How inflation hits women harder at home and at the grocery store

How inflation hits women harder at home and at the grocery store
How inflation hits women harder at home and at the grocery store
Noel Hendrickson/Getty Images

(NEW YORK) — On a sunny August day, Rachel Dos played with her kids at a park in Livonia, Michigan. As they played, Dos chatted with other moms about growing her own vegetables to save money on groceries and seeking out wholesale butchers to buy meat.

“I’m trying to cut those costs and save that extra money, because every little bit counts with its inflation going on,” she told ABC News.

Pushing her daughter on the swings nearby, Noelle Wylin shared her own recent cost-savings tactics.

Wylin said she started making granola and jam at home when prices shot up. She talked about all the hours she spent researching how to refurbish old furniture instead of buying new pieces for her daughter’s bedroom.

She added that she felt it was unfair that so much more time and effort on managing the family budget was landing on her and other women.

“I think whenever something happens with the economy and things aren’t as optimistic, and [things become] more expensive, a lot of the burden gets shifted onto the mom,” Wylin said.

“If I were to buy granola that used to be $3, but now is $7, I have a choice to make. Do I cut it out? And then my daughter’s exposed to less food groups,” she said.

“Do I take on that labor?” she continued. “Home-make the granola, look up the recipes — figure out, should I do hemp parts in there or chia seeds or flax seeds? What’s gonna give her the Omega-3s? … As a woman, it feels like, you know, all the thrifty things that you can do to make the budget work, it gets shifted onto me.”

The additional hours spent at home trying to save money has made Wylin rethink her part-time work situation. At what point, she wondered, is the answer taking on more hours?

Research has long shown that inflation hits women harder, as women are more likely to have accumulated less wealth and earn wages that do not keep pace with inflation.

From groceries to clothing, women today also do the lion’s share of shopping for the home in married, heterosexual couples. The result, experts say, is that women are often the first in the household to see price changes for everyday items and experience the sticker-shock and worry that comes with those changes.

“COVID really showed us what we know intimately, that even when women work full-time, they are still shouldering the bulk of unpaid labor at home,” Brigid Schulte, director of the Better Life Lab at New America, a public policy think tank, told ABC News over the phone.

Schulte pointed to research — such as this study from researchers at the University of California, Berkley and Boston College, published in the journal PNAS in May 2021 — that shows that women who do the family grocery shopping tend to be the more pessimistic about the economy and future inflation.

According to Pew Research, which cited data from the U.S. Bureau of Labor Statistics, from 2014-2016, more than 80% of married women in households with kids said they did most of the grocery shopping and meal prep at home.

Kimberly Palmer, a personal finance expert at NerdWallet and author of Smart Mom, Rich Mom, said that, not only are women the first to see food prices go up, but they tend to take on additional, unpaid labor as a result.

“All of that labor — and it is labor — of saving money falls largely on women,” she told ABC News over the phone.

She said that, right now, amid record inflation, she sees women looking up recipes, forgoing pre-packed snacks, and spending hours on sites hunting for used clothing and toys for kids.

“People are coming together more, so nothing goes to waste, but that takes so much effort and time and largely it is [on] women,” she continued.

As for cost-saving tips, Palmer agreed it is a tradeoff between investing time and saving money. She recommended planning out meals ahead to save money while grocery shopping, downloading apps that search for coupons and having staples on hand like frozen fish and tomato sauce to help avoid last minute takeout orders.

Schulte argued women should also strive for more equity at home, noting that she had seen in her work how resentment, often over labor at home, can lead to break-ups and how important it is for couples to learn how to talk.

“We can take a page here from same sex couples. They can’t fall back on traditional gender roles. You have to develop standards both can agree to,” she said.

As for the workplace, she said women should continue to fight for better wages and family-friendly policies like paid time-off. But she said the stress women are feeling at home right now “begs a much larger conversation about public policy” around child care, health care and workplace conditions.

Copyright © 2022, ABC Audio. All rights reserved.

Elon Musk set to purchase Twitter after reversing course

Elon Musk set to purchase Twitter after reversing course
Elon Musk set to purchase Twitter after reversing course
Michael Gonzalez/Getty Images) SpaceX And T-Mobile Hold Joint Event In Texas

(NEW YORK) — Tesla CEO Elon Musk proposed the completion of a deal to acquire Twitter on Tuesday, reversing a monthslong effort to terminate the agreement.

