Category: Economy

Big Corporations Try to Clean Up Their Act After Reports of Rampant Child Migrant Labor

Virginia Star Staff
Farm Workers

U.S. companies are conducting full-scale audits and shifting “focus” after multiple reports revealed child immigrants were working in increasingly dangerous conditions, according to The New York Times.

In 2023, the Department of Labor opened an investigation into companies like Lucky Charms and Cheetos after reports of immigrant children working in dangerous conditions while thousands of children have crossed over into the U.S. in the last several years. Many other companies, including McDonald’s, Whole Foods, Costco and more, have announced that they are conducting full audits to prevent migrant children from working in dangerous conditions, according to the NYT.

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Virginia Democrats Kill Gov. Youngkin’s Tax Proposal Until at Least 2025

Tom Pappert
Lucas stuart

Democrats in the Virginia State Senate have beaten the attempt by Governor Glenn Youngkin and Virginia Republicans to cut the commonwealth’s income tax rates and reform Virginia’s sales tax until at least 2025.

SB 632, filed by State Senator Richard Stuart (R-Montross), was continued into 2025 on Tuesday in an overwhelming vote by the Senate Subcommittee on Finance and Appropriations, led by State Senator L. Louise Lucas (D-Portsmouth).

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Ford Lost Billions on EVs in 2023

Virginia Star Staff
Ford EVs

Ford lost billions of dollars on its electric vehicle (EV) product lines last year, according to corporate documents.

The company lost $4.7 billion on EVs in 2023, a greater loss than the $4.5 billion the company expected it would lose in 2023 at mid-year, according to a summary of the company’s annual earnings. The company pointed to “an extremely competitive pricing environment” as a key reason for the losses.

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Commentary: Inflation Is the Reason Joe Biden Is So Unpopular

RealClearWire
Joe Biden

We’ve paid much attention to President Biden’s flagging job approval here, in part because it tends to be a strong predictor of how an election will turn out. Biden is marching into this election season as likely the least popular president to face the voters since Herbert Hoover. While he may yet be saved by the fact that he is facing off against Donald Trump, who brings his own baggage to the table, it’s an ominous indicator.

At the same time, the economy is running hot. Growth is over 3%, unemployment is under 4%, and inflation has fallen from its peak. So why the seeming paradox of an unpopular president in a time of strong economic growth, especially when the strength of the economy is itself a traditional predictor of presidential job approval?

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Chinese Solar Companies are Gearing Up to Cash in on Biden’s Signature Climate Bill

Virginia Star Staff
Solar Panel Installation

Chinese solar manufacturers are building factories in the U.S. to reap American subsidies created by the Inflation Reduction Act (IRA), President Joe Biden’s signature climate bill, according to The Wall Street Journal.

Companies based in China are responsible for about 25% of the 80 gigawatts in new solar manufacturing capacity announced in the U.S. since the IRA became law in August 2022 and established robust tax credit programs to incentivize domestic green energy production, according to the WSJ. Assuming that the factory construction and expected outputs announced by these China-based solar companies stay on schedule, they could reap a combined $1.4 billion worth of value from IRA subsidies each year.

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Union Power Slips as Percentage of Union Jobs Declines

The Center Square
Union Rally

The percentage of hourly and salaried workers in a union decreased in 2023, continuing a trend of ongoing decline in the past few decades.

The decline in 2023 was small, from 10.1% of the workforce to 10% even, but the trend is significant. In 1983, about 20% of hourly and salaried workers were in a union, meaning U.S. union membership has halved in about four decades.

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Virginia Democrats Seek to Allow ‘Anti Rent Gouging’ Ordinances, Spend $100 Million in ‘Long-Term Direct Rental Assistance’

Tom Pappert
House for Rent

Democrats in the Virginia General Assembly seek to allow local cities and towns to enact “anti rent gouging” ordinances that would regulate what property owners can charge renters and when rent can be raised, and additionally seek to add $100 million to the budget to fund “long-term direct rental assistance” for 5,000 families via vouchers.

