economy | The Georgia Star News

After Skyrocketing to Record Highs, Lumber Prices Fall Back to Earth

June 16, 2021June 15, 2021 Georgia Star News Staff

Close up of wood after being cut down - lumber yard

Lumber prices have begun to drop following record highs, with futures closing Monday at their lowest price in over two months.

Lumber futures reached their highest-ever price in early May according to Nasdaq, trading at $1,711.20 per thousand board feet. Futures closed Monday at $966.20 per thousand board feet, still well above pre-pandemic levels which hovered around $400.

Prices skyrocketed due to a variety of factors, including supply chain disruption due to COVID-19 restrictions, labor shortages, and higher demand due to the surge in the housing market, according to a report by Wells Fargo economists. The report noted that while prices were unlikely to return to pre-pandemic levels, restarting domestic lumber production and restoring domestic supply chains would stabilize the market.

Commentary: Minimum Wage Hikes Led to Lower Worker Compensation, New Research Shows

June 13, 2021June 12, 2021 Georgia Star News Staff

Opponents of minimum wage laws tend to focus their criticism on one particular adverse consequence: by artificially raising the price of labor, they reduce employment, particularly for the most vulnerable in society.

“Minimum wage laws tragically generate unemployment, especially so among the poorest and least skilled or educated workers,” economist Murray Rothbard wrote in 1978. “Because a minimum wage, of course, does not guarantee any worker’s employment; it only prohibits, by force of law, anyone from being hired at the wage which would pay his employer to hire him.

Though some economists, such as Paul Krugman, reject Rothbard’s claim, a recent study found the overwhelming body of academic research supports the idea that minimum wage laws increase unemployment.

Commentary: China’s Three-Child Policy Shows Xi Jinping Is Terrified

June 13, 2021June 12, 2021 Georgia Star News Staff

The Chinese government has carried out a massive population control campaign since the 1970s with the hope that it would generate economic prosperity. The government unremorsefully forced women to receive abortions, pressured or forced millions of women to be sterilized, and punished families with multiple children with debilitating fines. More than 300 million children were aborted under China’s one-child policy.

Last week, the Chinese government ended the two-child policy, which had been in effect since 2016, and instead enacted a three-child policy. The new policy is essentially an admission that the Chinese Communist Party’s heinous population control policies will not give it the riches it had hoped for. Instead, the population control program will deliver a demographic disaster, which will ravage the country’s economy for generations.

Many economists recognize that population control never improved China’s economy — that was the result of increased freedom in the marketplace and foreign investment. And the Malthusian crisis the government was so desperately trying to avoid with population control was an entirely false specter.

Commentary: Massive Government Spending Has Caused High Inflation Levels and a Weakening U.S. Dollar

June 12, 2021June 11, 2021 Georgia Star News Staff

Inflation is up 4.92 percent the past 12 months as of May, the most since July 2008’s 5.5 percent, according to data compiled by the Bureau of Labor Statistics, amid a torrent of trillions of dollars of government spending, Federal Reserve money printing and a weakening dollar combined with the continued economic rebound led by reopening businesses from the 2020 Covid lockdowns.

The past three months alone, inflation has grown at an accelerated rate of 2 percent combined. If that trend were to hold up for the rest of the year, inflation would come closer to 8 percent.

In the month of May, price jumps in fuel oil at 2.1 percent and piped gas service at 1.7 percent offset a 0.7 percent drop in gasoline prices. In addition, new car prices grew 1.6 percent. Used cars and trucks grew at 7.3 percent again after a 10 percent jump in April. Apparel jumped 1.2 percent. And transportation services grew 1.5 percent after a 2.9 percent jump in April.

Yellen Admits Inflation Is About to Surge But Says It Will Be ‘Plus For Society’s Point of View’

June 8, 2021June 7, 2021 Georgia Star News Staff

Increased inflation could ultimately be a net positive for the U.S. economy and large government spending won’t overheat the economy, Treasury Secretary Janet Yellen told Bloomberg.

Treasury Secretary Janet Yellen, who previously chaired the Federal Reserve, said the central bank has been more concerned about inflation levels that are too low, according to Bloomberg. Increasing consumer prices could signal a return to normal, she said.

“We’ve been fighting inflation that’s too low and interest rates that are too low now for a decade,” Yellen told Bloomberg in an interview Sunday.

Economy Added 559,000 Jobs in May, Below Expectations for Second Straight Month

June 5, 2021June 4, 2021 Georgia Star News Staff

The U.S. economy reported an increase of 559,000 jobs in May and the unemployment rate declined to 5.8%, according to Department of Labor data released Friday.

Total non-farm payroll employment increased by 559,000 in May, according to the Bureau of Labor Statistics (BLS) report, and the number of unemployed persons dropped to 9.3 million. Economists projected 671,000 Americans would be added to payrolls prior to Friday’s report, according to The Wall Street Journal.

