The news is largely positive. In the spring of 2020, when the epidemic crippled the economy and lockdowns were implemented, businesses shuttered or cut hours, and customers stayed at home as a health precaution, employers lost a staggering 22 million employment. In the April-June quarter of 2020, economic output fell at a record-breaking 31 percent […]

Changes in the global economy may have kept inflation in check in the United States, even as unemployment fell. For one thing, more trade and deeper global value chains may have made consumer price inflation less sensitive to local labor market conditions. The domestic Phillips Curve relationship for headline inflation lessens as countries’ exposure to

With the enactment of the New Deal’s National Industrial Recovery Act in 1933, the first federal minimum wage was established. The ultra-right Supreme Court of the time quickly declared it unconstitutional. In 1936, President Franklin D. Roosevelt ran for reelection on the promise of continuing to fight for a federal minimum wage. In contrast, the

In general, inflation devalues a currency because inflation is defined as a reduction in the purchasing power of a currency. As a result, countries with significant inflation see their currencies depreciate in value against other currencies. Does inflation cause currency to weaken? Inflation raises the price of products and services over time, reducing the quantity

With prices on the increase, it’s worth revisiting some of Buffett’s finest advice for dealing with what he famously called a “gigantic corporate tapeworm.” Invest in good businesses with low capital needs Buffett has long pushed for holding firms that generate significant returns on invested capital. During inflationary periods, businesses with minimal capital requirements that