Delegate Nadarius Clark (D-Suffolk) introduced HB 721 in early January to allow “any locality” to adopt an “anti-rent gouging” ordinance that would force landlords to provide two months of written notice in the event of a rent increase, prevent landlords from raising rent more than once within a 12-month period, cap how much rent can be increased and allow communities “to establish an anti-rent gouging board” to create regulations “by which landlords may apply for and be granted exemptions” from the legislation.

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Commentary: To Rebuild Trust, U.S. Banks Have a Lot of Work to Do

RealClearWire

Trust in banks has plummeted.  From 2019-2022, the percentage of people who believe banks and financial institutions have a positive effect on the country fell among Republicans (from 63 to 38 percent) and Independents (by nine points). The problem grows every time a right-of-center group is debanked. Recognizing the problem, “rebuilding trust” is the theme of the World Economic Forum in Davos, Switzerland. The path to rebuild trust in finance is simple—keep politics out of banking.

In spite of an alleged priority of building trust, the largest banks are aligning themselves with radical United Nations (UN) climate initiatives linked to radical efforts to reduce Africa’s population and destroy Sri Lankan agriculture.

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Boeing Reports New Problem with 737 Fuselage

Just the News
Alaska Airlines' Boeing 737

Boeing has discovered additional problems with its 737 fuselages, following a fuselage panel on one of its 737 Max 9s becoming detached last month during an Alaska Airlines flight.

The international aircraft maker said Sunday the new problem is related to drilled holes in the fuselage that were discovered by a supplier employee but is not an “immediate flight-safety issue.”

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Commentary: Labor Department’s New Rule Is Bad News for Independent Contractors

Virginia Star Staff
Contract Worker

In what is sure to have significant implications for millions of American workers, specifically gig economy workers and contractors, the Department of Labor (DOL) issued its long-awaited final worker classification rule in January.

The new rule revises the process to determine whether a worker is an employee or independent contractor under the Fair Labor Standards Act. The government argues the rule is necessary to ensure that all workers are provided fair wages and overtime since independent contractors (people who work for themselves or a business on a contractual basis) are not given the same benefits, such as tax withholdings and paid time off, as traditional employees. However, this argument appears designed to mask the government’s true intention, which is to reduce the number of independent contractors in the country.

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Ohio U.S. Rep Jim Jordan Debuts ‘Amazon Files’ Showcasing Federal Censorship Efforts Against Books

Just the News

The House Judiciary Committee and the Weaponization subpanel on Monday revealed internal documents secured via the subpoena of Amazon, highlighting the Biden administration’s efforts to address “propaganda” and “misinformation” in books the online retailer sold.

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Government Jobs Soared to New Record for Another Month as Federal Debt Piles Up

Virginia Star Staff
Office Meeting

The U.S. set a new record in January for the total number of Americans employed by the government, according to data from the Bureau of Labor Statistics (BLS).

The government added 36,000 new employees in January, with 11,000 in the federal government and 19,000 in local government, totaling 23,091,000, according to the BLS. January’s total outdid the previous record of 23,055,000 that was set in December, marking the third month in a row with a new record.

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As Support for Nuclear Power Grows Worldwide, Regulatory Costs Hinder Development in the U.S.

Virginia Star Staff

As the world looks for ways to decarbonize energy while keeping energy costs down, nuclear power is getting a second look. But the costs and construction times to build nuclear reactors in the United States raises the risk America may get left behind.

Concerns about the impacts of climate change drove some nations, such as Germany, to pursue a transition from fossil fuels using primarily wind and solar. Researchers such as Mark Z. Jacobson produced studies that claimed the U.S. could achieve 100% of its energy needs from wind, solar and hydroelectric without any fossil fuels or nuclear.

