Where the Millionaires Are

Look to the states won by Hillary Clinton in the 2016 presidential election.

Proportion of “millionaire households” by state (darker shades equals higher proportion of millionaires).

Over the past few years, we’ve heard a good deal about income inequality in the United States. One persistent narrative is that the wealthiest and highest-income households continue to do well – and indeed are improving their relative standing – while many other families struggle financially.

The most recent statistical reporting seems to bears this out.

According to the annual Wealth & Affluent Monitor released by research and insights firm Phoenix Marketing International, the total tally of U.S. millionaire households is up more than 800,000 over the past years.

And if we go back to 2006, before the financial crisis and subsequent Great Recession, the number of millionaire households has increased by ~1.3 million since that time.

[For purposes of the Phoenix report, “millionaire households” are defined as those that have $1 million or more in investable assets. Collectively, these households possess approximately $20 billion in liquid wealth, which is nearly 60% of the entire liquid wealth in America.]

Even with a growing tally, so-called “millionaire households” still represent around 5% of all U.S. households, or approximately 6.8 million in total. That percentage is nearly flat (up only slightly to 5.1% from 4.8% in 2006).

Tellingly, there is a direct correlation between the states with the largest proportion of millionaire households and how those states voted in the most recent presidential election. Every one of the top millionaire states is located on the east or west coasts – and all but one of them was won by Hillary Clinton:

  • #1  Maryland
  • #2  Connecticut
  • #3  New Jersey
  • #4  Hawaii
  • #5  Alaska
  • #6  Massachusetts
  • #7  New Hampshire
  • #8  Virginia
  • #9  DC
  • #10  Delaware

Looking at the geographic makeup of the states with the highest share of millionaires helps explain how “elitist” political arguments had a degree resonance in the 2016 campaign that may have surprised some observers.

Nearly half of the jurisdictions Hillary Clinton won are part of the “Top 10” millionaire grouping, whereas just one of Donald Trump’s states can be found there.

But it’s when we look at the tiers below the “millionaire households” category that things come into even greater focus. The Phoenix report shows that “near-affluent” households in the United States – the approximately 14 million households having investable assets ranging from $100,000 to $250,000 – actually saw their total investable assets decline in the past year.

“Affluent” households, which occupy the space in between the “near-affluents” and the “millionaires,” have been essentially treading water. So it’s quite clear that things are not only stratified, but also aren’t improving, either.

The reality is that the concentration of wealth continues to deepen, as the Top 1% wealthiest U.S. households possess nearly one quarter of the total liquid wealth.

In stark contrast, the ~70% of non-affluent households own less than 10% of the country’s liquid wealth.

Simply put, the past decade hasn’t been kind to the majority of Americans’ family finances. In my view, that dynamic alone explains more of 2016’s political repercussions than any other single factor.  It’s hardly monolithic, but often “elitism” and “status quo” go hand-in-hand. In 2016 they were lashed together; one candidate was perceived as both “elitist” and “status quo,” and the result was almost preordained.

The most recent Wealth & Affluent Monitor from Phoenix Marketing International can be downloaded here.

Cross-Currents in the Minimum Wage Debate

usmap-minimum-wages-2017This past November, there were increased minimum wage measures on the ballet in four states – Arizona, Colorado, Maine and Washington. They were approved by voters in every instance.

But are views about the minimum wage actually that universally positive?

A survey of ~1,500 U.S. consumers conducted by Cincinnati-based customer loyalty research firm Colloquy around the same time as the election reveals some contradictory data.

Currently, the federal minimum wage rate is set a $7.25 per hour. The Colloquy research asked respondents for their views in a world where the minimum wage would $15 per hour — a figure which is at the upper limit of where a number of cities and counties are now pegging their local minimum wage rates.

The survey asked consumers if they’d expect to receive better customer service and have a better overall customer experience if the minimum wage were raised to $15 per hour.

Nearly 60% of the respondents felt that they’d be justified in expecting to receive better service and a better overall experience if the minimum wage were raised to that level.  On the other hand, nearly 70% believed that they wouldn’t actually receive better service.

The results show pretty clearly that consumers don’t see a direct connection between workers receiving a substantially increased minimum wage and improvements in the quality of service those workers would provide to their consumers.

