This Week in ESG and Impact Investing

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Optimizing Taxpayer Experience and Fraud Prevention: Notes from the Nvidia AI Summit. Emeric Vuattier, ESC AMIENS, Amiens, France.

The IRS is on a mission to modernize how it operates, aiming to make the tax experience smoother and more efficient for everyone. They’re focusing on bringing in digital tools, cracking down on fraud, and ensuring everything stays above board in terms of compliance. With a team of over 8,000 dedicated people, the IRS is trying to strike the right balance between pushing forward with innovative ideas and managing the risks that come with them. They’ve laid out a game plan that dives into their goals, the hurdles they’re facing, and how they’re planning to evolve their systems with AI and other digital solutions to better serve taxpayers. Strategic Goals Fraud prevention is right at the top of the IRS's to-do list. They're tapping into AI and data analytics to spot suspicious activity early on and keep taxpayer information safe. But it's not just about security—the IRS also wants to make the tax experience more user-friendly. They're working on digital solutions that

Impact of September CPI Index on Minority Businesses.

The September 2024 Consumer Price Index (CPI) shows a year-over-year increase of 2.4%, with core inflation, excluding food and energy, rising by 3.3%. This slower pace of inflation cooling presents mixed impacts for minority-owned businesses. While reduced energy costs (down 1.9% for the month) could ease operational expenses, rising food prices (+0.4%) and core inflation might continue to strain consumer demand and profitability, particularly for businesses in food services or retail. The inflationary pressures are also likely to affect pricing strategies and cost management as these businesses navigate a still-challenging economic landscape.

Sept. 2024 Employment Data: Improvement for Black Workers, Positive Change Elsewhere

September, 2024 Unemployment: Key Findings White unemployment stands at 3.6% , relatively stable compared to earlier months. Black unemployment at 5.7% , a significant decrease from its peak of 6.4% in March 2024. Asian unemployment remains low at 4.1% , showing little fluctuation. Hispanic or Latino unemployment at 5.1% , consistent with previous months. Analysis: Total nonfarm payroll employment increased by 254,000 in September, and the unemployment rate fell from 4.2 to 4.1 percent. The higher unemployment rates among Black individuals continue to signify systemic employment challenges. Asian individuals have maintained a lower unemployment rate, while Hispanic or Latino populations also face notable but slightly elevated rates compared to Asians. While the decline in Black unemployment suggests some improvement, it remains significantly higher than other groups. Conclusion: The September, 2024 unemployment data highlights ongoing disparities in employment across racial and et

A Primer on Social Security and US Government Spending. Leon Ilgner, Friedrich-Alexander-Universität Nürnberg-Erlangen.

The US is currently facing the possibility of a government shutdown if Congress does not pass a funding bill or a stopgap measure before October 1. A short-term spending bill has been proposed to fund federal agencies for about three months, temporarily averting a shutdown. Government shutdowns occur when Congress fails to pass the 12 annual appropriation bills required to fund federal agencies. Under the Antideficiency Act, federal agencies cannot spend or obligate any money without an appropriation from Congress. When this happens, non-essential functions cease until Congress acts, leading to a government shutdown. Government shutdowns can be used as a political tool by parties to push their agendas. For example, a party may refuse to pass a funding bill unless certain policy demands are met. This tactic can create significant leverage, as the threat of a shutdown puts pressure on the opposing party to negotiate and potentially concede to some demands to keep the government running

A Solution to the Crisis of Gun Violence in the US. Leon Ilgner, Friedrich-Alexander-Universität Nürnberg-Erlangen.

In 2021, the United States experienced 48,830 gun-related deaths, including murders, suicides, accidental deaths, and law enforcement incidents. Over the past decade, more than 167,000 people have died from gun violence , with 324,000 injured. These figures highlight the severe impact of gun violence on American society. As of 2024, there are approximately 82.88 million gun owners in the U.S., with 43% of households owning at least one firearm. The country has over 500 million civilian-owned firearms , reflecting a deep-rooted gun culture. Firearms typically cost between $400 and $800, with a median cost of around $600. Ammunition ranges from $0.08 to $3 per round, totaling between $80 and $3,000 for 1,000 rounds, with a median cost of approximately $1,540. Gun range fees vary from $10 to $50 per hour, totaling between $120 and $600 for 12 visits, with a median cost of around $360. Therefore, the rough median estimate for buying and using a firearm multiple times per year, excluding

Fed Rate Cuts: A Boost or Challenge for Minority-Owned Businesses?

The recent interest rate cuts by the Federal Reserve could have notable impacts on minority-owned businesses, both positive and challenging. Here’s a breakdown of key points: 1. Lower Borrowing Costs: One of the most immediate effects of a rate cut is the reduction in borrowing costs. For minority businesses, which often face higher barriers to accessing capital, lower interest rates can make loans more affordable, allowing for investment in growth, hiring, and equipment. This is particularly helpful for small businesses that rely on lines of credit or business loans for daily operations. 2. Increased Access to Capital: Minority-owned businesses, historically underserved by traditional financial institutions, may benefit from the easing of credit conditions. Lenders could be more willing to offer better terms or approve loans that were previously out of reach. This can encourage these businesses to expand operations, hire more employees, and increase their overall competitiveness in t