High inflation will last well into 2022, economists say, indicating that supply chain bottlenecks will keep increasing prices and curbing production.
Experts expect to see average inflation of 5.25% in December, slightly down from the current maximum predicted 5.4% figure, according to The Wall Street Journal. If inflation stays around its current level, Americans will experience the longest period during which inflation has stayed above 5% since 1991.
“It’s a perfect storm: supply-chain bottlenecks, tight labor markets, ultra-easy monetary and fiscal policies,” Michael Moran, Daiwa Capital Markets America’s chief economist, told the WSJ.
Over 40% of U.S. households said they experienced severe financial hardship during the COVID-19 pandemic, citing difficulties paying bills, credit cards and draining their savings, according to a Harvard University report.
The survey conducted by the Harvard T.H.Chan School of Health, the Robert Wood Johnson Foundation, and the National Public Radio asked roughly 3,600 participants between July and August about problems they faced during the pandemic and how it affected their lives in recent months. Respondents were asked about financial, healthcare, education and personal safety concerns.
Roughly 30% of adults interviewed said they used up all or most of their savings during the pandemic, while 10% reported they had no savings before the pandemic began, according to the report. About one in five households had difficulties paying credit cards, loans, and other debts as well as utilities.
Seven Democratic U.S. representatives have asked Speaker of the House Nancy Pelosi, D-Calif., and Senate Majority Leader Chuck Schumer, D-New York, to not target the oil and gas industry in the budget reconciliation bill before Congress.
Despite the concerns they and those in the industry have raised, Democrats in the U.S. House Natural Resources Committee pushed through a section of the bill, which includes billions of dollars in taxes, fines and fees on the oil and gas industry in the name of climate change.
Committee Chair Raúl M. Grijalva, D-Ariz., said the section of the bill that passed “invested in millions of American jobs” and put the U.S. “on a more stable long-term economic and environmental path.”
Treasury Secretary Janet Yellen said Sunday that she is confident that the Democrats’ budget will include a global minimum tax for corporations just days after nearly 140 countries endorsed the measure.
“I am confident that what we need to do to come into compliance with the minimum tax will be included in a reconciliation package,” Treasury Secretary Janet Yellen told ABC News on Sunday. “I hope that it will be passed and we will be able to reassure the world that the United States will do its part.”
Though the United States and 135 other countries signed the agreement, each nation must pass its own legislation to enact the minimum tax rates. Democrats are currently crafting the budget, a spending package that would reshape the social safety net, but the process has slowed by disagreements between the party’s moderate and left wings.
Republican lawmakers are pushing back against the Biden administration’s plan to join a global compact implementing a tax on U.S. corporations regardless of where they operate.
One hundred and thirty six136 countries agreed Friday to implement a global business tax, and G-7 finance leaders agreed to the plan Saturday. President Joe Biden and Treasury Secretary Janet Yellen praised the plan.
Proposed by the Paris-based Organization for Economic Co-operation and Development (OECD), an intergovernmental economic organization, the global tax is necessary to respond to an “increasingly globalized and digital global economy,” OECD said.
The U.S. economy reported an increase of 194,000 jobs in September, and the unemployment rate fell to 4.8%, according to Department of Labor statistics.
The number of unemployed people fell by 710,000 to 7.7 million, according to the Department of Labor statistics released Friday. Economists projected that employers created 500,000f jobs in September, more than double the figure in August, according to the Wall Street Journal.
Despite the spike in employment, the labor market remains thin due to the pandemic, and job growth earlier in the year was considerably stronger, according to the WSJ.
Every so often we receive a comment to the effect that we are paranoid and should stop seeing a Communist under every bed, however, it appears that based on the views expressed by Prof. Saule Omarova, President Biden’s nominee for Comptroller of the Currency, our concerns about the takeover of the Democratic Party by Socialists and Communists have received some very solid confirmation.
Indeed, Omarova is so far out in Communism’s Left Field that Janet Yellen, Biden’s Treasury secretary (a garden variety liberal Democrat) raised concerns about her taking the post.