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Virginia House Passes Bills to Ban Firearm Sales, Increase Minimum Wage

Tom Pappert

The Virginia House of Democrats successfully passed HB 1 and HB 2, which would see the minimum wage in the commonwealth raised to $15 per hour by 2026 and make the sale or transfer of “assault firearms and certain ammunition feeding devices” a misdemeanor criminal offense.

Filed by Delegate  Jeion Ward (D-Hampton), HB 1 would see Virginia’s current minimum wage of $12 per hour increased to $13.50 per hour in 2025 before increasing to $15 per hour in 2026. It passed through committee with partisan votes, and narrowly passed in the House of Delegates with 51 votes in favor and 49 votes against.

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Full-Time Work Is Being Replaced by Part-Time Jobs as Americans and Businesses Struggle

Virginia Star Staff
Uber Driver

Since June 2023, Americans have been increasingly employed in part-time positions, with a subsequent decline in full-time work, according to data from the Bureau of Labor Statistics (BLS).

The number of Americans working part-time in January grew by 96,000 compared to the previous month, while full-time employment sank by 63,000, according to the BLS. The change in the types of employment follows a trend toward part-time employment that has been increasingly exacerbated since June 2023.

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Tesla Recalls over 2 Million Vehicles Due to Issues with Warning Lights: Report

Just the News
Tesla in Parking Lot

Tesla is reportedly recalling over 2 million vehicles due to issues with warning lights on instrument panels, according to news reports.

The issue is expected to be resolved with “over-the-air” software, according to The Wall Street Journal. That means owners will not have to take their vehicles to a dealership to resolve the matter. 

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Job Growth Exceeds Expectations Despite Mass Layoffs

Virginia Star Staff
Office Co-Workers

The U.S. added 353,000 nonfarm payroll jobs in January as the unemployment rate remained at 3.7%, according to Bureau of Labor Statistics (BLS) data released Friday.

Economists anticipated that the country would add 180,000 jobs in January compared to the 216,000 that were added in December and that the unemployment rate would tick up to 3.8% from 3.7%, according to Reuters. Despite the job gains, American employers cut 82,307 positions in January, a 136% jump from the previous month, amid a wider trend of layoffs as factors like high inflation continue to hurt business conditions.

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Job Cuts Soar as Employers Look for Ways to Lower Costs

Virginia Star Staff
Frustrated Worker

The number of job cuts by American employers surged in January as companies looked to lower operating costs to adjust to harsh economic conditions, according to outplacement firm Challenger, Gray and Christmas, Inc.

The number of positions cut by employers in January jumped 136%, with 82,307 positions cut compared to the 34,817 cut in December, according to a report from Challenger, Gray and Christmas. The job cuts come amid a wider U.S. layoff trend due to broader economic struggles, like inflation and adjustments from automation.

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Gov. Youngkin Announces Virginia Permit Transparency Website, Expanding Program Hailed as ‘Model for Other States’

Tom Pappert
Glenn Youngkin

Governor Glenn Youngkin announced on Wednesday the Virginia Permit Transparency (VPT) website, expanding a program Forbes hailed as “a model for other states” to include three Virginia agencies with more to follow.

The governor’s office explained in a press release that the VPT provides the public with “a centralized platform” to track daily status of their permit application.

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Health Insurance Costs in Virginia Rising Despite Low Levels of Healthcare Spending, Study Finds

Kaitlin Housler

The Virginia Hospital & Healthcare Association (VHHA) is bringing awareness to a new study showing health insurance premiums and deductible costs among Virginians are rising despite the state’s overall healthcare spending remaining below national levels.

“When it comes to health care spending, Virginia is in the enviable position of having expenditure rates that remain well below national levels. The same cannot be said for health insurance costs, unfortunately,” the VHHA said in a press release. “On the contrary, the amount that individuals and families across the Commonwealth spend on annual health insurance premiums and out-of-pocket deductibles continues to rise sharply year-over-year.”

