economics Archives - Page 3 of 4

House Lawmakers Set to Square off with White House, Treasury Department over ‘Stifling’ Crypto Tax Plan

August 23, 2021August 22, 2021 Michigan Star Staff

House lawmakers are set to return from recess Monday and will likely take up the $1.2 trillion bipartisan infrastructure bill the Senate passed last week — and with it, a controversial and last-minute cryptocurrency tax provision.

The bill contains a tax reporting mandate forcing cryptocurrency “brokers” to disclose gains and transactions to the Internal Revenue Service (IRS) as part of a scheme designed to help cover part of the infrastructure bill’s cost. However, the bill’s definition of “broker” has been criticized by the cryptocurrency community and pro-crypto lawmakers as vague, expansive and potentially unworkable, with many fearing it could stifle the industry and force crypto companies to collect personal information on their customers.

The provision defines a broker as “any person who is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person,” and forces brokers to report transactions to the IRS in a form similar to a 1099. This means brokers have to collect and report customer information such as names, addresses, and taxpayer identification numbers.

Michigan Lawmaker Calls on Unemployment Insurance Agency for Answers About Benefit Blunder

August 22, 2021August 21, 2021 The Center Square

The leaders of the Unemployment Insurance Agency (UIA) knew as early as Jan. 6 they erred in developing qualifications for benefits, but didn’t tell the 700,000 Michiganders affected for nearly six months.

The Detroit News first broke the story.

After Jan. 6, the UIA tried to retroactively charge some benefit recipients up to $27,000 for the state’s mistake, instead of admitting it erred.

Conservative Media Company Is the Fastest-Growing Advertising And Marketing Business in the U.S., According to Inc. 5000

August 21, 2021August 20, 2021 Michigan Star Staff

Person setting up lighting in front of green screen filming location

A conservative digital media company’s focus on the culture wars in America appears to be paying off, as it is the fastest-growing private advertising and marketing business in the U.S., according to the 2021 Inc. 5000 list released Tuesday.

“We focus on working with groups that are advocating for or otherwise advancing conservative causes or conservative beliefs,” Olympic Media Founder and CEO Ryan Coyne told the Daily Caller News Foundation on Thursday.

Olympic was founded in 2018 and has had many high-profile clients, such as Reps. Elise Stefanik, Jim Jordan, and Madison Cawthorn, Sen. Bill Hagerty and Turning Point USA.

Retail Sales Dipped in July Amid Spiking Coronavirus Cases

August 18, 2021August 17, 2021 Michigan Star Staff

Retail sales in the U.S. declined in July as the number of coronavirus cases spiked, localities renewed some restrictions and businesses delayed their return to in-person work.

Sales dropped 1.1% in July compared to June and totaled $617.7 billion, according to the Census Bureau report released Tuesday. The decrease was driven mainly by declining used and new car sales, clothing purchases, building materials sales, sports goods sales and furniture purchases.

Economists expected retail sales to fall 0.3%, a relatively modest drop compared to the actual decline, CNBC reported. All major stock market indices declined between 0.5% and 0.8% on Tuesday morning following the worse-than-expected report.

Commentary: The Biden Inflation Tax, Made Clear in One Chart

August 15, 2021August 14, 2021 RealClearWire

Joe Biden walking with "American Jobs Plan" sign

What is all this “Biden inflation tax” talk really about? What is the actual effect of inflation on the lives of real people?

Well, below is a chart that compares yearly wage and inflation rates for each month from 2017 through July of this year using Bureau of Labor Statistics data. Wage rates are in blue and inflation (as measured by the consumer price index) is in red. When blue is on top, as it was during the entire Trump administration, workers’ wages are beating inflation and their standards of living are improving. When red is on top, they’re not.

While President Biden claims that it is “indisputable” that his jobs plan “is working,” this chart unequivocally shows that it is not, at least not for American workers. Rather, inflation is surging, more than wiping out any wage gains those workers might have experienced.

Farmers Cry Foul over Biden’s Death Tax Proposal

August 10, 2021August 9, 2021 The Center Square

Woman with ball cap on, out in the fields of a farm

President Joe Biden has proposed amending the inheritance tax, also known as the “death tax,” but farmers around the country are raising concerns about the plan.

