The Congressional Budget Office produced an in depth study into inequality in the US. They concluded inequality has widened in the US in the past three decades. In particular, the biggest growth in income has come from the top 1% of the population. See full report at: Trends in US income inequality (CBO) Summary of Report CBO …
Readers Comment on UK National Debt – What we are doing now is not dissimilar to Roy Jenkins’ cuts in the late 60′s he brought us out of an £800m deficit into a £387m surplus, toughen up and let the economy settle. There are several examples of where governments have been able to transform public …
Readers Question: It is unclear what Seasonally adjusted means? Seasonally adjusted figures take into account seasonal factors in time series. Unemployment will have seasonal patterns. For example, over the summer holidays extra jobs are likely to be created and unemployment will typically fall. In winter, unemployment may rise as less tourist jobs are available. (apart …
Readers Question. If central banks collectively and continuously print money, does this mean there will never be a financial crisis and recession? If central banks collectively and continuously print money then we could end up with a different type of financial crisis. Instead of a recession (falling output), we could get a situation of high …
In one sense the US is facing a debt crisis. The level of government borrowing has risen sharply as a % of GDP, and given current spending commitments, the forecast for borrowing is to continue to grow. Nevertheless, despite disputes over raising debt ceiling, the US doesn’t currently face a crisis like Greece or other …
Readers Question: What are the factors that influence the fixing of a minimum wage? The UK’s first National Minimum wage was established in 1999 and was set at £3.60 for those over 21. It was feared by business that a minimum wage would cause unemployment. However, over the period between 1999 – 2007, in the …
Readers Question. Lastly, what effect would a poor unemployment figure (e.g. lower than expected nonfarm payroll numbers) have on a country’s currency? Is it likely to strengthen (due to lower expectations of inflation) or weaken (due to less domestic productivity and higher imports? Poor unemployment figures would probably weaken the currency. If unemployment figures are …
Spain has had one of the highest persistent rates of unemployment in the EU for several years. However, since the credit crunch and housing bubble burst in 2008, unemployment has spiked to over 4.9 million. [1. BBC Link] The problem is more acute amongst young workers. More than 45% of young Spanish are out of …