AISB IB Economics 2015

As the economy strengthens, the debate is focused on whether to double the tax in two stages or increase it more gradually, rather than whether or not to increase the tax.

Wage-earners' incomes also rose an annual 1.3 percent in July, increasing for the fifth straight month.

And the jobless rate improved for the second straight month to hit 3.8 percent in July, the lowest since October 2008.

e Bank of Japan have gambled on massive fiscal and monetary stimulus to spark life into the economy,

strengthening the case for a planned sales tax increase.

Pessimists have argued that the benefits of "Abenomics," a three-pillar strategy of fiscal and monetary stimulus combined with a long-term growth strategy, may be short-lived and won't prompt companies to spend more on investment and wages.

The Bank of Japan has a target of lifting inflation to 2 percent in about two years, a goal many analysts see as optimistic given the deflation that has dogged the economy.

'Reducing contributions to social security by 5 percentage points in the second half of the year is expected to have an impact on the budget worth probably around 2.6 billion lei. This means that the impact next year will be worth around 5.2 billion.

the government wants to reduce spending and obtain additional budget revenues so that to be able to cover the 2.6 billion leu in the second half of the year and the 5.2 billion in 2015,' Ponta said.

this cutting as a necessary condition for the further economic development of the country and the encouraging of the fiscal facilities and creation of jobs starting on July 1.

the currency slid to 60.40 rupees to the dollar, close to its record low of 61.21 rupees hit earlier this month.

“The RBI has done everything to defend the rupee—but it did not hike rates,”

Business leaders and Finance Minister P. Chidambaram have been pushing for cheaper borrowing rates to boost growth,

push up the cost of imports, drive up already stubbornly high consumer price inflation and risk a widening of the current account deficit, which hit a record 4.8 percent of gross domestic product last year.

Earlier th

is month, the central bank raised two short-term lending rates to support the rupee, which is the worst-performing currency among major Asian nations.

India’s economic woes have led to increased speculation that it could be headed for an economic crisis of the sort it suffered in 1991, which forced a bailout by the International Monetary Fund.

“I feel shaky. Now there is a 10-20 percent chance that we might see 1991 again

At the other end of the scale, of the regions with jobless rates of 5.4%

the main reason for its recent fall is a lack of good jobs.

0. But the number has been on the decline ever since -- a trend that was accelerated by the Great Recession.

We're operating way below potential,

There are now 90.5 million Americas who don't work and are not counted as part of the labor force. This excludes kids under the age of 16 and non civilians such as those in the military or in prison, but includes just about everyone else.

Whatever the reason, the fact that just over 63% of the population is engaged in the workforce is problematic. It means that a smaller chunk of the population is paying for promised entitlements such as Social Security and Medicare. And if a smaller share of the country is working, it will also act as a drag on economic growth.

"We're not getting the economic growth or the tax payments that were expected when these promises were made

Latest estimates show that 193,000 more people were in work between October and December, compared to the previous three months.

Average total earnings, including bonuses, rose 1.4% in the three months to January compared with a year earlier, according to ONS figures released last month. Excluding bonuses, wages grew by 1.3%.

The so-called core CPI, which strips out the volatile energy and food components, also rose 0.2 per cent in March after edging up 0.1 per cent the prior month.

In the 12 months through March, the core CPI advanced 1.7 per cent after rising 1.6 per cent in February.

The Fed targets 2 per cent inflation and it tracks an index that is running even lower than the CPI. The rise last month could ease concerns among some policymakers about inflation being too low.

In March, food prices increased 0.4 per cent after rising by the same margin in February. A drought in the West has pushe

In March, food prices increased 0.4 per cent after rising by the same margin in February. A drought in the West has pushed up prices for meat, dairy, fruit and vegetables.

More price increases could be on the way after food prices at the factory gate posted their biggest gain in 10 months in March. Gasoline prices fell 1.7 per cent, declining for a third straight month.

Within the core CPI, shelter costs increased 0.3 per cent, which accounted for almost two-thirds of the rise in the index. Rents increased 0.3 per cent.There were also increases in medical care, apparel, used cars and trucks, airline fares and tobacco. The cost of recreation, and household furnishings fell.

Consumers had more money to spend last month. Personal income was up 0.3%, matching January's gain. It was the second straight monthly increase.

"Looking ahead, we expect consumer spending to be significantly stronger in the second quarter as the impact of winter economics starts fading away," he said.

Despite higher spending, inflation remained in check. Prices were up just 0.9% last month compared with a year earlier, the Commerce Department said.

Year-over-year inflation was 1.2% in January and hasn't been running below 1% since October.

The figure is well below the Federal Reserve's annual target of 2% and could raise deflation fears as the central bank continues to scale back a key stimulus program.

