“With Facebook being down we’re losing thousands in sales,” said Mark Donnelly, a start-up founder in Ireland who runs HUH Clothing, a fashion brand focused on mental health that uses Facebook and Instagram to reach customers. “It may not sound like a lot to others, but missing out on four or five hours of sales could be the difference between paying the electricity bill or rent for the month.”
Samir Munir, who owns a food-delivery service in Delhi, said he was unable to reach clients or fulfill orders because he runs the business through his Facebook page and takes orders via WhatsApp.
“Everything is down, my whole business is down,” he said.
Douglas Veney, a gamer in Cleveland who goes by GoodGameBro and who is paid by viewers and subscribers on Facebook Gaming, said, “It’s hard when your primary platform for income for a lot of people goes down.” He called the situation “scary.”
Inside Facebook, workers also scrambled because their internal systems stopped functioning. The company’s global security team “was notified of a system outage affecting all Facebook internal systems and tools,” according to an internal memo sent to employees and shared with The New York Times. Those tools included security systems, an internal calendar and scheduling tools, the memo said.
Employees said they had trouble making calls from work-issued cellphones and receiving emails from people outside the company. Facebook’s internal communications platform, Workplace, was also taken out, leaving many unable to do their jobs. Some turned to other platforms to communicate, including LinkedIn and Zoom as well as Discord chat rooms.
Some Facebook employees who had returned to working in the office were also unable to enter buildings and conference rooms because their digital badges stopped working. Security engineers said they were hampered from assessing the outage because they could not get to server areas.
Facebook’s global security operations center determined the outage was “a HIGH risk to the People, MODERATE risk to Assets and a HIGH risk to the Reputation of Facebook,” the company memo said.
TOKYO — With the world’s oldest population, rapidly declining births, gargantuan public debt and increasingly damaging natural disasters fueled by climate change, Japan faces deep-rooted challenges that the longstanding governing party has failed to tackle.
Yet in choosing a new prime minister on Wednesday, the Liberal Democratic Party elected the candidate least likely to offer bold solutions.
The party’s elite power brokers chose Fumio Kishida, 64, a stalwart moderate, in a runoff election for the leadership, seeming to disregard the public’s preference for a maverick challenger. In doing so, they anointed a politician with little to distinguish him from the unpopular departing leader, Yoshihide Suga, or his predecessor, Shinzo Abe, Japan’s longest-serving prime minister.
Elders in the party, which has had a near monopoly on power in the decades since World War II, made their choice confident that, with a weak political opposition and low voter turnout, they would face little chance of losing a general election later this year. So, largely insulated from voter pressure, they opted for a predictable former foreign minister who has learned to control any impulse to stray from the mainstream party platform.
slowly emerges from six months of pandemic restrictions that have battered the economy.
Taro Kono, an outspoken nonconformist whose common touch has made him popular with the public and with rank-and-file party members. Mr. Kishida prevailed in the second round of voting, in which ballots cast by members of Parliament held greater weight than ballots cast by other party members.
He will become prime minister when Parliament holds a special session next week, and will then lead the party into the general election, which must be held by November.
In his victory speech on Wednesday, Mr. Kishida acknowledged the challenges he faces. “We have mountains of important issues that lie ahead in Japan’s future,” he said.
They loom both at home and abroad. Mr. Kishida faces mounting tensions in the region as China has grown increasingly aggressive and North Korea has started testing ballistic missiles again. Taiwan is seeking membership in a multilateral trade pact that Japan helped negotiate, and Mr. Kishida may have to help finesse a decision on how to accept the self-governed island into the group without angering China.
As a former foreign minister, Mr. Kishida may have an easier time managing his international portfolio. Most analysts expect that he will maintain a strong relationship with the United States and continue to build on alliances with Australia and India to create a bulwark against China.
But on the domestic front, he is mostly offering a continuation of Mr. Abe’s economic policies, which have failed to cure the country’s stagnation. Income inequality is rising as fewer workers benefit from Japan’s vaunted system of lifetime employment — a reality reflected in Mr. Kishida’s campaign promise of a “new capitalism” that encourages companies to share more profits with middle-class workers.
close to 60 percent of the public is now inoculated. But Mr. Kishida has offered few concrete policies to address other issues like aging, population decline or climate change.
In a magazine questionnaire, he said that he needed “scientific verification” that human activities were causing global warming, saying, “I think that’s the case to some extent.”
Given the enduring power of the right flank of the Liberal Democratic Party, despite its minority standing in the party, Mr. Kishida closed what daylight he had with these power brokers during the campaign.