In the American Families Plan introduced earlier this year, Biden proposed repealing the “step-up in basis” in tax law. The stepped-up basis is a tax provision that allows an heir to report the value of an asset at the time of inheriting it, essentially not paying gains taxes on how much the assets increased in value during the lifetime of the deceased. This allows heirs to avoid gains taxes altogether if they sell the inheritance immediately.

Under Biden’s change, heirs would be forced to pay taxes on the appreciation of the assets, potentially over the entire lifetime of the recently deceased relative.

U.S. Economy Added Whopping 943,000 Jobs in July as Recovery Accelerates

August 7, 2021August 6, 2021 Michigan Star Staff

Group of people gathered, talking next to an office desk

The U.S. economy reported an increase of 943,000 jobs in July and the unemployment rate fell to 5.4%, according to Department of Labor data released Friday.

Total non-farm payroll employment increased by 850,000 in July, according to the Bureau of Labor Statistics report, and the number of unemployed persons decreased to 8.7 million. Economists projected 845,000 Americans would be added to payrolls prior to Friday’s report, The Wall Street Journal reported.

“The jobs recovery is continuing, but it’s different in character to any we’ve seen before,” payroll software firm ADP economist Nela Richardson told the WSJ. “I had been looking at September as a point when we could gain momentum—with schools back in session and vaccines widely available. But with the delta variant, we need to rethink that.”

Senate Fails to Wrap Up Infrastructure Bill After Talks to Expedite Process Collapse

August 7, 2021August 6, 2021 Michigan Star Staff

Senate Majority Leader Chuck Schumer set up a critical vote on the bipartisan infrastructure bill Saturday after talks to expedite the process fell apart late Thursday.

Both Republicans and Democrats engaged in marathon talks Thursday in a bid to vote on a package of amendments and to advance the sweeping public works package. Doing so, however, required approval from all 100 senators, and Tennessee Republican Sen. Bill Haggerty refused to go along even as his Republican colleagues urged him to do so.

In a statement, Hagerty attributed his objection to the Congressional Budget Office’s estimation that the bill would add $256 billion to the national debt over 10 years.

Newt Gingrich Commentary: The Higher Inflation and Bigger Debt Act

August 7, 2021August 6, 2021 Michigan Star Staff

The $3.5 trillion spending bill set up to follow the $1.1 trillion infrastructure bill (which has little to do with infrastructure) should be called what it really is: The Higher Inflation and Bigger Debt Act.

The Democrats would like you to believe it is only a reconciliation bill. This is vital to them because a reconciliation bill only takes 50 senators and the vice president to pass the U.S. Senate.

However, this additional $3.5 trillion comes after trillions of emergency spending prompted by the COVID-19 pandemic. Consider what the Congressional Budget Office has written about the fiscal situation before the $1.1 trillion and $3.5 trillion bills are passed:

Here is what the Congressional Budget Office forecasts (not counting Biden’s enormous spending plan):

“By the end of 2021, federal debt held by the public is projected to equal 102 percent of GDP. Debt would reach 107 percent of GDP (surpassing its historical high) in 2031 and would almost double to 202 percent of GDP by 2051. Debt that is high and rising as a percentage of GDP boosts federal and private borrowing costs, slows the growth of economic output, and increases interest payments abroad. A growing debt burden could increase the risk of a fiscal crisis and higher inflation as well as undermine confidence in the U.S. dollar, making it more costly to finance public and private activity in international markets.”

Critics Pan Biden Order Calling for Half of U.S. Vehicle Sales to Be Electric by 2030

August 7, 2021August 6, 2021 The Center Square

A new executive order from the Biden administration has accelerated the timeline for electric vehicles and raised questions about the economic impacts of the transition away from gas-powered vehicles.

President Joe Biden signed the executive order Thursday aimed at making 50% of vehicles zero emission in the U.S. by 2030, an aggressive push toward electric vehicles. About 2% of new cars sold each year in the U.S. are currently electric, according to the Pew Research Center.

“The Executive Order also kicks off development of long-term fuel efficiency and emissions standards to save consumers money, cut pollution, boost public health, advance environmental justice, and tackle the climate crisis,” the White House said.

Study: Democrats’ Capital Gains Tax Hike Could Cost More Than 745,000 Jobs

August 2, 2021August 1, 2021 The Center Square

A new Democratic proposal to increase the capital gains tax could cost 745,000 jobs, a study published by the Regional Economic Models Inc. (REMI) projects.