And Secretary Yellin’s concerns are amply justified.
In 2019, Omarova posted to Twitter in support of the “old USSR” where there was “no gender pay gap.” She attempted to do damage control after being criticized for it, but failed to fully condemn the Soviet Union.
U.S. Trade Representative Katherine Tai said the Biden administration would enforce the Phase One trade agreement negotiated by the Trump administration with China while giving a speech at the Center for Strategic and International Studies on Monday.
“For too long, China’s lack of adherence to global trading norms has undercut the prosperity of Americans and others around the world,” Tai said in prepared remarks. “China made commitments that benefit certain American industries, including agriculture, that we must enforce.”
China has fallen short on the purchase totals it agreed to as part of the agreement, increasing its purchases by only 69% as of July 2021, according to the non-partisan Peterson Institute for International Economics (PIIE).
On Monday, Joe Biden uncorked the largest lie of a 50-year political career overstuffed with them.
“My Build Back Better Agenda costs zero dollars,” he tweeted. “Instead of wasting money on tax breaks, loopholes, and tax evasion for big corporations and the wealthy, we can make a once-in-a-generation investment in working America. And it adds zero dollars to the national debt.”
The Methane Emissions Reduction Act of 2021 has been proposed as a “pay-for” – a source of revenue – in the reconciliation infrastructure package. It would impose a “fee” on methane emissions from natural gas and petroleum production systems and related processes, but not on such emissions from agricultural and other operations. Accordingly, it is worse than a mere money grab: it’s a blatant exercise in punitive politics directed at the fossil-fuel energy sector, a tax on conventional energy.
Not so, says Representative Diana DeGette (D-CO), as summarized by the Washington Examiner:
“This is not a tax. It’s a fee on natural gas waste,” adding oil and gas operators have the technologies to combat methane leaks at low cost. “The smart players want to prevent waste because they can capitalize it to make money. Customers won’t be paying a fee on gas delivered. The only fee will be paid [by an operator] on what doesn’t make it to the consumer.”
A major component of President Joe Biden’s plan to raise revenue to pay for his trillions of dollars in new federal spending is now under fire from trade associations across the country.
The Biden administration has made clear its plan to beef up IRS auditing by expanding the agency’s funding and power. Biden’s latest proposal would require banks to turn over to the Internal Revenue Service bank account information for all accounts holding more than $600.
In a sharp pushback against the proposal, more than 40 trade associations, some of which represent entire industries or economic sectors, signed a letter to U.S. House Speaker Nancy Pelosi, D-Calif., and Minority Leader Kevin McCarthy, R-Calif., raising the alarm about the plan.
As congressional Democrats push a $3.5 trillion social spending package, everyone is wondering: “How are we going to pay for that?” To President Joe Biden, the answer is simple: raise taxes.
Included in Biden’s proposed tax plans — erroneously named the American Families Plan — are hikes in personal income tax and capital gains tax rates. The plan would raise the top marginal income tax rate from 37 percent to 39.6 percent and reclassify long-term capital gains and qualified dividends as ordinary income for those with taxable income above $1 million, resulting in a top marginal tax rate of 43.4 percent, according to the Tax Foundation.
Despite the frustration (or excitement) that Americans have towards Biden’s income and wealth tax proposals in the midst of an economic recovery, Americans should be paying closer attention to his other proposals, the American Jobs Plan and the Made in America Tax Plan.
Day by day, as the Biden Administration crashes into utter shambles and a cloud of dust reminiscent of 9/11, the Bidenization of America becomes more stark and horrifying.
I can remember no more pitiful words from a senior American government official in 65 years than Secretary of State Anthony Blinken’s complaint that the Taliban government in Kabul was disappointing in its lack of “inclusiveness.” (To be sure, that is not all it lacks, and that could hardly have been a surprise.)