Musk — the richest person in the world, according to Forbes — put forward a proposal to Twitter that would complete the deal at Musk’s original offer price of $54.20 a share at a total cost of roughly $44 billion, a person familiar with the proposal told ABC News.

In a statement, Twitter said it plans to agree to a deal at the price proposed by Musk.

“We received the letter from the Musk parties which they have filed with the SEC,” the company said on Tuesday. “The intention of the Company is to close the transaction at $54.20 per share.”

Twitter filed a lawsuit against Musk in July over his effort to terminate an acquisition agreement. That trial is set to begin in less than two weeks.

Musk reached an acquisition deal with Twitter in April, but over the ensuing weeks, he raised concerns over spam accounts on the platform, claiming Twitter had not provided him with an accurate estimate of their number.

Twitter rebuked that claim, saying it had provided Musk with information in accordance with conditions set out in the acquisition deal.

“This is a clear sign that Musk recognized heading into Delaware Court that the chances of winning vs. the Twitter board was highly unlikely and this $44 billion deal was going to be completed one way or another,” Dan Ives, a managing director of equity research at Wedbush, an investment firm, told ABC News Tuesday in an email.

The move from Musk marks the latest reversal of course in a saga that started in January when the billionaire first invested in Twitter. By March, Musk had become the largest stakeholder in Twitter and the following month the social media company announced that Musk would join its board. Days later, however, Musk said he had decided against joining the board.

In April, Musk offered to buy Twitter at $54.20 per share, valuing the company at about $44 billion. The offer amounted to a 38% premium above where the price stood a day before Musk’s investment in Twitter became public. Roughly 10 days later, Twitter accepted Musk’s offer.

One month later, however, Musk said he had put the deal “temporarily on hold,” citing concern over what he said was the prevalence of bot and spam accounts on the platform. Roughly two hours later, Musk said he was “still committed” to the deal.

Eventually, Musk moved to terminate the deal in July. Soon after, Twitter sued Musk in Chancery Court in Delaware to force him to complete the deal.

A scheduling decision made by the court in July — to hold the trial over five days in October — appeared to align more closely with a timeline requested by Twitter, which had sought a four-day trial in September. Musk asked the court to set a trial date no earlier than mid-February 2023.

Now, according to the deal, the court case is off if the two sides reach a deal.

Twitter stock closed Tuesday at $52.01, up 22% for the day.

Copyright © 2022, ABC Audio. All rights reserved.

What is ‘recession fatigue’ and how to combat it

What is ‘recession fatigue’ and how to combat it
What is ‘recession fatigue’ and how to combat it
SEAN GLADWELL/Getty Images

(NEW YORK) — Nearly a third of Americans say they’re not prepared for a recession and they aren’t taking action to get their finances ready for one, according to a recent Bankrate poll.

Experts are calling it “recession fatigue” and it might be why younger generations in particular are failing to take active steps to weather an economic downturn.

“Recession depression, recession fatigue — whatever you want to call it, the hits to Americans’ financial security keep on coming, first with the devastating coronavirus pandemic, followed by 40-year-high inflation and now the growing risk of another downturn,” said Bankrate.com analyst Sarah Foster. “Sustaining motivation for two-plus years to prepare for tough economic times can no doubt feel exhausting.”

Bankrate’s poll found 40% of Gen Z (ages 18-25) say they aren’t prepared for a recession and aren’t taking any steps to get their finances in order. That compares with 31% of unprepared millennials (ages 26-41), 30% of Gen X (ages 42-57) and 27% of baby boomers (ages 58-76).

Gen Zers also say the pandemic interrupted their formative years and feel slighted that major life events, like proms and high school and college graduations, had to be canceled.

“Recession fatigue is the awkward cousin of revenge spending,” Foster said. “Americans were deprived of so many activities that brought them joy. It’s kind of like financial apathy.”

Experts say some Americans may not be preparing for a recession because they simply don’t know how. Many have never experienced an environment of high inflation and rising interest rates. For many Gen Zers, the closest they’ve come to a severe economic downturn is seeing how the Great Recession of 2007-2009 affected their parents.

Federal Reserve Chairman Jerome Powell recently warned that the central bank’s aggressive interest rate hikes to combat stubbornly high inflation may cause “some pain,” including a rise in the unemployment rate.

