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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An Uncertain Year Ahead As we bid adieu to 2022, our thoughts turn to the upcoming year. We at the CBEI hope that the contents of this publication can help shed light on some of the challenges and opportunities for the uncertain year ahead. [Presentation Photos] In The U.S. Economy and Inflation in 2023, Chief […]
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Overview No economic issue was more politicized in the November elections than inflation. It was one of the most important issues to voters, and the most important economic issue. In a rare show of unity, both Democrats and Republicans agreed that inflation was a problem. However, specific short-term solutions to current inflation were more problematic […]
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Social Security has been in the news recently, as the topic has again become a subject of political discussion. The conundrum – while workers have paid into the Social Security system for many years expecting to receive a certain level of benefits, the money may not be there when they retire. Social Security – Who […]
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The August inflation report released by the U.S. Bureau of Labor Statistics indicated that although the annualized rate of inflation declined slightly, inflation remained at a relatively high rate. The Consumer Price Index (CPI) increased 8.2 percent (seasonally adjusted) for the 12 months ending in August, down slightly from the July rate of 8.5%. Month […]
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Is the U.S. heading into a recession? Historically, the yield curve has been a pretty good indicator of pending recessions. However, it is not foolproof, and cannot predict the duration and severity of recessions. The chart below shows the Treasury yield curve on September 8, 2022. The yield curve is a graphical representation of the […]
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There are two broad factors that affect prices – demand and supply. Generally, inflation is caused when there is a change to one of these factors. If the supply of goods is reduced for a given demand, prices (inflation) will increase until a higher price level is reached that balances the demand to match the […]
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It’s not just a U.S. thing, it is global. Increased gas prices and inflation are not just confined to the U.S. They are global problems because global factors have impacted gas prices and contributed to inflation. The unprovoked military attack by Putin against Ukraine created uncertainty in global energy markets given that Russia is the […]
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The S&P 500 dropped precipitously Monday, June 13, pushing it into a bear market. The drop was caused by investors selling off their assets in anticipation of the Federal Reserve hiking interest rates to control inflation. Prof. Kevin Bahr, chief analyst of the UW-Stevens Point Center for Business and Economic Insight, joined host Rob Ferrett […]
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