He had previously gained a reputation as being more dovish than the influential right wing led by Mr. Abe, but during the leadership race, he expressed a hawkish stance toward China. As a parliamentary representative from Hiroshima, Mr. Kishida has opposed nuclear weapons, but he has made clear his support for restarting Japan’s nuclear power plants, which have been idled since the triple meltdown in Fukushima 10 years ago.
And he toned down his support for overhauling a law requiring married couples to share a surname for legal purposes and declared that he would not endorse same-sex marriage, going against public sentiment but hewing to the views of the party’s conservative elite.
“I think Kishida knows how he won, and it was not by appealing to the general public, it was not by running as a liberal, but courting support to his right,” said Tobias Harris, a senior fellow at the Center for American Progress in Washington. “So what that’s going to mean for the composition of his cabinet and his priorities, and what his party’s platform ends up looking like, means he could end up being pulled in a few different directions.”
resigned last fall because of ill health. He had led the party for eight consecutive years, a remarkable stint given Japan’s history of revolving-door prime ministers. When he stepped down, the party chose Mr. Suga, who had served as Mr. Abe’s chief cabinet secretary, to extend his boss’s legacy.
Sanae Takaichi — a hard-line conservative who was seeking to become Japan’s first female prime minister — to revitalize his base in the party’s far right, analysts and other lawmakers said he helped steer support to Mr. Kishida in the runoff.
As a result, Mr. Kishida may end up beholden to his predecessor.
“Kishida cannot go against what Abe wants,” said Shigeru Ishiba, a former defense minister who challenged Mr. Abe for the party leadership twice and withdrew from running in the leadership election this month to support Mr. Kono.
“I am not sure I would use the word ‘puppet,’ but maybe he is a puppet?” Mr. Ishiba added. “What is clear is he depends on Abe’s influence.”
During the campaign for the party leadership, Mr. Kishida appeared to acknowledge some dissatisfaction with the Abe era with his talk of a “new capitalism.” In doing so, he followed a familiar template within the Liberal Democratic Party, which has been adept at adopting policies first introduced by the opposition in order to keep voters assuaged.
“That’s one of the reasons why they have maintained such longevity as a party,” said Saori N. Katada, a professor of international relations at the University of Southern California. “Kishida is definitely taking that card and running with it.”
Makiko Inoue, Hikari Hida and Hisako Ueno contributed reporting.
“I fully complied with Treasury Department conflicts rules by not meeting with PwC representatives” during a two-year “cooling off” period that restricts government officials from meeting with their former employers, Mr. Harter said. Although he was involved in the construction of the offshore tax break and met with corporate lobbyists, Mr. Harter said he did not recall meeting with Ms. Olson or other PwC officials on the topic.
Ms. Olson referred questions to PwC.
An Inside Track
The 2017 tax overhaul included a provision that let some people take a 20 percent tax deduction on certain types of business income. But the law — known as Section 199A — largely excluded an undefined category of “brokerage services.” In 2018, lobbyists for several industries, including real estate and insurance, visited the Treasury to try to persuade officials that the broker prohibition should not apply to them.
On Aug. 1, records show, Ms. Ellis met with her former PwC colleague, Mr. Feuerstein, and three other lobbyists for his client, the National Association of Realtors. They wanted real estate brokers to qualify for the 20 percent deduction.
The meeting took place before the first draft of the proposed rules was even made public, which meant that, right off the bat, Ms. Ellis’s former PwC colleague and his client had an inside track.
When the Treasury published its first version of the proposed rules a week later, real estate brokers were eligible. The National Association of Realtors took credit for the victory on its website. (The final rules applied only to brokers of stocks and other securities.)
Ms. Ellis’s meeting with Mr. Feuerstein appeared to violate a federal ethics rule that restricts government officials from meeting with their former private sector colleagues, said Don Fox, the acting director of the Office of Government Ethics during the Obama administration and, before that, a lawyer in Republican and Democratic administrations.
Mr. Fox described the meeting as improper. “It certainly is going to call into question how that regulation was drafted,” he said. “There’s no way to undo the taint that is now going to be attached to that.”
The share of people living in poverty in the United States fell to a record low last year as an enormous government relief effort helped offset the worst economic contraction since the Great Depression.
In the latest and most conclusive evidence that poverty fell because of the aid, the Census Bureau reported on Tuesday that 9.1 percent of Americans were living below the poverty line last year, down from 11.8 percent in 2019. That figure — the lowest since records began in 1967, according to calculations from researchers at Columbia University — is based on a measure that accounts for the impact of government programs. The official measure of poverty, which leaves out some major aid programs, rose to 11.4 percent of the population.
