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azuccolo15

Consumer spending increases in February while inflation stays low - latimes.com - 0 views

www.latimes.com/...erve--20140328,0,6562228.story

shared by azuccolo15 on 15 Apr 14 - No Cached
  • Consumer spending increased last month the most since November as Americans appeared to start shaking off the effects of severe winter weather.
  • Spending rose 0.3% in February, up from 0.2% the previous month, the Commerce Department said Friday. The report was in line with economists expectations.
  • After a robust 0.6% increase in November, spending tailed off to just a 0.1% increase in December as bitter cold and snow swept in to much of the country.
  • ...8 more annotations...
  • 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.
azuccolo15

Tax Revenue Rockets Up, Helping Lessen the Deficit, Treasury Department Says - NYTimes.com - 0 views

www.nytimes.com/...ecreasing-deficit-us-says.html

shared by azuccolo15 on 15 Apr 14 - No Cached
  • In March, the Treasury collected $216 billion in taxes, up 16 percent from a year ago, helping reduce the deficit for the month to $37 billion, from $107 billion last year. Spending also sank by 14 percent, or $40 billion.
  • The budget gap last month was the smallest deficit recorded for the month of March since 2000, when economic growth was running at a much faster pace than it is today.
  • While some of the increase was a result of tax increases that took effect at the beginning of 2013, budget experts said it also reflected who was benefiting the most in the current recovery.
  • ...5 more annotations...
  • “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.
Andrei Vacarus

More signs Abenomics is working as Japan prices, output rise | Reuters - 1 views

uk.reuters.com/...-economy-idUKBRE97T04U20130830

shared by Andrei Vacarus on 16 Apr 14 - No Cached
  • core consumer prices posted their biggest rise in nearly five years, unemployment fell to its lowest since late 2008, factory output rose and is expected to rise further, and workers' incomes rose.
  • The core-core inflation index, which excludes food and energy prices and is similar to the core index used in the United States, was down 0.1 percent in the year to July, a slower pace of decline than June's 0.2 percent fall.
  • Household spending edged up in the year to July as the feel-good sentiment prompted consumers to eat out more and spend more on travel and leisure.
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  • 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.
azuccolo15

BBC News - No change on North Lincolnshire housing grant ban for smokers - 1 views

www.bbc.co.uk/...uk-england-humber-25154871

shared by azuccolo15 on 09 Dec 13 - No Cached
  • A council has said it will not change its policy on refusing housing grants to tenants who smoke, despite spending just 10% of the available budget
  • North Lincolnshire Council is responsible for distributing government money to help people affected by the removal of the spare room subsidy
  • The change in housing benefit rules was introduced in April and has been dubbed the "bedroom tax" by Labour
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  • The authority's payment ban also applies to social housing tenants who subscribe to satellite television channels
  • Under the changes, 14% is deducted from housing benefit for people with one spare bedroom, and a quarter for two or more.
  • The Department for Work and Pensions (DWP) provides £25m per year in Discretionary Housing Payments to allow local authorities to provide support for tenants affected by the change.
  • "If their spending includes satellite television. If it includes smoking then what we say to you is we can't give you extra taxpayers' money to support you to continue to make those life choices.
  • He said: "I find it quite shocking that the council are saying they're not going to use the money to support people if they happen to be in a contract for satellite TV, which they might have taken before the bedroom tax came in to effect, or they are smokers
  • Victorita Paun on 11 Dec 13
     
    Good article for externalities! Enough room for commenting on the underlying economic concepts.
  • azuccolo15 on 06 Jan 14
     
    MLA Citation: "No Change on North Lincolnshire Housing Grant Ban for Smokers." BBC News. BBC, 2 Dec. 2013. Web. 12 Dec. 2013. http://www.bbc.co.uk/news/uk-england-humber-25154871 This article best applies to the microeconomics section of this course. To be more specific, it is a good example of negative externalities and how governments try to combat them, as well as the idea of subsidies.
Giovanni Perini

UK workers set for first real pay rise for four years | Business | theguardian.com - 1 views

www.theguardian.com/...first-real-pay-rise-four-years

shared by Giovanni Perini on 15 Apr 14 - No Cached
  • UK workers set for first real pay rise for four years
  • Wage increases are finally expected to overtake inflation when prices and job figures are released this week
  • Economists believe inflation ticked down to 1.6% in March from 1.7% in February while annual wage growth is thought to have been 1.8% in the three months to February
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  • 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.
Alex Iancu