Men feel even less this way than women: More than 70% of men said they wouldn’t expect to receive better service, versus around 65% of women.

Younger consumers in the 25-34 age group, who could well be among the workers more likely to benefit from an increased minimum wage, are just as likely to expect little or no improvement in service quality. Nearly 70% responded as such to the Colloquy survey.

One concern some respondents had was the possibility that a dramatic rise in the minimum wage to $15 per hour could lead retailers to add more automation, resulting in an even less satisfying overall experience. (For men, it was ~44% who feel that way, while for women it was ~33%.)

Along those lines, we’re seeing that for some stores, labor-saving alternatives such as installing self-service checkout lanes have negative ramifications to such a degree that any labor savings are more than offset by incidences of merchandise “leaving the store” without having been paid for properly.

Significant numbers of consumers aren’t particularly thrilled with the “forced march” to self-serve checkout lines at some retail outlets, either.

Perhaps the most surprising finding of all in the Colloquy research was that only a minority of the survey respondents were actually in support of raising the minimum wage to $15 per hour. In stark contrast to the state ballot measures which were supported by clear majorities of voters, the survey found that just ~38% of the respondents were in favor.

The discrepancy is likely due to several factors. Most significantly, the November ballot measures were not stipulating such a dramatic monetary increase, but rather minimum wage rates that would increase to only $12 or $13 – and only by the year 2020 rather than immediately.

That, coupled with concerns about automation and little expectation of improved service quality, and it means that this issue isn’t quite as “black-and-white” as some might presume.

A Generational Shift within the American Workforce

bmI’ve blogged before about the cultural differences between older and younger Americans in the workforce. Some observers consider the differences to be of historic significance compared to previous eras, due to the confluence of various “macro” forces driving change at an extraordinary pace.

And somewhere along the way when few were looking, the millennial generation has now become the largest cohort in the American workforce.

And it isn’t even a close call: As of this year, millennials make up nearly 45% of all American workers, whereas baby boomer generation now comprises just over a quarter of the workforce.

According to a new report by management training and consulting firm RainmakerThinking titled The Great Generational Shift, there are actually seven groups of people currently in the workplace at this moment in time:

  • Pre-Baby Boomers (born before 1946): ~1% of the American workforce
  • Baby Boomers first wave (born 1946-1954): ~11%
  • Baby Boomers second wave (born 1955-1964): ~16%
  • GenXers (born 1965-1977): ~27%
  • Millennials first wave (born 1978-1989): ~27%
  • Millennials second wave (born 1990-2000): ~17%
  • Post-Millennials (born after 2000): ~1%

roowPersonally, I don’t know anyone born before 1946 who is still in the workforce, but there are undoubtedly a few of them — one out of every 100, to be precise.

But the older members of the Baby Boomer generation are fast cycling out of the workforce as well, with more than 10,000 of them turning 70 years old every day.

By the year 2020, the “first wave” Boomers are expected to be only around 6% of the workforce.  Meanwhile, Millennials are on track to represent more than 50% of the workforce by 2020.

Now, that makes some of us feel old!

The Great Generational Shift report can be downloaded here.

All those narratives about Amazon? They’re not exactly accurate.

abI doubt I know a single person under the age of 75 who hasn’t purchased at least one item of merchandise from Amazon over the years. And I know quite a few people whose only shopping experience for the holidays is a date with the Amazon website.

Still, some of the breathless stories and statistics that are put forward about Amazon and its business model seem almost too impressive to be true.

I’m not just talking about news reports of drone deliveries (a whole lot of “hat” and far less “cattle” there) or the idea that fully-robotic warehouses are just around the corner – although these stories do make for attention-grabbing headlines.  (Despite the continued need for human involvement, the way that robots are being used inside Amazon warehouses is still quite impressive.)

Moreover, a study published recently by BloomReach based on a survey of ~2,200 U.S. online consumers finds that Amazon is involved in most online shopping excursions, with nine out of ten online shoppers reporting that they check Amazon’s site even if they end up finding the product they want via another e-commerce resource.

More than half of the BloomReach survey respondents reports that they check on the Amazon site first — which is a new high for the company.

