The SEC, AI Layoffs, and Is $500K Middle Class?

Created in 1934 following the 1929 stock market crash, the Securities and Exchange Commission is a federal agency responsible for regulating the sale and purchase of securities (tradable financial assets such as stocks and bonds). It's also tasked with creating and maintaining reporting requirements for public companies, overseeing market participants (brokers, advisers, exchanges), and more.

> Watch the SEC "Era's Tour" to learn about its history. (More)
> In the decades before the SEC was created, 180 people were found to be managing more than $22B, a large slice of the entire nation's wealth. (More)

The commission itself is composed of five commissioners appointed by the president and confirmed by the Senate (two spots are vacant today). No more than three commissioners can be from the same political party, and one of them serves as the SEC chair. Their stated mission is to protect investors, maintain fair, orderly, and efficient markets, and help businesses raise money.

> President John F. Kennedy's father was the first chairman of the SEC. (More)

> Learn about the different financial and banking regulatory bodies in the US. (More)

The agency's role and scope have expanded in the years since its creation, with more aggressive regulations coming out of financial crises like the Great Recession of 2008. The SEC only has civil enforcement power (think: fines, penalties, industry bans)—meaning when a case warrants criminal charges, it refers the matter to the Department of Justice. The extent of the SEC's oversight is a highly politicized issue: Conservative politicians tend to advocate for less oversight, while more liberal politicians push for more.

> The SEC was criticized for not having caught Bernie Madoff's nearly $65B Ponzi scheme earlier. (More)

> How Dodd-Frank expanded the SEC's power. (More)

Discover more: 

> The man who likely inspired Gordon Gekko in the movie "Wall Street" was shockingly cooperative with the SEC when he was arrested. (More)

> What is insider trading? (More)

> Explore the SEC's public database with information and filings from public companies. (More)

🫶 Humankind: About 30 states in the US have recently agreed to mandate personal finance courses for teens in school.

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 News in Context 

1440 brings you the knowledge and context behind the week's stories:

The US national debt hit $40T last week for the first time—and new data shows that it rose at about $90K per second over the past year. (More)

> How the rising national debt affects everyday Americans.

> Andrew Jackson was the first and only president to eliminate the national debt.

A new report from Bank of America revealed after-tax wage growth for lower- and middle-income earners, signifying a departure from the "K-shaped economy." (More)

> The K-shaped economy, explained. 

> How to tell if an economy is experiencing a recession.

CEOs are shifting their messaging around AI and layoffs, moving away from highlighting AI's ability to reduce headcount in favor of claiming that recent headcount reductions are not related to AI gains. (More)

> Generative AI is expected to impact both low- and high-wage roles—here's how. 

> How to financially prepare if you think AI is coming for your job.

The giant hairball that rolled through NYC earlier this month generated more than $150K in earned media value for K18, the hair care brand behind the stunt. (More)

> The craziest stunts startup founders have pulled to get their businesses off the ground. 

> Inside the economics of billboards.

One Story We're Taking Stock In

For America's elite private schools, families who make as much as $500K annually are now considered middle class. At least, that's what the feature story below—which was among our favorite reads of the past week—seems to imply. Specifically, as tuition has climbed to as much as $80K per year at these top private college-prep schools (which span grade levels from pre-K to 12th grade), some are now offering financial aid to families with household incomes up to $500K.

At Deerfield Academy in Massachusetts, for instance, families making under $150K per year are offered free tuition. Those making more than $150K but not enough to pay in full are frequently offered discounts. As tuition increases outpace income growth, some schools are calculating that having a cohort of parents who can only pay partial tuition is better for their bottom line than leaving a growing number of classroom desks empty. Learn more by reading at the link below.

> Elite private schools offer financial aid to families making $500K. (Read)

> How many American K-12 students are enrolled in private schools? (1440 Topics)

In partnership with Alumni Ventures

Co-Invest With Top VC Firms Like A16z

Alumni Ventures gives accredited investors access to curated startup deals co-invested alongside VC firms like a16z, Bessemer, and Y Combinator—the same firms backing exciting companies in AI, Deep Tech, and beyond.*

No cost to browse. No obligation to invest. See Current Startup Deals →

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 Etcetera 

> How microfinance failed the world's poor.

> See a timeline of TV and film industry company consolidation.

> A third of Americans don't have enough cash to cover a $500 emergency.

> Why shrunken human heads were once considered a valuable commodity.

> How much of the Estée Lauder Companies does the Lauder family still control?

> Visualize America’s retirement savings by age.

> The companies changing warfare forever.
 

> Why private equity deals sometimes come with layoffs.

> Dollar stores tend to be smaller in size than other retail stores—here's why.

> Meet a government agent who laundered millions of dollars for Pablo Escobar.

> Minimum wage, explained.

> The people working remotely from prison.