Which economies have done best and worst during the pandemic?

THE SPEED of the economic bounce-back from the enormous recession of 2020 has taken many forecasters by surprise. Output across the 38 mostly rich OECD countries combined probably surpassed its pre-crisis level a few months ago. The average unemployment rate across the club, at 5.7%, is in line with the post-war average. Aggregate household income, adjusted for inflation, is above its pre-crisis level. The overall picture has been remarkably benign, even as several variants of the coronavirus emerged during the year. But it hides stark differences beneath. The pandemic has created winners and losers—and

Read More

Goldman Sachs advice on Build Back Better a bad economic call

When Goldman Sachs talks, people usually ­listen because the smart guys who run the company often make good calls on markets.

But they’ve also been wrong and it’s usually when ideology about how to best spur economic growth starts seeping into the firm’s forecasting models. 

There’s a pretty solid list of their economic misses, which I don’t have room to fully detail, but here’s what I’m betting will be their latest: The firm’s recent guidance that the demise of President Biden’s tax-and-spend fiasco — known as Build Back Better — will somehow slow the US economy.

Yes, of all the

Read More

Visualizing the $94 Trillion World Economy in One Chart

The $94 Trillion World Economy in One Chart

View the expanded version of this infographic.

Just four countries—the U.S., China, Japan, and Germany—make up over half of the world’s economic output by gross domestic product (GDP) in nominal terms. In fact, the GDP of the U.S. alone is greater than the combined GDP of 170 countries.

How do the different economies of the world compare? In this visualization we look at GDP by country in 2021, using data and estimates from the International Monetary Fund (IMF).

An Overview of GDP

GDP serves as a broad indicator for

Read More

Pelosi defends stock trading by lawmakers and their spouses: ‘We are a free-market economy’

WASHINGTON (AP) — House Speaker Nancy Pelosi on Wednesday said lawmakers should not be barred from trading stock, a practice that has come under scrutiny because it gives members of Congress the opportunity to profit from inside information gained through their official duties.

“We are a free-market economy. They should be able to participate in that,” Pelosi, whose venture-capitalist husband holds tens of millions of dollars’ worth of stocks and options, told reporters Wednesday.

Pelosi has long said she has no involvement in or prior knowledge of her husband’s trading decisions and does not own any stock herself.


Read More

Supply shortages and emboldened workers: A changed economy

Employees at a fast-food restaurant in Sacramento, California, exasperated over working in stifling heat for low wages, demanded more pay and a new air conditioner — and got both.

Customer orders poured in to an Italian auto supplier, which struggled to get hold of enough supplies of everything from plastic to microchips to meet the demand.

A drought in Taiwan magnified a worldwide shortage of computer chips, so vital to auto and electronics production.

The global economy hadn’t experienced anything like this for decades. Maybe ever. After years in which ultra-low inflation had become a fixture of economies across the

Read More

Inflation This Year and Next

After a difficult couple of years, Americans are now feeling the pinch of higher prices. The cost of fuel, utility bills, weekly grocery shops, and so forth are rocketing, hurting consumer wallets just as they prepare to spend big for the holiday season.

On Nov. 10, the Bureau of Labor Statistics (BLS) revealed that consumer prices rose 0.9% in October and 6.2% compared to a year earlier. That reading marks the fastest annual jump since December 1990 and a substantial leap on the 2% inflation targeted by the Federal Reserve (Fed).

Key Takeaways

  • The cost of everyday essentials is rocketing,
Read More

Wall Street weighed down by economy-sensitive cyclical stocks

  • Financials lead declines, tech stocks pare losses
  • Oracle falls on report co in talks to buy Cerner
  • FedEx up on keeping 2022 profit target
  • Indexes down: Dow 1.38%, S&P 0.91%, Nasdaq 0.30%

Dec 17 (Reuters) – Wall Street’s main indexes fell on Friday, weighed down by cyclical stocks linked closely to the economy, as investors digested the Federal Reserve’s decision to end its pandemic-era stimulus faster.

An announcement from the Fed this week signaling three quarter-percentage-point interest rate hikes by the end of 2022 to combat surging inflation had sparked a move into cyclical stocks but those gains proved to

Read More

Tucker Carlson: Biden’s economic policy, labor shortage ‘not a good sign’

NEWYou can now listen to Fox News articles!

Here’s a question — what happens when you crush entire sectors of your own economy for nearly two years and then, to compensate for your crime, you decide to inject trillions of dollars of freshly printed cash into the system? What happens if you do that? Well, honestly, we don’t really know what happens when you do that, because no one in history has ever been stupid enough to try it. It’s going to be years before we really understand the consequences of all this, of our government’s reckless coronavirus policy.

Read More

Opinion | The Year of Inflation Infamy

Yet supply-chain problems aren’t the whole story. Even aside from bottlenecks, the economy’s productive capacity has been limited by the Great Resignation, the apparent unwillingness of many Americans idled by the pandemic to return to work. There are still four million fewer Americans working than there were on the eve of the pandemic, but labor markets look very tight, with record numbers of workers quitting their jobs (a sign that they believe new jobs are easy to find) and understaffed employers bidding wages up at the fastest rate in decades. So spending does appear to be exceeding productive capacity, not

Read More

Strong economy colliding with omicron variant, surge in covid cases

Lauren Randolph, 36, a recipe developer in Los Angeles, had elaborate Christmas travel plans with her husband, Dan Samiljan, 37. They would fly first to Tennessee to visit her family, then peel off to Kentucky to tour distilleries along the Bourbon Trail between Louisville and Lexington. After that, they planned another flight to Boston to visit family. Over the past few days, they have canceled the trip, getting credit for two out of three flights, canceling a car rental and the distillery tours.

Read More