But are all of the reports about Amazon as credible?

Doug Garnett
Doug Garnett

Recently Doug Garnett, CEO of advertising agency Atomic Direct, penned a piece that was published in the December 2016 edition of Response Magazine. In it, he threw a dose of cold-water reality on some of the narratives surrounding Amazon and its business accomplishments.

Here are several of them that seem to contradict some of the commonly held perceptions:

“Amazon is a $100 billion retailer.”

Garnett notes that once subtracting Amazon’s non-retail revenue for 2015 (the last year for which financial data is available), the worldwide figure is more like half of that.

In the United States, Amazon’s retail sales are closer to $25 billion, which means it makes up approximately 6% of total retail sales.

That’s still very significant, but it isn’t the dominating presence as it might seem from all of the press hype.

“Amazon is profitable now.”

Yes, it is – and that’s after many years when the company wasn’t. However, approximately three-fourths of Amazon’s profits are due to selling cloud-based services, and the vast majority of the remaining profit dollars come from content delivery such as e-books plus music and video downloads.  So traditional retail hard-goods still aren’t generating profits for Amazon.

It turns out, just as retailers like Wal-Mart, Target and K-Mart have discovered, that replicating a retail store online is almost always a money-losing proposition.

To underscore this point, Garnett references this example of a merchandising campaign in 2016 as typical:

“When one unit was sold on Amazon, eight were sold at the retailer’s website and 80 were sold in the brick-and-mortar stores. The profit is in the store. 

For mass-market products, brick-and-mortar still dominates. Amazon is a nice incremental revenue stream, [but] not a valid alternative when you’re playing in the big game.”

It also means that companies that are looking to Amazon as a way to push their products into the marketplace should probably think twice.

At the very least, they should keep their expectations realistically modest.

ATMs look to the future … except that the future’s already been around for a while.

The new SelfServ 80 ATM from NCR
The new SelfServ 80 ATM from NCR.

Last week, the Yahoo newsfeed republished a trade article from BGR News titled “This Futuristic ATM Means You’ll Never Have to Go into a Bank Again.”

It was a rather breathless piece reporting that NCR (once called National Cash Register) will be introducing a new ATM dubbed the SelfServ 80 to a number of major banks as well as several community banking organizations.

In addition to dispensing cash, the SelfServ 80 machines have large touchscreens and video conferencing capabilities that will enable banking customers to do “virtually anything” they’d normally go into the bank to transact, according to the news article.

This includes applying for loans or credit cards – or any other communications that would typically occur with a bank officer.

It sounds quite intriguing – and major step forward for ATMs, which haven’t changed that much since they were unveiled decades ago.

It’s easy to forget that ATMs were among the very first devices to “automate” activities previous carried out by humans, because they’ve seemed rather “old hat” for a while.  They haven’t quite kept up with the times …

… Or maybe they have?

Reading this news piece my brother Nelson Nones, who has lived and worked outside the United States for more than 20 years, was amused.  Here’s what he wrote to me:

Those new machines from NCR may seem “futuristic” in the United States, but they are nothing new in the Far East. In Thailand, for instance, you can go to just about any bank branch and you’ll see three types of machines lined up in a row: 

ATMs (Automatic Teller Machines)

thai-banking-screenUnlike in the United States, these ATMs aren’t only for withdrawing cash and depositing checks. With your debit card you can also use these machines to transfer funds to other bank accounts within Thailand, and you can also pay bills, too – either on-the-spot or in advance.  Other functions are also available as well.  [See the image to the right.] 

Most consumer-facing businesses which send out monthly statements to customers put a barcode on the bottom of the statement. The ATMs have barcode scanners and so, when paying a bill, you just scan the barcode at the ATM.  All transactions take effect instantaneously. 

These services are available at any ATM – not just the ones at bank branches. As an example, every single one of Thailand’s approximately 9,400 7-Eleven stores has full-service ATMs for all the country’s banks. 

CDMs (Cash Deposit Machines) 

These machines allow you to deposit cash straight into your bank account – with or without a debit card. The machines come with money counters; just put your bank notes in the slot (local currency only) and the machine will count them for you. 

