The debate over raising the debt ceiling
On Jan. 19, the United States hit its “debt ceiling,” which is currently capped at $31.4 trillion. The “debt ceiling” refers to a statutory limit on how much the U.S. can borrow. To prevent a default, [...]
Consumer price increases have moderated
On Feb. 14, the Labor Department reported that the Consumer Price Index increased by 6.4% over the past year. This represents the seventh straight month of declines. CPI measures a broad basket of goods and [...]
U.S. job market remains very strong
On Feb. 3, the Labor Department reported surprisingly strong employment numbers. The economy added a robust 517,000 nonfarm jobs, and the unemployment rate fell to 3.4%, a 53-year low. Analysts were surprised. They had expected job [...]
U.S. reaches its borrowing limit
Last week the U.S. reached its borrowing limit of $31.4 trillion. The debt limit is the maximum amount of debt that the Treasury Department can issue. Given that the federal government runs large budget [...]
China’s population decline in 2022 challenges its growth prospects
The National Bureau of Statistics recently reported that China’s population declined in 2022 by approximately one million people to 1.412 billion. This represents the first decline since 1961, the last year of China’s Great Famine. United Nation experts estimate [...]
Negative-yield bonds are almost extinct
The Wall Street Journal in an article “Negative-Yield Bonds Approach Final Days” highlighted that the outstanding amount of negative-yielding debt has almost declined toward zero. According to the Bloomberg index, it now stands at $254 billion, [...]
Defaults loom as poor countries face an economic storm
On Dec. 4, The New York Times in an article “Worsening Debt in Poor Nations Threatens Crisis” highlighted the catastrophic debt crisis of developing nations. The Times pointed out that “rapid inflation, slowing growth, rising interest [...]
How Colleges and Sports-Betting Companies ‘Caesarized’ Campus Life
“I think the reality is that college athletics has become a profit maximizing endeavor for athletics administrators and coaches. And pretty much every else is left kind of holding the bag.” -Jack Kroll, a board [...]
World population reaches 8 billion
On Nov. 15, the United Nations estimated that the global population had reached 8 billion people. Marie-Francesca Spatolisano, the U.N. assistant secretary-general for Policy Coordination and Inter-Agency Affairs, said at a news conference in July, [...]
Pop Culture and Politics Propel Surging Stream of Antisemitism
“When systems fail, whether it’s the government or the markets or anything else, leaders often look for someone to blame. Jews have historically played that role.” --Jonathan Greenblatt, Chief Executive of the Anti-Defamation League Today’s [...]
Consumer price index rose 8.2% in September
On Oct. 13, the Labor Department released data that showed the consumer price index rose 8.2% in September. Over the past year, the core inflation index, which excludes food and energy, increased 6.6%, the highest level since [...]
U.S. national debt tops $31 trillion
The Treasury Department released data on Oct. 4 that showed America’s national debt exceeded $31 trillion for the first time. Our outstanding debt raises major fiscal concerns because low interest costs to fund the debt are [...]
U.S. dollar remains strong
As the world’s most important currency, the U.S. dollar frequently appreciates during times of turmoil. The dollar has appreciated significantly for several reasons: (1) The Federal Reserve has raised interest rates in order to bring down the [...]
CPI figures indicate inflation will remain a problem for some time
On Sept. 13, the Labor Department reported that the Consumer Price Index (CPI) rose 8.3% in August over the past 12 months. The core CPI, which excludes energy and food prices, increased 6.3% from the previous year. [...]
European Central Bank (ECB) joins the Fed in full-throated offensive against rising prices
On Sept. 8, the European Central Bank (ECB) increased its interest rates by 75 basis points, the largest ever. ECB revised up its inflation expectations to an average of 8.1% in 2022. The bank indicated that they “expect [...]
Employment numbers likely to keep Federal Reserve on track to raise interest rates
On Sept. 2, the Labor Department reported that employers added 315,000 jobs in August. For the past two years, we have experienced robust job growth. The U.S. has regained the 22 million jobs that we lost [...]
Social Security has major financial challenges
According to the Social Security Administration, approximately 56 million people depend on Social Security (OASI) for their retirement. For about half of older adults, it provides at least 50% of their income, and for one in [...]
United States recovers jobs lost from the pandemic
The Labor Department reported recently that employers added 528,000 non-farm payroll jobs. The economy has fully recouped the 22 million positions that were lost early in the pandemic. The recovery has been far swifter [...]