Nor can I think of any diplomatic initiative by a senior American government official more certainly doomed to ludicrous failure than environment ambassador John Kerry’s recent trip to China requesting the collaboration of the People’s Republic in this administration’s hell-bent-for-leather assault on what it is trying to identify as climate change.
U.S. stocks shed more than 500 points as the markets opened Monday morning as emerging risks continue to become the September story for Wall Street.
The Dow Jones Industrial average fell 570 points – its biggest single day drop since mid-July. The S&P 500 lost 1.4%, while the tech-oriented Nasdaq Composite dropped 1.6%.
The sell-off comes as a the result of a number of investor concerns. On Tuesday, the Federal Reserve will begin a two-day meeting, which investors are worried will result in a decision that will pull stimulus funds as inflation continues to surge.
Retail sales unexpectedly increased last month despite continued challenges facing the economy as it recovers from the coronavirus pandemic.
Sales ticked up 0.7% in August relative to July and totaled $618.7 billion, according to a Census Bureau report published Thursday. E-commerce, furniture, general merchandise, building materials and energy purchases drove last month’s sales increase.
Dow Jones economists had expected sales to decline 0.8%, CNBC reported. In July retail sales posted a sharp 1.8% decline as coronavirus cases surged, the Census report said Thursday.
Events this weekend showcased the intense bifurcation of America into two separate realities. As our country observed the 20th anniversary of the 9/11 attacks, former presidents gathered, sans Donald Trump, in New York for a solemn ceremony — wearing masks even though they are fully vaccinated and were outside. In Shanksville, Pa., George W. Bush leveraged the occasion to take a not-very-veiled shot at the MAGA movement, comparing its most fervent adherents to the 9/11 terrorists.
Meanwhile, at stadiums across America, massive crowds of rowdy, unmasked college football fans tailgated, packed into stadiums, and also recalled the grim events of 2001, but in far more boisterous displays of patriotism.
This same-day divergence highlights the sharply divided nation of 2021. That chasm will now only widen as Joe Biden targets many of those same people, the ones unwilling to live under the thumb of onerous government virus mitigation restrictions. These ineffective mandates may nominally emanate from science, but they moreover stem from a preference for coercion and control by Democrat politicians, all with the assistance of powerful business interests, including Big Tech and Big Pharma.
While the state of California and multiple counties continue to settle with churches after imposing unconstitutional restrictions against them, one county is expanding its efforts to pursue damages against a church, claiming their worship services are a public nuisance.
In its latest request, filed Aug. 31, Calvary Chapel has asked the court to dismiss the public nuisance claim along with the $2.8 million in fines levied against it, arguing the county has not provided any evidence to support the accusation that the church has caused any harm to the public.
The battle between the county and the church began in late spring 2020 after the state and county encouraged residents to protest the death of George Floyd without numerical limitations or public health restrictions, even as the same authorities imposed severe constraints on houses of worship.
by Cole Lauterbach Afghan refugees looking to resettle in the U.S. are being discouraged from picking California as a destination, despite the state having significant Afghan population centers. In the days after the U.S. announced it would resettle refugees fleeing a Taliban takeover of Afghanistan, governors across the country…
While the unemployment rate for Americans dropped in August, there is a political time bomb buried in the statistics for President Joe Biden and a Democratic Party increasingly focused on equity: black joblessness shot up significantly.
In other words, the president who fondly boasts of a domestic policy promising to leave nobody behind has an economic recovery that is leaving a key Democratic constituency in worse shape.
“The rise in black unemployment in August is certainly troubling, considering their unemployment rates were already much higher than any other group,” Elise Gould, a senior economist at the Economic Policy Institute, said on Twitter.
With Labor Day upon us, it’s time to take a look at which are the hardest-working states in America, and why. It has been a year that daily and weekly work routines have dramatically changed for tens of millions of Americans.
Researchers for WalletHub, a personal finance website, have once again set out to determine which states are home to the hardest working Americans in their annual report. They compare the 50 states based on both direct and indirect work factors, and then apply 10 different metrics to reach an overall score to rank each state.