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Top U.S. Automaker Reports $1.7 Billion Loss on Electric Vehicles in Fourth Quarter

Virginia Star Staff
Marry Barra

General Motors reported a $1.7 billion loss on Tuesday in its fourth quarter earnings call in the production and sale of its electric vehicle line, despite having positive net income growth in the quarter.

The automaker’s net income for the fourth quarter rose 5.2% year-over-year to $2.1 billion despite a reduction in revenue over that time frame of 0.3%, according to GM’s fourth quarter earnings report. The losses on EVs accompany a $1.1 billion total loss from a six-week-long strike by the United Auto Workers that partially halted operations, with the union gaining a new work contract that could raise labor costs in the coming year, according to the company’s investor earnings call.

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Commentary: The Tricky Business of Branding

Virginia Star Staff
Patagonia Clothing

Brand development has become a major focus for firms hoping to find or maintain success in advanced markets. According to Steve Forbes, “Your brand is the single most important investment you can make in your business.” And he certainly is right.

A brand not only serves to identify firms and what they offer, it also conveys a company’s positioning strategy and value proposition. Promotional elements such as logos, names, symbols, and colors, are commonly leveraged for branding purposes but a brand can also be reinforced through pricing and distribution systems. For instance, if a company wants their product to be viewed as the best of the best, then they wouldn’t want it to be found on the shelves at a discount store. This is why Burberry has been known to burn excess inventory and perhaps it is also why premium brands will leverage opportunities to recycle their products.

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Inflationary Woes: More Chain Stores Closed in 2023, Continuing into 2024

The Center Square
Macy's Store

More chain stores closed in 2023 as a result of high inflationary costs, with the trend continuing in 2024 led by the iconic department store, Macy’s.

In 2023, retail stores, pharmaceutical and fast-food chains continued a trend of previous years: declaring bankruptcy and closing their doors or shutting down some locations to cut costs, citing inflation, higher costs, and profit losses.

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Continued Inflation Tops List of Worries for Democrats, Republicans

The Center Square
Grocery Shopping

A new poll shows that Democrats and Republicans are concerned more about inflation than other potential crises, but voters from the two parties don’t see eye to eye on other concerns, including the potential of a terrorist attack on U.S. soil or potential chaos after the 2024 election.

The Center Square Voters’ Voice Poll conducted in conjunction with Noble Predictive Insights found that Republicans (45%) were more concerned about inflation than Democrats (32%). Concerns that inflation could continue and further drive up prices were highest for voters with children under 18 (47%) and those 45 to 54 years old (47%).

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Corporate Media in Crisis as Outlets Grapple with Biden’s Economy

Virginia Star Staff
Joe Biden

Numerous legacy media outlets are struggling with challenges posed by President Joe Biden’s economy and resorting to drastic measures, Axios reported on Friday.

Close to a dozen of these outlets are firing workers, dealing with employee strikes or looking to sell, according to Axios. The Federal Reserve’s imposition of high interest rates to bring down inflation is hindering their ability to accumulate more debt, complicating their efforts to extend the timeline for resolving their financial difficulties.

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Leadership of Major U.S. Landowner Chock-Full of Chinese Communist Party Members

Virginia Star Staff
American Farmland

Top executives at Hong Kong-based WH Group Limited, the world’s largest pork producer that controls vast swaths of U.S. farmland through its American subsidiary, are Chinese Communist Party (CCP) members, according to a Daily Caller News Foundation review of corporate records and state-run media reports.

Records and reports reviewed by the DCNF identify four top executives and the chairman of the pork giant as CCP members with extensive ties to the Chinese government. WH Group controls nearly 150,000 acres of land across 29 U.S. states through its subsidiary Smithfield Foods, a family-run business established in 1936, which it purchased for $7.1 billion in 2013. While a keyword search on Smithfield’s website returned only two articles mentioning the firm’s relationship with WH Group, neither of the two articles mentioned China. An online map of Smithfield’s global business activities does not list any operations in, or connection to, Asia, despite archived reports from their website suggesting otherwise.