Ponta: Cutting CAS and implementing tax exemption for reinvested profits measures possi... - 0 views

www.agerpres.ro/...s-possible-to-achieve-18-57-36

romania tax jobs government spending

shared by Alex Iancu on 16 Apr 14 - No Cached
  • Cutting CAS and implementing tax exemption for reinvested profits measures possible to achieve
  • Prime Minister Victor Ponta on Monday told the plenary session of the Deputies Chamber that the cutting of the contributions to social security (CAS) by 5 per cent, the same as the introduction of the tax exemption for the reinvested profits are both projects that are 'reasonable" enough and 'possible to achieve.'
  • I believe that with competitive tariffs for energy and an adequate fiscal-budgetary policy, to combine cuttings with a corresponding financial-budgetary discipline, we will succeed in maintaining the economic stability of Romania, in 2015 and 2016 as well," Ponta said.
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  • '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.
  • Alex Iancu on 16 Apr 14
     
    Romania changes its supply side policies. 
Diogo Reino da Costa

Portugal's unemployment rate hits 18% | World news | The Guardian - 0 views

www.theguardian.com/...l-unemployment-government-cuts

shared by Diogo Reino da Costa on 15 Apr 14 - No Cached
  • Portugal
  • unemployment
  • rate hit a startling 18% of the working population.
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  • revealed that youth unemployment had soared even higher, with 43% of the under 25s who are not studying now unable to find work.
  • The first quarter
  • "It is a dramatic and brutal increase," said Helena Pinto,
  • a leap in emigration by people desperate to find work.
  • Portugal's economy is expected to shed yet more jobs and shrink by a further 2.3% this year,
  • bidding of the troika of lenders who keep it afloat - the International Monetary Fund, the European Central Bank and the European Commission.
  • government forces ever-deeper austerity
  • Portugal has now been in recession for almost three years
  • Passos Coelho's announcement
  • he would cut another €4.8bn spending over the next three years is expected to harm short-term growth further.
  • sack one in twenty public employees,
  • increase civil service working week from 35 to 40 hours
  • raise the retirement age by a year to 66
  • austerity has so far failed
  • taming the country's budget deficit
  • 5.7% interest
  • country's constitutional court threw out €5.8bn in cuts to
  • civil service pay and sickness benefits.
  • the government selling ten year bonds
  • raising €3bn
  • could have sold three times as much debt this week
  • potential recovery in a country which needed €78bn of bailout money to escape bankruptcy
  • fail to spark growth
  • raising hopes that Portugal could wean itself off aid next year.
  • The government forecasts a third straight year of recession
  • unemployment rising to 18.5%
  • austerity
  • other southern European countries
  • increased last year from 4.4% of GDP to 6.4%.
  • signs of softening
  • the troika
  • extended the repayment period for Portugal's bailout loans
  • seven years
Majdah Fareed

BBC News - Tax rises needed by 2017 to pay for Jersey pensions - 1 views

www.bbc.com/...world-europe-jersey-26955840

shared by Majdah Fareed on 15 Apr 14 - No Cached
  • Contributions, currently 10.5% of salaries and shared by workers and employers, may have to rise from 2016.
  • Jersey spends three quarters of its welfare budget on pensions.
  • The 2011 Jersey census showed about 18% of the island's population was over the age of 65. The population of the island was nearly 98,000 with about 17,000 people aged 65 or older.
  • ...3 more annotations...
  • 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
Vicky Kalfayan

Saudi Arabia may close shops early to boost employment - paper | Reuters - 1 views

uk.reuters.com/...di-shops-idUKBREA3C05J20140413

shared by Vicky Kalfayan on 15 Apr 14 - No Cached
  • Saudi Arabia is expected to make shops close at 9 p.m
  • encouraging employment by making sales jobs more attractive.
  • government is trying to encourage young people to take such positions to address long-term unemployment.
  • ...4 more annotations...
  • 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.
Giovanni Perini

BBC News - Wildlife groups criticise green farm subsidy move - 0 views

www.bbc.co.uk/...science-environment-25459562

bbc news wildlife groups farm subsidy

shared by Giovanni Perini on 04 Jan 14 - No Cached
  • Wildlife groups criticise green farm subsidy move
  • spending a bigger share on the environment despite a smaller overall budget for subsidies.
  • transferring 15% of grants away from direct payments for farmers and into protecting wildlife and helping the rural economy.
  • ...1 more annotation...
  • "Farmers already pocket huge amounts of cash without having to farm in ways that reduce their effect on wildlife
  • Giovanni Perini on 04 Jan 14
     
    I think this is a good article for negative externalities of production (the impact of farming on wildlife) and the actions the government should take, as well as subsidies.
  • Alan Cheung on 06 Jan 14
     
    Interesting article too, but I think you may have more to write about with your wool article.
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