“We think it will take several months for frictions in the labor market to work themselves out,” Barclays chief U.S. economist Michael Gapen told the WSJ. “That just means we shouldn’t be expecting one to two million jobs every month. Instead, it will be a more gradual process.”

More Americans Lack Confidence in U.S. Economy

May 26, 2021May 25, 2021 The Center Square

As economic figures cast doubt on a post-COVID economic boom, the latest polling data show Americans lack confidence in the economy under President Joe Biden.

New polling data released by Gallup Monday shows Americans are not confident in the economy and are largely unhappy with the nation’s current trajectory.

The poll found only 36% of Americans are “satisfied with the way things are going.” Specifically on the economy, Americans also are pessimistic.

Former President Trump Releases Statement on Primary Poll, Biden, and Future Social Media Platform

May 25, 2021May 24, 2021 Cooper Moran

President Donald Trump released a statement on Monday that underscored his popularity, President Biden’s bad ratings, and his future social media platform.

The statement comes in response to President Biden’s concerning policy decisions and multiple inaccurate media reports on Trump’s actions.

Senate Republicans Expand Investigation into ‘Woke Mission Creep’ of Federal Reserve

May 25, 2021May 24, 2021 Georgia Star News Staff

Senate Banking Committee Republicans have expanded an investigation into regional Federal Reserve banks over their alleged “woke mission creep.”

Republicans on the Senate Banking Committee sent letters to regional Federal Reserve banks in Minneapolis, Boston and Atlanta demanding a briefing with leaders and documents related to a recent “Racism and the Economy” initiative, GOP staffers said during a press briefing Monday morning. Engaging in political advocacy is out of the Fed’s purview, the letters said.

“Of course, racism is abhorrent and has no place in our society…. I recognize the interest in studying economic disparities along demographic lines, such as race and gender,” Banking Committee Ranking Member Pat Toomey wrote in the letters sent Sunday.

Jobless Claims Hit Fresh Pandemic Low as Americans Return to Work

May 21, 2021May 20, 2021 Georgia Star News Staff

Photo “Unemployment Insurance Claims Office” by Bytemarks. CC BY 2.0.

The number of Americans filing new unemployment claims dropped to 444,000 last week as the economy continues to slowly recover from the coronavirus pandemic, according to the Department of Labor.

The Bureau of Labor and Statistics figure released Thursday represented a decrease in the number of new jobless claims compared to the week ending May 8, when 478,000 new jobless claims were reported. That number was revised up from the 473,000 jobless claims initially reported last week.

Commentary: The U.S. Economy and Its Lack of Sustainability

May 11, 2021May 10, 2021 Georgia Star News Staff

American flag with $100 bills and stethescope

Is the economy booming or is it riding a wave of paper money with no real underlying sustainability? That is the question which policy makers in Washington, DC should be considering.

The truth is no one actually knows, but that is exactly why this discussion must be had.

Since the China virus was inflicted upon the world, it is indisputable that the federal government has authorized $5 Trillion between the Trump spending of $3.1 Trillion to meet the crisis and Biden’s recently passed additional $1.9 trillion so he could sign checks to people too. This is on top of the $1 Trillion in planned deficits during the 2020 fiscal year.

Jobless Claims Fall to 498,000, Hit New Pandemic Low Once Again

May 7, 2021May 6, 2021 Georgia Star News Staff

The number of Americans filing new unemployment claims dropped sharply to 498,000 last week as the economy continues to recover from the coronavirus pandemic, according to the Department of Labor.

The Bureau of Labor and Statistics figure released Thursday represented a large decrease in the number of new jobless claims compared to the week ending April 24, when 590,000 new jobless claims were reported. That number was revised up from the 553,000 jobless claims initially reported last week.

Jobless Claims Drop to 576,000, Lowest Level Since March 2020

April 16, 2021April 15, 2021 Georgia Star News Staff

The number of Americans filing new unemployment claims dropped to 576,000 last week as the economy continues to recover from the coronavirus pandemic, according to the Department of Labor.

The Bureau of Labor and Statistics figure released Thursday represented a large decrease in the number of new jobless claims compared to the week ending April 3, when 769,000 new jobless claims were reported. That number was revised up from the 744,000 jobless claims initially reported last week.

Jobless Claims Increase to 719,000 as Recovery Continues

April 2, 2021April 1, 2021 Georgia Star News Staff

The number of Americans filing new unemployment claims increased to 719,000 last week, even as the economy continues to slowly recover from the coronavirus pandemic, according to the Department of Labor.

The Bureau of Labor and Statistics figure released Thursday represented an increase in the number of new jobless claims compared to the week ending March 20, when 658,000 new jobless claims were reported. That number was revised down from the 684,000 jobless claims initially reported last week.

Roughly 18.2 million Americans continue to collect unemployment benefits, according to the report.