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U.S. Economic Growth Exceeds Expectations with Rate Cuts on the Horizon

Virginia Star Staff
Blue Collar

The U.S. economy grew at a rate of 3.3% in the fourth quarter of 2023, according to gross domestic product (GDP) statistics released by the Bureau of Economic Analysis (BEA) on Thursday.

In the third quarter of 2023, real GDP rose 4.9%, down from the second estimate of 5.2%, but in line with initial estimates. Economists expected that GDP growth would be around 2% for the fourth quarter of 2023, in line with typical U.S. growth rates.

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Commentary: Big Labor State Politicians’ ‘Wall of Denial’ Is Starting to Crumble

RealClearWire
California Illinois

For decades, cold, hard data from the Internal Revenue Service (IRS) have shown that states like New Jersey, Illinois and California are paying a high price for allowing dues-hungry union bosses to continue getting workers fired for refusal to bankroll their organizations.

Year after year, far more taxpayers have been leaving forced-unionism states than moving into them.  And the average tax filer moving out of a forced-unionism state has reported having an adjusted gross income (AGI) on his or her IRS form that is substantially higher than the average for a tax filer moving into a forced-unionism state.

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Biden Administration Stiffed Nonprofit That Helped with Afghanistan Withdrawal, Virginia Democrats Claim

Tom Pappert
Tim Kaine

The Biden State Department reportedly failed to pay nearly $700,000 to the Northern Virginia Emergency Response System (NVERS), a nonprofit partnership of Virginia governments, hospitals, and other private sector groups, after it was called to support the Biden administration’s relocation of Afghan citizens in the aftermath of the 2021 withdrawal of the United States military from Afghanistan.

A letter addressed to Secretary of State Antony Blinken detailing the unpaid debt was signed by six Democrats representing Virginia in Congress, including Senators Tim Kaine and Mark Warner, as well as Representatives Jennifer Wexton (VA-10), Don Beyer (VA-08), Abigail Spanberger (VA-07), and Gerry Connolly (VA-11).

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Smaller Banks’ Earnings Limp as High Interest Rates, Sector Turmoil Send Customers Fleeing to Megabanks

Virginia Star Staff
Bank Teller

Many smaller banks posted dismal fourth quarter earnings as depositors continue to flee to booming megabanks that have been unfazed by interest rate hikes and a crisis that shook the sector early last year, according to The Wall Street Journal.

Net income was down substantially at many small and regional banks in the fourth quarter, including KeyCorp, Citizens Financial Group, PNC Financial Services Group, Comerica and Zion Bancorporation, falling 90%, 70%, 40%, 90% and 50%, respectively, according to the WSJ. Despite the poor performance at the small and regional level, America’s megabanks — JPMorgan, Bank of America, Wells Fargo and Citigroup — saw their earnings increase 11% during 2023 to over $100 billion.

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Stigma of ‘Dirty Fossil Fuels’ Drives Young People Away from Lucrative Careers in Oil and Gas Work

Just the News
Petroleum Engineers

Petroleum engineering is the highest paying bachelor’s degree in the United States, according to a report by Payscale, but despite an average annual salary of $97,500, oil companies struggle to fill positions.

The industry faces a number of challenges. Employees often face cyclical layoffs whenever commodity prices collapse, and that makes the jobs appear unstable. Young people today are also concerned about working in an industry they’re taught is destroying the planet.

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United Airlines CEO Says They Are Making Plans Without Boeing After Manufacturing Issues

Virginia Star Staff
United Boeing

United Airlines CEO Scott Kirby said Tuesday that the company is making a plan to move forward without Boeing after the manufacturing company grounded its MAX 9 planes, according to CNBC.