PUMs (Passbook Update Machines 

Passbook accounts might be a thing of the past in the United States, but they are still widely used in Thailand. Want to update your passbook?  Just go to any PUM and insert your book.  The machine will read it and then print all the transactions needed to bring it fully up to date. 

Of all the places I’ve ever visited, Thailand has the most automated banking machinery I’ve ever seen.

Imagine that: United States banking and commerce trying to keep up with … Thailand!

tatm
My brother providef this photo of an automated banking kiosk located in the lobby of a hospital in Bangkok, Thailand. (My sister-in-law is also in the picture, looking elegant and happy.)

What about you? If you’ve encountered similarly sophisticated financial services automation in other countries that makes the U.S. system seem hopelessly outmoded, please share your experiences as well.

Microchips migrate to people … and the legislators struggle to catch up.

mcrExpanding beyond their use in applications like IoT household appliances and pet location tracking, sensors and chips are now being embedded in people, too.

Last fall, The Wall Street Journal reported that as many as 50,000 microchips designed for people have been sold globally.  Each microchip kit includes a tag and an injection tool, and is priced at around $100.

More Australians have had chip implants than in any other country, but significant numbers of other people in European nations like Sweden and the Benelux countries have also stepped up to the plate for implants.

According to what I hear, the chip embedding process is easy and painless, as the devices are very small – not much bigger in size than a grain of rice.

But not everyone is thrilled about this latest “turn of technology.” And as a result – and hardly surprising – politicians are starting to become involved.

In a move aimed at trying to put the microchip genie back into the bottle, lawmakers in the state of Nevada have introduced legislation that would make it a felony to require a person to be implanted with microchips such as an RFID (radio frequency identification) or NFC (near field communication) devices.

The legislation doesn’t seek to outlaw the practice – but rather to make it illegal to mandate any such activities targeting any single individual.

Under certain circumstances, I can see how micro-chipping a person could not only be beneficial, it could be a life-saver. Consider situations where people are potentially in danger of kidnapping, or susceptible to violence from spousal threats.

No major opposition to the Nevada bill has been logged – so far. Still, I can’t help but think that this is yet another lame legislative attempt to restrain the inexorable march of technology — one that will come up woefully short.

Water finds its own level – and that’s never more true than in the realm of technological advancements.

But what are your own thoughts pro or con?  Please share your views with other readers here.

America’s shopping malls struggle to avoid becoming dinosaurs.

dm

America’s department store chains – and anchor stores at countless shopping malls across the country – are reporting another rounds of disappointing sales and profit figures following the 2016 holiday season.

It underscores what we’ve been seeing all over the country – dead or dying malls.

In fact, retail industry analyst Jan Rogers Kniffen predicts that about one-third of malls in the United States will shut their doors in the coming years.

That’s about 400 of the ~1,100 enclosed malls.

Equally startling, of the ~700 that remain, all but around 250 are expected to continue to struggle.

The problem is multi-faceted. At an estimated 48 sq. ft. of retail space for every man, woman and child in America, that’s a footprint that gotten too big.

“On an apples-to-apples basis, we have twice as much per-capita retail space than any other place in the world,” Kniffen says, adding that the United States is “the most over-stored” country anywhere.

The oversupply of retail space is challenged by changing customer tastes, too. Online shopping is a huge problem for malls, as is the rising popularity of off-price stores in lieu of the department stores like Macy’s and Penneys that have served as important anchors for mall properties all over the country.

Now we hear reports that Macy’s is planning to close numerous store locations during 2017, joining Sears and Penneys which have been doing the same thing over the past several years.

How will malls survive in the future? Recently, the McKinsey & Co. consulting firm issued a report that highlighted five ways malls can remain relevant to consumers today and in the future:

Mall of America (Bloomington, MN): Expansion Rendering
Mall of America (Bloomington, MN): Expansion Rendering

Entertainment – Even in the age of “interactive everything,” consumers – particularly younger ones – continue to seek out gathering places and “experiences.”  It’s one reason why some shopping malls have had to deal with large numbers of young people flooding their spaces – not always with pleasant results.  Malls seeking out tenants that provide entertainment hubs — such as theme parks and gaming parlors, edutainment, and even virtual-reality content and immersive experiences — will be able to draw customers from a wider geographic area who crave social interaction.