The direct work factors, according to WalletHub, include “average workweek hours, employment rate, the share of households where no adults work, the share of workers leaving vacation time unused, share of engaged workers, and idle youth.”
Prominent economic historian Niall Ferguson said current inflation could be in line with where it was in the 1960s during the period that preceded a decade of high consumer prices, CNBC reported.
“What is interesting about disasters is that one can lead to another,” Ferguson said in a Friday interview with CNBC. “You can go from a public health disaster to a fiscal, monetary and potentially inflationary disaster.”
During the 1960s, inflation stayed low before shooting up in the 1970s, according to government economic data. Consumer prices ultimately peaked in 1980 before rapidly declining.
The U.S. economy added 235,000 jobs in August and the unemployment rate fell to 5.2%, according to Department of Labor data released Friday.
The number of unemployed people decreased to 8.4 million, according to the Bureau of Labor Statistics report. Economists projected 720,000 Americans — roughly three times the actual number — would be added to payrolls prior to Friday’s report, The Wall Street Journal reported.
“Despite the delta variant, there is still an opening up of the service sector of the U.S. economy,” Nationwide Mutual Insurance Chief Economist David Berson told the WSJ. “While that started some months ago, it’s not nearly complete.”
Apple and Google might change their app store business practices because of a new South Korean law similar to recent legislative efforts by U.S. lawmakers.
The new law would prohibit app stores, including Apple’s App Store and the Google Play Store, from forcing developers to use the tech giants’ payment systems, The Wall Street Journal reported. The bill, passed by South Korea’s National Assembly, will become law once signed by President Moon Jae-in.
The Korean bill is similar to a bipartisan bill introduced by Sens. Richard Blumenthal, Amy Klobuchar, and Marsha Blackburn to the U.S. Senate earlier this month that seeks “to promote competition and reduce gatekeeper power in the app economy, increase choice, improve quality, and reduce costs for consumers.” Both bills prevent app stores from requiring the use of their billing systems and take aim at the tech giants’ commission structure.
An index measuring inflation surged at an annual rate of 4.2% last month, reaching its highest level since 1991, according to the Department of Commerce.
The personal consumption expenditures (PCE) index, which measures prices, increased 4.2% in the 12-month period between August 2020 and July 2021, according to a Department of Commerce report published Friday. Excluding volatile food and energy prices, the index spiked 3.6%, the report showed.
The last time consumer prices increased this much in one year was more than three decades ago in January 1991, CNBC reported. The figure reported Friday is in line with what economists expected.
House lawmakers are set to return from recess Monday and will likely take up the $1.2 trillion bipartisan infrastructure bill the Senate passed last week — and with it, a controversial and last-minute cryptocurrency tax provision.
The bill contains a tax reporting mandate forcing cryptocurrency “brokers” to disclose gains and transactions to the Internal Revenue Service (IRS) as part of a scheme designed to help cover part of the infrastructure bill’s cost. However, the bill’s definition of “broker” has been criticized by the cryptocurrency community and pro-crypto lawmakers as vague, expansive and potentially unworkable, with many fearing it could stifle the industry and force crypto companies to collect personal information on their customers.
The provision defines a broker as “any person who is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person,” and forces brokers to report transactions to the IRS in a form similar to a 1099. This means brokers have to collect and report customer information such as names, addresses, and taxpayer identification numbers.
A conservative digital media company’s focus on the culture wars in America appears to be paying off, as it is the fastest-growing private advertising and marketing business in the U.S., according to the 2021 Inc. 5000 list released Tuesday.
“We focus on working with groups that are advocating for or otherwise advancing conservative causes or conservative beliefs,” Olympic Media Founder and CEO Ryan Coyne told the Daily Caller News Foundation on Thursday.
Olympic was founded in 2018 and has had many high-profile clients, such as Reps. Elise Stefanik, Jim Jordan, and Madison Cawthorn, Sen. Bill Hagerty and Turning Point USA.