Boeing has suffered a series of problems in the last several weeks after multiple planes had major mechanical and structural errors, forcing the company to ground all Max 9 aircraft with door plugs. Kirby told CNBC that the decision to ground the aircraft was the “straw that broke the camel’s back” for United.

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As Local Opposition to Wind and Solar Projects Grows, Some States Seek to Override Local Decisions

Just the News

Legislatures in 23 states and the District of Columbia have passed some form of a carbon-free electricity goal, but many of these measures do not address the ancillary costs of making it happen.

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Health Insurance Premiums Cutting into Employees’ Wages

Virginia Star Staff
Doctor and Patient

A new study reveals that rising health insurance premiums have been dramatically cutting into the pay that employees should be earning.

As Axios reports, the findings by the Journal of the American Medical Association (JAMA) Network Open determined that families with workplace health insurance may have lost as much as $125,000 in earnings over the last 30 years. This trend is especially impacting low-income employees.

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Commentary: The Reason Some Diamond Brands So Expensive

Virginia Star Staff
Diamond Ring

One of my first full-time jobs outside of college was working in the jewelry industry at Harry Winston in Manhattan. The experience I gained as a sales assistant, working at the historical house of Winston, expanded my understanding of the power of a brand.

The amount of money customers would spend on a Harry Winston diamond, while scoffing at what was down the street at Tiffany’s, seemed absurd. I was on a yearly salary of $35k, and people were dropping more than that amount on a tennis bracelet with less than 30 minutes of deliberation.

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Home Sales in 2023 Were the Lowest in 28 Years as Affordability Crisis Plagued Americans

Virginia Star Staff
Home Owners

Sales for existing homes, which make up a majority of the housing market, slumped to the lowest level since 1995 as rising prices and sky-rocketing mortgage rates increased unaffordability, according to the National Association of Realtors (NAR).

Existing home sales sank 1.0% in December compared to the previous month, falling 6.2% annually, with 4.09 million homes being sold for the year, according to a report from the NAR. The slump in sales follows a year of rising prices due to inflation, constrained supply and sky-high mortgage rates, which at one point neared 8%, suppressing demand and Americans’ ability to buy in the housing market.

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Cloud Hangs over Commercial Real Estate as Trillions in Debt Set to Come Due

Virginia Star Staff
Commercial Real Estate

Commercial real estate is facing a mountain of debt that many borrowers could have trouble refinancing due to a rapid hike in interest rates and record vacancies, according to The Wall Street Journal.

Around $2.81 trillion in commercial real estate loans are set to expire through 2028, meaning borrowers would either have to pay the amount outright or refinance the debt with higher interest rates, according to data from market research group Trepp. Payments on commercial mortgages are typically only for interest while the loan is active, and when the loan reaches its expiration date, borrowers often refinance at current rates, but doing so would increase payments drastically in a time when commercial developers and property owners are strapped for cash, according to the WSJ.

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Poll Finds Americans Worried About National Debt

The Center Square
Congress Spending

Americans are worried about the national debt, according to the results of a new poll.

Americans have the national debt crisis as one of their top concerns along with war, inflation and crime. Those polled think the overspending has a direct impact on their personal security and also has an impact on the security of the United States, according to a recent study commissioned by Main Street Economics, a nonprofit group designed to educate Americans on the nation’s debt crisis.

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Ford Slashes Production of EV Truck Biden Drove to Promote Green Agenda

Virginia Star Staff
EV Ford

Ford is cutting back production of its F-150 Lightning electric vehicle (EV), a model that President Joe Biden took for a test drive to market his administration’s EV agenda.

Ford made the official announcement that it will be reducing its F-150 Lightning output in 2024 amid slower-than-projected growth in EV demand. Biden test drove a F-150 Lightning in Michigan in May 2021 to promote his administration’s EV agenda, which aims for EVs to make up 50% of all new auto sales by 2030.

