Week of October 23rd, 2023

Plus, when the nation’s biggest problem is simply … the government.

GM’s Cruise taxis were banned from California roads after the state said the driverless car company misrepresented safety data.

The September PCE shows costs related to nursing homes, hospitals and medication were major contributors to inflation. Plus, driverless cars get stuck at a red light.

Rising costs for prescriptions and hospital services were felt in latest PCE report, though health inflation has been mild in the past year.

Stocks close mixed; services prices rise; consumer spending stays strong; consumer sentiment falls in October.

Both government and corporate bond yields have been climbing. For many companies, though, higher revenue more than covers the cost.

Scarce labor and supply chain snarls, for two.

The consumer price index and the personal consumption expenditures price index measure the changing cost of different baskets of goods.

Goods inflation has slowed down a lot over the last year, thanks in part to higher interest rates. But the Federal Reserve is having a harder time slowing services inflation.

New initiatives announced by the White House would repurpose downtown offices; Treasury Department issues sanctions to block Iran’s support of Hamas; inflation held steady in September at 3.4%; Alphabet CEO Pichai to testify in Google antitrust trial.

While demand for bigger purchases is cooling, people are still spending lots on cheaper, everyday services — like a haircut or dining out.

Folks in econ circles sure do love their acronyms. We give you the TL;DR on both the consumer price index and the personal consumption expenditures price index.

From the BBC World Service: The Chinese Foreign Minister Wang Yi is in Washington meeting U.S. Secretary of State Antony Blinken. Then, has the bubble burst for the Hipgnosis Songs Fund?

Axios tech policy reporter Maria Curi joins us on this week’s Bytes: Week in Review to discuss Meta’s latest legal battle, how Congress views deepfakes and a possible executive order on artificial intelligence.

Money lessons for living life your own way. Starting Nov. 3.

And what’s ahead for those Trump-era tax cuts.

Rules to boost the domestic economy now apply to broadband and water equipment. Delays and higher costs can be part of the trade-off.

GDP went gangbusters last quarter, but many expect reality to set in soon. Also, students are finding quicker, lower-cost paths to careers.

Stocks fall; plane tickets and health care spending picks up; durable goods orders rise; UPS lowers revenue forecast.

The answer will be pretty familiar: consumer spending, and lots of it.

After years selling on Etsy, Mimi Striplin of The Tiny Tassel in South Carolina saw a “need to create a space for people that looked like me.”

Economists at the Dallas Fed reported some evidence of “labor hoarding” in the latest Beige Book.

They’re cheaper and quicker than earning a bachelor’s degree. When students complete their courses, jobs will likely be waiting for them.

Average interest rates for retail credit cards have soared to nearly 29%. How did they reach those heights?

The GDP growth rate in the third quarter was the highest in nearly two years; federal regulators issue new rules for labeling meat products as organic; jobless claims rise to a still-low total of 210,000; UAW, Ford reach tentative labor deal.

Business activity in Germany contracted for a fourth straight month in October. Experts are labeling Europe’s largest economy the “sick man of Europe.”

There’s research that shows students who take financial education courses make smarter decisions about money.

Nearly 13% of U.S. families struggled to put food on the table that year, according to the USDA — 5 million more households than the year before.

Rates now average nearly 29%, according to Bankrate. By comparison, the typical rate for a standard Visa or Mastercard is around 21%.

We explore what new leadership means for spending bills to avoid a government shutdown, aid packages to Ukraine and Israel, and the farm bill.

From the BBC World Service: Business activity contracted in Germany for a fourth straight month in October. Plus, “Barbie” has boosted toy sales for its maker, Mattel

Marketplace’s China correspondent Jennifer Pak says nowadays, most adults are even worried about reaching the age of 30 in fear of losing their career.

Plus, what happened to Republican moderates in the House?

Today: Can staffing mandates bring more nurses into the profession as Americans age? Also, more bumps in the road for the EV industry.

Google, aka Alphabet, and Microsoft are longtime rivals. Lately, Microsoft has been on the offensive, building strength in key areas of tech.

Shepherdess Land & Livestock offers prescribed grazing services with sheep and goats.

High construction expenses and budget pressures are pushing developers to be creatively cost-conscious as they expand access to green spaces.

Even though prices have come down and the federal government is helping with rebates, the average price is still above $50,000.

The government wants to set staffing standards at nursing homes, but the industry says there are too few nurses to allow it to comply.

Stocks close down; sales pick up in the South and Northeast; Alphabet profits rise; Microsoft cloud services revenue jumps.

A lot of homebuilders are working with lenders to offer lower mortgage rates — or they’re offering other incentives like money towards closing costs.