The Sensible Taxation and Equity Promotion (STEP) Act, which would tax unrealized capital gains when heirs inherit assets, among other things, would have a “significantly negative impact” on the economy, including average job losses of 745,000 over 10 years, the report found.

The analysis, conducted for the Committee to Unleash Prosperity, found that sustained annual job losses from eliminating a tax benefit on appreciated assets known as the step-up in basis could eliminate between 537,000 to 949,000 jobs, with models predicting a base of 745,000 lost jobs through 2030.

Report: 1.9 Million Households Owe $15 Billion in Back Rent as Eviction Moratorium Expires

July 31, 2021July 30, 2021 The Center Square

Up to 1.95 million households across America will owe a collective $15 billion in back rent when the eviction moratorium expires Saturday, the Federal Reserve Bank of Philadelphia estimates.

That number will reach 2 million by December, according to the report released Friday. In Pennsylvania, about 60,000 renter households will owe $412 million come August.

The U.S. Centers for Disease Control and Prevention (CDC) made one final 30-day extension of the Emergency Rental Assistance Program through July 31. President Joe Biden’s administration said its “hands are tied” by the courts on the matter and any further relief must come from Congress itself.

Michigan’s $348.7 Million Pandemic Relief Bill, with Funds for Child Care, Hospitals, Signed into Law

July 29, 2021July 28, 2021 The Center Square

Gov. Gretchen Whitmer has signed Senate Bill 27 to appropriate $384.7 million in supplemental pandemic relief funding.

Signed by the governor on Monday afternoon, the bill also provides $10 million of financial support for Southeast Michigan families and businesses that endured massive flooding in June.

SB 27 was introduced by Sen. Jim Stamas, R-Midland, in January. The bill combines $367.7 million of federal COVID relief funding authorized through the Coronavirus Response and Relief Supplemental Appropriations Act and $17 million from the state’s general fund.

Bezos Offers to Waive $2 Billion in Fees to Secure Lunar Landing Contract

July 28, 2021July 27, 2021 Michigan Star Staff

Former Amazon CEO Jeff Bezos offered to waive $2 billion in payments to secure his spaceflight company Blue Origin a NASA contract.

Bezos asked NASA Administrator Bill Nelson in an open letter Monday to award Blue Origin a contract to construct a Human Landing System (HLS), a lunar-landing vehicle, as part of the Artemis program, offering to waive up to $2 billion in fees. Elon Musk’s space company SpaceX had been awarded the $2.9 billion contract in April, beating out Blue Origin’s bid, The Wall Street Journal reported.

The Artemis program is intended to return human astronauts to the Moon, with a manned mission to Mars planned as well. Though the program was initially planned as a joint contract, it was awarded solely to SpaceX due to budgetary constraints which Bezos’ offer sought to alleviate, according to the letter.

“Blue Origin will bridge the HLS budgetary funding shortfall by waiving all payments in the current and next two government fiscal years up to $2 billion to get the program back on track right now,” Bezos wrote in the letter.

Michigan Jobs 322,000 Under Pre-Pandemic Level

July 20, 2021July 19, 2021 The Center Square

Sixteen months after the COVID-19 pandemic began, Michigan is still behind 322,000 jobs compared to pre-pandemic in Feb. 2020.

Michigan’s seasonally adjusted jobless rate of 5% percent was unchanged in June, according to data released by the Michigan Department of Technology, Management & Budget.

“Michigan’s labor market indicators were little changed in June,” Wayne Rourke, the associate director of the Bureau of Labor Market Information and Strategic Initiatives, said in a statement. “The Michigan unemployment rate has been near 5.0 percent for five consecutive months. Payroll job counts in June were similar to March levels.”

Rental Car Companies Across U.S. Struggle to Replace Diminished Fleets

July 20, 2021July 19, 2021 The Center Square

Blue sedan during sunset at dealership in lot

The country is opening up and travel is increasing, but visitors are finding the rental car landscape a bit empty.

Rental car companies are continuing to have a hard time keeping up with demand after selling off fleets to stay afloat during the pandemic.

“The fundamental thing that’s causing it is the very rational corporate response to the pandemic and the almost shutting down of international and domestic travel for most of 2020 and the first half of 2021,” Gregory Scott, spokesperson for the American Car Rental Association (ACRA), told The Center Square. “Airport rentals dropped 70-90% in March and April of last year, and as a result there were literally tens of thousands of vehicles sitting unrented and unwanted because people stopped traveling.”