There have been mixed views on how Americans are feeling about the economy, with a private report released Friday showing a drop in consumer confidence this month.

Still, views about the state of the economy and expectations for the coming months have been largely unchanged during the harsh winter, indicating an improvement is on the way, said Richard Curtin, chief economist for the survey.

“Consumers have finally begun to expect sustained gains in their personal finances, especially among younger households," he said. "Consumers are ready to celebrate a delayed spring with renewed spending.

It showed much steeper increases in certain food categories. The index for poultry, meats and eggs, for instance, showed a second consecutive increase of 1.2% last month.

“It’s higher-income people and it is mainly from the stock market; it’s not mainly wages,” said Alice M. Rivlin, a senior fellow at the Brookings Institution and director of the Office of Management and Budget in the Clinton administration.

Military spending in particular has dropped sharply, especially as operations in Afghanistan gradually wind down. In the first half of the 2014 fiscal year, which began last October, the Defense Department’s military spending fell by $20 billion.

In addition to the boom in tax revenue, the federal government’s books are being helped by lower military spending, a drop in outlays for benefits like unemployment insurance, and payments to the Treasury from Fannie Mae and Freddie Mac, the mortgage giants that were taken over by Washington in 2008.

Corporate tax collections jumped by $17 billion in the first half of the fiscal year, to $117.5 billion, and Social Security receipts also surged.

Over all, the deficit is expected to equal 4.1 percent of gross domestic product in 2014, down from nearly 10 percent in 2009, during the depths of the recession.

the central bank maintained its commitment to increasing base money, its key policy gauge, at an annual pace of 60 trillion to 70 trillion yen, or about $580 billion.

Bank of Japan officials have been largely unfazed, pointing to positive signs such as shrinking slack in the economy.

push young Saudis to take jobs in the private sector by closing a gap in pay, benefits and working hours with government posts, which has been the main source of national employment for decades.

The official unemployment rate for Saudis is around 12 per cent. However, economists estimate that only 30-40 percent of working age Saudis participate in the workforce, either by holding jobs or seeking employment.

years of successive fiscal surpluses and foreign currency reserves

economists often warn that high government spending, particularly on salaries, is unsustainable.

Experts point to shifts in the post-recession labor market as the reason for so many college graduates in low-paying jobs.

Some 58% of the jobs created during the recent economic recovery have been low-wage positions like retail and food prep workers,

These low-wage jobs had a median hourly wage of $13.83 or less.

median household income has also dropped by more than $4,000 since 2000

And fast food worker Bobby Bingham, who got a bachelor's degree from University of Missouri in Kansas City, works four part-time low-wage jobs just to barely scrape by

The consensus among these workers is that they thought pursuing pricey degrees would buy them access into the middle class. But that has been far from the reality in the wake of the recession.

"My family told me, 'just get your degree and it will be fine,'" Bingham told CNNMoney. "A degree looks very nice, but I don't have a job to show for it."

social security contributions may need to rise by up to 40% by 2042. It also suggests more immigration could limit the need to raise tax by increasing the number of taxpayers.

rising to 1% in 2016, to fund long-term care for the elderly.

Jersey is introducing a 0.5% income tax in 2015

The jobless total was 2.34 million in the final quarter of last year, down by 125,000, giving a rate of 7.2%, while t he number of people claiming jobseeker's allowance dipped to 1.22 million in January, down by 27,000.

Employment now stands at more than 30 million, a rate of 72.1%, which is 0.6% higher than a year ago.

More than 900,000 young people are still unemployed and over 250,000 young people have been unemployed for over a year.

"Under-employment is now a bitter reality for millions of struggling families across the UK."

"Today's figures also show working people facing a cost-of-living crisis are over £1,600 a year worse off since David Cameron became Prime Minister.

the latest unemployment figures showed that the UK had a strong and flexible labour market, adding: " However, there are signs that the pace of improvement in the jobs market is slowing down. Although youth unemployment has fallen, the jobless level among 16 to 24-years-olds still stands at 917,000, which is far too high.

"Many people are also still working part-time, as they are unable to gain full-time employment."

The thinktank expects the unemployment rate to have dropped to 7% in the three months to February

This week's official data may show that the squeeze on real pay is now over.

"That said, falling real incomes didn't get in the way of robust consumer spending growth over the last year. Household spending growth outpaced income growth as consumers saved less (or borrowed more)

"Earnings growth moving above consumer price inflation would also be a very welcome development for the government given Labour's focus on the cost of living.

Philip Shaw, economist at Investec, expects CPI to come in at 1.5%, which would be the lowest rate since October 2009, and he forecasts it will stay relatively low.

However we are keeping an eye on wholesale food prices – note that wheat prices (in sterling terms) are up 9.5% so far this year, while corn is 17% higher," he said.