Food and drink – “Food is the new fashion,” some people like to say.  Successful malls are getting in on that action, incorporating popular dining options along with unique ones as a way of becoming destination locations.

Retail – Still a core aspect of malls, but with new twists, such as creating retail centers that are also learning zones that bring together consumers, retailers and entertainment.  McKinsey uses the example of a sporting goods store that also includes a fitness studio, or offline showrooms for online retail players.  More reconfigurable spaces that can be used for pop-up stores, special product launches and seasonal offerings are also options with potential.

Transportation – Getting to and from mall properties with ease is growing in importance, and where some creative thinking might go a way towards making some malls more attractive than others.

Technology – The more that malls can create a “seamless chain” between online and on-site shopping, the better their chances are for staying relevant in the new retail environment.  McKinsey posits a number of initiatives, such as creating “virtu-real” formats that provide consumers with a more interactive retail experience through the use of touchscreen navigation portals, virtual fitting rooms, allowing smartphones for e-checkouts, and click-and-collect services to help blend the offline and online shopping experience.

In sum, for shopping malls it means fundamentally rethinking their role — and then adapting their strengths to those of the virtual/interactive world.

If we check back in another five years or so, we should have a pretty good idea which tactics have been successful – and which mall properties, too.

Hopefully, the shopping mall closest to your home won’t look like the one at the top of this article.

Internet-connected TVs now dominate the market.

ictvRecently I blogged about how many Americans are now living in cellphone-only households.

Bottom-line:  It’s a major percentage.

A parallel development is the extent of Internet-connected TVs that are now in place in U.S. households. According to a recent survey of ~2,000 U.S. adult broadband users by The Diffusion Group, Internet-connected TV penetration has now risen to 74%.

This chart shows the penetration trends over the past four years:

  • 2013 Internet-connected TV penetration: ~50%
  • 2014: ~61%
  • 2015: ~70%
  • 2016: ~74%

What these figures show is that almost three fourths of U.S. households now have an Internet-connectable television, which is up about 50% since 2013.

With more consumers wanting to set up their own in-home networks, TV manufacturers saw this trend developing and began flooding the retail market with “smart” televisions. As a result, most any consumer looking to purchase a TV set these days is likely to end up with one that is Internet-connectable, whether they feel they need it or not.

This is a back door into the world of consumer IoT; both the TV and the smartphone are the prime facilitators for the adoption of the Internet of Things in the home.

But like with many other technological waves, actual adoption rates can lag. For many people, watching TV on Internet-connected equipment is still only “potential” viewing rather than actual viewing.  Just as some consumers who own the latest smartphone models never use them to watch videos, homes that replace a TV set with the latest Internet-connectable model don’t necessarily use the added built-in functionality — at least initially.

Still, one suspects that with this technology now at people’s fingertips, it won’t be much longer before we start seeing actual usage catch up with the potential that’s there.

Making sense of the “Trump Travel Ban”: A view from outside the United States.

ntbSince the President Donald Trump’s executive order pertaining to foreign-national travel into the United States was issued this past weekend, there has been an outcry of criticism from many quarters. I’ve heard a wide range of concerns raised – including some claims that appear to conflict with one another.

As regular readers of the Nones Notes blog know, my brother, Nelson Nones, is someone who has lived and worked outside the Unites States for more than 20 years.  I’ve found Nelson to be a good sounding-board when it comes to making sense of complex or controversial issues that have an international bent.

Certainly, Nelson’s perspectives, coming as they do from an “outside-in” perspective, are always interesting.  That’s why I decided to ask for his views on this latest controversy. Here’s how he responded:

Setting up the “Muslim ban” arguments. 

crAccording to a media release from the Council on American-Islamic Relations (CAIR) on January 27, 2017, the “apparent purpose and underlying motive” of Trump’s order “is to ban people of the Islamic faith from Muslim-majority countries from entering the United States.” 