Treasury Secretary Warns of ‘Rapid’ Inflation This Year

July 19, 2021July 18, 2021 The Center Square

As more federal data show a major spike in inflation, another top federal official said the U.S. is in for more aggressive inflation for the rest of 2021.

Federal officials have been pressed to speak on rising inflation after \data released earlier this week showed that the all items index increased 5.4% over the last 12 months, the biggest spike since the 2008 financial crisis.

Treasury Secretary Janet Yellen commented on the rise in inflation, saying it would grow worse this year.

Federal Reserve Chair: Inflation to be ‘Elevated for Months’

July 18, 2021July 17, 2021 The Center Square

Federal Reserve Chairman Jerome Powell tried to calm lawmakers’ fears about rising inflation but also said it would probably remain elevated for months to come.

Testifying before Congress this week, Powell said the Federal Reserve was willing to step in to address the situation, but that inflation should level out next year.

“As always, in assessing the appropriate stance of monetary policy, we will continue to monitor the implications of incoming information for the economic outlook and would be prepared to adjust the stance of monetary policy as appropriate if we saw signs that the path of inflation or longer-term inflation expectations were moving materially and persistently beyond levels consistent with our goal,” Powell said in his prepared testimony.

Commentary: Inflation Has Arrived

July 17, 2021July 16, 2021 Michigan Star Staff

Wildly excessive federal spending is causing major inflation and shortages, which may lead to a recession and perhaps a financial crisis. Despite the evidence of inflation, Congress is proposing to spend $3.5 trillion on top of the $1.9 trillion COVID relief bill passed earlier this year and the intended $1.2 trillion infrastructure bill. For comparison, federal revenue is only expected to be $3.8 trillion this year.

Evidently, the Democratic Party and President Joe Biden have adopted Modern Monetary Theory (MMT) to the peril of every American citizen. MMT, which is similar to Keynesian economics, says that the U.S. should not be constrained by revenues in federal government spending since the government is the monopoly issuer of the U.S. dollar. MMT is a destructive myth that provides cover for excessive government spending. And it’s not modern, since reckless government spending has been around for thousands of years.

Embracing MMT is similar to providing whiskey and car keys to teenage boys. We know the outcomes will not be good.

U.S. Retail Sales Increased as States Ended Restrictions

July 17, 2021July 16, 2021 Michigan Star Staff

Male checking out on Square program at retail store

U.S. retail sales jumped in June, boosted by states widely loosening coronavirus restrictions and businesses returning to full capacity.

Retail sales increased 0.6% and totaled $621.3 billion in June, according to the Department of Commerce report released Wednesday. The monthly increase was driven by general merchandise, including food service, clothing, personal care, electronics and gasoline sales, the report showed.

“Sectors that were buoyed by the pandemic are slowing down a little bit, but not to a degree that I’d be concerned about,” Square economist Felipe Chacon told The Wall Street Journal. “Household finances have been bolstered by a few rounds of stimulus spending, so it bodes pretty well.”

Inflation Spikes Again, Marks Quickest Increase in 13 Years

July 14, 2021July 13, 2021 Michigan Star Staff

Inflation surged 5.4% over the 12-month period ending in June, the quickest spike since August 2008, a Department of Labor report showed.

The consumer price index (CPI) increased 0.9% between May and June, according to the Labor Department report released Tuesday morning. Economists projected the report would show that CPI ticked up 4.7% between July 2020 and June, The Wall Street Journal reported.

“We’re in a transitional phase right now,” Joel Naroff, the chief economist at Naroff Economics, told the WSJ. “We are transitioning to a higher period of inflation and interest rates than we’ve had over the last 20 years.”

California Spent $13 Million to Guard 120 Empty Homes

July 13, 2021July 12, 2021 Michigan Star Staff

The state government of California has been revealed to have spent $13 million on providing security for 120 empty houses for five months, even as a homeless crisis ravaged the state, Fox News reports.

In a report broken by local outlet Fox 11, the California Department of Transportation (CalTrans) paid $9 million to the highway patrol from November 2020 to April 2021, and gave another $4 million to a private security firm over the same period, all for the purpose of protecting the vacant houses in Pasadena.