The new data will almost surely feed into a debate in Washington about efforts by President Biden and congressional leaders to enact a more lasting expansion of the safety net that would extend well beyond the pandemic. Democrats’ $3.5 trillion plan, which is still taking shape, could include paid family and medical leave, government-supported child care and a permanent expansion of the Child Tax Credit.
Liberals cited the success of relief programs, which were also highlighted in an Agriculture Department report last week that showed that hunger did not rise in 2020, to argue that such policies ought to be expanded. But conservatives argue that higher federal spending is not needed and would increase the federal debt while discouraging people from working.
difficult to assess changes in health coverage last year. Census estimates conflicted with other government counts, and officials acknowledged problems with data collection during the pandemic.
federal supplement to state unemployment benefits lapsed. She fell behind on bills, setting in motion events that ultimately left her family homeless for two months this year.
New aid programs adopted this year, including the expanded Child Tax Credit, helped Ms. Long, who moved into a new home last month. She said she had noticed improvements in her children, particularly her 5-year-old son.
“It was bad, but it could have been so much worse, and we have come out the other side once again unbroken,” Ms. Long said.
By the government’s official definition, the number of people living in poverty jumped by 3.3 million in 2020, to 37.2 million, among the biggest annual increases on record. But economists have long criticized that definition, which dates to the 1960s, and said it did a particularly poor job of reflecting reality last year.
7.5 million people lost unemployment benefits this month after Congress allowed expansions of the program to lapse.
Jen Dessinger, a photographer who lives in New York City and Los Angeles, said work dried up abruptly at the start of the pandemic. A freelancer, she didn’t qualify for traditional unemployment benefits but eventually received help under a federal program created last year to help people who fell outside the regular system.
Now that program has ended in the middle of another surge in coronavirus cases. Ms. Dessinger said a single positive coronavirus case could shut down a photo shoot. “It’s made it a more desperate situation,” she said.
Democrats on Tuesday said experiences like Ms. Dessinger’s showed both the potential for government aid to protect people from financial ruin, and the need for a more expansive, permanent safety net that can support people in bad and good times.
A White House economist, Jared Bernstein, said on Tuesday that the new poverty data should encourage lawmakers to enact the $3.5 trillion Democratic measure that includes much of Mr. Biden’s economic agenda, which the administration argues will create more and better-paying jobs.
“It’s one thing to temporarily lift people out of poverty — hugely important — but you can’t stop there,” said Mr. Bernstein, a member of Mr. Biden’s Council of Economic Advisers. “We have to make sure that people don’t fall back into poverty after these temporary measures abate.”
“reckless taxing and spending spree.”
Conservative policy experts said that although some expansion of government aid was appropriate during the pandemic, those programs should be wound down, not expanded, as the economy healed.
“Policymakers did a remarkable job last March enacting CARES and other legislation, lending to businesses, providing loan forbearance, expanding the safety net,” Scott Winship, a senior fellow and the director of poverty studies at the American Enterprise Institute, a conservative group, wrote in reaction to the data, referring to an early pandemic aid bill, which included around $2 trillion in spending. “But we should have pivoted to other priorities thereafter.”
Jason DeParle and Margot Sanger-Katz contributed reporting.
Millions of Afghans could run out of food before the arrival of winter and one million children are at risk of starvation and death if their immediate needs are not met, top United Nations officials warned on Monday, putting the country’s plight into stark relief.
Secretary General António Guterres, speaking at a high-level U.N. conference in Geneva convened to address the crisis, said that since the Taliban takeover in Afghanistan last month, the nation’s poverty rate has soared and basic public services have neared collapse and, in the past year, hundreds of thousands of people have been made homeless after being forced to flee fighting.
“After decades of war, suffering and insecurity, they face perhaps their most perilous hour,” Mr. Guterres said, adding that one in three Afghans do not know where they will get their next meal.
The deepening humanitarian crisis tops a dizzying array of challenges confronting the new Taliban regime as it navigates governing a country propped up for decades by aid from international donors.
face potential collapse. At a local hospital in Chak-e Wardak, administrators have been unable to pay salaries or purchase new medicines with banks still closed, according to Faridullah, the facility’s resident doctor.
as drought enveloped the nation.
On Monday, in his first public remarks to Congress, Secretary of State Antony J. Blinken defended the Biden administration’s withdrawal from Afghanistan, saying there was no reason to believe the country would have stabilized had the United States remained.
“There’s no evidence that staying longer would have made the Afghan security forces or the Afghan government any more resilient or self-sustaining,” Mr. Blinken told the House Foreign Affairs Committee, in a live teleconference call. “If 20 years and hundreds of billions of dollars in support, equipment, and training did not suffice, why would another year, or five, or 10, make a difference?”
international aid workers having fled the country out of safety concerns. Those who remain are unsure if they will be able to continue their work.