A growing number of Americans now believe the Fed will not be able to achieve a “soft landing,” or bringing prices under control without tipping the economy into recession. According to a recent survey from MassMutual, 49% of respondents said they think there will likely be a recession next year. Experts seem to agree. A survey from the audit, tax and advisory firm Grant Thornton finds 72% of CFOs think the Fed’s rate hikes will spark a recession.

While the best time to prepare for a recession is often before it even begins, it’s never too late to get your financial house in order.

Start by identifying unnecessary spending and decide where you can cut back. Consider cutting subscriptions for monthly magazines or streaming services, eat out less or stop ordering food delivery.

Put the money you’re saving into an emergency fund. As a general rule of thumb, try to have at least three to six months of expenses set aside in case of a job loss or unexpected medical expense.

Once you have your emergency fund, prioritize paying down your debt, especially balances on high interest credit cards.

The Fed’s rate hikes are pushing the cost of unpaid balances even higher. Over the past six months, the average annual percentage rate on a credit card has jumped from 16.17% to 16.65%, closing in on a record high of 17.14% in 2019, according to the Fed.

If you’re carrying balances on multiple credit cards and you have good credit, consider consolidating them into a 0% interest rate transfer card or consider taking out a lower interest personal loan to pay off your higher interest credit card debt.

Finally, find a side hustle you enjoy. That doesn’t necessarily mean taking on a second job. It could mean turning your hobby, like jewelry making or photography, into an extra revenue maker.

Copyright © 2022, ABC Audio. All rights reserved.

Elon Musk proposes to buy Twitter at original price, reversing effort to nix agreement

Elon Musk set to purchase Twitter after reversing course
Elon Musk set to purchase Twitter after reversing course
Michael Gonzalez/Getty Images) SpaceX And T-Mobile Hold Joint Event In Texas

(NEW YORK) — Tesla CEO Elon Musk proposed the completion of a deal to acquire Twitter on Tuesday, reversing a monthslong effort to terminate the agreement.

Musk — the richest person in the world, according to Forbes — put forward a proposal to Twitter that would complete the deal at Musk’s original offer price of $54.20 a share at a total cost of roughly $44 billion, a person familiar with the proposal told ABC News.

Twitter filed a lawsuit against Musk in July over his effort to terminate an acquisition agreement. That trial is set to begin in less than two weeks.

Musk reached an acquisition deal with Twitter in April, but over the ensuing weeks, he raised concerns over spam accounts on the platform, claiming Twitter had not provided him with an accurate estimate of their number.

Twitter rebuked that claim, saying it had provided Musk with information in accordance with conditions set out in the acquisition deal.

“This is a clear sign that Musk recognized heading into Delaware Court that the chances of winning vs. the Twitter board was highly unlikely and this $44 billion deal was going to be completed one way or another,” Dan Ives, a managing director of equity research at Wedbush, an investment firm, told ABC News Tuesday in an email.

The move from Musk marks the latest reversal of course in a saga that started in January when the billionaire first invested in Twitter. By March, Musk had become the largest stakeholder in Twitter and the following month the social media company announced that Musk would join its board. Days later, however, Musk said he had decided against joining the board.

In April, Musk offered to buy Twitter at $54.20 per share, valuing the company at about $44 billion. The offer amounted to a 38% premium above where the price stood a day before Musk’s investment in Twitter became public. Roughly 10 days later, Twitter accepted Musk’s offer.

One month later, however, Musk said he had put the deal “temporarily on hold,” citing concern over what he said was the prevalence of bot and spam accounts on the platform. Roughly two hours later, Musk said he was “still committed” to the deal.

Eventually, Musk moved to terminate the deal in July. Soon after, Twitter sued Musk in Chancery Court in Delaware to force him to complete the deal.

A scheduling decision made by the court in July — to hold the trial over five days in October — appeared to align more closely with a timeline requested by Twitter, which had sought a four-day trial in September. Musk asked the court to set a trial date no earlier than mid-February 2023.

Now, it appears the court case may not take place, if the two sides reach a deal.

Copyright © 2022, ABC Audio. All rights reserved.

McDonald’s leans into value, added promotions amid inflation, adds new ‘adult happy meal’

McDonald’s leans into value, added promotions amid inflation, adds new ‘adult happy meal’
McDonald’s leans into value, added promotions amid inflation, adds new ‘adult happy meal’
ABC News

(NEW YORK) — As American families face mounting food prices amid rising inflation, fast food companies like McDonald’s are looking for more ways to add value.