Retail sales in the U.S. declined in July as the number of coronavirus cases spiked, localities renewed some restrictions and businesses delayed their return to in-person work.
Sales dropped 1.1% in July compared to June and totaled $617.7 billion, according to the Census Bureau report released Tuesday. The decrease was driven mainly by declining used and new car sales, clothing purchases, building materials sales, sports goods sales and furniture purchases.
Economists expected retail sales to fall 0.3%, a relatively modest drop compared to the actual decline, CNBC reported. All major stock market indices declined between 0.5% and 0.8% on Tuesday morning following the worse-than-expected report.
What is all this “Biden inflation tax” talk really about? What is the actual effect of inflation on the lives of real people?
Well, below is a chart that compares yearly wage and inflation rates for each month from 2017 through July of this year using Bureau of Labor Statistics data. Wage rates are in blue and inflation (as measured by the consumer price index) is in red. When blue is on top, as it was during the entire Trump administration, workers’ wages are beating inflation and their standards of living are improving. When red is on top, they’re not.
While President Biden claims that it is “indisputable” that his jobs plan “is working,” this chart unequivocally shows that it is not, at least not for American workers. Rather, inflation is surging, more than wiping out any wage gains those workers might have experienced.
President Joe Biden has proposed amending the inheritance tax, also known as the “death tax,” but farmers around the country are raising concerns about the plan.
In the American Families Plan introduced earlier this year, Biden proposed repealing the “step-up in basis” in tax law. The stepped-up basis is a tax provision that allows an heir to report the value of an asset at the time of inheriting it, essentially not paying gains taxes on how much the assets increased in value during the lifetime of the deceased. This allows heirs to avoid gains taxes altogether if they sell the inheritance immediately.
Under Biden’s change, heirs would be forced to pay taxes on the appreciation of the assets, potentially over the entire lifetime of the recently deceased relative.
The U.S. economy reported an increase of 943,000 jobs in July and the unemployment rate fell to 5.4%, according to Department of Labor data released Friday.
Total non-farm payroll employment increased by 850,000 in July, according to the Bureau of Labor Statistics report, and the number of unemployed persons decreased to 8.7 million. Economists projected 845,000 Americans would be added to payrolls prior to Friday’s report, The Wall Street Journal reported.
“The jobs recovery is continuing, but it’s different in character to any we’ve seen before,” payroll software firm ADP economist Nela Richardson told the WSJ. “I had been looking at September as a point when we could gain momentum—with schools back in session and vaccines widely available. But with the delta variant, we need to rethink that.”
Senate Majority Leader Chuck Schumer set up a critical vote on the bipartisan infrastructure bill Saturday after talks to expedite the process fell apart late Thursday.
Both Republicans and Democrats engaged in marathon talks Thursday in a bid to vote on a package of amendments and to advance the sweeping public works package. Doing so, however, required approval from all 100 senators, and Tennessee Republican Sen. Bill Haggerty refused to go along even as his Republican colleagues urged him to do so.
In a statement, Hagerty attributed his objection to the Congressional Budget Office’s estimation that the bill would add $256 billion to the national debt over 10 years.
The $3.5 trillion spending bill set up to follow the $1.1 trillion infrastructure bill (which has little to do with infrastructure) should be called what it really is: The Higher Inflation and Bigger Debt Act.
The Democrats would like you to believe it is only a reconciliation bill. This is vital to them because a reconciliation bill only takes 50 senators and the vice president to pass the U.S. Senate.
However, this additional $3.5 trillion comes after trillions of emergency spending prompted by the COVID-19 pandemic. Consider what the Congressional Budget Office has written about the fiscal situation before the $1.1 trillion and $3.5 trillion bills are passed:
Here is what the Congressional Budget Office forecasts (not counting Biden’s enormous spending plan):
“By the end of 2021, federal debt held by the public is projected to equal 102 percent of GDP. Debt would reach 107 percent of GDP (surpassing its historical high) in 2031 and would almost double to 202 percent of GDP by 2051. Debt that is high and rising as a percentage of GDP boosts federal and private borrowing costs, slows the growth of economic output, and increases interest payments abroad. A growing debt burden could increase the risk of a fiscal crisis and higher inflation as well as undermine confidence in the U.S. dollar, making it more costly to finance public and private activity in international markets.”