During the conference on Monday, the U.N. said it needed $606 million in emergency funding to address the immediate crisis, while acknowledging that money alone will not be enough. The organization has pressed the Taliban to provide assurances that aid workers can go about their business safely. By the end of the gathering, international pledges had surpassed the amount requested.
But even as the Taliban sought to make that pledge, the U.N.’s human rights chief, Michelle Bachelet, also speaking in Geneva, said Afghanistan was in a “new and perilous phase” since the militant Islamist group seized power.
“In contradiction to assurances that the Taliban would uphold women’s rights, over the past three weeks, women have instead been progressively excluded from the public sphere,” she said, a warning that the Taliban would need to use more than words to demonstrate their commitment to aid workers’ safety.
Monday’s conference was also intended to drive home the enormousness of the crisis and offer some reassurance to Western governments hesitant to provide assistance that could legitimize the authority of a Taliban government that includes leaders identified by the U.N. as international terrorists with links to Al Qaeda.
their origin story and their record as rulers.
Who are the Taliban leaders? These are the top leaders of the Taliban, men who have spent years on the run, in hiding, in jail and dodging American drones. Little is known about them or how they plan to govern, including whether they will be as tolerant as they claim to be. One spokesman told The Times that the group wanted to forget its past, but that there would be some restrictions.
On Sunday, Taliban authorities sent assurances that they would facilitate humanitarian aid deliveries by road, he said.
some $12 billion in assistance to Afghanistan over four years.
While the Taliban did not have a representative in Geneva for the meeting, Zabihullah Mujahid, the Taliban’s deputy information and culture minister, said the government welcomed all humanitarian efforts by any nation, including the United States.
He also acknowledged that not even the Taliban expected to be in control of the country so quickly.
“It was a surprise for us how the former administration abandoned the government,” he said. “We were not fully prepared for that and are still trying to figure things out to manage the crisis and try to help people in any way possible.”
More than half a million Afghans were driven from their homes by fighting and insecurity this year, bringing the total number of people displaced within the country to 3.5 million, Filippo Grandi, the U.N. refugee chief said.
The danger of economic collapse raised the possibility of stoking an outflow of refugees to neighboring countries.
Said, 33, lived in Kunduz before fleeing to Kabul, where he now lives in a tent in a park. He has been there with his wife and three children for a month.
“It’s cold here, we have no food, no shelter, and we can’t find a job in this city,” he said, adding that he had not received any aid.“We all have children and they need food and shelter, and it’s not easy to live here.”
Jim Huylebroek contributed reporting from Chak-e Wardak, Afghanistan. Sami Sahak also contributed reporting.
KABUL, Afghanistan — Afghanistan’s plunge into chaos, isolation and near-destitution under its newly ascendant Taliban rulers appeared to slow on Thursday, with the first significant moves to salvage Kabul’s inoperable airport, an increased flow of U.N. aid and word that international money transfers had resumed to the country, where many banks are shuttered.
But these developments did not signal any diminished suspicion toward the Taliban, the hard-line movement of Islamic extremists, many of them on terrorist watch lists, who seized power last month after two decades of war against an American-led military coalition and the government the United States had propped up.
And despite expectations that the Taliban leaders now ensconced in Kabul’s presidential palace would formally announce the makeup of a new government on Thursday, the anticipated announcement was delayed.
ended on Monday night. The airport remained closed to the public on Thursday, its hangars strewn with debris and some aircraft damaged by shrapnel, bullets and vandalism, but the Taliban permitted reporters inside, where security personnel and technicians from Qatar who had been sent to help reopen the airport were busy.
Teams of Qataris ferried back and forth in armored Land Cruisers at the airport’s VIP terminal under a giant billboard of Ashraf Ghani, the former president who fled abroad on Aug. 15 as Taliban fighters entered Kabul all but unopposed.
“The airport will open very soon,” said Daoud Sharifi, the chief operating officer of Kam Air, Afghanistan’s largest privately owned airline, which basically shut down even before the Taliban triumphed more than two weeks ago.
Western Union announced that it was resuming money transfers to Afghanistan, enabling customers from 200 countries and territories to “once again send money to their loved ones in the country.” Western Union, which had halted the transfers a few weeks ago, took the step as the U.S. Treasury Department said American financial institutions could process personal remittances.
Such remittances from the Afghan diaspora, a crucial source of income and foreign currency in Afghanistan, had basically stopped. At the same time, financial institutions in the United States and elsewhere have prevented the Taliban from gaining access to Afghan government bank reserves and other financial assets.