“The impact of inflation is really challenging; there’s not a sector that’s really immune to the challenges,” McDonald’s Chief Marketing and Customer Experience Officer Tariq Hassan said in an exclusive interview with ABC News on Tuesday.

“Our fans have been really clear to us that that value that they’ve come to expect from McDonald’s has never frankly been more important to them,” he continued. “We’re committed to continuing to have that ability to provide our customers those kind of offers, whether it’s through our everyday value meal or unique offers we’re making through national or local promotions or exclusive offers through the app.”

When asked if the company has plans to further reduce prices to help customers struggling with high food costs, Hassan reiterated that they are “making sure those value offers are still on the menu.”

He also explained that McDonald’s looks to add value beyond just monetary savings deals.

“You connect through great unique experiences — and we’ve been doing that whether through unique merchandise offers — we did a program in July where we gave fans exclusive access to concerts through the app,” he said, adding that their latest offer ties in culture, art and nostalgia.

McDonald’s has raised prices in several countries due to increasing costs of goods and global supply chain issues, but when asked if U.S. customers can expect to see similar increases, Hassan said, “We try to monitor when we do those things in a way that they’re not hitting the customer too hard, but the reality is we continue to provide our customers with great value — making sure we have offers available.”

The newest offer from the Golden Arches is a Cactus Plant Flea Market Box, which Hassan said was inspired by the “universal familiar experience that we all had as children” when you got a Happy Meal.

“We thought it’d be a great way to capture that joy and wrap it up in a great experience for adults,” he said of the collaboration with CPFM, which created the design of the box and the McDonaldland or Cactus Buddy figurines.

“You go through that same kid-like experience. You get to choose a Big Mac or 10-piece McNugget with world-famous fries and a drink,” Hassan said of the new meal deal.

The limited time boxes hit restaurants nationwide on Oct. 3 and are available while supplies last.

Plus, fans who buy the box on the McDonald’s app will automatically be entered for a chance to score exclusive merchandise for free each week, including T-shirts and hoodies, a Grimace chair and custom McDonald’s sign from the set of a TV commercial as grand prizes.

There is also a full line of limited-edition CPFM x McDonald’s gear available online.

Copyright © 2022, ABC Audio. All rights reserved.

Student loan forgiveness: Key dates and details so far

Student loan forgiveness: Key dates and details so far
Student loan forgiveness: Key dates and details so far
jayk7/Getty Images

(WASHINGTON) — Within days, millions of Americans are expected to be able to take their first steps to cancel up to $20,000 in debt under President Joe Biden’s federal student loan forgiveness program — a multibillion-dollar initiative cheered on by advocates but which already faces legal challenges.

The Biden administration announced in August that single borrowers who earn under $125,000 can qualify for $10,000 in federal school loan debt cancellation while those who are married qualify for that amount if their joint income is under $250,000 (as calculated by gross adjusted income from 2020 or 2021).

Recipients of Pell grants — which are designed for people with “exceptional financial need,” according to the government — are eligible for an additional $10,000 to be canceled, or $20,000 total

Of the 43 million federal student loan borrowers who have accrued more than $500 billion in debt, most will need to fill out an application to see if they qualify for forgiveness. Only about eight million of those borrowers will automatically have their debt canceled, according to the White House, because the Department of Education already has their income information.

On Thursday, the Biden administration quietly excluded some borrowers of Perkins loans and Federal Family Education Loans (FFEL). Both groups formerly qualified for loan cancellation. While some four million Americans in total have these loans, an administration official told ABC News that only about 770,000 people will be affected by the change.

At a Sept. 26 briefing, White House press secretary Karine Jean-Pierre said there would be additional updates on the application process “very soon.” The administration maintains that the “simple process” will open in early October.

Outside experts are more skeptical of how smoothly the program will run.

“When you see the huge numbers that the administration projects will benefit from this initiative, that all depends on people being able to take these steps and have that debt relief applied to their account in a way that actually works,” said Mike Pierce, executive director of the Student Borrower Protection Center, an advocacy group.

Here are the key dates and details, so far, for applying for student loan forgiveness:

Early October: Loan forgiveness applications open

Applications for student loan cancellation will be released in early October, according to the DOE, though a more specific date has not yet been confirmed.

