enRICHed: Volume 33

Written By Rich BFF

Happy Mothers Day

We realize that today can be a challenging day for a lot of people. Those who have lost mothers, those struggling to become mothers, those who have strained relationships with their mothers and many more. We see you all and hope you are taking today slow and with grace.

However, we would like to take a moment to say thank you to the moms within the Rich BFF community. Traditionally, women have relied on men to keep up with the family finances - but here you are, learning and growing and empowering yourself. Financial literacy is so important to teach children from a young age, and for you to take that education into your own hands is so admirable. Cheers to all of you, we hope you have a Sunday filled with all of your favorite things!

Amazon Delivery Upgrade

  • Amazon is reported to have made significant changes to its delivery network in an effort to improve delivery operations and logistics.

  • Adding new regional hubs and new technology, among other things, aim to reduce delivery times and costs. Further, Amazon hopes to rely less on FedEx and UPS for help with deliveries.

  • We’ve talked about this before on enRICHed, but Amazon has been struggling to keep up with the costs of their delivery promises. This heavy investment in operations and infrastructure shows its commitment to reducing costs while honoring the speed it has always been known for.

  • And that speed has a heavy correlation with company growth. The Amazon Transportation team reports that the faster they deliver, the more likely someone is to come back for another purchase.

  • HYCU; when a company like Amazon makes changes to its logistics, everyone will take note. As many other companies face growing demand online, this type of overhaul could lead the way for faster and more affordable shipping and delivery across the board. Which we as online consumers love :)

Debt Ceiling Could Be Breached

  • The US Treasury Department estimates that the day the United States runs out of cash, the X-date, could come by late June or July, leaving the government unable to meet its current financial obligations.

  • The debt ceiling debate has always been contentious, with Republicans and Democrats often at odds over how to address it. This year, Speaker Kevin McCarthy has been using the debt ceiling negotiation as a means to push President Biden to roll back major policies he has worked to put in place. With multiple meetings ending in no agreement, experts are worried that a resolution will not be made in time to avoid a default.

  • HYCU; a default on the country’s debt may seem far removed from your daily life, but that means the country is defaulting on obligations to Social Security recipients, military personnel, government workers, and US bondholders. Further fall out could lead to market disruptions, higher borrowing costs for businesses, and a potential recession - so this is definitely something to keep an eye on.

Retirement Age Affects Everyone

  • In France, people have been protesting a pension retirement age increase from 62 to 64, and experts believe a similar conversation could soon happen in the United States.

  • The Social Security program has been facing a long-term funding shortfall, with 10K baby boomers turning 65 every day - so raising the retirement age could be a valid means of reform. However, the change would affect younger members of the workforce, who would have to pay into the system for longer before being eligible for the benefits.

  • CNBC notes that raising the retirement age could exacerbate existing inequalities in our economy. Workers in physically demanding jobs may be unable to work until the higher retirement age, which could leave them with a gap in income and benefits. If they opt to receive benefits earlier than the retirement age, they opt in for lesser benefits, causing a further economic disparity.

  • HYCU; while raising the retirement age could help address the funding challenges that the Social Security program faces, the question is whether or not that is worth the consequences that the American workforce would face as a result.

A Ban on Salary History Questions?

  • The United States’ largest employer, the federal government, has proposed a ban on salary history questions during interviews.

  • The ban comes from pay equity advocates, who have found that asking someone’s salary history in an interview perpetuates the marginalization of workers, primarily women and people of color. Because these groups of workers are proven to be underpaid, using historical base salary to determine new base salary keeps them in a bad cycle.

  • Studies have shown that this type of ban works. Not only do companies end up with more qualified workers, but women earn more when they aren’t asked their previous salary. Further findings include increased job mobility, hourly wages, and weekly earnings.

  • HYCU; while the ban isn’t a magic fix, the hope is that that it will “root out some of the historical pay inequities that are more prevalent outside of the federal government.” If you are in a situation where someone asks you your salary expectations in an interview, Your Rich BFF has the script here to help!

Brick & Mortar 4EVER

  • Turns out, people actually like shopping in person. WSJ’s dive into Warby Parker’s shift in business plan from online to in-store proves it.

  • In a report this weekend, the WSJ spoke to co-CEOs of Warby Parker, the online-native glasses company which now has over 200 stores, with plans to add 40 more this year. These brick and mortar locations generated 60% of the company’s total sales in 2022.

  • Retailers say that the move to brick and mortar is being driven by rising costs of digital advertising. It is just too experience to attract new customers online, and it is increasingly difficult as the Internet becomes heavily saturated with new brands seemingly daily.

  • One executive even said that it is now impossible to be profitable without in person shopping experiences. As we see with Amazon’s recent pushes for consumers to return things in person, shipping and delivery costs can also be prohibitive to revenue growth.

  • HYCU; online-native brands are figuring out that retail stores existed for a reason. It makes it easier for you as the consumer to test products in person before committing to a shipment and potential costly return - so we are all for this resurgence!

Rich BFF
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