In a statement addressing the report, CalTrans said that the houses had been purchased by the government 60 years ago, when there were plans for a change in the local infrastructure by connecting the 710 freeway to the 210. However, that project “is no longer moving forward,” the government statement declared.

Republicans Push Back Against ‘Politicization’ of IRS

July 11, 2021July 10, 2021 The Center Square

President Joe Biden has pushed for beefing up IRS audits of corporations to raise revenue for his new spending proposals, but Republicans are raising the alarm about the potential consequences of the plan.

Biden unveiled his “Made in America Tax Plan” earlier this year as a strategy to help fund his trillions of dollars in proposed new federal spending that includes several tax hikes. Despite this, a bipartisan coalition in the U.S. House and Senate have agreed to a basic framework for Biden’s proposed infrastructure plan, but one element has been the theme of the negotiations among Republicans: no new taxes.

The GOP pushback against raising taxes, though, puts more pressure on the Biden administration to find ways to fund his agenda. Aside from Biden’s controversial tax hike proposals, the president also has proposed adding $80 billion in funding to the IRS so it can increase audits of corporations.

Amazon Calls for Higher Taxes on All Corporations Except Itself

July 11, 2021July 10, 2021 Michigan Star Staff

While the tech giant Amazon has publicly endorsed proposals to raise the corporate tax rate in the United States, the company has been secretly lobbying to keep its own tax rates low, Politico reports.

Last year, during the 2020 presidential election, Amazon CEO Jeff Bezos openly supported then-candidate Joe Biden’s proposals to raise taxes on American corporations. Those proposals have re-emerged in recent weeks as a possible means of funding a possible infrastructure bill, and Biden has been advocating for other countries around the world to adopt higher corporate tax rates as well.

But recently, Amazon has been stepping up its lobbying efforts to try to convince Congress and the White House to allow the company to keep using certain tax breaks in order to keep its own rates low. The retail giant hired a tax lobbyist named Joshua Odintz, who formerly worked as a Democratic aide on Capitol Hill and then as an official in the Obama Administration. In addition to Amazon’s own efforts, similar lobbying has been undertaken by a group known as the “R&D Coalition,” which consists of several companies and organizations including Amazon, Intel, and the National Association of Manufacturers.

Business Groups Slam Biden’s ‘Flawed’ Competition, Antitrust Executive Order

July 10, 2021July 9, 2021 Michigan Star Staff

President Joe Biden’s competition and antitrust executive order will harm American consumers, groups representing both large and small businesses said.

The leading groups — including the Chamber of Commerce, Job Creators Network (JCN) and the National Association of Manufacturers (NAM) — slammed Biden’s executive order, arguing that it will harm competition and present a host of challenges to small businesses. The business groups said the order is an example of big government attempting to exert control over the free market via onerous rules and regulations.

“This executive order amounts to a bizarre declaration against American businesses, from the largest to the smallest,” Small Business and Entrepreneurship (SBE) Council Chief Economist Raymond Keating said in a statement. “It’s hard to understand why a White House would go down such a path, especially as the economy is digging out from the COVID-19 disaster.”

Jobless Claims Increase to 373,000, Above Economists’ Predictions

July 9, 2021July 8, 2021 Michigan Star Staff

The number of Americans filing new unemployment claims increased to 373,000 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 slight increase in the number of new jobless claims compared to the week ending June 26, when 371,000 new jobless claims were reported. That number was revised up from the 364,000 jobless claims initially reported last week.

Economists expected Thursday’s jobless claims number to come in around 350,000, The Wall Street Journal reported.

Study: Michigan’s Vaccine Lottery Unlikely to Boost Lagging COVID-19 Injections

July 9, 2021July 8, 2021 The Center Square

After Michigan missed President Joe Biden’s vaccine deadline of 70% injected with a first COVID-19 vaccine by July 4, Gov. Gretchen Whitmer bet big on a vaccine lottery, tossing in $5 million of taxpayer-funded prizes.

In the meantime, the Michigan Senate Fiscal Agency estimates Michigan won’t reach the 70% benchmark for another year.

As of July 5, the state averaged 4,174 daily doses but only 1,740 first doses (0.1%) of the population.

Commentary: China’s ‘One-Child Policy’ Left at Least One Million Bereaved Parents Childless and Alone in Old Age, with No One to Take Care of Them

July 7, 2021July 6, 2021 Michigan Star Staff

Chinese child being held, peaking over shoulder of dad

A child’s death is devastating to all parents. But for Chinese parents, losing an only child can add financial ruin to emotional devastation.