The department is recommending that everyone file an application, even those who might already qualify for automatic forgiveness.

To be notified when the process has officially opened, the department recommends borrowers sign up at their subscription page. (Private companies like Navient and Nelnet, which help administer the loans and repayments, are likewise referring borrowers to a government portal created to share updates on student loans.)

It’s unclear how many of the 43 million borrowers will submit applications. In cost estimates, the White House has said it could be as many as 75% of eligible people or as few as 50%.

“It will all depend on how good we are getting the word out about this opportunity and making sure that people actually do raise their hands to get in the line to get their debts canceled,” Pierce said.

Nov. 15: The recommended deadline to apply

DOE officials recommend that borrowers apply for student loan forgiveness by Nov. 15 in order to receive relief before the pandemic-era payment pause expires on Dec. 31 and interest begins accruing again.

The department said they expect a four-to-six-week turnaround for forgiveness.

However, some advocates like Pierce worry that may not be feasible, given the track record the federal government has with processing debt relief.

The DOE has not released details regarding a plan for borrowers whose applications are still being processed by the time the payment pause lifts after December.

Jan. 1: Student loan payments resume

Jan. 1 is when regular student loan payments will resume after a three-year moratorium first enacted under President Donald Trump during the onset of COVID-19. If a borrower’s entire balance is not erased by the federal forgiveness program, interest will begin accruing again on the remaining sum.

Dec. 31, 2023 : The program application sunsets

The application period for student loan forgiveness will close on Dec. 31, 2023.

Copyright © 2022, ABC Audio. All rights reserved.

Meet the women who went viral for delivering a resume cake to Nike headquarters

Meet the women who went viral for delivering a resume cake to Nike headquarters
Meet the women who went viral for delivering a resume cake to Nike headquarters
Denise Baldwin

(NEW YORK) — Getting a foot in the door at a company is a huge step for any job seeker. And one woman’s clever concept involving a cross-country pastry ploy quickly went viral on LinkedIn, but it was an unexpected friendship with the Instacart delivery woman who was integral to the plan that was the real icing on the cake.

Like so many Americans searching for their next move in a sea of creative, well-qualified applicants, 27-year-old Karly Pavlinac Blackburn was hoping to land a conversation at her dream company but got stuck trying to figure out how to break through.

“I was actually talking to my former colleague about getting in front of employers — and he was like, ‘Well, Karly you need to do better … show up in a creative way … what about a resume on a cake?’ ” she recalled, speaking with ABC News’ Good Morning America.

Although Pavlinac knew there were no open positions with Valiant Labs, Nike’s new business incubator, she took up her colleague’s suggestion in the hopes that it might help her find some favor within their team.

“I was like, I’m actually going to do that,” she said, noting that she hoped the cake would ensure she was “on their mind if roles did come up in the future.”

As for the execution, Pavlinac, who previously founded and sold a celebrity fitness monetization app, admitted “it was kind of difficult” because she lives in Wilmington, North Carolina, and Nike World Headquarters are based in Beaverton, Oregon — meaning she couldn’t just swing by a bakery, pick up a specialty order and deliver it to them herself.

“I’m on the other side of the country trying to get a cake delivered to Nike, [which is] in Oregon,” she said.

Instead, Pavlinac searched online and found an Albertson’s store 4.4 miles from Nike World Headquarters that offered screenprint-frosted photos on sheet cakes with delivery options through Instacart.

“The only difficult thing is when an Instacart delivery is made, you don’t know who’s gonna deliver it,” she said. “The cake has to be made ahead of time, so I had to call Albertsons and I was like, ‘Hey, there’s gonna be a delivery on this day, I know, you don’t know about it yet, but I’m gonna have to have this cake ready. You’re gonna need the image, and it’s gonna have to be ready before they get there [to pick it up].'”

On Sept. 8, an hour ahead of the delivery window at 8 a.m. local time, Pavlinac called the Albertsons store to confirm the order — a half-sheet vanilla cake with her resume printed on top — would be completed.

Everything was on schedule — now all Pavlinac needed was to ensure the cake would make it to its location.

“Lucky for me Denise was the person from Instacart that day to pick up the cake, because she’s just so amazing,” Pavlinac said, referring to highly ranked platinum Instacart courier Denise Baldwin.

Baldwin had her own to-do list once she arrived at the store to pick up the cake delivery.