A new executive order from the Biden administration has accelerated the timeline for electric vehicles and raised questions about the economic impacts of the transition away from gas-powered vehicles.
President Joe Biden signed the executive order Thursday aimed at making 50% of vehicles zero emission in the U.S. by 2030, an aggressive push toward electric vehicles. About 2% of new cars sold each year in the U.S. are currently electric, according to the Pew Research Center.
“The Executive Order also kicks off development of long-term fuel efficiency and emissions standards to save consumers money, cut pollution, boost public health, advance environmental justice, and tackle the climate crisis,” the White House said.
More than 800 businesses and business associations are jointly urging the Virginia General Assembly to approve a budget item for $291 million in relief to the travel and hospitality industries, which was proposed by Gov. Ralph Northam.
Northam’s proposal would appropriate funds from the federally passed American Rescue Plan to help these industries bounce back from losses caused by the COVID-19 pandemic and subsequent economic restrictions. The General Assembly is scheduled to meet on Aug. 2 to consider the budget proposal.
The businesses and business associations signed a joint letter showing their support. It includes the Virginia Chamber of Commerce and the Virginia Restaurant Lodging and Travel Association.
A new Democratic proposal to increase the capital gains tax could cost 745,000 jobs, a study published by the Regional Economic Models Inc. (REMI) projects.
The Sensible Taxation and Equity Promotion (STEP) Act, which would tax unrealized capital gains when heirs inherit assets, among other things, would have a “significantly negative impact” on the economy, including average job losses of 745,000 over 10 years, the report found.
The analysis, conducted for the Committee to Unleash Prosperity, found that sustained annual job losses from eliminating a tax benefit on appreciated assets known as the step-up in basis could eliminate between 537,000 to 949,000 jobs, with models predicting a base of 745,000 lost jobs through 2030.
Up to 1.95 million households across America will owe a collective $15 billion in back rent when the eviction moratorium expires Saturday, the Federal Reserve Bank of Philadelphia estimates.
That number will reach 2 million by December, according to the report released Friday. In Pennsylvania, about 60,000 renter households will owe $412 million come August.
The U.S. Centers for Disease Control and Prevention (CDC) made one final 30-day extension of the Emergency Rental Assistance Program through July 31. President Joe Biden’s administration said its “hands are tied” by the courts on the matter and any further relief must come from Congress itself.
Former Amazon CEO Jeff Bezos offered to waive $2 billion in payments to secure his spaceflight company Blue Origin a NASA contract.
Bezos asked NASA Administrator Bill Nelson in an open letter Monday to award Blue Origin a contract to construct a Human Landing System (HLS), a lunar-landing vehicle, as part of the Artemis program, offering to waive up to $2 billion in fees. Elon Musk’s space company SpaceX had been awarded the $2.9 billion contract in April, beating out Blue Origin’s bid, The Wall Street Journal reported.
The Artemis program is intended to return human astronauts to the Moon, with a manned mission to Mars planned as well. Though the program was initially planned as a joint contract, it was awarded solely to SpaceX due to budgetary constraints which Bezos’ offer sought to alleviate, according to the letter.
“Blue Origin will bridge the HLS budgetary funding shortfall by waiving all payments in the current and next two government fiscal years up to $2 billion to get the program back on track right now,” Bezos wrote in the letter.
The country is opening up and travel is increasing, but visitors are finding the rental car landscape a bit empty.
Rental car companies are continuing to have a hard time keeping up with demand after selling off fleets to stay afloat during the pandemic.