That’s one conclusion of a research project on parental grief I’ve conducted in China since 2016.

From 1980 to 2015, the Chinese government limited couples to one child only. I have interviewed over 100 Chinese parents who started their families during this period and have since lost their only child – whether to illness, accident, suicide or murder. Having passed reproductive age at the time of their child’s death, these couples were unable to have another child.

Michigan Employment Numbers Pick Up Pace for State’s Pandemic Recovery

July 4, 2021July 3, 2021 The Center Square

Michigan’s recovery from the massive unemployment endured during the COVID-19 pandemic is among the fastest in the country, last week’s employment numbers indicate.

That assessment is according to a recently released WalletHub report, which ranked the state fifth nationwide for progress made between the previous week and the week of June 21, 2021, and fourth nationwide for the smallest increase in initial unemployment claims between the beginning of 2020 and the week of June 21, 2021.

Michigan was ranked 13th nationwide for quickest unemployment recovery since the beginning of the pandemic in March 2020.

Economy Added 850,000 Jobs in June, Well Above Economists’ Forecasts

July 3, 2021July 2, 2021 Michigan Star Staff

Person using a laptop, pointing to the screen

The U.S. economy reported an increase of 850,000 jobs in June and the unemployment rate ticked up to 5.9%, according to Department of Labor data released Friday.

Total non-farm payroll employment increased by 850,000 in June, according to the Bureau of Labor Statistics report, and the number of unemployed persons increased to 9.5 million. Economists projected 700,000 Americans would be added to payrolls prior to Friday’s report, according to The Wall Street Journal.

“This is a trickier phase of the recovery,” Wells Fargo senior economist Sarah House told The New York Times.

Michigan Senate Passes $17 Billion Budget Plan

July 2, 2021July 1, 2021 The Center Square

The Michigan Senate passed a plan totaling $17 billion for K-12 schools, hours before the budget deadline that levies no penalties for late action.

The real deadline for the state budget is Sept. 30, ahead of the Oct. 1 start of the state’s fiscal year.

House Bill 4410 passed on a 34-0 vote, which Senate Appropriations Chair Jim Stamas, R-Midland, called an “immediate priority.” The bill includes $10 million to repair natural disaster relief in cities flooded in June 2021.

Michigan House Passes Bipartisan Budget, Including Historic Increases in Education Spending

June 29, 2021June 29, 2021 The Center Square

Although she thinks it’s only a “start,” Gov. Gretchen Whitmer applauded the bipartisan budget passed Thursday night by the Michigan House of Representatives.

The House voted to pass the budget before the July 1 deadline, and includes the governor’s proposal to implement the largest increase in K-12 public school spending in the state’s history. Whitmer’s office claims the $16.7 billion in school expenditures will “close the gap between the lowest- and highest-funded school districts for the first time since the goal was introduced in 1994.”

Business Owner Says She’ll Go Under If Border Restrictions Aren’t Lifted

June 28, 2021June 27, 2021 Admin

inside of grocery store; close up of products in the aisle

The only grocery store in Point Roberts, Washington, will be forced to close if travel restrictions between the U.S. and Canada aren’t lifted by July 15, the Associated Press reported Thursday.

Point Roberts Marketplace store owner Ali Hayton said the market relies on shoppers who haven’t been able to visit for more than 15 months and that government assistance did little to help the struggling shop, the AP reported. The store received two loans from federal pandemic relief programs, though the funds were used in a week.

“Now that I see that there is absolutely no end in sight, I can’t do it anymore,” Hayton said, according to the AP. “I cannot financially keep subsidizing all of this by myself.”

Michigan Senate Votes to End $300 Weekly Federal Unemployment Benefits

June 27, 2021June 26, 2021 The Center Square

The Michigan Senate voted 19-16 to approve House Bill 4434, which aims to end the state’s participation in boosted $300/week federal unemployment program.

Republicans have argued the benefit hinders economic recovery 15 months after the pandemic started.

Business owners told lawmakers on June 17 they can’t find workers, even after hiking pay, signing bonuses, and flexible hours. Some industries have seen as many as 35% of workers not return post-COVID-19, leaving some gas stations wondering if they’ll get enough gas.