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Commentary: New Biden Labor Dept. Rule Likely to Hurt Millions of Small Businesses, Independent Contractors

Virginia Star Staff
Remote Worker

Some 99% of American companies are small businesses, and 100% of businesses started out small, but a recently finalized rule from the Biden administration’s Labor Department will make it harder for small businesses to start, grow and succeed.

As of last May 1, a White House news release pointed out, “Young firms, which often start small with few employees, are a driving force in job creation.” That’s been particularly true since the COVID-19 pandemic, as small businesses with fewer than 50 employees have accounted for a growing share of new jobs.

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Big Pharma Raises Hundreds of Drug Prices Despite Biden Admin Efforts to Keep Costs Down

Virginia Star Staff
Pharmacist

Top pharmaceutical companies raised the list price on 775 brand-name drugs in just the first half of January, even as President Joe Biden aims to keep prices low, according to The Wall Street Journal.

The median price hike of the drugs was around 4.5%, with some rising by 10% or more, despite an inflation rate of 3.4% year-over-year in December, according to data from 46brooklyn Research acquired by the WSJ. The price hikes are in contrast to the president’s efforts to tame rising drug prices, taking actions such as imposing automatic rebates to Medicare for drugmakers that raise their prices faster than the price of inflation, which first went into effect in December, affecting 48 drugs covered under Medicare Part B.

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YoungkinWatch: Governor Says 2023 Revenues Met Expectations After Forecasting Recession in New Budget

Tom Pappert
Glenn Youngkin

Governor Glenn Youngkin said in a Monday statement that Virginia revenues met his office’s expectation during the first half of the 2023 fiscal year. The governor’s confirmation comes as he seeks to pass his new budget, which forecasts a “mild recession” in the next two years.

Youngkin’s office confirmed in its press release that “general fund revenues for December 2023 remain in line with updated revisions to the official revenue forecast,” and state revenues grew by 0.2 percent and 7.1 percent over the course of the year.

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New York Manufacturing Sees Biggest Plunge Since Pandemic Lockdowns

Virginia Star Staff
Blue Collar

The index for New York state’s general business conditions fell by 29 points to -43.7 for January, with a negative number indicating a contraction, declining to the lowest point since May 2020 when the state was struggling with the COVID-19 pandemic, according to a new survey from the Federal Reserve of New York.

Accompanying the decline and contraction in general business conditions, shipments fell 25 index points, the number of unfilled orders remained high at -24.2 index points and the amount of inventory held shrank to -7.4 index points, according to the Empire State Manufacturing Survey conducted between Jan. 3 and 10. Despite poor current conditions, optimism about future activity levels by businesses increased, with the index rising 7 points but still remaining relatively low at 18.8 points, indicating that businesses expect an economic expansion in the coming months.

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Analysis Ties Surge in Inflation to Increased Spending, Value of Debt

Virginia Star Staff

The U.S. government and those of other countries could be using higher inflation to lessen the value of growing public debt resulting from increased spending during the COVID-19 pandemic, according to a new analysis by a Harvard economist working with The Heritage Foundation. 

The study covers government spending from 2020 through 2022, the high point of the pandemic, and looked at the U.S. and 20 other economies in the Organization for Economic Cooperation and Development, or OECD. 

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Commentary: Established Brands Often Struggle with Marketing

Virginia Star Staff
Pepsi Challenge

Unlike startups that are expected to take risks, get messy, and challenge the status quo, larger established firms inherit what could be considered golden handcuffs, given that success can make change a challenge. Indeed, care must be taken not to rock the boat for stockholders or tarnish the brand equity that has been established among a loyal customer base.

Much like the construction of a home, once a company is built, updates and improvements are only given consideration if changes will strengthen the existing model and its equity. The location, foundation, and general structure, however, are rarely tampered with by proud homeowners. And although additions can occur, it will cost not only materials but also permit approvals, and design changes may generate remorse for earlier sunk costs.

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