“The fundamental thing that’s causing it is the very rational corporate response to the pandemic and the almost shutting down of international and domestic travel for most of 2020 and the first half of 2021,” Gregory Scott, spokesperson for the American Car Rental Association (ACRA), told The Center Square. “Airport rentals dropped 70-90% in March and April of last year, and as a result there were literally tens of thousands of vehicles sitting unrented and unwanted because people stopped traveling.”
As more federal data show a major spike in inflation, another top federal official said the U.S. is in for more aggressive inflation for the rest of 2021.
Federal officials have been pressed to speak on rising inflation after \data released earlier this week showed that the all items index increased 5.4% over the last 12 months, the biggest spike since the 2008 financial crisis.
Treasury Secretary Janet Yellen commented on the rise in inflation, saying it would grow worse this year.
Federal Reserve Chairman Jerome Powell tried to calm lawmakers’ fears about rising inflation but also said it would probably remain elevated for months to come.
Testifying before Congress this week, Powell said the Federal Reserve was willing to step in to address the situation, but that inflation should level out next year.
“As always, in assessing the appropriate stance of monetary policy, we will continue to monitor the implications of incoming information for the economic outlook and would be prepared to adjust the stance of monetary policy as appropriate if we saw signs that the path of inflation or longer-term inflation expectations were moving materially and persistently beyond levels consistent with our goal,” Powell said in his prepared testimony.
Wildly excessive federal spending is causing major inflation and shortages, which may lead to a recession and perhaps a financial crisis. Despite the evidence of inflation, Congress is proposing to spend $3.5 trillion on top of the $1.9 trillion COVID relief bill passed earlier this year and the intended $1.2 trillion infrastructure bill. For comparison, federal revenue is only expected to be $3.8 trillion this year.
Evidently, the Democratic Party and President Joe Biden have adopted Modern Monetary Theory (MMT) to the peril of every American citizen. MMT, which is similar to Keynesian economics, says that the U.S. should not be constrained by revenues in federal government spending since the government is the monopoly issuer of the U.S. dollar. MMT is a destructive myth that provides cover for excessive government spending. And it’s not modern, since reckless government spending has been around for thousands of years.
Embracing MMT is similar to providing whiskey and car keys to teenage boys. We know the outcomes will not be good.
U.S. retail sales jumped in June, boosted by states widely loosening coronavirus restrictions and businesses returning to full capacity.
Retail sales increased 0.6% and totaled $621.3 billion in June, according to the Department of Commerce report released Wednesday. The monthly increase was driven by general merchandise, including food service, clothing, personal care, electronics and gasoline sales, the report showed.
“Sectors that were buoyed by the pandemic are slowing down a little bit, but not to a degree that I’d be concerned about,” Square economist Felipe Chacon told The Wall Street Journal. “Household finances have been bolstered by a few rounds of stimulus spending, so it bodes pretty well.”
Inflation surged 5.4% over the 12-month period ending in June, the quickest spike since August 2008, a Department of Labor report showed.
The consumer price index (CPI) increased 0.9% between May and June, according to the Labor Department report released Tuesday morning. Economists projected the report would show that CPI ticked up 4.7% between July 2020 and June, The Wall Street Journal reported.
“We’re in a transitional phase right now,” Joel Naroff, the chief economist at Naroff Economics, told the WSJ. “We are transitioning to a higher period of inflation and interest rates than we’ve had over the last 20 years.”
The state government of California has been revealed to have spent $13 million on providing security for 120 empty houses for five months, even as a homeless crisis ravaged the state, Fox News reports.
In a report broken by local outlet Fox 11, the California Department of Transportation (CalTrans) paid $9 million to the highway patrol from November 2020 to April 2021, and gave another $4 million to a private security firm over the same period, all for the purpose of protecting the vacant houses in Pasadena.
In a statement addressing the report, CalTrans said that the houses had been purchased by the government 60 years ago, when there were plans for a change in the local infrastructure by connecting the 710 freeway to the 210. However, that project “is no longer moving forward,” the government statement declared.
President Joe Biden has pushed for beefing up IRS audits of corporations to raise revenue for his new spending proposals, but Republicans are raising the alarm about the potential consequences of the plan.
