Last week President Trump suggested that by Easter, (April 12th) he would lift some of the restrictions put in place to slow the spread of COVID-19, or the coronavirus. Yesterday he extended the restrictions until the end of April. In either case, his objective is to identify the correct balance between savings lives and minimizing the economic harm. Is there a point where the economic cost of continuing containment measures exceeds the cost in lost lives? More
Review our past State of the Economy blogs and you will find a consistent message. Low unemployment should put upward pressure on the price level. It hasn’t. This morning I read this explanation in the Wall Street Journal. I think the blog explains the Federal Reserve’s dilemma and why the improvement in employment has not increased inflation yet. Note it More
The United States unemployment rate has fallen dramatically over the past decade. Last month the official rate was 4.3 percent, down from 9.6 percent in 2010. Economists refer to today’s rate as “full employment”. Yet we read that unemployment is a problem and there are many long-term unemployed. Are these statements conflicting? No…both are true. The unemployment rate has fallen, but there are many unemployed who are not included in the unemployment rate, and the economy has passed them by. To More
The Venezuelan economy is in a prolonged recession, yet the controls the largest Oil Fields in the World. Why? Here are a few economic principles that could have avoided or diminished the situation. Read More... More
