Economy News - part 3
ECONOMY November 1, 2011 | 3:52 PM
- Income in America has risen nearly 18% for those in bottom 20% earning bracket
- Income increase of 275% for top 1% of wage earners
- Imbalanced wealth distribution sparks protests, including Occupy Wall Street
A recent analysis conducted by the Congressional Budget Office (CBO) furthers the concern that income inequality in the US has grown considerably over the last few decades and has ultimately contributed to the continuing downward spiral of our economy.
According to the CBO report, since 1979 on average income in America has risen by approximately 18% for those in the bottom 20% of the income bracket, almost 40% for the middle class, and a whopping 275% for the top 1% of income earners – doubling their share of the nation’s income.Read more »
ECONOMY October 28, 2011 | 3:47 PM
- US GDP grew 2.5% in the third quarter
- Americans save less due to less income, increase spending
- Unemployment claims drop, rate forecast to remain near 9%
Gross domestic product grew 2.5% this quarter, up 1.3% from the previous quarter, mirroring the median forecast by a Bloomberg economic survey. Third quarter growth, which exceeded its pre-recession peak, rose due to a sudden increase in public consumption and company investment.
Household purchases, which account for the majority of GDP, increased by 2.4%, exceeding economists' forecasts. Corporate spending on goods increased by over 17%, the largest increase in roughly a year. Company investments contributed 1.2% to overall national growth.Read more »
ECONOMY October 27, 2011 | 2:47 PM
- Obama to reduce student loan payments, lower pardon to 20 years
- Tuition at public schools rises 8.3%, twice inflation rate
- Student loans reach $100 billion, debt to exceed $1 trillion this year
Among concerns of rising student debt and tuition costs, Obama announced publicly at the University of Colorado his new relief plan for those suffering from excessive student loans.
The new measures will allow over 6 million students to bundle and consolidate some federal loans into one monthly payment.Read more »
ECONOMY October 26, 2011 | 11:44 AM
- Rising home prices a sign housing market is stabilizing
- Analysts warn prices may fall again
- Obama administration to make refinancing easier
The housing market in the United States may be stabilizing: a recent private survey reveals home prices are up in half of all major US cities.
The Standard & Poor's/Case-Shiller index also showed an increase in 10 of the 20 cities it studied, marking a fifth-consecutive month of increases. The index compared prices with January 2000, and creates a three-month average.Read more »
ECONOMY October 25, 2011 | 5:09 PM
- Food prices up 4.5% and energy prices up by 12.5%
- Economists predict no immediate increase in bank interest rates
- Gas prices in constant flux
Canada’s inflation rate has reached new heights, now climbing over 3% in the last twelve months, with Statistics Canada reporting food price increases of almost 4.5% and energy prices up by 12.5%.
Without food and energy as part of the equation, inflation rates would have increased by slightly less than 2% over the twelve month-period prior to the end of September.Read more »
ECONOMY October 20, 2011 | 4:45 PM
- Poseidon Atlantic wind project to create 5,000 long-term jobs
- Duke Energy in agreement with MHI, Siemens for wind turbines in Texas
- Vestas delivers 56 turbines for Michigan wind project, creates shadow prevention system
An global energy partnership will build a facility of ten test pads for offshore wind turbines in Virginia, creating more than 5,000 jobs in construction, logistics, manufacturing, maintenance and operations activities over the long-term. Poseidon Atlantic LLC, a joint-venture between Dutch-based Ecofys and Maryland-based Real NewEnergy, will begin site development late next year in Northampton County.
Proponents of the facility believe that tapping into the wind energy market could stimulate economic development projects throughout the area and increase port activity, allowing the region to gain recognition as an offshore energy supply hub. The facility should also lead to the creation of research, manufacturing and assembly facilities for further development of offshore wind activity. Supporters of the project include the Virginia Port Authority and current Virginia Governor Bob McDonnell.Read more »
ECONOMY October 12, 2011 | 12:03 PM
- Rolling strikes continue in protest of Prime Minister’s €6.6 billion austerity plan
- Government said it would not reach 2011 deficit target, falling short by €2 billion
- IMF: bailout deal needs to be revised by EU according to new needs
Greece is shutting down with petroleum industry workers, who have declared a 10-day strike, the latest to join the list of protesters against Prime Minister George Papandreou’s €6.6 billion ($8.7 billion) austerity plan. In coming days, prison guards and hospital workers are expected to join the pack, with Greek tax inspectors set to strike next week.
The ongoing wave of protests follows the heated public-sector walk-out staged last week when ADEDY, Greece’s biggest public sector union, called to strike after European Union ministers hinted that they might renegotiate the terms of Greece’s most recent bailout. “They are not trying to save Greece. They are just killing workers,” ADEDY Vice President Ilias Vrettakos said in a rally speech. Some 20,000 supporters took part.Read more »
ECONOMY October 7, 2011 | 11:54 AM
- ADP reports 91,000 new private sector jobs; 5,000 jobs lost for factories
- Layoff announcements exceeded 115,000 last month
- ADP says small, medium-sized businesses fuel job growth
The United States saw over 91,000 private-sector jobs added this month according to reports from Automatic Data Processing (ADP) and consulting firm Macroeconomic Advisers. Over 1,000 jobs were created in goods-producing industries, but factory employment did see a job drop of 5,000 jobs.
The government will post its latest unemployment rate today. Most economists are expecting official numbers to reveal a modest improvement in employment.Read more »
ECONOMY October 5, 2011 | 3:54 PM
- Exports in India jump 44%, future decline likely due to EU, US recession fears
- HSBC PMI: Manufacturing sector slowed to 50.4
- August inflation reaches 13 month high of 9.8%
India's latest export and manufacturing data reveals that India's economy remains threatened by the possibility of a harsher slowdown. After the data was released, the BSE India Sensitive Index, or Sensex, lost 2% on October 3.
The International Monetary Fund reduced its forecast for India's outlook last month to 7.8% for this year and 7.5% growth in 2012, down from previous predictions of 8.2% and 7.8%, respectively. In July, economists speculated that India's 80% increase in exports was unsustainable.Read more »
ECONOMY October 4, 2011 | 6:15 PM
- US Senate passes bill punishing China for currency policies
- Value of yuan has appreciated by 5% in past year
- Critics cite slow growth of yuan as giving China an unfair advantage in global marketplace
The US Senate has voted to advance a bill (S.1619) that would impact China's currency policies, effectively forcing China to raise the value of the yuan, or renminbi (RMB).
If passed, the bill will allow the US to enforce tariffs within 90 days on imports from another country found to be subsidizing exports by devaluing its currency. Under these criteria, the bill would allow American businesses to seek duty on imports from China.Read more »