“[Pavlinac] wanted me to take a look at it and make sure it looked OK,” Baldwin told GMA of the initial instructions that came with the Instacart order. “Me and the baker were both talking about it, because we couldn’t believe that somebody had gone out of the box and did a resume on a cake … I messaged Karly and said, ‘It looks great. I’m on my way to the campus, and I’ll let you know how things go.'”

The two stayed in constant communication after Baldwin left the store and navigated the massive Nike campus in search of Mac Myers from Business Operations at Nike Valiant Labs.

“She gets there and someone from security was like, ‘OK leave the cake here.’ And [Denise] said, ‘No, I have to give it to Mac, I have to see it go in his hands,'” Pavlinac recalled. “At the time I didn’t know this, but she had her 8-month-old son on one hip the whole time — she didn’t even tell me, she was just like, ‘I’m gonna get it done.'”

The working mom of three — with another on the way — told Pavlinac, “‘Don’t worry, I’m here on the campus. I’ll do whatever it takes.'”

Myers eventually came down after a call from security letting him know about the delivery. According to Baldwin, Myers was “kind of blown away” and even asked to take a picture of himself with the cake for confirmation.

The pair later shared their story in a now-viral LinkedIn post, which has been liked more than 100,000 times and garnered thousands of comments.

Pavlinac has been busy ever since with back-to-back calls from recruiters and potential employers. She’s also been checking in regularly with her new mentee, Baldwin, who is looking for her dream job as well.

“My day is jam-packed from 8 [a.m.] to 5 [p.m.] with conversations, interviews — I have so many amazing messages from people on LinkedIn that I’m still trying to go through,” Pavlinac said, adding that she has her sights set on a future in product marketing.

“The cool thing afterwards was, [Denise] texted me, ‘You’ve inspired me to go chase after something better,'” Pavlinac said. “I told her whatever I can do to help find a job … be it sharing documents on ‘how to do a job should search’ or talk[ing] about what jobs might fit.”

Baldwin, a self-described “go-getter,” said she’s looking for a position in an assistant or human resources role that capitalizes on her communications and multitasking skills.

“I’m just trying to get my foot in the door where I can have good benefits for my kids and have some security and stability,” she said.

Perhaps more important is the newfound friendship the two women have developed as a result of their cake delivery scheme — and what that friendship has taught them both.

“Denise inspires me to be a better person,” Pavlinac said.

Copyright © 2022, ABC Audio. All rights reserved.

Hurricane Ian could cause $75 billion in damage

Hurricane Ian could cause  billion in damage
Hurricane Ian could cause  billion in damage
Ricardo Arduengo/AFP via Getty Images

(NEW YORK) — Hurricane Ian flooded cities and devastated homes across Florida and coastal South Carolina, leaving destruction in its wake.

Search-and-rescue missions are ongoing as the death toll climbed to 85 on Sunday, based on information from local officials. Meanwhile, residents and officials assessed the damage incurred by the storm.

In all, the economic damage wrought by the hurricane could reach up to $75 billion, according to a projection released on Saturday by data firm Enki Research, which studies the financial impact of storms.

The estimate put the best-case scenario for storm damage at $66 billion, Enki Research said. The median projection of cost amounts to $71 billion, according to computer models used by the data firm.

Hurricane Ian will be among the 10 costliest storms in U.S. history, Enki Research said, adding that it may end up among the five costliest after the damage is fully assessed.

However, the projected costs for Hurricane Ian would amount to less than half of the damage caused by Hurricane Katrina, which totaled $161 billion.

Hurricane Ian demolished homes and businesses, damaged infrastructure like roads and bridges and harmed citrus fruit trees that make up a key industry in the state.

Florida accounts for 70% of citrus fruits — such as oranges, grapefruits and tangerines — produced in the U.S.

Fixtures of the state’s tourism industry, like Disney World and Universal Orlando, temporarily closed as the storm approached earlier this week. On Friday, the parks announced that they would begin to reopen in phases.

President Joe Biden on Friday said destruction from Hurricane Ian could end up among the nation’s most severe.

“We’re just beginning to see the scale of that destruction,” he said, adding that the damage is “likely to rank among the worst” in U.S. history.

On Thursday, Biden approved a major disaster declaration for Florida, allowing additional federal aid to flow to the state.