The dearth of cash in Afghanistan has become an acute source of desperation, seen in the lines of customers queued outside banks in the prelude and aftermath of the Taliban takeover. It also represents a quandary for the United States, which does not want to be seen as penalizing ordinary Afghans, many of them still in shock over the abrupt U.S. departure.
their origin story and their record as rulers.
Who are the Taliban leaders? These are the top leaders of the Taliban, men who have spent years on the run, in hiding, in jail and dodging American drones. Little is known about them or how they plan to govern, including whether they will be as tolerant as they claim to be. One spokesman told The Times that the group wanted to forget its past, but that there would be some restrictions.
Despite the Taliban’s effort to project an image of responsibility in reopening Kabul’s airport, enormous challenges remain not just for that facility but for basic aviation security. Most foreign carriers are now avoiding Afghanistan’s air space, depriving it of yet another important source of income: overflight fees, which countries charge airlines for permission to fly over their territory.
Both of Afghanistan’s carriers — Kam Air and the state-owned Ariana Airlines — are crippled for now.
In a recent interview from Doha, Qatar, Farid Paikar, the chief executive of Kam Air, said his airline had been reeling from heavy losses in the months leading up to the tumult during the Kabul airport evacuation, which left two of its aircraft damaged. He also said the airport’s aviation control systems had been damaged and that many Kam Air employees, including foreign pilots, engineers and technicians, had been forced to flee.
“It will take so long to reactivate all these systems and the terminal,” Mr. Paikar said. “The international community should help us with this, but I don’t know if they will be interested.”
A former Ariana official said three of that carrier’s four aircraft had been damaged at the Kabul airport, along with many computer and aviation systems.
An interview with an airport security guard who managed to flee to Doha in the evacuation offered a vivid account of the scene the day after Kabul fell to the Taliban, basically describing it as a total breakdown in authority.
The security guard, Gulman, who identified himself by only one name for fear of reprisal, said crowds of Afghans had poured onto the tarmac, clambering to board any departing flights. Windows of grounded Kam Air planes were cracked and seats torn apart, he said.
But the biggest blow to the airport’s viability, he said, were the employees who joined the frenzy of others scrambling to leave: security guards, airline crews and air traffic controllers who abandoned their posts.
Gulman said he had arrived at work expecting to inspect bags at his scanner as usual. Instead, he found every other luggage scanner abandoned and the uniforms of his colleagues scattered on the floor.
For half an hour, Gulman said, he stood at his usual post, debating what to do before another colleague arrived and convinced him that the two of them — having gotten past the crowds at the airport gate because of their security guard uniforms — should also board a flight.
Sharif Hassan and Najim Rahim contributed reporting.
To the people of Cuglieri, a small hilltop village on the Italian island of Sardinia, the tree was simply “the Patriarch.”
Over the course of its long life — estimates of its age range from 1,800 to 2,000 years old — the olive tree became a behemoth, with a trunk 11 feet, or 3.4 meters, wide, and an integral part of an ancient landscape in western Sardinia. But after a large area of vegetation and numerous farms and villages in the region were devastated by one of the biggest wildfires in decades, time finally caught up with the Patriarch.
The ancient olive tree was engulfed in flames, and its giant trunk burned for almost two days.
In a fire that reached Cuglieri in late July, the agricultural community of about 2,600 residents lost 90 percent of its olive trees, the main source of income for most. More than 1,000 people were evacuated from the town, which is tucked between a mountain covered in cork and oak trees and the Mediterranean Sea.
Now local residents and the authorities are pinning their hopes for the survival of their ancient olive tree on Gianluigi Bacchetta, a professor at the University of Cagliari and the director of its botanical gardens, who is trying to bring the Patriarch back to life.
“The Patriarch is our identity,” said Maria Franca Curcu, who is responsible for cultural and social policies for the municipality of Cuglieri, her voice breaking. “If we can save him, we can give a message of hope to all the people who have lost everything in the fire.”
When Professor Bacchetta first visited the ancient olive tree in July, soil temperatures had reached 176 degrees Fahrenheit, or 80 degrees Celsius, because of the fire.
“We needed to create an intensive care unit for the tree,” he said in a telephone interview. “It really is a living being that underwent serious trauma,” Professor Bacchetta said. “We are going to do our best and hope that it wakes up from its coma.”
The professor and his team first watered the soil to cool it down and then protected the trunk with jute tarps and the soil with straw. A nearby village gave a water tank for the tree, and a local plumber built an irrigation system that allows the soil to retain crucial humidity.
A local construction company donated equipment and worked for free to build a structure to shade the trunk from the scorching sun, replicating the role of leaves — now gone. Every 10 days, the tree is irrigated with organic fertilizers in the hope of encouraging the tree’s peripheral roots to grow.
