Why does interest rates increase with inflation

Share to Twitter Share to Linkedin Senators Joe Manchin (WV) and Chuck Schumer (NY) recently agreed to a slimmed down version of the failed Build Back Better plan they are calling the Inflation Reduction Act (IRA). Manchin and other proponents of the IRA argue it will boost economic growth and reduce inflation, but this is unlikely, especially in states like West Virginia that face problems unaddressed by the IRA. The IRA spends nearly $400 billion on energy tax credits and about $100 billion on health care subsidies, primarily for people who buy Affordable Care Act (ACA) insurance plans. This proposed spending would be paid for by increasing corporate income taxes, “better” IRS enforcement, increasing taxes on investment returns, and savings from implementing price controls on certain drugs purchased by the government via Medicare and other programs. The tax increases and costs savings are projected to generate $305 billion more than the spending, and … [Read more...] about Inflation Reduction Act Won’t Help West Virginia

Share to Twitter Share to Linkedin Perhaps one of the most iconic portrayals of a greedy landlord is Benoit from Puccini’s La Boehme . The character arrives on the scene at the opening of the play looking to collect rent and then proudly confesses infidelity to the poor artists he’s trying to shake down. They pretend to be outraged by his immorality, eject him, and use the rent money for a night on the town. The image of the poor but righteous tenants is so compelling a modern musical adaptation of the opera is called Rent . But are housing providers really trying to squeeze every last cent from their residents? A study from Berkeley indicates that often, housing providers leave money on the table, giving discounts and often failing to keep up with the market. The study, Affordable Housing Without Public Subsidies: Rent-Setting Practices in Small Rental Properties , takes a look at how housing providers set their rents and how those rents relate to … [Read more...] about Study: Housing Providers’ Rent Increases Often Don’t Match Market

Share to Twitter Share to Linkedin President Biden’s recent infrastructure proposal has a $2 trillion plus price tag and he’s looking for a way to pay for at least some it. During his campaign, President Biden said he would not raise taxes on anyone earning less than $400,000 per year. Since direct tax increases on most people would break his campaign promise, Biden is looking elsewhere. One piece of his current plan is to raise the federal corporate income tax rate from 21% to 28%. While this does not directly violate his pledge, there is plenty of evidence that raising corporate income taxes affects all workers by reducing wages, slowing employment growth, and impeding innovation. Federal corporate income tax changes are relatively rare, but with 50 states there is a lot of change and variation at the state level. Rates vary from a high of 11.5% in New Jersey to a low of 2.5% in North Carolina. Economists have studied state corporate tax changes for … [Read more...] about Higher Corporate Taxes Affect Everyone

Kiki Verico (The Jakarta Post) PREMIUM Jakarta   ● Mon, August 8 2022 Statistics Indonesia (BPS} reported last Friday that Indonesia’s economy grew by 5.44 percent year-on-year in the second quarter. That growth rate was quite remarkable compared to the 7.07 percent expansion in the same period last year, especially if the growth was set against the 3.79 percent inflation in the second quarter. Indonesia's Consumer Confidence Index (CCI) experienced an initial pick-up in the second quarter of 2022, rising from 113 in April to 128 in June, showing that Indonesia's consumption confidence had kept rising despite climbing global and domestic inflation. This should be attributed to the decrease in the COVID-19 infection rate in the second quarter, which in turn significantly eased social-mobility restrictions, thereby bolstering economic activities and household consumption, especially during the Islamic Ramadan and Idul Fitri festivities. to Read Full Story … [Read more...] about Indonesia’s economy under global perfect challenge

Share to Twitter Share to Linkedin When the U.S. recorded two consecutive quarters of negative growth in Q1 and Q2 of 2022, the Biden administration was quick to point out that while the development constituted a widespread definition of recession, the official classification was indeed a different, less clear-cut one and that the U.S. had in fact not entered a recession officially until the National Bureau of Economic Research said so. So far, no unsatisfying. But government analysts might have a point when alleging that a recession only happens when there is “a significant decline in economic activity over more than a few months, which is assessed using several indicators, including the labor market, consumer and business spending, industrial production, and incomes.” Contradictory economic data has characterized the current “weird economy”— as one CNN correspondent put it —which isn’t exactly struggling, but also not exactly doing well. Looking … [Read more...] about U.S. Recession: Just A Technicality? [Infographic]

