The belief in an inflation-unemployment trade-off is ingrained in macroeconomics, financial markets, and media. The trade-off is often expressed in various ways: Markets fear that if the unemployment rate gets too low, then inflation will rise. Macroeconomics has asserted that allowing…
Wages of U.S. workers—adjusted for inflation—have finally eclipsed the peak reached in 1972. The 1972 peak was eclipsed in 2020 partly because of the impact of the Covid-19 pandemic. Business boosted wages in the face of higher employee risks, with wages…
Volatility is one of the characteristics of holiday retail sales—with the focus here on stores that sell gift-type goods. These stores, in other words, exclude car dealers, gas stations, restaurants, food, and drug stores. More specifically, the graphic below shows that:…
The threat of price inflation remains historically low compared with other periods over the more than 70 years that U.S consumer prices have been tracked. This is true based on the Consumer Price Index (CPI) as well as the Personal Consumption…
Economic hard times often draw comparisons to the Great Depression, but the pandemic-induced recession of 2020 may be the first to truly merit the comparison—at least based on measures of GDP. The economic downturn in 2020 is the first to approach…