Major League Baseball) All-Star game played there the same month.
9. Ticket Sales per Show: They are averaging $13 million per show on the road.
10. The Taylor Swift “Eras Tour” Movie: The movie version of her tour opened last weekend and has already become the highest-grossing concert film, beating Justin Bieber’s “Never Say Never” concert movie.

The Federal Reserve’s next meeting wraps up on Wednesday, November 1^st.  “The Fed” meets every 6 weeks to decide if short-term interest rates should be raised, lowered, or stay the same.  Interest rates have been raised 11 times since March of 2022 and are at 22-year highs.  Perhaps The Fed should ask Taylor Swift what to do!

In a recent report from US News and World Report, Baruch College was ranked first for value and social mobility!  This is college application season for high school students and their families.

For many students, paying for college involves student loans. In 2021, almost 64% of college graduates had taken on student loan debt.  Americans owe $1.77 Trillion in student loan debt!

If you’re preparing for college, know that there are ways to avoid graduating with a massive debt burden. Graduating without student loans can be challenging, but it’s possible with the right strategy.

Read for the 7 strategies that can help you pay for college without loans:

1. Strategically Accumulate Credits-  Before enrolling in college classes, students should consider looking for placement exams for subjects like languages and mathematics. If they test well, they may be able to skip basic introductory classes like Spanish 101. High school students with high scores on Advanced Placement or International Baccalaureate exams may also earn college credit . Students typically need 120 credit hours to graduate with a bachelor’s degree. Skipping basic classes and getting credit for high school work can help students graduate faster, which can save them money on tuition, room and board, and other college-related expenses.
2. Consider Staying Local- Attending a public in-state college may be one of the easiest ways to avoid student loans – or at least minimize them. Public schools charge much lower rates for state residents than for out-of-state students. For example, tuition at the University of California at Berkeley is $43,980 per year for out-of-state students, while it only costs California residents $14,226.  Check to see if you qualify for special grants, scholarships, or other incentives from your state to attend a public institution. For example, New York’s “Excelsior Scholarship Program” makes it possible for New York state residents whose families earn $125,000 or less to attend any State University of New York or City University of New York institution without paying tuition.
3. Consider Earning Credits in a Community College- It’s possible to save money on tuition by taking some courses at a two-year community college and transferring those credits to a four-year institution. For the 2022-2023 academic year, the average cost of tuition at a public two-year institution was $3,860 for in-district students, while it cost $10,940 in tuition for in-state students to attend a four-year public school, according to “Trends in College Pricing and Student Aid 2022, an annual survey from the College Board.  Before enrolling in a community college, verify that the credits you earn will transfer to the four-year institutions you’re interested in. Keep in mind that you may have to pay higher tuition if you attend a community college outside your state or district.
4. Apply for Scholarships- Receiving scholarships is one of the best ways to pay for school, and applying can require a good amount of research, planning, and effort.  High school students should consider talking to their college guidance counselor about finding scholarships from community organizations, like a local Rotary Club.
5. Consider Applying for Subject-Based Awards- While students might assume that scholarships are only for incoming first-year students, there are still awards available for sophomores, juniors, or seniors. If you decide on a career path after you enroll, take the opportunity to search for scholarships specific to your major. For example, if you decide to major in chemistry, start looking for awards geared toward chemistry students.
6. Don’t Rule out Private Schools- While public universities may have lower initial tuition rates, private colleges may provide generous financial aid packages to worthy students.  Smaller and mid-sized private colleges are often trying to compete with major public universities.  They may be more generous when it comes to courting students, especially those with high needs and high grades.
7. Complete the FAFSA No Matter What- The bare minimum every student should do to minimize loans is to fill out the FAFSA (Free Application for Federal Student Aid).  The FAFSA provides access to federal student loans and grants, including the Pell Grant.  Filling out the FAFSA is the only way to qualify for federal grants, loans, and work-study programs. Many states also require the FAFSA to be submitted before awarding their own grants and scholarships. The FAFSA is available starting Oct. 1 the year before you plan to attend college, and there is good reason to apply early. Schools that use the FAFSA for their own internal awards may have a limited number of scholarship slots, so check for school-specific priority filing dates. You should also look for any deadlines from your state.

Another reason to complete the FAFSA early is because endowment money is “first come, first serve!”  When alumni graduate and donate/give money back to their school, that money goes into the school’s endowment fund.  This fund is used to fund merit-based endowment (free money) scholarships.  Better to apply when their coffers are full!

When I started writing this week’s column, we (the USA) were in the 11^th hour on the brink of another “Government Shutdown!”  It turns out we have averted a shutdown by temporarily using a stripped-down band-aid bill to buy us another 4-5 weeks of time before Congress is back at the negotiating table in November. 

I intentionally worded the first paragraph as “another Government Shutdown” as many Americans see it as the latest dysfunctional attempt by two bickering parties to wait until the last minute to get what they want and/or what they think their constituents want.    

This is NOT the same situation as previous shutdowns!  Before I give you my take, let’s go back into recent Government shutdown history, who was the current President, why they shut down, and for how long.

1. 2018: Trump- 35-day shutdown (the longest in history) with the border wall being the primary issue.
2. 2013: Obama- 16-day shutdown based on disagreements on whether to dismantle Obama Care and the ACA (Affordable Care Act).
3. 1995: Clinton- 21-day shutdown (formerly the longest in history) after Clinton vetoed a budget-cutting bill that would reduce funding for education, the environment, and public health.

A November shutdown could trigger a catastrophe for our fragile economy!  We recently lost our AAA rating from Fitch.  These are different financial times, even from just 5 years ago.  Politicians need to check their swollen egos at the door as the ripple effects could bring severe long-term damage to our great nation!

The following are some of the primary reasons why:

1. The Military: This would be the first time ALL military service members would NOT get paid.  The majority would be forced to work without pay.  Ripple: Our military is already underpaid.  How fired up would you be to be working along the border dealing with migrants every day and NOT getting paid?  This also halts our replacement of old military drones and equipment sent to Ukraine and puts our national defense at risk, as all projects and Navy shipbuilding get halted.
   
2. Auto Industry: We are in the middle of the expanding UAW (United Auto Workers) strikes. Ripple: This would halt new auto production and raise the prices of new cars.  There are already auto parts shortages that would be exacerbated.
   
3. Oil and Gas Prices: Gas prices are tied to oil prices. Ripple: Since we no longer depend on Russia for a portion of our oil-exporting, we are at the mercy of Saudi Arabia, who recently cut oil production so they can make more money.  A Government Shutdown would raise the price well over $100 per barrel, which affects every American and will push up prices and inflation.
   
4. Travel & Transportation: There is already a shortage of air traffic controllers (ATC) with over 1000 currently in training. Ripple: A shutdown would halt ATC training and the shortage would get worse leading to delays and flight cancellations for the daily 1.6 million Americans that go through airports. 
   
5. Student Loan Repayment: As of October 1^st, students must start repaying their loans after the COVID-19 temporary reprieve that was extended several times. Ripple: Students have been spending freely.  They must now reallocate money that was flowing into the economy every month to pay off their loan.  It is estimated this would take $70B-$100B of consumer spending out of the economy over the next 12 months.

There are many more ripple effects, but you get the picture!  The bottom line is the government makes up 25% of our total economy!  This is not a “switch” that one can turn on and off.  You cannot shut down 25% of the U.S. economy without severely damaging the other 75%!

One last thing.  If the Government shuts down, Congress still gets paid!