“To be clear, this is not a Muslim ban, as the media is falsely reporting,” Trump responded in a statement on January 29, 2017. “This is not about religion; this is about terror and keeping our country safe. There are over 40 different countries worldwide that are majority Muslim that are not [among the seven countries] affected by this order [to ban U.S. entry by nationals or dual-nationals of those countries].” 

Also on January 29, 2017, Reince Priebus, Trump’s Chief of Staff, said on NBC’s Meet the Press that other countries could be added to the list, but he didn’t identify any of them.

What are the facts?

In fact, 52 countries in the world are majority Muslim (defined as countries in which Muslims comprise half the total population or more), of which 45 are not affected by the ban on U.S. entry mentioned in Trump’s statement.  

About 12% of the world’s Muslims live in the seven affected countries (Iran, Sudan, Iraq, Yemen, Syria, Somalia and Libya, ranked in descending order by size of the Muslim population), and another 63% live in the other 45 majority Muslim countries. Of the remaining 25% of the world’s Muslim population, four-fifths are concentrated in just six non-majority Muslim countries which are also not affected by the ban on U.S. entry mentioned in Trump’s statement: India, Nigeria, Ethiopia, People’s Republic of China, Tanzania and Russia (also ranked in descending order by size of the Muslim population). 

The U.S. State Department has already announced that it has suspended the issuance of visas to nationals of the seven affected countries until further notice. However, the impact of this suspension is tempered by the U.S. State Department’s previous suspension of all U.S. visa services in three of those countries: Syria (since 2012), Libya (since 2014) and Yemen (since 2015).   

Further, U.S. visa services were not available in Iran because the U. S. does not have diplomatic relations with Iran.  

So, before Trump’s order, U.S. visa services were locally available only in three of the seven affected countries: Sudan, Iraq and Somalia. For nationals of the other affected countries, U.S. visa services were previously available by applying in, though not necessarily traveling to, Armenia (from Iran), Djibouti (from Yemen), Jordan (from Syria), Morocco (from Libya), Turkey (from Iran), and the United Arab Emirates (from Iran). 

Another part of Trump’s order suspends the entire U.S. refugee admissions system for 120 days, and suspends the Syrian refugee program indefinitely. During the fourth quarter of 2016, the U.S. admitted refugees from 63 countries under this system; 47% of those refugees came from the same seven countries affected by the ban on U.S. entry mentioned in Trump’s statement.  Another 3% were nationals of 20 additional majority Muslim countries.  

Consequently, 27 majority Muslim countries are potentially affected in some way by Trump’s order – either by the ban on U.S. entry by nationals or dual nationals of those countries or by suspension of the U.S. refugee admissions system, or both. About 49% of the world’s Muslims live in these 27 countries, and another 26% live in the other 26 majority Muslim countries that are not affected in any way.  

Nevertheless, because the number of non-refugee arrivals into the U.S. from the Middle East and Africa was about 37 times greater than the number of refugees admitted from those areas in 2016, the magnitude of impact on majority Muslim countries from suspending the U.S. refugee admissions system would be considerably lower than that of banning U.S. entry for all nationals and dual nationals from the seven countries mentioned in Trump’s statement.   

As noted, the remaining 25% of the world’s Muslim population lives in non-majority Muslim countries. Thirty-six of those countries are potentially affected by suspension of the U.S. refugee admissions system; but Muslims comprise ten percent or more of the population in only nine of them (including India, Nigeria and Ethiopia) – and those nine countries accounted for only 4% of U.S. refugee admissions during the fourth quarter of 2016.

Nelson’s data sources for the above stats: 

  • Pew Research Center, The Future of the Global Muslim Population (2011) and other sources (Muslim population by country retrieved from Wikipedia)
  • U.S. Department of Commerce, National Travel and Tourism Office (2016) (U.S. arrivals by country)
  • U.S. State Department (2016 refugee arrivals, information on visa services)

Is it a actually Muslim ban? 

Based on the facts, clearly not. 

At least half the world’s Muslims (and perhaps as many as 85% considering the limited impact of suspending the refugee program) are untouched by Trump’s executive order. Depending on how you gauge the impact of suspending the refugee program, this translates into somewhere between one-third and four-fifths of the total population in majority Muslim countries. 

