Making money
The U.S. economy keeps going up and
up—and so does the strength of the U.S.
dollar, said Amrith Ramkumar in The
Wall Street Journal. The dollar continues
to defy analysts’ expectations “that it will
finally soften as the 10-year U.S. economic
expansion ages”; in the 12-month period
that ended in June, it rose 1.8 percent.
Normally, leaders cheer on the strength
of their currency. But President Trump
continues to call for a weaker dollar, claim-
ing “its strength puts the U.S. at a com-
petitive disadvantage” by making it more
expensive for multinational companies to
convert overseas revenue into U.S. currency. He has also accused
other countries—especially China—of manipulating their cur-
rency against the dollar’s strength in order to boost exports and
jobs. Several American companies are citing the strong dollar
as a headwind to their second-quarter earnings, said Yun Li in
CNBC.com. Jeans maker Levi Strauss, which counts on Europe
and Asia for close to half its sales, blamed the “unfavorable cur-
rency impact” for slimmer margins and falling profits.Trump clearly wants to push the dollar down, said Desmond
Lachman in TheHill.com, but his policies are doing the oppo-
site. His “America First” trade policy and punitive tariffs have
created “a marked slowing in international trade growth” and
a weakening in manufacturing abroad. That has caused centralbanks around the world to try to gin up
their economies, loosening their monetary
policy and lowering their currencies’
value. It’s also causing “foreign money
to flow toward the dollar in search of
a safe haven.” There’s only one way to
sustainably deflate the dollar: stronger
global growth, said Bhanu Baweja in
the Financial Times. Unfortunately, the
global economy is weighed down by
China’s economic stagnation. Trump
could direct the Treasury to “take matters
into its own hands” and intervene in cur-
rency markets. That would likely start a
currency war and “torpedo an already fragile international trad-
ing system.” The probable result? An even stronger dollar.The dollar’s strength might worry politicians and economists,
but it’s also an excellent excuse to travel overseas, said Stacey
Lastoe in CNN.com. Right now, in Budapest, for instance, the
dollar stretches a long way. The Michelin-starred Borkonyha
Winekitchen “offers a five-course tasting menu for less than
$80 USD based on current exchange rates.” In Vietnam, though
the flight might be a bit costly, you can stay at Hanoi’s five-star
Sofitel Legend Metropole for less than $300 a night. Closer
to home, just look to Canada, where the strength of the U.S.
dollar—now worth $1.30 Canadian—makes for an appealing
summer trip.Currency: Taking advantage of the strong dollar
BUSINESS 33
Ge
tty
Levi’s blames a strong dollar for lower profits.The rising price of a new ride
“Prepare for sticker shock if you haven’t
shopped for a new car lately,” said Sarah
O’Brien in CNBC.com. The average age of
new-car trade-ins is just over six years; if you
bought your current wheels in the summer
of 2013, “be ready to open your wallet a lot
wider” now. Last month, buyers paid an aver-
age of $36,902 for a new car—an increase
of nearly $5,500 since June 2013. Improved
technology and safety features have helped
push up prices, and buyers have shifted their
preferences to SUVs and trucks, rather than
sedans. Now “only about 35 percent of new
cars are priced below $30,000, compared with
54 percent in 2012.” Borrowers are also facing
higher interest rates: The average annual per-
centage rate on a car loan today is 6.03 per-
cent, compared with 4.1 percent in 2013.Cheaper in-flight Wi-Fi is coming
More airlines could soon be bringing free
Wi-Fi to the skies, said Scott McCartney in
The Wall Street Journal. The service might
also improve as airlines switch to a faster,
satellite-based provider. Many airlines say that
“Wi-Fi is the biggest source of complaints
that they get.” Currently, the typical cost of
in-flight wireless service is about $20—though
on an Alaska Airlines flight from New Yorkto Portland, Ore., it’s $39.95. That’s one rea-
son so few passengers—6 to 7 percent—buy
Wi-Fi. Industry officials predict that once “one
huge carrier, likely Delta,” makes the switch
to free, faster internet on its flights, “others
will follow.” An estimated 40 to 60 percent
would use a free service, which is why airlines
are pitching advertisers to sponsor it.A giant hidden tax break
A little-known tax-code provision allows em-
ployees in some businesses to keep their stock
gains without paying a tax, said Paul Sullivan
in The New York Times. The provision ap-
plies to “qualified small-business stock,” and
it can cover some very big gains. Early inves-
tors who got shares in a company that has
less than $50 million in assets can “exclude
from their taxes $10 million or 10 times their
investment, whichever is higher.” There are
some restrictions: The stock has to be held for
at least five years, and the qualifying company
also has to be one that “makes something”—
which excludes law firms, accounting prac-
tices, and other service providers, but does
allow tech firms. One early employee of
LinkedIn found the tax break on TurboTax.
“The tax savings were so significant that he
was not sure they were real”—and even his
accountant hadn’t known about the rule.What the experts say
Child literacy
is paramount
to future suc-
cess, but only
about one-fifth
of low-income
students and
one-third of
students overall
are reading
proficiently
by fourth grade. Reading Partners
( reading partners.org) has teamed up
with schools in under-resourced areas
to ensure that kids do not fall behind.
The charity trains its volunteers to imple-
ment research-based lesson plans as
they meet with their students one on one
twice every week. Tutors start by reading
aloud, asking questions, discussing the
content, and examining the vocabulary.
Students then begin reading on their
own, with the tutor offering support.
Reading Partners works in more than
200 schools nationwide, and 94 percent
of principals report that they have seen
schoolwide progress.Charity of the week
Each charity we feature has earned a
four-star overall rating from Charity
Navigator, which rates not-for-profit
organizations on the strength of their
finances, their governance practices,
and the transparency of their operations.
Four stars is the group’s highest rating.