Businesses exist to maximize profits. Consumers maximize utility (satisfaction). Politicians attempt to maximize votes. By law, the U.S. Federal reserve has three objectives: maximum employment, stable prices and moderate long-term interest rates. Purposes can vary by the type of entity, current conditions and individual. Incentive follows purpose. Businesses, as they attempt to maximize profits in …
The Bureau of Labor Statistics (BLS) released a bombshell January employment report which surprised everyone. Nonfarm payrolls increased 517K (185K expected, 260K previously). Private payrolls increased 443K (190K expected, 269K previously). Leisure and hospitality, professional and business services and health care led the job gains. The January unemployment rate fell to 3.4% (3.6% expected, 3.5% …
Read Time: 3 Minutes 49 Seconds Evidence is mounting that the slowing of the economy is accelerating. According to recent Federal Reserve data December industrial production fell 0.7% (-0.1% expected, -0.6% previously) for the largest monthly drop since September 2021. Manufacturing production fell 1.3% (-0.3% expected, -1.1% previously) for the largest drop since February 2021. …
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Read Time: 2 Minutes 59 Seconds The December CPI (consumer price index) was in line with expectations. The BLS (Bureau of Labor Statistics) reported December consumer prices were 6.5% (6.5% expected, 7.1% previously) higher than a year ago. Annual core inflation (which excludes food and energy prices) was 5.7% (5.7% expected, 6.0% previously). Inflation is …
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Read time: 3 minutes 39 seconds The discipline of economics teaches us to ignore the past, consider the present, and proactively embrace the future. Previous costs, which cannot be recovered (sunk costs), are irrelevant to current decisions. According to economists, current decisions should be based on where we are now and what we expect in the future. Typical supply and demand models, popular among economists, use this concept. Current prices, costs, capacities and technologies, as well as expectations regarding future product prices, profitability and economic conditions are …
Read Time: 3 Minutes 41 Seconds The Bureau of Labor Statistics (BLS) released a surprisingly high November Producer Price Index (PPI). Producer inflation increased 0.3% (0.3% previously, 0.2% expected) compared to the last month. Core PPI, which excludes energy and food, was even higher at 0.4% (0.1% previously, 0.2% expected) for the month. Fresh and …
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Read Time: 3 Minutes 53 Seconds WalletHub estimates 97% of Americans celebrate Thanksgiving and were expected to spend $835 million on Thanksgiving turkeys for last week’s holiday. More than 50 million people were expected to watch the Macy’s Thanksgiving Parade on television and 3.5 million people were expected to be spectators along the 2.65-mile route. …
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Read Time: 3 Minutes 59 Seconds The release of the October Consumer Price Index showed moderating inflation. Consumer prices increased 0.4% (0.6% expected, 0.4% previously) for the month and 7.7% (8.0% expected, 8.2% previously) for the year. Core inflation, which excludes food and energy, was 0.3% (0.5% expected, 0.6% previously) for the month and 6.3% …
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Read Time: 3 Minutes 26 Seconds The Bureau of Labor Statistics (BLS) released its October employment report. Nonfarm payrolls was estimated at 261K (forecast 200K), while private payrolls was 233K (forecast 200K). The unemployment rate increased to 3.7% (3.6% forecast). Annual average hourly earnings were in line with expectations at 4.7%. The participation rate (percentage …
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Read Time: 3 Minutes 57 Seconds The first estimate for third quarter GDP was higher than expected. The BEA (Bureau of Economic Analysis) estimated that GDP grew at an annual rate of 2.6% (2.4% expected, -0.6% previous quarter). Of the 2.6% annual rate, personal consumption expenditures (PCE) accounted for 0.97%, investment -1.59%, government expenditures 0.42% …
Kingdom Economics: Should We Expect Global Crisis or Cling to Hope? Read More »
Read Time: 3 Minutes 36 Seconds Inflation is not only a problem, but an increasing problem, throughout much of the world. Annual consumer inflation rates which are higher than the U.S. rate (8.2%) include Turkey (83.5%), Argentina (83.0%), Netherlands (14.5%), Russia (13.7%), Britain (10.1%), Germany (10.0%), Spain and Italy (8.9%) and Mexico (8.7%). Countries which …
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Read Time: 4 Minutes 41 Seconds The Bureau of Economic Analysis (BEA) released its third and final estimate of second quarter GDP (Gross Domestic Product) and its PCE (Personal Consumption Expenditure Price Index). Since core (less food and energy) PCE is one of the Fed’s preferred measures of inflation, it was watched particularly closely. For …
Read Time: 4 Minutes, 48 Seconds The Bureau of Labor Statistics (BLS) released its much-anticipated September Employment Situation Report. Stock market traders had been hoping that a weaker than expected report would cause the Fed to pivot with its plans to aggressively fight inflation by increasing interest rates and reducing liquidity (via balance sheet reductions). …
Kingdom Economics: Are We Participating in the Kingdom of God? Read More »
The Bureau of Economic Analysis (BEA) released its third and final estimate of second quarter GDP (Gross Domestic Product) and its PCE (Personal Consumption Expenditure Price Index). Since core (less food and energy) PCE is one of the Fed’s preferred measures of inflation, it was watched particularly closely. For the quarter, core PCE was an …
Kingdom Economics: Choosing a Better Way—God’s Way Read More »
BLS released surprising August inflation reports. Consumer inflation, as measured by the CPI (consumer price index), was estimated to be 8.3% (compared to 8.5% in July and 8.1% expected) over the last 12 months. Core (less energy and food) consumer inflation, increased to 6.3% (5.9% July, 6.1% expected). Energy prices increased 23.8%, airline fares 33.4%, …
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