“If the peripheral roots restart and manage to transfer materials to the stump,” Professor Bacchetta said, “we can hope for shoots to come out in September or October.”
The professor did not stop with the Patriarch. He visited all of the centuries-old olive groves in the area, advising farmers on how to save fire-damaged plants. His team and local authorities are planning a crowdfunding effort to buy equipment to restore the olive groves and their fields.
Giorgio Zampa, the owner of an olive farm that once belonged to his great-grandfather, lost all of his 500 oldest olive trees, planted over 350 years ago.
“Mr. Bacchetta unfortunately can’t do much for me,” Mr. Zampa said, “but I believe that the work on the Patriarch will psychologically help the entire community.”
Ten of his 14 Sardinian donkeys and almost all of his cattle from an ancient, endangered breed also died in the wildfire as they sought shelter in a nearby forest, which began burning shortly after. Mr. Zampa said he would focus his business on the remaining younger olive trees and start planting new ones.
“The village’s economy got burned to a cinder like the olive groves,” he said. “The fire damaged the landscape, the economy and our incomes in an incalculable way, like nothing we had seen before.”
Wildfires are not new to the Cuglieri area. They are a relatively common summer phenomenon on the arid island of Sardinia, but generally are not as apocalyptic as this season’s. The extraordinarily high flames, propelled by strong winds from the south, reached the village’s homes and burned to ashes everything standing in between, including the cemetery’s ossuary.
In the last big fire, in 1994, the Patriarch was spared, though the flames burned some century-old trees nearby.
“In Cuglieri, we have always felt that there is something sacred about it, and that protected it from the fire,” said Piera Perria, a retired local anthropologist who first contacted Professor Bacchetta to assess the Patriarch. “None of us could imagine that it could not make it this time.”
Giuseppe Mariano Delogu, a retired high-ranking official with Sardinia’s forestry corps, said that in the past 40 years, wildfires followed the same roads on the hill and the mountain near Cuglieri, but the flames never reached the olive groves.
Although civil protection and the response to fires in the area have improved over the years, bureaucratic hurdles aimed at protecting Mediterranean scrubland mean that inflammable vegetation is often not cleared, creating fire hazards, experts say. High temperatures this summer, partly because of hot winds blowing in from Africa, have intensified the risks of wildfires breaking out.
“The only way to extinguish such fires is to prevent them,” Mr. Delogu said. “Technology simply fails when the fire is so strong and so vast, regardless of how many firefighters you have, they will always struggle.”
Mr. Delogu was still hopeful for the Patriarch, though.
“They are incredible trees,” he said. “I am optimistic.”
Andrea Jones hadn’t yet settled on a date to retire from her customer service job at United Airlines when Newark airport started looking like a ghost town in March 2020. After 28 years with the carrier, she still loved her work. But by the end of that month, she had hung up her blue uniform for the last time. She is still struggling with a sense of loss.
“I wasn’t at all ready to leave,” she said. “It hit me right between the eyes.”
Ms. Jones, 68, of East Windsor, N.J., retired to protect the health of her husband, George, who has multiple myeloma, a form of cancer. Fortunately, the Joneses had a nest egg, and United offered a retirement package that enabled her to keep their health insurance.
Patricia Scott has not been so lucky. Ms. Scott, a special-education teacher in Stockton, Calif., retired in January to preserve her own health. A grandmother of 10, she survived breast cancer in 2016; her oncologist told her she couldn’t risk catching Covid-19 by returning to the classroom. Now, at age 66, she is on financial quicksand. “My income is half what it was,” she said. She is single and in debt. “I’m stressed, I’m depressed and I’m terrified.”
For many of the nearly three million workers ages 55 to 70 who have left their jobs since March 2020, retiring during the pandemic has inflicted two traumas. Like Ms. Jones and Ms. Scott, most felt they were forced out of work before they wanted to go, said Teresa Ghilarducci, a professor of economics and policy analysis at the New School for Social Research. Among that subset, the majority, like Ms. Scott, were financially unprepared, Ms. Ghilarducci said.
research from the New School, far more older workers retired during the pandemic than during other recessions. After the 2008 financial crisis, for example, 1.9 million older workers left the labor force in the first three months of the recession. In the first three months of the pandemic last year, 2.9 million left the work force. The latest data shows that 1.7 million of the newer wave of retirees left despite financial uncertainty, Ms. Ghilarducci said.
Their departures generally were not a bid for a few extra years of bird-watching. “A lot of people were pushed out of their jobs,” Ms. Ghilarducci said; she attributed that push partly to age discrimination. “It used to be that employers would let the ones they just hired go first in a recession, but this time older people who have been in their jobs the longest have been hit hardest.”
