Brief #134 – Economic Policy
By Greg Ziegler
The Federal Open Market Committee (FOMC) concluded the first of its eight scheduled meetings for 2022 on Wednesday, January 26th. The Committee is comprised of twelve members and is responsible for overseeing the nation’s monetary policy to promote the nation’s economic goals.
Brief #133 – Economic Policy
By Rosalind Gottfried
The number of people quitting or switching jobs reached a record high of 4.5 million in November, the fourth episode of record setting in 2021. As seen in previous assessments, the biggest changes are in lower paying occupations such as restaurant/bar and retail staffs.
Brief #132 – Economic Policy
By Rosalind Gottfried
The recent union vote, at a Buffalo, NY Starbucks, represents the first success in the company’s 8000 corporate retail outlets. Workers United is the entity representing the workers and is affiliated with the Service Employees International Union. Another area store failed to vote in a union while a third one had a successful outcome which has been contested by both sides.
Brief #131 – Economic Policy
By Rosalind Gottfried
Wages are increasing significantly in all sectors. As workers have gradually rejoined the labor force, taking their time even as federal subsidies to unemployment benefits ended, starting wages and service work especially have seen large increases. Wages increased 4.9% between October 2020 and October 2021.
Brief #130 – Economic Policy
By Rosalind Gottfried
After persistent bickering Senators Mitch McConnell and Chuck Schumer reached a procedural agreement allowing the Senate to pass an increase in the debt ceiling with a simple majority. This bill passed Thursday and is likely to quickly lead to an increase in the debt ceiling of 2-2.5 trillion dollars, which will cover the government’s debt payments through next year’s election.
Brief #129 – Economic Policy
By Rosalind Gottfried
The economic recovery has slowed in the third quarter and the unprecedented circumstances make it unclear what the indicators ultimately will mean for future growth. It is estimated that worker shortages are costing the economy sixty billion dollars in sales every month. Increased wages are failing to attract a crucial influx in returning workers. There are millions of pre-pandemic workers who have not returned to work. Workers are reluctant to return to work likely due to health concerns; childcare issues; and reconsideration of life priorities.
Brief #128 – Economic Policy
By Jared Sullivan
A new global agreement, endorsed by the Biden administration, aims to improve the international tax system by redistributing revenue that countries earn from taxing multinational corporations. The proposal was finalized and agreed upon on October 8th by the Organization for Economic Cooperation and Development (OECD). It is scheduled to go into effect in 2023.
Brief #127 – Economic Policy
By Rosalind Gottfried
There are positive indications of economic growth in the fourth quarter of the year and, while economists are optimistic, citizens are less so. The economy grew by .5% in the third quarter, and the fourth quarter is predicted to be strong. The October jobs report was encouraging. New jobs reached 531,000 and after adjustments in the August and September figures, the average for the three months was 442,000. October unemployment was down to 4.6% from 4.8%.
Brief #126 – Economic Policy
By Rosalind Gottfried
There are some indications that the economy is strong. The US economy is expected to grow at 6% this year and fall to 3.9% for 2022, a greater rate than for most years since the turn of the century. Economists are predicting a steady expansion of the economy for the second half of 2021. The unemployment rate is under 5%, marking only 17 months to recover that rate since the pandemic started. Unemployment is currently at 4.8% which is down from 5.2% in August.
Brief #125 – A Primer on the Debt Ceiling Crisis
By Rosalind Gottfried
The deadline for Congress to pass a Bill to fund the government past the current fiscal year deadline of September 30th is fast approaching. The Republicans blocked a bill which would extend government spending and suspend the debt ceiling. The House passed the bill providing for government spending through December and suspending the debt ceiling through December 2022, after the mid-term elections.
Brief #124 – Economic Policy
By Rosalind Gottfried
Child poverty persists in the US at a much greater rate than in other comparable countries. Among the countries in The Organization for Economic Co-operation and Development (OECD), the US is on a par with Mexico, Chile, Turkey, and Spain on the low end of expenditures to combat child poerty. In contrast, Finland, Denmark, Poland and Spain evidence the highest spending. In spite of having the highest GDP of any country, and one of the highest per capita incomes, the US spends 1% of its GDP on family benefits in contrast to the 3.5% spent by France. As a result, 14.4% of the country’s children live in poverty. This translates into 1 in 4 Black children; 1 in 5 Hispanic children; and one in 12 non-Hispanic white children.
Brief #123 – Economic Policy
By Tyler-Joseph Ballard
A $3T USD budget shortfall in 2020 and the current deficit for 2021 of another $3T USD leaves the current administration in a considerable bind. The Biden administration’s proposed tax plans — The American Jobs Plan and the American Families Plan — impose considerable tax hikes for corporations and top earners while providing increased child and dependent tax credits.