Just 14 States Had Positive Job Growth in May

June 26, 2021June 25, 2021 Michigan Star Staff

Just 14 states saw positive employment growth between April and May while the majority of the growth was concentrated in a handful of states, according to the Department of Labor.

Fourteen states led by California, Florida and Texas experienced significant job growth, 35 states experienced stagnant job growth and Wyoming saw a decline in employment last month, according to a Department of Labor report released Wednesday. Overall, the unemployment rates in 21 states decreased between April and May while every state’s employment improved compared to May 2020.

While the U.S. continues to report increased job growth, the report showed that the vast majority of the growth has come from about a dozen states.

Majority of Americans Want the Government to Fight Income Inequality, Poll Finds

June 26, 2021June 25, 2021 Michigan Star Staff

A majority of respondents believe that the federal government should push policies that reduce income inequality in the United States, according to a poll released Friday by Axios.

The Axios poll shows 66% of respondents say the government should work to lower the level of income distributed unevenly, up 4% compared to 2019.

Republicans surveyed who agreed the government should tackle income inequality increased by 5%, and Independents who responded similarly increased by 2%, according to the poll. Democrats saw an increase of 7% in favor of such policies compared to 2019.

Inflation Takes Biggest 12-Month Leap Since 1990s, Key Report Shows

June 26, 2021June 25, 2021 Michigan Star Staff

A key index used by the Federal Reserve to measure inflation showed that consumer prices leapt quicker over the last 12 months than they have in three decades.

The personal consumption expenditures (PCE) index surged 3.9% in the 12-month period between June 2020 and May, according to the Department of Commerce report released Friday. The PCE index excluding volatile food and energy prices increased 3.4%, the biggest leap since the 1990s, CNBC reported.

Energy prices increased 27.4% while food prices increased 0.4% over the last 12 months, the report showed.

Jobless Claims Decrease Slightly as Economic Recovery Continues

June 25, 2021June 24, 2021 Michigan Star Staff

The number of Americans filing new unemployment claims decreased to 411,000 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 decrease in the number of new jobless claims compared to the week ending June 12, when 418,000 new jobless claims were reported. That number was revised up from the 412,000 jobless claims initially reported last week.

Economists expected Thursday’s jobless claims number to come in around 380,000, The Wall Street Journal reported.

Commentary: Making Sense of the Post-Pandemic Economy

June 25, 2021June 24, 2021 Michigan Star Staff

Guy on phone with stocks on computer screen

Are you having a hard time understanding why the housing market is heating up, and why the cost of essentials such as milk, eggs, and gas is climbing? Are you in the market for a used car? Then you know how expensive those are right now. And why can’t businesses find employees, yet millions remain unemployed? Economists agree the recovery isn’t like anything we’ve seen before. That’s because we’ve never had a situation before where the heavy hand of government shut down private enterprises on a nationwide scale. The market distortions are enormous. As states reopen, there is a herky-jerky feel to the economy that has many people unsettled.

Former Federal Reserve vice chairman Alan Blinder wrote in the Wall Street Journal recently, “the recovery is not linear. Rather, it is proceeding in fits and starts. Sales of physical goods, for example, dipped only briefly when Covid hit, recovered quickly, and are now well above their pre-pandemic levels. In stark contrast, businesses that deliver personal services, such as restaurants and hotels, suffered a devastating depression and are still below their pre-pandemic levels.”

By far the most uneven outcome so far since the economy crashed in spring 2000, besides the 7.6 million fewer jobs compared to pre-pandemic levels, has been inflation, which is up 5 percent the past 12 months.

U.S. Supreme Court Rules Against NCAA on Payment for College Athletes

June 23, 2021June 22, 2021 The Center Square

Paying college athletes has been a hotly debated topic for years, but now the U.S. Supreme Court has released a ruling on the issue.

A group of current and former student athletes brought the lawsuit against the National Collegiate Athletic Association, arguing that the organization violated antitrust laws when it prevented student athletes from accepting certain education-related benefits.

The case, filed in 2018, challenged the NCAA and the biggest conferences including the Pac-12, Big Ten, Big 12, SEC, and ACC. The Supreme Court ruled unanimously in favor of the students Monday, saying the NCAA could not deny those benefits, which could include things like “scholarships for graduate or vocational school, payments for academic tutoring, or paid posteligibility internships.”

