Biden and the Fed wanted a hot economy. There is a risk of getting burned.

Jason Furman, a Harvard economist and former chairman of the White House Council of Economic Advisers, points out that the United States ...


Jason Furman, a Harvard economist and former chairman of the White House Council of Economic Advisers, points out that the United States has significantly higher inflation than other countries facing the same supply problems. Consumer prices rose 2.2% during the fiscal year ended in July in the euro zone, against 5.4% in the United States.

“I guess real wage growth is doing better right now in Europe than it is in the United States, and it’s doing better because there is less demand and therefore less inflation.” Mr Furman said.

The story is better when you look at how the lowest paid workers are doing in the United States. Labor shortages, especially in service industries, translate into increases for people who don’t earn much. Data from the Federal Reserve Bank of Atlanta shows that the median hourly wages of those in the bottom 25 percent rose 4.6 percent in the past year, compared to 2.8 percent for the top 25 percent. rich.

And many of the benefits of a vibrant economy come in the form of an increase in the number of people in the workforce and allowing them to work longer hours. Employers have created an average of 617,000 jobs per month so far in 2021, up from 173,000 per month in 2011, in the wake of the global financial crisis. If this continues, the United States is on track to return to its pre-pandemic employment level two years after the recession ended. Such a recovery took five years after the previous recession.

Proponents of running a vibrant economy stress that a rapid recovery is good for reducing inequalities, in part by ensuring that there are plenty of job opportunities so people don’t have to be out of work for a while. long periods.

“We are seeing ongoing stimulus programs and expanded income support programs doing what they’re supposed to do,” said JW Mason, a fellow of the Roosevelt Institute and long-time promoter to keep the economy running hot. “The numbers we really should be looking at are job growth and wage growth, especially at the lower end of the scale, and those trends are positive and encouraging. These are the numbers we would have hoped to see at the start of the year.

In the last few years of the latest expansion, employment gains have been particularly significant for racial minorities, the poorly educated, and some other people who often struggle to get hired.

Source Link

COMMENTS

Name

Africa,879,Americas,4242,Art & Culture,15505,Arts,6666,Arts & Design,1797,Asia,3461,Automobile,495,Baseball,717,Basketball,576,Books,4074,Business,5540,Celebrity,2633,Cricket,648,Crime,158,Cryptocurrency,1835,Dance,617,Defense,836,Diplomatic Relations,2496,Economy,1253,Editorial,260,Education,1368,Elections,308,Energy & Environment,3106,Entertainment,23208,Environment,3790,Europe,4396,Faith & Religion,235,Family & Life,817,Fashion & Style,3471,Finance,20834,Food & Drink,3946,Football,1162,Games,97,Gossip,10289,Health & Fitness,4292,Health Care,948,Hockey,237,Home & Garden,920,Humour,994,Latin America,49,Lifestyle,17826,Media,527,Middle East,1628,Movies,1894,Music,2822,Opinion,3546,Other,12530,Other Sports,5260,Political News,11324,Political Protests,2324,Politics,18225,Real Estate,2075,Relationship,106,Retail,3116,Science,2810,Science & Tech,10604,Soccer,300,Space & Cosmos,380,Sports,12800,Technology,3624,Tennis,655,Theater,1821,Transportation,313,Travel,2703,TV,3851,US,1031,US Sports,1481,Video News,3531,War & Conflict,1069,Weird News,998,World,17344,
ltr
item
Newsrust - US Top News: Biden and the Fed wanted a hot economy. There is a risk of getting burned.
Biden and the Fed wanted a hot economy. There is a risk of getting burned.
https://static01.nyt.com/images/2021/08/23/upshot/23up-pressure/23up-pressure-facebookJumbo.jpg
Newsrust - US Top News
https://www.newsrust.com/2021/08/biden-and-fed-wanted-hot-economy-there.html
https://www.newsrust.com/
https://www.newsrust.com/
https://www.newsrust.com/2021/08/biden-and-fed-wanted-hot-economy-there.html
true
732247599994189300
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content