Fall Back, Money with Payment App, and EO on AI

A Glimpse into Daylight Saving Time, Avoid Keeping Money in Brokerage Accounts or Payment Apps, and Executive Order on AI

Nov 05, 2023

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Market: Stocks saw a rally, with the Dow Jones rising by 0.66%, the Nasdaq surging 1.38%, and the S&P 500 climbing 0.94%. This week recorded the best 2023 performance for all major indexes. However, the U.S. economy reported an addition of 150,000 jobs in October, falling short of the anticipated 180,000, partly due to labor strikes in the auto industry, as reported by the Bureau of Labor Statistics. This situation led to a slight increase in the unemployment rate to 3.9%.

The Federal Reserve keeps a watchful eye on the labor market's health, and with signs of economic deceleration, it is increasingly likely that the central bank may hold off on another rate hike this year.

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Fall Back and Spring Forward: A Glimpse into Daylight Saving Time

Fall is here, and with it comes that wonderful day when we get an extra hour of sleep. That's right; it's the end of Daylight Saving Time! For many, this is a welcome change, as it means a little more rest and relaxation. While it's a familiar concept to many, some immigrants might wonder if it's just a seasonal gimmick, as it's not observed in their home countries. But do you know why we set our clocks back each fall and move them forward again in the spring? Let's dive into the fascinating world of Daylight Saving Time (DST).

Daylight Saving Time in a Nutshell

Daylight Saving Time, or DST, is the practice of adjusting our clocks. In the spring, we move them one hour ahead of standard time, and in the fall, we set them back one hour. The primary goal of DST is to save energy and provide more daylight in the evening during the warmer months.

The Benefits of DST

Daylight Saving Time (DST) conserves energy by aligning daily schedules with natural light, reducing electricity consumption. It stimulates economic growth, encourages outdoor activities, and supports local businesses. DST's extra daylight combats the winter blues, promoting well-being, and its longer evenings are associated with safer roads and fewer traffic accidents.

The Sunshine Protection Act

In 2020, a bill called the "Sunshine Protection Act" was introduced to make DST permanent across the U.S. While it gained Senate approval, it did not pass the House, so it didn't become law. The idea of enjoying that extra hour of sleep every day was enticing, but it remains a dream for now.

State-Level Efforts

Some states have attempted to maintain DST year-round, but they require approval from the federal government. Currently, only Arizona, Hawaii, and select territories do not observe DST. State-level initiatives to make the switch to permanent DST have sparked lively debates about the benefits and drawbacks.

DST Around the World

DST isn't unique to the United States. Many countries worldwide practice it, although the dates and rules may vary. Regions like Europe, Canada, Latin America, the Caribbean, and Australia all adjust their clocks. Interestingly, Egypt is the sole African country that participates in DST.

#SettleWiseStance – While the process of changing our clocks and adjusting to a new schedule may not always be straightforward, Daylight Saving Time continues to be a subject of interest and discussion. From conserving energy to supporting local economies, its impacts are both practical and symbolic. So, as we celebrate that extra hour of sleep, let's also reflect on the role DST plays in our lives, the nation, and the world. Enjoy your well-deserved extra rest and look forward to the longer days as we spring forward once more next year.

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Why It's Wise to Avoid Keeping Money in Brokerage Accounts or Payment Apps

Most payment apps like Venmo, Cash App, and PayPal, as well as brokerage accounts, offer quick money management options, but they might not be the ideal places for your long-term savings. Here are a few good reasons why you should consider moving your funds to a bank or credit union account:

Lack of Insurance: The majority of payment apps and brokerage accounts lack FDIC or NCUSIF insurance, which means your money isn't protected if something goes wrong or in cases of fraud. Even if they claim to offer "pass through" insurance, it might not cover everyone or all situations. Banks and credit unions, in contrast, provide up to $250,000 in insurance per account.
Sluggish and Costly Transfers: Transferring money from a payment app or brokerage account to your bank can take several days, which can be problematic if you need cash urgently. Instant transfers are an option, but they come with a fee, typically ranging from 1% to 3% of the amount. Why incur these costs when you can access your money more swiftly and affordably at a bank or credit union?
No Interest: Funds sitting in the majority of payment apps or brokerage accounts don't accrue any interest. You miss out on an opportunity to grow your savings by shifting it to an interest-bearing account, such as a savings or checking account. Many banks and credit unions offer interest rates between 4% and 6%. This beats earning nothing.

#SettleWiseStance – Payment apps and brokerage accounts serve specific purposes, but they may not be the safest or most financially savvy places for your savings. For enhanced security, faster access, and the potential for higher returns, consider moving your funds to a bank or credit union account today.

President Biden's Executive Order on AI: Promoting Safe and Trustworthy Innovation

In a significant move aimed at fostering responsible AI innovation, President Biden issued an Executive Order on October 30, 2023, addressing various aspects of artificial intelligence (AI). The order outlines a comprehensive strategy designed to ensure the United States takes the lead in harnessing the potential of AI while managing its associated risks.

New Standards for AI Safety and Security

Recognizing the growing impact of AI on safety and security, the Executive Order mandates sweeping actions to protect Americans from potential AI-related risks. Developers of powerful AI systems must share safety test results and critical information with the U.S. government. Rigorous standards for safety testing will be established, and AI will be scrutinized for threats to critical infrastructure and national security.

Protecting Against Privacy Risks

AI's ability to extract and exploit personal data raises privacy concerns. To address these, the order prioritizes federal support for privacy-preserving techniques, encouraging AI systems to be trained without compromising data privacy.

Advancing Equity and Civil Rights

The order seeks to combat algorithmic discrimination in areas such as justice, healthcare, and housing. Clear guidance will be provided to prevent AI algorithms from exacerbating discrimination, and best practices will be developed for the criminal justice system's use of AI.

Standing Up for Consumers, Patients, and Students

AI has the potential to benefit consumers, but it also raises the risk of harm. The order focuses on responsible AI use in healthcare and education, creating resources to support AI-enabled tools while ensuring consumer protection.

Supporting Workers

AI's impact on the workforce is acknowledged, with an emphasis on mitigating harm and maximizing benefits. Principles and best practices will be developed to protect workers and address job displacement.

Promoting Innovation and Competition

The U.S. already leads in AI innovation. The order aims to continue this leadership by catalyzing AI research, promoting a competitive AI ecosystem, and supporting highly skilled immigrants and nonimmigrants.

Advancing American Leadership Abroad

Recognizing that AI challenges and opportunities are global, the Administration will collaborate with other nations to support the safe, secure, and trustworthy deployment of AI worldwide. Partnerships, standards development, and responsible AI deployment abroad are key aspects.

Ensuring Responsible and Effective Government Use of AI

AI can enhance government functions but poses potential risks. The order issues guidance for agencies' AI use, streamlines AI procurement, and accelerates the hiring of AI professionals.

These actions, as directed by President Biden, signify the United States' commitment to safe, secure, and trustworthy AI development and use. Further steps, including potential bipartisan legislation, will be pursued to facilitate responsible innovation and maintain American leadership in the field of AI.

#SettleWiseStance – As the field of AI continues to evolve rapidly, it's essential for us all to stay aware and updated on these technological advancements. AI is set to revolutionize various aspects of our lives, from healthcare and education to economy and national security. We must be well-prepared and not get caught off guard by the transformative power of AI, ensuring that it benefits society as a whole while upholding our core values and rights. This Executive Order serves as a reminder that AI is a force to be reckoned with, and our collective responsibility is to harness its potential for the greater good.

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