Euro declines below the dollar as Europe’s economic fortunes slump
On July 14, the Euro slid below the U.S. dollar for the first time in 20 years. The Euro’s downward spiral has been swift and brutal, given that it was trading around $1.15 in February. As [...]
Supreme Court limits EPA authority to restrict greenhouse gas emissions
On June 30, the U.S. Supreme Court in West Virginia v. Environmental Protection Agency ruled that the EPA overstepped its authority in restricting greenhouse gas emissions. The Court ruled that Congress, not the EPA, has the [...]
Challenges to globalization amid economic slowdown
Over the past few years, several events have delayed or altered globalization, which is the interdependence of the world’s economies, cultures and populations. In the article, “The Tricky Restructuring of Global Supply Chains” in The Economist, the [...]
Federal Reserve raises rates by 75 basis points over inflation concerns
On June 15, in response to inflation concerns, the Federal Reserve raised overnight rates by 75 basis points. This marks the greatest increase in 28 years. The Fed forecasts raising overnight rates to 3.75% by the end [...]
UN warns of global food shortages and major price spikes
Kristalina Georgieva, the International Monetary Fund managing director, told the World Economic Forum in May that “anxiety about access to food at a reasonable price globally is hitting the roof” as food prices continue to “go [...]
Excerpt: The Long Shadow of Eugenics in America By Linda Villarosa
By Linda Villarosa, published in the New York Times on June 8, 2022 Introduction: Periodically, I read about eugenics, the scientifically erroneous and immoral theory of “racial improvement” and “planned breeding” which gained popularity during [...]
Many special purpose acquisition companies might go bust
The Wall Street Journal recently reported that at least 25 SPACs (special purpose acquisition companies) have concerns about their financial future. This represents more than 10% of the SPACs that went public between 2020 and [...]
What the Data Says about Abortion in the U.S. Pew Research
Introduction: The issue of Roe v. Wade has become subject to increased attention since a release of a leaked draft opinion by Justice Samuel Alito that would overturn this ruling. Some law professors have warned [...]
Will our economic challenges cause a recession in 2023?
The former chief U.S. economist for UBS, Maury Harris, wrote an article “When Will More Economists Forecast Recession?” Harris pointed out that “an April poll conducted by the Wall Street Journal put the probability of [...]
Belated Letter to My Parents
Introduction This essay is dedicated to my parents, Dr. Joseph and Rosella Werlin. My father died in 1964 and my mother in 1985. During the ceremony in which we created the Joseph Werlin Faculty Award, [...]
Elon Musk acquires Twitter for $44 billion
Elon Musk, no stranger to controversy, has drawn media attention with his takeover of Twitter. Musk says he has secured $46.5 billion in financing to acquire Twitter. Musk listed three sources: The first two would be [...]
Inflation remains the number one problem for US economy
The Labor Department released two disturbing reports relating to inflation. The Producer Price Index (PPI), which measures the prices paid by wholesalers, rose 11.2% from a year ago. The Consumer Price Index (CPI), which [...]
War in Ukraine has global implications
In addition to the suffering and humanitarian crisis from the Russian invasion of Ukraine, the global economy will feel the impact of slower growth, higher inflation and a recalibration of energy policies. Because Russia and Ukraine are major [...]
Biden administration renews reservations about corporate buybacks
The Biden Administration has introduced legislation to limit corporate buybacks, a fundamental practice in corporate America. Stock buybacks refer to share repurchases. A buyback occurs when the issuing company reabsorbs that portion of its ownership that was previously [...]
Fed raises interest rates for first time in more than three years
On March 16, the Federal Reserve approved a 0.25% rate hike, the first increase since December 2018. Jerome Powell, chairman of the Federal Reserve, stated that our Central Bank will raise rates aggressively over the next year [...]
Living with long-term inflation
Similar to the effects of the Vietnam War, Russia’s invasion of Ukraine has shifted the geopolitical and economic forces toward higher inflation. The sudden isolation of the Russian economy reflects the West’s condemnation of this [...]
U.S. enjoys strong job growth
On March 4, the Labor Department reported very strong employment numbers. In brief, the U.S. has benefitted from robust job growth for months. Specifically, 678,000 workers joined the workforce in February. This brings employment to levels [...]
Economic consequences of Russian invasion of Ukraine
The Russian invasion of Ukraine has disrupted the world economy and financial markets. For more than a decade, Russian President Vladimir Putin has assailed the post-Cold War security order. While Putin’s ambitions remain unclear, this [...]