Biden unveiled his “Made in America Tax Plan” earlier this year as a strategy to help fund his trillions of dollars in proposed new federal spending that includes several tax hikes. Despite this, a bipartisan coalition in the U.S. House and Senate have agreed to a basic framework for Biden’s proposed infrastructure plan, but one element has been the theme of the negotiations among Republicans: no new taxes.
The GOP pushback against raising taxes, though, puts more pressure on the Biden administration to find ways to fund his agenda. Aside from Biden’s controversial tax hike proposals, the president also has proposed adding $80 billion in funding to the IRS so it can increase audits of corporations.
While the tech giant Amazon has publicly endorsed proposals to raise the corporate tax rate in the United States, the company has been secretly lobbying to keep its own tax rates low, Politico reports.
Last year, during the 2020 presidential election, Amazon CEO Jeff Bezos openly supported then-candidate Joe Biden’s proposals to raise taxes on American corporations. Those proposals have re-emerged in recent weeks as a possible means of funding a possible infrastructure bill, and Biden has been advocating for other countries around the world to adopt higher corporate tax rates as well.
But recently, Amazon has been stepping up its lobbying efforts to try to convince Congress and the White House to allow the company to keep using certain tax breaks in order to keep its own rates low. The retail giant hired a tax lobbyist named Joshua Odintz, who formerly worked as a Democratic aide on Capitol Hill and then as an official in the Obama Administration. In addition to Amazon’s own efforts, similar lobbying has been undertaken by a group known as the “R&D Coalition,” which consists of several companies and organizations including Amazon, Intel, and the National Association of Manufacturers.
President Joe Biden’s competition and antitrust executive order will harm American consumers, groups representing both large and small businesses said.
The leading groups — including the Chamber of Commerce, Job Creators Network (JCN) and the National Association of Manufacturers (NAM) — slammed Biden’s executive order, arguing that it will harm competition and present a host of challenges to small businesses. The business groups said the order is an example of big government attempting to exert control over the free market via onerous rules and regulations.
“This executive order amounts to a bizarre declaration against American businesses, from the largest to the smallest,” Small Business and Entrepreneurship (SBE) Council Chief Economist Raymond Keating said in a statement. “It’s hard to understand why a White House would go down such a path, especially as the economy is digging out from the COVID-19 disaster.”
Additional childcare subsidies provided during the COVID-19 pandemic will be extended until the end of 2021, Virginia Gov. Ralph Northam announced Wednesday.
The state program, which provides financial assistance for childcare services, temporarily loosened the eligibility requirements through July 31, 2021. Northam directed the Virginia Department of Education to continue covering copayments through December 31, using federal COVID-19 relief funds.
“Access to high-quality child care is not only critical to the health and safety of Virginia’s children, but it is also important for advancing a strong, equitable recovery,” Northam said in a statement. “Extending these resources through the end of 2021 will help close the affordability gap for parents and providers, allowing thousands of Virginians to return to work, support their families, and grow our economy.”
The number of Americans filing new unemployment claims increased to 373,000 last week as the economy continues to recover from the coronavirus pandemic, according to the Department of Labor.
The Bureau of Labor and Statistics figure released Thursday represented a slight increase in the number of new jobless claims compared to the week ending June 26, when 371,000 new jobless claims were reported. That number was revised up from the 364,000 jobless claims initially reported last week.
Economists expected Thursday’s jobless claims number to come in around 350,000, The Wall Street Journal reported.
A child’s death is devastating to all parents. But for Chinese parents, losing an only child can add financial ruin to emotional devastation.
That’s one conclusion of a research project on parental grief I’ve conducted in China since 2016.
From 1980 to 2015, the Chinese government limited couples to one child only. I have interviewed over 100 Chinese parents who started their families during this period and have since lost their only child – whether to illness, accident, suicide or murder. Having passed reproductive age at the time of their child’s death, these couples were unable to have another child.