New Jobless Claims Drop Slightly to 712,000

March 12, 2021March 11, 2021 Georgia Star News Staff

The number of Americans filing new unemployment claims decreased slightly to 712,000 last week as the economy continued to suffer the effects of the ongoing coronavirus pandemic, according to the Department of Labor.

The Bureau of Labor and Statistics figure released Thursday represented a decrease in the number of new jobless claims compared to the week ending Feb. 27, in which there were 754,000 new jobless claims reported. That number was revised up from the 745,000 jobless claims initially reported last week.

Commentary: Biden’s Economy Will Be a Train Wreck

February 21, 2021February 20, 2021 RealClearWire

Warning lights should be flashing. Less than a month in, it’s becoming evident that President Joe Biden’s economic policies are likely to end in disaster. The wrong economic diagnosis and the politics of not letting any crisis go to waste is leading to the most damaging mix of economic policy in decades.

Commentary: Will Biden Kill the Trump Economic Recovery?

January 14, 2021 Georgia Star News Staff

The U.S. economy is poised to continue a massive recovery that began after labor markets bottomed in April with 25 million jobs lost during Covid, with 16 million of the having been recovered since then — provided that President-elect Joe Biden does not kill the rest of the recovery that began on President Donald Trump’s watch.

Really, all Biden needs to do right now is almost nothing, and allow the U.S. economy to fully reopen once the Covid vaccine has been fully administered and the number of daily new cases approaches zero.

US Economy Lost 140,000 Jobs in December, Economists Expected a Modest Gain

January 9, 2021January 9, 2021 Georgia Star News Staff

The U.S. economy reported a decrease of 140,000 jobs in December while unemployment stayed unchanged at 6.7%, according to Department of Labor data released Friday.

Total non-farm payroll employment declined by 140,000 in November, according to the Bureau of Labor Statistics report, and the number of unemployed persons stayed stagnant at 10.7 million. The number marked the first time since April, the U.S. reported negative job growth.

Treasury Sending Out $600 Stimulus Checks This Week

January 3, 2021January 2, 2021 The Center Square

A second round of stimulus checks, this time in the amount of $600, is being sent out this week, the U.S. Treasury Department said Wednesday.

Referred to as economic impact payments, the $600 check individuals will receive is part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, a bill President Donald Trump signed Sunday.

Commentary: Illegal Immigration is Costing Michiganders Jobs

November 2, 2020 Georgia Star News Staff

This November, Michigan voters would be wise to recognize the connection between their top concern — the economy — and illegal immigration. Study after study shows that illegal immigration puts downward pressure on wages and takes away Americans’ job opportunities.

That doesn’t seem to bother Democrats. Joe Biden’s immigration plans, which Democratic senators including Gary Peters support, would put the screws to America’s working class. His agenda includes an amnesty for 11 million illegal immigrants already here. In addition, Biden wants to suspend all deportations during his first 100 days in office and relax the rules for claiming asylum.

Commentary: Trump Economy Grows Record 33.1 Percent in Third Quarter Amid Rapid Recovery

October 30, 2020October 30, 2020 Georgia Star News Staff

The U.S. economy blew the barn doors off all other past recoveries with a record, inflation-adjusted 33.1 percent gain in the Gross Domestic Product (GDP) — more than any other quarter in economic history — in the last major economic report before the election in November.

That is great news for the American people, and it certainly bodes well for President Donald Trump in his bid for reelection against former Vice President Joe Biden as the race for 2020 comes down to the wire. It comes as more than 14 million jobs have been recovered since labor markets bottomed in April amid the Covid state-led lockdowns, according to the Bureau of Labor Statistics.

Commentary: New Study Pegs COVID-19 Crisis Costs at $16 Trillion So Far

October 18, 2020October 17, 2020 Georgia Star News Staff

Estimated costs of the coronavirus pandemic are in. The results are not pretty.

A new study co-authored by Harvard economist David M. Cutler and former World Bank chief economist Lawrence H. Summers places the costs of the COVID-19 pandemic north of $16 trillion.

Recovery Continues, Economy Should be Back to Peak in Fourth Quarter

October 12, 2020October 12, 2020 Georgia Star News Staff

The rapid recovery from the lockdown continues. Economic reports from September indicate the economy has rebounded to 97 percent of its peak reached this past February. The surge in new orders for both manufacturing and service companies points to further gains in the months ahead.

These gains should bring the economy’s output and spending (GDP) back to its prior peak during the fourth quarter of the year.

661,000 Jobs Added in September, Less Than Expected

October 3, 2020October 2, 2020 Georgia Star News Staff

The U.S. economy added 661,000 jobs in September, while unemployment fell to 7.9%, according to Department of Labor data released Friday.

Total non-farm payroll employment rose by 661,000 in September, according to the Bureau of Labor Statistics report, and the number of unemployed persons fell by 1 million to 12.6 million.

Tag: economy