Lack of enforcement of anti-discrimination laws was a factor, she said. So was what some employers saw as a rare opportunity created by the pandemic to get rid of older workers, who are perceived to be less productive and more expensive.
Regardless of the reason, the new army of reluctant retirees, disproportionately made up of Black workers and those who lack a college degree, according to June data from the New School, is in trouble. One key reason: Debt rates among Americans 65 and older are the highest they’ve ever been, Ms. Ghilarducci said. And they are likely to rise as more people are forced to draw down their assets to make ends meet. Collecting Social Security earlier than anticipated will add to their vulnerability, since claiming earlier will permanently reduce their benefits.
Even for people with a financial safety net, the hurdles can be significant. “There’s a lot of stress that comes with having retirement forced on you,” said Malcolm Ethridge, a financial adviser in Washington who has several newly out-of-work older clients. “It takes time to get past the disruption.”
Jovan Johnson, a certified financial planner in Atlanta, said Ms. Scott and others in her situation should start looking for a pro bono financial adviser who can help make sense of their money. “There are a lot of us out there who will help people out for free during a crisis,” he said. He recommends searching sites like the XY Planning Network.
The primary benefit of sitting down with a professional may be relief from panic, he said. But the 15 new retirees who have contacted him for pro bono help since the pandemic started, among them nurses and teachers, have also gained a better understanding of how to manage limited funds. “Everybody deserves to have a plan,” he said.
Pen and Brush after 23 years as executive director, the stress started last year, when she contracted Covid-19 and spent several weeks in an intensive care unit. She was not psychologically ready to retire, but because she has still not fully recovered, she felt she had to. “I was one of those people who was going to have to be wheeled out of there, I loved it so much,” she said.
Now she is adjusting to what she said was a more limited routine. Sunday nights and Mondays flummox her the most. “It’s like when you have that dream where you have a final exam and you’ve never been to class, or you forget your locker combination. I keep thinking, I have to go to work.” Instead, she takes walks with her husband, Wallace Munro, a retired actor, and visits the grocery store more than she thought she would ever want to.
“It’s something to do,” she said. “You have to restructure your life when something like this happens to you. It’s so easy to get depressed.”
Managing money in a sudden retirement
Mr. Johnson, the financial planner, offered tips on juggling your income and expenses when you’re thrust into joblessness with little warning.
Make sure that you do not have any old pension or 401(k) money out there from previous employers. People who have rolled over retirement accounts from previous employers often forget about them.
Don’t feel guilty for taking Social Security early — especially if you have no other option. You can begin claiming your benefits as early as age 62. However, the downside to claiming before your full retirement age (you can look it up on the Social Security website) is that your total monthly payments will be permanently reduced. If your income is below a certain threshold, your full Social Security payments might be tax-free.
Use Social Security payments for your nondiscretionary, fixed expenses and retirement assets for discretionary expenses, such as travel and entertainment.
Bridge the gap to Medicare, because the age of eligibility is 65. Consider plans under the Affordable Care Act. Typically, if your income is low enough, you may receive premium tax credits and other benefits if you choose a plan on the marketplace.
If Social Security and retirement savings cannot sustain your lifestyle, it’s time to consider Medicaid, Supplemental Security Income and similar programs.
The people here are not Hollywood stars or billionaire tech entrepreneurs who might own Ferraris and private jets. But they are well off. The median household income in the area exceeds $165,000, and half the homes are valued at more than $1 million. Eight in 10 residents have at least an undergraduate degree. As early buyers with high incomes, they can easily take advantage of the federal E.V. tax credit.
The incentives are, in effect, “subsidizing my luxury,” said Mr. Teglia, who also has solar panels on his home. The Model 3s he owns sell for about $40,000 before government incentives.
Dr. Jack Hsiao, an obstetrician-gynecologist, had avoided buying an electric vehicle for fear that he wouldn’t be able to drive very far before having to plug in — a phenomenon known as range anxiety. But his sister, who moved to California from Texas and bought solar panels and a Tesla, persuaded their father, who lives with Dr. Hsiao, 54, to buy one, too. Following his family, Dr. Hsiao bought a Tesla and solar panels.
“Gas prices have just gone through the roof, and so, given that I’ve got the solar panels, it cost me next to nothing to charge,” he said. “For me, it was just a perfect fit.”
Elaine Borseth, a retired chiropractor, is another convert. Before she bought a Model S, she had never spent more than $20,000 on a car. But after seeing several of the big, sporty sedans on the road, she drove one about seven years ago. “I thought they were sleek and sexy,” said Ms. Borseth, who now runs the Electric Vehicle Association of San Diego.
