Friday, January 28

Economy and Government

How does inflation influence different sectors?
All Posts, Economy and Government

How does inflation influence different sectors?

By: Ke Tang OverviewInflation in October is rising more than expected. According to the US Bureau of LaborStatistics, the consumer price index in October has increased 0.9% and pushed the year-over-year increase to 6.2%, hitting a 30-year high. In comparison, the consumer price index inSeptember has risen 0.4% on the month and 5.4% on the year. 1 The rise of inflation exceedspeople's expectations and will increase people’s costs for living. However, it is not necessarilythat inflation will influence everyone equally. Depending on an individual’s consumption basket,the impact on one’s cost of living will be different because different products have experiencedvarious levels of inflation. Furthermore, those in the lower-income status will be influenced themost as they are most vulnerable...
Biden’s Pick for Fed Chairman
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Biden’s Pick for Fed Chairman

By: Marvi Ali The Federal Reserve System, or the Fed, is the central bank and monetary authority of theUnited States. Founded in the aftermaths of the Panic of 1907 and a series of financial crises, theFed was tasked with the major responsibilities of conducting national monetary policy,supervising and regulating the banking system, and ensuring financial stability. There are threemain components of the Fed: the Regional Banks, the Board of Governors, and the Federal OpenMarket Committee. One of the seven governors from the Board of Governors is appointed as theChairman of the Fed by the President of the United States and then confirmed by the US Senate.The Fed Chair serves as a spokesperson and representative for the rest of the Board and chairsboth the Board of Governors and the Fede...
COVID-19 Impact on November 2021 Economy
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COVID-19 Impact on November 2021 Economy

By: Mi Nguyen It has been almost two years since the COVID-19 virus was detected and the world is going deepinto quarantine and isolation to battle the immense spread of the virus. By this point, wearingmasks indoors and showing vaccination cards at restaurants has become the new normal already.As we become so used to living with the virus, we tend to forget that COVID-19 is still there,and it still has a huge impact on our current economy. Examining the report from S&P Global Ratings, we can see that although the economy is slowlyrecovering from the initial impact of COVID-19, the road to full pre-pandemic recovery is stillshaky due to surges of COVID cases in different countries along with new variants beingdiscovered. For instance, in the US, although key emerging markets, li...
How Powell’s Comments on Inflation Deflated Gold
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How Powell’s Comments on Inflation Deflated Gold

By: Neelesh Raj During an online conference hosted by the South African Reserve Bank, FederalReserve Chairman Jerome Powell stated that supply-chain issues would eventually be resolved.He also claimed that the current stagflation caused by the supply chain bottleneck would bescaled back, bringing inflation back to the Fed's current goal of two percent per year. The impactof his statement can be seen on the securities market, causing the price of gold to drop bynearly $30 per ounce, bringing the gold price below $1800 once again. Historically speaking, investors usually would invest in government bonds and bullion(such as gold) when they believe in economic instability within the equities market. This woulddecrease the money invested into equities, leading to a form of stagflatio...
The Great Resignation
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The Great Resignation

By: Marvi Ali During the onset of the pandemic, employers were furloughing and firing workers rapidly, in an effort to downsize. Unemployment peaked in April 2019 at 14.8%. There was great uncertainty as to whether workers would find any jobs, let alone better jobs. However, the U.S. Bureau of Labor Statistics recently reported that, in August, 4.3 million Americans had quit their jobs, setting a new record but following the trend of rising quit rates from previous months. Economists have increasingly begun to recognize this new phenomenon as “The Great Resignation,” which is a term coined by Anthony Klotz, an organizational psychologist at Texas A&M University, in 2019. He predicted a mass, voluntary exodus from the workforce, and this is exactly what is happening. We are witnessi...
Winter Is Coming: Labor Shortage and Supply Chain Chaos in Post-Brexit Britain
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Winter Is Coming: Labor Shortage and Supply Chain Chaos in Post-Brexit Britain

By: Iris An 2021 was supposed to be the year the U.K. breaks free from the European Union and forges ahead as a free trader, delivering the benefits of a new, confident “Global Britain” to workers and companies at home. Nevertheless, as the first winter after Brexit draws near, the country is in a precarious position, facing an onslaught of new economic crises with soaring gas prices, supply shortages, and a shortage of overseas workers such as HGV drivers.  Although the pros and cons of Brexit have been discussed for a long time, the crisis as the winter approaches has made it necessary to review the potential outcomes. Is this shortage merely a temporary transition period, as the UK turns from a EU country to a more global trader? To what extent should we blame the covid— ine...
Zimbabwe: From Hyperinflation to Hope
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Zimbabwe: From Hyperinflation to Hope

By: Anton Kozyrev Zimbabwe has had a long road to its present-day state -- including from an economic standpoint. While the economic activity and history of the area dates back 100,000 years, including the emergence of kingdoms such as the Rozvi and Mthwakazi, the land that is today the Republic of Zimbabwe was integrated into the present-day economic system in the 1880s. This was, of course, when the area was colonized by European powers. After the Portuguese had tried unsuccessfully to invade, it was British mining magnate Cecil Rhodes who proved instrumental in enabling the British Empire to colonize the land. This marked the beginning of company rule in the state that would be called Rhodesia in his honor. This state would continue to exist in a variety of administrative forms, ...
COVID-19 Booster Shots and Companies Going Back to Work
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COVID-19 Booster Shots and Companies Going Back to Work

By: Gianna Minasian On Thursday October 21st, the Wall Street Journal reported that the Centers for DiseaseControl and Prevention (CDC), in conjunction with the Food and Drug Administration (FDA),had approved booster shots for people over 18 years old for both the Moderna and the Johnson &Johnson COVID-19 vaccines. Pfizer’s booster shot had already been approved weeks before. This approval came in the wake of President Joe Biden’s September directive that alllarge companies must require their employees either to be fully vaccinated or comply withweekly COVID testing. In the aftermath of Biden’s directive, companies are scrambling to create policies thatcomply with federal COVID policy. While, last month, only about 15% of companies hadvaccine mandates, an October report by Fo...
Can the Economy Promote Freedom? Breaking down the Debate at Freer Future Fest
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Can the Economy Promote Freedom? Breaking down the Debate at Freer Future Fest

By: Rohan Upadhyay The Freer Future Fest - a libertarian conference in Nashville that was partially planned and run by the Vanderbilt Libertarian organization - hosted a debate on Saturday, October 9th, between political Twitch streamers Vaush and Bastiat. The conversation examined what “freedom” means and the types of freedom that society should prioritize to maximize people’s opportunities to experience fulfilling lives. Furthermore, the two commentators discussed how the institutions and regulations of the American economy promote and inhibit freedom in various ways. They debated how to reorganize our economy to promote greater opportunity.  While Vaush argued that “freedom” requires the ability to enjoy basic prosperity and that we can promote this by reorganizing society a...