Speaking on Thursday, Biden vowed support for state and local officials as they assess the damage caused by the storm, saying the federal government will cover the full cost of clearing debris and of rebuilding public buildings like schools and state fire stations.

The government will also be providing support to people with destroyed or damaged homes.

On Wednesday, the then-Category 4 hurricane sustained wind speeds of 150 mph as it made landfall on Florida’s west coast. The storm struck the coastal city of Fort Myers and affected nearby cities of Tampa Bay and Sarasota, before traveling east across the peninsula toward Orlando.

On Friday, the storm made landfall in South Carolina as a Category 1 hurricane, causing flooding and home damage in coastal cities like Charleston and Myrtle Beach.

“It’s definitely going to be one of the stronger storms and more damaging storms,” Chuck Watson, Enki Research founder and director of research and development, told Bloomberg on Tuesday.

Hurricane Charley, a major storm that struck Florida in 2004, caused damage that today would amount to between $20 billion and $25 billion, Watson said.

While it caused major damage, Hurricane Ian avoided a large disruption of the U.S. oil and gas industry, which would have come about if the storm had traveled toward Texas and Louisiana, industry analysts previously told ABC News.

The state doesn’t host any oil refineries and accounts for about 6,000 barrels of oil production each day, said Andy Lipow, a longtime oil analyst and president of Lipow Oil Associates.

That output makes up a tiny fraction of overall U.S. oil production, which amounts to 11.8 million barrels per day, the U.S. Energy Information Administration reported this month.

Copyright © 2022, ABC Audio. All rights reserved.

Why the all-new Corvette Z06 is breaking barriers

Why the all-new Corvette Z06 is breaking barriers
Why the all-new Corvette Z06 is breaking barriers
Chevrolet

(PITTSBURGH) — Tadge Juechter has spent nearly 30 years perfecting every generation of the Corvette. With the Z06, the latest Corvette to roll off the assembly line in Kentucky, he and his team of engineers are breaking new ground.

The sports car’s naturally-aspirated, flat-plane crankshaft V8 engine produces 670 horses, a feat neither Juechter nor his team believed was possible.

“Every design element centered around maximizing horsepower and track performance,” Juechter, Corvette’s executive chief engineer, told ABC News from Pittsburgh International Raceway, where journalists were test driving the car.

The Z06 races from 0-60 mph in 2.7 seconds. With the Z07 performance package, the time drops to 2.6 seconds.

“This car is more powerful than the last generation,” he went on. “When we started the project it was a bit of a gut check. We weren’t sure we could match the output of the supercharged small block [engine]. We pushed as much as we could.”

Enthusiasts and gearheads have been anxiously awaiting the Z06’s arrival. The track-focused sports car, with an 8,600-rpm redline and top speed of 195 mph, is the sole General Motors vehicle to be built with the all-new 5.5L LT6 engine.

It will also likely be the last. In April, Chevrolet posted a teaser clip of an electrified Corvette in camouflage, drifting and dancing on an ice track.

GM President Mark Reuss confirmed in a LinkedIn post that the Detroit automaker was currently developing a hybrid version of its storied sports car. A fully electric Corvette was in the works too, Reuss said.

The Corvette community has been “amazingly supportive” of the brand’s electrified direction, Juechter said, adding that some owners may need more convincing.

“There are people who have said, ‘That’s not for me, hope you sell internal combustion engines forever,'” he explained.

Tyson Jominy, vice president of data and analytics at J.D. Power, has a stern message for the doubters: electrification will make the Corvette even better than it is today.

“The things you can do with electrification far exceeds ICEs in almost every capacity. I don’t think that’s up for debate,” he told ABC News. “I recognize that not everyone thinks that way and it may take a long time for Corvette buyers to come around.”

The anti-electrification attitude in enthusiast circles may help explain why Porsche and Chevrolet have posted record sales of the 911 and Corvette in the last two years. According to J.D. Power, the midsize sports car segment now accounts for 0.5% of the U.S. auto market, up from 0.3% pre-pandemic.

Jominy expects eager buyers to pay well above the Z06’s MSRP of $103,500. Options and performance packages can push the price to $170,000.

“The Z06 is the spiritual center of Chevy and such an important vehicle,” he said. “Chevy is not building a lot of these. I expect demand to be extraordinarily high.”

John Pearley Huffman, senior editor at Road & Track, said the aural and tactical satisfaction of the Z06 can’t be matched in a hybrid or electric Corvette.