“It’s almost one of those cases where the more you see, it just kind of breeds upon itself,” she said to explain why her neighborhood has so many electric cars.
TORONTO–(BUSINESS WIRE)–Konfidis Inc. (Konfidis), Canada’s leading and comprehensive service provider to enable better investor access to the Canadian residential real estate sector, is pleased to announce that it has closed an oversubscribed non-brokered $2 million private placement seed financing round. Konfidis is excited to welcome its new strategic and value-add investors including its accomplished Advisory Board members.
With Canada’s leading technology platform for residential real estate investing and a rapidly growing technology-enabled and investor-focused residential real estate brokerage subsidiary, Konfidis Realty Inc., this injection of funds will bolster Konfidis’ growth strategy and boost various enhancements to the platform serving both single-property investors and those accumulating residential property portfolios, as well as Konfidis’ tenant marketplace to support a new age of rental housing solutions and service.
“We are excited to provide new and innovative technology solutions for our clients and partners to enable simple access to better Canadian residential real estate investment opportunities,” said Mr. Asher. “We’ve witnessed the success of technology-enabled residential real estate investing, including the Single-Family Rental (SFR) Home asset class, and we’re here to provide investors with such opportunities in Canada where there are compelling long-term supply and demand fundamentals supporting outsized risk-adjusted return potential.”
Konfidis is dedicated to delivering an exciting new offering for tenants seeking high-quality and dependable long-term rental housing solutions. “Recent news headlines continuously highlight how buyers have been priced out of the market, and this is especially problematic for families who wish to rent in a specific school district, for example, given the acute shortage of quality single-family homes available for rent in those districts. In addition, landlords are by-and-large mom-and-pop owner-managers and unfortunately great tenants do sometimes have poor experiences and fear sudden eviction if the landlord decides to move into the property. We believe our professional and tenant-first offering will deliver comfort and security of tenure to longer-term renters with a high level of service,” said John Asher, President and Co-Founder of Konfidis Inc.
“The current residential real estate landscape is dominated by resources that serve owner-occupier families. Konfidis provides an investor-focused suite of tools that are not restricted to local knowledge only, rather we scour a wider geographic region for the best investment opportunities driven by technology and big data and without emotion,” said Jared Kalish, Executive Chairman and Co-Founder of Konfidis Inc. “We believe that KonfidisRANKTM, our proprietary acquisition software, which utilizes 100+ million data points to search and evaluate tens of thousands of opportunities in real-time across different cities, will enable our clients to outperform the market. We’re fortunate to have an extremely talented technology team which is applying top tier big data and machine learning techniques to leverage a wide and innovative array or datasets to continuously improve upon the KonfidisRANKTM scoring methodologies to better forecast which properties will outperform the market over the long-run and generate alpha for our clients.”
Konfidis strives to democratize residential real estate investing which has historically been challenged by limited analysis tools and a lack of turn-key management solutions. Konfidis provides full-service support for its clients to evaluate and acquire investment properties with the most compelling risk-adjusted return characteristics through top-down geographic region analysis and bottom-up rental income and total return analysis; and supports the comprehensive management of those investment properties on behalf of its clients. Konfidis believes in rigorous investment opportunity due diligence practices and best-in-class governance and risk-mitigation practices; such principles are instilled in Konfidis’ product and service offering.
“On a total return basis, the Canadian residential real estate sector has been among the best performing and highly liquid asset classes globally. Canada benefits from strong population, employment, and demographic trends that bolster accelerating demand for housing,” said Shael Soberano, Chief Investment Officer of Konfidis. “Notwithstanding these strong demand drivers, there continues to be a significant undersupply of housing. Such mismatch supports continued outperformance of this asset class, especially in an inflationary environment, and will force private sector investment to innovate new housing solutions. Konfidis is dedicated to supporting investors that are seeking to benefit from these dynamics while providing Canadian families enhanced quality housing, and flexible alternatives.”
Konfidis Inc. is Canada’s leading full-service realtor brokerage and technology service provider for Canadian residential real estate investors. Konfidis strives to democratize residential real estate investing, which has historically been challenged by limited analysis tools and a lack of turn-key management solutions. Konfidis provides full-service support for its clients to evaluate and acquire investment properties with the most compelling risk-adjusted return characteristics through top-down geographic regional analysis, bottom-up rental income, and total return analysis; and supports the comprehensive management of those investment properties on behalf of its clients. As a core principle, Konfidis is dedicated to delivering enhanced solutions for Canadian families seeking high-quality and dependable long-term rental housing alternatives.