The United Nations significantly lowered its forecast for global economic growth this year from 4% to 3.1%. Global inflation is projected to increase to 6.7% in 2022, twice the average of 2.9% during 2010-2020, with sharp rises in energy prices.—abcnews.go.com
Category: Economics in the News
America’s Inequality Problem Just Improved for the First Time in a Generation
The bottom 50% of households now hold the largest share of wealth they’ve had for 20 years. In the last 12 months, wages have risen most in the lowest quarter of the workforce, almost three points more than for the best-paid quartile.—bloomberg.com
Advocates for $15-An-Hour Federal Minimum Wage Press Biden for a Meeting
The current federal minimum wage is $7.25 an hour. President Biden has urged Congress to increase the minimum to $15. Research shows that an increase in the minimum wage benefits women and workers of color, particularly in the South.—floridaphoenix.com
How the U.S. Got Into this Baby Formula Mess
Four U.S. firms, operating a small number of factories to keep production costs low, control approximately 90% of the U.S. infant formula industry. The FDA temporarily closed one firm for safety concerns. Regulatory barriers complicate foreign firms entering the U.S. market.—npr.org
Unemployment Rate Stays Steady at Pandemic Low of 3.6 Percent
The Labor Department reported that U.S. employers added 390,000 jobs in May. The unemployment rate remained unchanged at 3.6 percent. Millions of Americans continue to quit or switch jobs each month in search of higher pay or better conditions.—washingtonpost.com
Boeing’s Starliner Is Close to Breaking SpaceX’s Astronaut Monopoly
When Boeing’s Starliner is available, NASA will be able to make more trips to the International Space Station. Most importantly, the Starliner will break SpaceX’s monopoly on flying astronauts for western countries and companies. Currently, SpaceX has serious pricing power.—qz.com
The War in Ukraine Has Devastated Local Designers
Support by Design is encouraging U.S. design firms to hire Ukrainians to work remotely from Ukraine. Site Design Group, a landscape architecture and urban design firm in Chicago, has hired an entire Ukraine-based firm of 24 people to work on its projects.—fastcompany.com
The Buzzy New Drinking Trend: Alcohol-Free Booze
The non-alcoholic trend picked up a year or two before the pandemic. Alcohol companies including Heineken, AB InBev, and Molson Coors have started offering more zero alcohol options. Smaller brands, such as Athletic Brewing and Seedlip have also arrived on the scene.—CNN Business
Federal Budget Deficit Could Shrink to $1 Trillion This Year
The U.S. budget deficit could shrink this year as federal spending on Covid-19 aid slows and the economy rebounds. The federal deficit is expected to increase over the next decade. The Fed plans multiple interest rate hikes.—cnn.com
Gas Prices Hit Record Highs as States Eye Fuel Tax Pauses
New York has suspended its 16-cent-per-gallon gas tax through the end of the year, a move that Gov. Kathy Hochul estimated would provide “$609 million in direct relief” to residents.—washingtonpost.com