“It’s not just raw acceleration, you can feel the gears grinding in your hands,” he said. “It’s stinky rotten fast … and may be the last, great mechanical Corvette and the most satisfying to drive in the artistic sense. This is a quantum leap for Corvette.”

For the die-hards who will repent the end of Corvette’s famed V8 powerplant, Pearley Huffman said that would be a mistake.

“You have to embrace the future. Going electric doesn’t mean these cars and naturally aspirated engines will go away,” he noted. “They’ll be artifacts of the time. An electrified Corvette is still something to look forward to.”

Ivan Drury, director of insights at car-shopping service Edmunds, remembers the backlash when Chevrolet debuted the eighth-generation Stingray in 2019. The engine now sat behind the driver and the manual transmission option was gone.

“There was a lot of talk about alienation but there has been so much demand for a product that was very polarizing,” he told ABC News. “The C8 Stingray has shattered sales records.”

Drury expects even non-Corvette fans to seek out this Z06, one of the last sports cars on the market with a naturally aspirated engine.

“People are nostalgic about what’s going on in the industry. The Z06 will be seen as an investment,” he said, adding, “The car will become a museum piece. I want to see it alive, living and breathing on the tarmac.”

Brian Baker, the director of collections and education at the National Corvette Museum and a former GM engineer, said Corvette devotees can view the Z06 up close at the museum, including every Z06 produced since 1963, when Chevrolet introduced the nameplate. The museum, a 501(c), is raffling off a 2023 Z06 on Dec. 15.

Baker said his blood curdled the first time he heard the Z06’s engine being revved.

“It was like the hounds of hell being released,” he told ABC News. “The engine has a very different sound … more akin to what European exotics use. It’s a remarkable advancement for Corvette.”

As for Corvette going electric, Baker said longtime customers have to embrace the future.

“Corvette is not sitting still,” he said. “While we preserve the heritage, it’s a moving, living brand. We are moving into the 21st century.”

Workers at the Bowling Green Assembly plant, where 1.1 million Corvettes have been built since 1981, are busy filling the “flood of orders” for the Z06, Juechter said. Chevrolet capped production this year to meet unprecedented demand following the Z06’s reveal.

“The reaction from our customer base has been astonishing,” Juechter said. “Dealers have hoards of people wanting to get a place in line for this car.”

Even the harshest of critics — the car aficionados who revere Italian and German supercar performance — will be impressed with this Z06, Juechter said.

“The big picture was to emulate the soul of Ferrari but match Porche’s clinical speed,” he said. “This is the most aggressive aero we’ve ever done. But the Z06 is still a street car.”

Juechter pointed to the reaction of a Formula One driver who lapped the Z06 in Pittsburgh last month.

“He gave me a hug when he got out of the car,” he said. “The proof is in the pudding when you drive it.”

Copyright © 2022, ABC Audio. All rights reserved.

Kim Kardashian charged by SEC over crypto post

Kim Kardashian charged by SEC over crypto post
Kim Kardashian charged by SEC over crypto post
ANGELA WEISS/AFP via Getty Images

(NEW YORK) — The Securities and Exchange Commission on Monday charged reality star Kim Kardashian over a post she made promoting a crypto asset security sold by EthereumMax “without disclosing the payment she received for the promotion.”

Kardashian will pay $1.26 million to settle the civil charges, the SEC said in its announcement.

The SEC alleged that Kardashian failed to disclose that she received $250,000 to publish a post on her Instagram account about EMAX tokens, the crypto asset security being offered by EthereumMax.

“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors,” SEC Chair Gary Gensler said in a statement.

“We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals,” he added.

The $1.26 million settlement equals the payment Kardashian received for the promotion as well as a $1 million penalty, the SEC said. Kardashian also agreed to forego the promotion of any crypto asset securities for three years, the agency added.

Kardashian is among a number of celebrities named in a class-action lawsuit filed last January in a California U.S. District Court over allegations from investors that they suffered losses after the celebrities promoted the crypto coin. That court case is ongoing.

The plaintiffs invested money after “viewing numerous celebrity endorsements of EMAX,” the lawsuit said.

Kardashian filed a motion to dismiss the lawsuit last month, arguing that none of the investors claimed to have seen her promotional Instagram posts.

The value of an EthereumMax coin fell 1.75% on Monday.

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