Congress OKs Minimum Wage Boost (05/25)
“ Congress passed the first increase in the federal minimum wage since 1997 late Thursday as part of the measure for supplemental funds to fight the war in Iraq. ." Discuss how the increase in minimum wage may affect over 5 million Americans who are currently earning the minimum wage (Video). What may be potential affects on teen or low skilled employment if the real minimum wage is raised (Data)? Review what was learned from California’s experience in 1990s (Analysis). Examine why hundreds of economists lobbied to raising the Minimum Wage (Lobbying).
Average Gasoline Price Nears 1981 Record (05/21)
" The average price of gasoline hit $3.218 a gallon Monday, up a stunning 11.5 cents the past week and just half a penny shy of the inflation-adjusted record, the government reported.” Review the current gasoline prices in the U.S. (AAA Survey). Discuss how no new investments in refinery capacity since 1976 may be part of the cause for higher gasoline prices when the demand for gasoline is greater (Analysis). Examine if there is any evidence of market manipulation (FTC Report). Should the government intervene to regulate gasoline industry to ensure competition (Regulation)?
Record High Gas Run Continues (05/19)
"Gasoline prices hit their record high for the seventh straight day Saturday, as gas costing less than $3 a gallon is becoming a rare find anywhere in the country." Examine what factors may contribute to the recent record high gasoline prices (Analysis & Supply Data). Discuss what relationship may exist in the long run between high gas prices, inflation, and economic growth (CPI & GDP Growth). Determine the components which make up the retail price of gasoline (Analysis). How would you spot cases of gasoline price-gouging or pricing fixing (Gaswatch)?
Graduates Find Employers Coming To Call (05/17)
"As the school year draws to a close, newly minted graduates are emerging into one of the best job markets in years. Companies are scrambling to get the best and brightest.” Discuss why this year is emerging into one of the best job markets in years (Employment). What sector(s) of the economy is projected to generate the strongest employment growth in the coming years (Projections)? Guess which academic majors are experiencing the strongest gains in income this year (Majors).
US Welcomes Foreign Investment (05/10)
“ The U.S. needs investment from abroad and it's a concern that support for it is slipping and creating an impression that foreigners are not welcome, U.S. Treasury Secretary Henry Paulson said on Thursday.”Discuss how foreign direct investment can help the US economy (Fact Sheet). Why are foreigners investing in the US (Video)? Examine why any investment can lead to higher wages and improved standard of living – even for the US (Analysis & Data).
Fed Leaves Rates Alone Again (05/09)
" The Federal Reserve held a key interest rate steady Wednesday and indicated again that it was concerned about slower growth as well as inflation - an encouraging signal to investors that the central bank will not raise rates any time soon.” Review the official Federal Open Market Committee statement on its monetary policy stance (Statement). Do you agree that “economic growth slowed in the first part of this year” (Growth)? What about “core inflation” (Prices)? Discuss what would be the next likely policy action by the FMOC (Shadow).
Keeping The Bull Running (05/06)
"The Dow has seen its longest run of gains in nearly 80 years. Can it continue in the week ahead as investors mull earnings, inflation news and the next Fed meeting?” Discuss how increasing corporate profits may be fueling the longest run of gains by the Dow (Profits). Identify which blue-chip company stocks make the Dow Jones Industrial Average (Stocks). Discuss how a weakening dollar may affect the bottom line of companies which make the Dow Jones Industrial Average (Dollar).
Only 88,000 Jobs Added In April (05/04)
" Companies created jobs at the slowest pace in 2½ years in April, but the unemployment rate remained low, the government said Friday, in a report that still points to a tight job market.” Examine the Bureau of Labor Statistics’ Employment Situation Summary report for April (Report). Discuss how the official unemployment rate is calculated each month (Calculation). Assess how the U.S. job market is performing (Analysis). What may be the potential effects on the economy if employment and wage growth slow especially in a climate where energy and food prices are pushing up (GDP)?
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