Today's Scoop:

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Here’s what you need to know today…

1. Americans are falling behind on their credit card bills quickly.

2. The government might shut down.

3. Hollywood writers reached a deal to end their strike.

S&P 500: 4,337.44
1Mo: -2% | 1Yr: +19% | 5Yr: +49%

The market drifted higher today after a negative past week. Strikes, government shutdowns, and rising debt have people feeling nervous.

Americans are falling behind on their credit card bills quickly. Goldman Sachs reported credit card company losses are growing at the fastest pace since the 2008 financial crisis, which is strange given how low unemployment is right now. Current losses stand at 3.63% and may rise to 4.93% by 2024. The Central Bank last month said late payments have been very low but started growing more frequent this year, surpassing pre-pandemic levels last quarter. Rising living costs have been eating away at Americans’ savings, forcing many to turn to credit cards.

The government might shut down because Congress can’t agree on a spending plan. If they don’t figure it out by September 30th, the government will have to limit safety-net programs and childcare support, delay paychecks for hundreds of thousands of federal workers, furlough tens of thousands of workers, and interrupt disaster relief funding, among other things. Federal employees will get paid back for any time they are furloughed, but federal contractors will not. The last shutdown in 2018 lasted over a month. Depending on the shutdown length, it may not impact the overall economy, but many individuals will feel the strain.

Hollywood writers have reached a deal to end a nearly five-month strike. The Writers Guild of America and the Alliance of Motion Picture and Television Producers have reached a preliminary labor agreement, potentially ending the ongoing writers' strike. The strike began in May 2023 and sought protections against using artificial intelligence and increased compensation for streamed content. Hollywood actors still haven’t reached a deal, and hundreds of thousands of workers across several other industries are still picketing for better conditions.

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• Tyson Foods under investigation for child labor in slaughterhouses [🤓]

• Exxon Mobil starts transitioning refineries from gasoline to chemicals

• JPMorgan’s legal costs from Epstein ties keep mounting

• Delta Air Lines helps employees boost savings and financial literacy

• McDonald’s raises franchise fees as sales slow

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How do child labor laws work?

US child labor laws are regulations set by the government to protect the rights and safety of young workers. These laws determine the minimum age for employment, the hours minors can work, and the types of jobs they can do to ensure that work doesn't interfere with a child's education or jeopardize their well-being.

US child labor laws vary by state and industry. While there's a federal standard, each state can set its own rules. Typically, the floor is age 16 to work during school hours or 14 after school or on weekends. Federal law prohibits children under 14 from working in non-agricultural jobs. Children under 12 can work in agriculture, but there are restrictions on their hours and types of work. Children aged 14 and 15 can work in specific jobs but have limited hours and cannot work during school hours. Children aged 16 and 17 can work full-time but cannot work in hazardous occupations that use dangerous machinery or chemicals.

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