Despite being a strong student in high school, Sydney Dodini struggled during her freshman year at Brigham Young University. She kept showing up late to lectures and found it difficult to focus during class. When she flew home in the spring, she asked her father, Aaron Dodini, a psychologist who specializes in ADHD testing, to give her a QbTest, an FDA-cleared ADHD diagnostic screening tool that can be done online. advertisement advertisement ADHD, or attention deficit/hyperactivity disorder, is one of the more common neurobehavioral disorders usually first diagnosed in childhood and which can continue into adulthood. Symptoms fall into three categories: inattention, manifesting in difficulty sustaining focus, staying on task, and staying organized; hyperactivity, including excessive fidgeting, extreme restlessness, even talking too much; and impulsivity, including difficulty with self-control, delaying gratification, and considering long-term … [Read more...] about An ADHD diagnosis can be expensive and inaccurate. This company’s test addresses both problems

Your credit score is one of the most important measures of your financial health. It tells lenders at a glance how responsibly you use credit. The better your score, the easier you will find it to be approved for new loans or new lines of credit. A higher credit score can also open the door to the lowest available interest rates when you borrow. If you would like to boost your credit score, there are a number of quick, simple things that you can do. While it might take a few months to see an improvement in your credit score, you can start working toward a better score in just a few hours. Key Takeaways It takes less than a couple of days to pull all your credit reports from the three major credit bureaus, and assessing your credit score is the first step to raising it. In just a few hours, you can set due-date alerts for bills, so you know when a bill is coming up. Paying your bills on time Is one of the most important steps in improving your credit score. Pay down … [Read more...] about How to Improve Your Credit Score Fast

PELOSI’S JAN 6 PRIMETIME SPECTACULAR BEGINS THIS WEEK… FORMER ABC NEWS PRESIDENT JOINS CAMPAIGN… AXIOS : Scoop: Jan. 6 committee’s secret adviser The House’s Jan. 6 committee has turned to a renowned former network news executive to hone a mountain of explosive material into a captivating multimedia presentation for a prime-time hearing Thursday. James Goldston — former president of ABC News, and a master documentary storyteller who ran “Good Morning America” and “Nightline” — has joined the committee as an unannounced adviser, Axios has learned. […] I’m told Goldston is busily producing Thursday’s 8 p.m. ET hearing as if it were a blockbuster investigative special. MORE … NETWORKS PLAN TO INTERRUPT PROGRAMMING TO TAKE IT LIVE… At least two of the broadcast networks will interrupt evening programming for live coverage anchored by ABC’s David Muir and CBS’ Norah O’Donnell. NBC will announce plans soon. MORE… DEM CONGRESSMAN WANTS JAN 6 COMMITTEE TO PUSH … [Read more...] about Editor Daily Rundown: Pelosi’s Jan 6 Primetime Spectacular Kicks Off This Week

The benchmark Philippine Stock Exchange Index (PSEi) advanced during the past week despite inflation accelerating anew in July, with the shift in sentiments tracking markets overseas and the slide in key commodities such as oil. For the coming week, investors would still follow the release of corporate earnings and potential signals from the Bangko Sentral ng Pilipinas (BSP) after the latest inflation print. The latest PSEi reshuffle comes into effect on Monday, which will see the inclusion of Semirara Mining and Power Corp. and the removal of Security Bank Corp. The PSEi closed at 6,405.50 after adding 1.42 percent week-on-week. The Philippine Statistics Authority said on Friday inflation quickened to its fastest pace in four years, reaching 6.4 percent in July. “Although we may see a slowdown in consumer prices in the coming month due to base effects, inflation will remain a challenge until the first half of 2023,” Bank of the Philippine Islands (BPI) said. “We are … [Read more...] about Equity investors watch earnings, BSP signals

Share to Twitter Share to Linkedin Almost everyone who grew up in the United States after the end of World War II understood that an indicator of economic success if not the indicator was owning “your own home.” Homeownership attained mythic status representing not just climbing a rung up an economic ladder but a social and psychological one; owning a home meant being a full member of society. But is it really a good idea? While there are real, measurable economic gains that can be attributed to owning a home – or rather borrowing for one – has it had deleterious effects? Is it time to ask this question more seriously along with the essential one: “Is there an alternative and do we even need one?” A film by The Economist a couple years ago sets the stage for this conversation. The film’s title, “How an obsession with home ownership can ruin the economy,” might overstate the case just a bit, but it lays out in 12 minutes some of the most compelling challenges … [Read more...] about Is Home Ownership Still A Good Idea?