Michigan to Fully Open Tuesday

June 21, 2021June 20, 2021 The Center Square

Gov. Gretchen Whitmer has once again ditched her COVID-19 reopening plan, announcing the state will drop its COVID-19 restrictions on June 22. Her previous plan dropped restrictions on July 1.

“Today is a day that we have all been looking forward to, as we can safely get back to normal day-to-day activities and put this pandemic behind us,” Whitmer said in a statement.

Whitmer thanked those who received vaccinations. She also thanked medical staff and other frontline workers.

Commentary: New Harvard Data (Accidentally) Reveal How Lockdowns Crushed the Working Class While Leaving Elites Unscathed

June 20, 2021June 19, 2021 Michigan Star Staff

Founding father and the second president of the United States John Adams once said that “Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.” What he meant was that objective, raw numbers don’t lie—and this remains true hundreds of years later.

We just got yet another example. A new data analysis from Harvard University, Brown University, and the Bill and Melinda Gates Foundation calculates how different employment levels have been impacted during the pandemic to date. The findings reveal that government lockdown orders devastated workers at the bottom of the financial food chain but left the upper-tier actually better off.

The analysis examined employment levels in January 2020, before the coronavirus spread widely and before lockdown orders and other restrictions on the economy were implemented. It compared them to employment figures from March 31, 2021.

Short-Term Rental Bills Divide Michigan Local Governments, Renters

June 16, 2021June 15, 2021 The Center Square

Legislation in Lansing aims to dictate whether local governments can ban Michiganders from generating income via short-term rentals (STR).

The Michigan Municipal League (MML) opposes the bill backed by GOP lawmakers, Senate Bill 446 and House Bill 4722, which aim to stop governments from banning STRs. A vote is expected within two weeks.

Each side says the other wants governmental overreach. MML says Lansing outright prohibiting local government from banning STRs statewide is advocating for “big government,” while the GOP says local government telling residents how they can and can’t use their home is also government overreach.

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

June 16, 2021June 15, 2021 Michigan Star 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.

Price Jump for Used Cars Results in Boost in Michigan Sales Tax Collected

June 15, 2021June 14, 2021 The Center Square

The microchip shortage responsible for bottlenecking the production of new cars has been a boon for the used car market.

However, the lack of available new vehicles also has created a greater demand and thus a scarcity of quality used vehicles.

This has driven up the cost of used cars and trucks, which has also increased the sales tax collected on used vehicle transactions. The national average increase in used car sales prices is 16.8% or $3,926 per vehicle sold.

Biden Lifts Economic Ban on Chinese Military Tech Company

June 14, 2021June 13, 2021 Michigan Star Staff

Joe Biden signed an executive order updating the United States’ list of blacklisted Chinese companies, dropping the ban on at least one company that was originally put on the list by President Donald Trump, the Washington Free Beacon reports.

Biden lifted the blacklist on the company Sugon, which was first banned by President Trump in November of 2020. The company is responsible for selling “supercomputers” to the Chinese military, for use in nuclear weapons research. Sugon also specializes in facial recognition software, cloud computing, and other surveillance technology that has been used by the Chinese Communist Party (CCP) against the Uyghur Muslim population.

Although Biden’s updated list still maintains bans on such companies as Huawei and Hikvision, the removal of Sugon was noted as “strange” by Michael Sobolik, a fellow with the American Foreign Policy Council.

Four States to Slash COVID-19 Unemployment Aid Saturday

June 14, 2021June 13, 2021 Michigan Star Staff

Four states will be cutting pandemic unemployment increases three months early, ending the supplemental $300 in federal aid.

Alaska, Iowa, Missouri, and Mississippi will end pandemic-related unemployment relief on June 12. An additional 21 Republican-led states will slash federal aid before it expires on Sept. 6, according to Business Insider.

Conservatives continue to advocate an end to the increased benefits, saying they are no longer needed now that the pandemic is contained and speculating that the high payouts are discouraging would-be workers from returning.

‘Dark Stores’ Squeeze Michigan City Tax Revenue

June 14, 2021June 14, 2021 The Center Square

Vacant big box stores in Michigan become tax-reducing boons to retail companies statewide when those establishments have property assessed at rates sometimes 50% lower than previous rates.

This is known as a “dark stores” strategy, which often leaves local taxpayers to foot the tab.

An S&P report released Thursday found the strategy is employed nationwide.

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

June 13, 2021June 12, 2021 Michigan Star 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 Michigan Star 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.