Banning “people of the Islamic faith from Muslim-majority countries from entering the United States” (as CAIR puts it) literally means banning every Muslim from majority Muslim countries. Trump’s order doesn’t come close to accomplishing any such purpose in its present form. Perhaps it might if enough “other countries” are added to the list in the future, but any such action is pure speculation and not a fact today.    

Is it a good idea? 

The facts presented above don’t answer this question one way or the other, but here is my opinion: 

  • It’s a politically brilliant maneuver in terms of playing to Trump supporters. In other words, it looks like a “Muslim ban” when it actually isn’t, despite what CAIR claims. It allows Trump to fulfill a campaign promise that no reasonable people thought possible – without actually doing much of anything substantial.  
  • It’s a boneheaded maneuver in terms of people who already have valid visas, “paroles” and “green cards,” for whom no probable cause exists to deny entry. None of the seven countries mentioned in Trump’s statement, and none of the other countries from which the U.S. accepted refugees in 2016, is a visa-free country or part of the Visa Waiver Program. In other words, everyone from those countries has had to pay steep (and non-refundable) visa application fees ranging anywhere from $160 to $500 per person. I can personally attest that the State Department’s vetting procedures were quite stringent already, and the majority of applications are denied (in Thailand where I am, at least – which happens to be one of the countries from which the U.S. accepted refugees). Those who have been “paroled” (meaning, they are permitted to temporarily leave the U.S. while their “green card” application is pending) and those who hold “green cards” have spent considerable extra time and money, including legal fees, after arriving in the United States. If they were among the unfortunate few who were in transit when Trump signed his order, and hence were returned to their home country, they spent even more time and money on transportation which has gone to waste. Denying entry to such persons without probable cause is an arbitrary denial of liberty and property which, in turn, is a fundamental breach of the Constitution’s due process clauses. It doesn’t matter if the affected people are U.S. citizens or not (the Constitution refers to “persons,” not “citizens”). For this reason, I think the government will lose most if not all the lawsuits that have been, or will be, initiated in these particular cases. 
  • It won’t make the United States safer — put a dent in the threat of terror — because of the simple fact that the overwhelming majority of would-be U.S. visitors and immigrants are untouched by the order. In 2015, only about one-tenth of one percent of U.S. arrivals came from the seven countries mentioned in Trump’s statement, and in 2016 only 2.5% of U.S. arrivals came from the whole of the Middle East and Africa.

So there you have it – a view from outside the United States. I think there’s room for discussion regarding the merits of the order and whether it will actually have the desired effect.

Where do you come down on the executive action? Please share your perspectives with other readers.

Cutting the Telephone Cord

ccA new milestone has been reached in the United States:  For the first time, more than half of all American adults live in households with cellphones but no landline telephones.

That’s the key takeaway finding from a recent survey of ~24,000 Americans age 18 and above conducted by market research firm GfK MRI.

This finding  mean that in just six years, the percentage of adults living in cellphone-only households has doubled. In GfK’s 2010 research, the percentage was just 26%.

Not surprisingly, there are significant differences in the findings based on age demographics:

  • Millennials (born 1977 to 1994): ~71% live in cellphone-only households
  • Generation X (born 1965 to 1976): ~55%
  • Boomers (born 1946 to 1964): ~40%
  • Seniors (born before 1946): ~23%

Interestingly, despite their relatively low adoption rate, the percentage of Seniors living in cellphone-only households actually quadrupled over the past six years.

As for an ethnic breakdown, Hispanic Americans are significantly more likely to live free of landline phones compared to the other three major groups:

  • Hispanic Americans: ~67% live in cellphone-only households
  • Asian Americans: ~54%
  • Whites: ~51%
  • African Americans: ~50%

Perhaps surprisingly, the Northeast region of the United States has the lower incidence of cellphone-only households (~39%), compared rates all over 50% in the other three regions. As it turns out, the Northeast has relatively higher levels bundled communication services (TV, Internet, landline and cellphone services), but one suspects that the figures will come into alignment in the next few years and many of those bundled programs bite the dust.

At this rate of change, could we be seeing effectively the end of landline phone service within the next two decades? It seems likely so.

How about you?  Have your cut the phone cord yet?  And did you regret it for even one minute?