Funding the federal government (and government shutdowns) has become a hot political topic lately. This blog will explain what the government spends its money on, how the government is financed, and how and why federal debt has increased. Federal Government Spending Federal government spending consists of three major categories: mandatory spending, discretionary spending, and spending […]
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In September, the Federal Reserve decided to keep its target interest rate, the federal funds rate, unchanged. In March 2022, the Federal Reserve began the upward trek for interest rates, with 11 rate increases occurring through August 2023. The objective of the rate increases was to lower consumer and business spending, which in turn would […]
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UW-Stevens Point finance professor emeritus Kevin Behr joins PBS Wisconsin to explain how economic measures showing a booming job market, higher pay, falling inflation rates and interest rate hikes are impacting Wisconsin. Watch Now
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The economic ups and downs of 2022 continued through spring 2023. Inflation remains relatively high, but decreasing, interest rates continue to climb, the labor market remains strong, and slowing economic growth fostered uncertainty regarding future growth. In addition, spring 2023 witnessed a major bank failure and continues to endure the unresolved debt ceiling saga. This […]
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Is it Spring yet? by Scott Wallace, Ph.D.Director and Editor, Center for Business and Economic Insight; Professor of EconomicsUW-Stevens Point School of Business and Economics Presentation Photos As I look out of the window on the last day of April, a wintry of mix of precipitation is falling over the Central Wisconsin countryside. This reminds […]
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On Friday, March 10, 2023, Silicon Valley Bank (SVB) became the second largest bank to fail in the United States. Silicon Valley Bank was uniquely positioned as a financial institution, as its client base was comprised of primarily tech companies and venture capital firms. According to Reuters, SVB was an important lender for companies in […]
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How does a college education impact income inequality? University of Wisconsin-Stevens Point junior Kyle Pulvermacher took on this question as part of research he presented at the UW System Research in the Rotunda event on March 8 in Madison. [View Photos] Held at the State Capitol, the event invites undergraduates from across the UW System […]
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Overview 2023 began with much speculation about the economy. Would there be a recession? Would economic growth continue leading to a soft landing? The Federal Reserve began raising interest rates in 2022 to reduce consumer and business spending to combat inflation. The Federal Reserve tries to accomplish this goal through targeting the “federal (fed) funds […]
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Recently there has been a lot of buzz about implementing a form of flat tax, a 30% national sales tax, to replace the current tax structure. This blog provides a simple (yet realistic) example to demonstrate the implications for taxpayers if the currently proposed federal national sales tax of 30% was implemented. Prior to the […]
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Overview First, a few definitions. The federal budget deficit refers to the amount U.S. federal government spending exceeds government income. To finance a budget deficit, the government borrows money from the public through the issuance of U.S. government debt called U.S. Treasury securities. The Total Public (Federal) Debt Outstanding represents the total (principal) amount of Treasury securities […]
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