For the second consecutive year, the Nobel Memorial Prize in Economics has been awarded to three Americans. For 2022, the recipients are Ben S. Bernanke (former Federal Reserve Chairman now with The Brookings Institution), Douglas W. Diamond (University of Chicago), and Philip H. Dybvig (Washington University in St. Louis) "for research on banks and financial crises."
Rail is a crucial component of the US logistics system, and a strike would lead to significant logistical dislocations, exacerbate ongoing supply chain challenges, put additional upward pressure on prices and, thus, do substantial economic harm. Although a tentative agreement was reached between the major railways and union representatives (with the help of Biden Administration officials), it requires ratification by union members before going into effect. One of the largest of the 12 unions recently rejected the package, and concern has been expressed by several others.
Recent data is showing some encouraging signs for manufacturing employment. The United States has recovered all production jobs lost during the pandemic and then some, and there is ample reason for this upward trend to persist.
The Federal Reserve recently announced another increase in the target interest rate for federal funds to 3-3.25%. The point is to slow the economy in order to reduce inflation. It's a balancing act of the Fed's twin mandates – maximizing employment and keeping inflation at bay.
On September 28, Hurricane Ian made landfall along the southwest Florida coast causing severe wind damage and flooding. The loss of life and human suffering is of paramount importance and should be the primary concern, as well as enormous emotional losses. In addition, the storm will have a significant impact on the economy, which could rise if there is significant additional damage in South Carolina.
Dr. Perryman explains the consequences of the ECB's move to fight inflation.
Among the most widely discussed economic phenomena in our post-pandemic world is the so-called "Great Resignation," a phrase used to describe what seems on the surface to be unusually high numbers of people leaving their jobs after the arrival of COVID-19.
Data recently released by the US Centers for Disease Control and Prevention (CDC) indicates that US life expectancy has once again fallen, with COVID-19 a primary culprit. The life span which could be expected for someone born in 2021 fell to 76.1 years, the lowest since 1996. For males 73.2 years could be expected, with 79.1 years for females.
In a disappointing but not unexpected development, US standardized test scores are showing a notable ongoing learning loss. Results from the National Center for Education Statistics indicate that average scores for age nine students in 2022 fell significantly compared to 2020. The five-point drop in reading, from 220 to 215 on a scale of 500, was the largest average score decline since 1990. In math, scores fell for the first time ever – seven points (from 241 to 234).