New home sales rose to their fastest pace since February 2022; Boeing losses mount amid 737 Max production hiccups; California orders GM Cruise autonomous vehicles off roads; Alphabet’s cloud unit stumbles as Microsoft’s booms.

While much ink has been spilt over a 5% yield on the 10-year Treasury note, we might just be forgetting what exactly “normal” is.

While demand for crude oil is high, greater investment and management would be needed to boost oil exports from Venezuela.

A recent study by Harvard and Columbia universities finds “gamified” training can lead to better business outcomes.

We delve into big changes made to 1977’s anti-redlining law, the Community Reinvestment Act.

From the BBC World Service: The lab-grown diamond industry is now a $14 trillion market, and major jewelry-seller Pandora is hoping that customer demand is forever.

Chris Moody, freelance writer for the Washington Post, calls this “sextortion,” where an online scammer asks for explicit photos of teen boys, then demands money in exchange for not sending the images to friends and family.

How the Gila River Indian Community fought to bring its water back.

Many more people — and companies — want H-1Bs than the number available. Proposed changes would make it harder to game the system.

Right now, the Federal Reserve is spending more than it makes on the securities it holds. Plus, school supper and a sneaker store slump.

“There are opportunities in down markets,” said owner Venita Cooper, whose entrepreneurial abilities could help her tackle the challenge.

When the central bank makes money, it hands it to the Treasury. But now it’s losing money as it pays interest to banks on their deposits.

The federal government has also restricted eligibility after opening it early in the pandemic.

Stocks rise; staffing issues, food costs burden after-school meal programs; services sector expands; manufacturing demand picks up.

“Forecast-informed reservoir operations” may help planners deal more effectively with flood or drought conditions.

And, “gamenomics.”

Three women entrepreneurs talk about their experiences starting their own businesses, and whether it helped them get better pay and flexibility.

S&P Global reported improvements in both services and manufacturing sectors; Tesla discloses expanding Justice Department probe; fossil fuel use to peak by 2030, IEA says; UAW strikes at Stellantis Ram truck plant.

The promise of hydrogen fuel is that it could cut emissions in industries that have proven difficult to decarbonize. It’s a lot of pressure for an industry that’s barely off the ground.

We take a look at three news items showing that fossil fuels are out and renewables are in.

We take a look at why financiers have flocked to Riyadh for face time with the crown prince.

Companies including Ikea, Nestle, Unilever and Volvo are saying that they’re already grappling with the costs of the climate crisis.

Investors — and the union — will be scrutinizing the numbers for clues about how the extended work stoppage is affecting the companies.

GM and Ford report quarterly earnings this week. How much of an impact will strikes have? Also: a preview of Big Tech earnings.

From the BBC World Service: Women across Iceland are to strike from paid and unpaid work on Tuesday to bring attention to inequality. Later, a fall in wool prices could pose a new threat to the vicuna.

The city banned most short-term rentals almost two months ago. Wired’s Amanda Hoover says some Airbnb hosts and renters have moved their now-illegal business to other platforms, which provide fewer protections.

Plus, stats on horror movie jump scares.

Econ Extra Credit newsletter #171

Google pays to be basically everyone’s default search engine. And when it comes to tech, people don’t like to shake things up. Plus, CEO overpay and remote overemployment.

The vast majority of federal revenue comes from taxes, and the drop in 2023 revenue was mostly due to a drop in individual income taxes.

The yield on the 10-year Treasury briefly hit 5%, the highest level since 2007. A resilient economy and expanding debt are pushing rates up.

How much is too much? Union strikes and shareholder discussions have put executive compensation centerstage.

Inertia is part of the story. But so is fear of breaking everything — and Big Tech knows that.

They do it for the money. But overemployment also symbolizes a change in Americans’ attitudes toward work.

A shutdown will affect farmers exporting products from Canada, mostly to Europe and the Middle East.

Stocks close mixed; investors expect higher rates for longer; Chevron to buy Hess Corporation; GDP data due this week.

The U.S. has given Israel $158 billion since Israel was founded, not adjusting for inflation, according to the Congressional Research Service.

A European think tank says the minimum tax on corporations will generate half of the hoped-for revenue; group also urges new tax on billionaires; Japan launches Google antitrust probe; major companies urge rich countries to ditch fossil fuels by 2035.

Here’s how it’s distributed, and a look at why direct cash transfers are simply not sufficient given the state of Gaza’s economy.

No surprise: Inflation, higher interest rates and the pandemic all play a role.

The U.S. government ran a budget deficit of about $1.7 trillion for the 2023 fiscal year, up 23% compared to the year before. How did we get here?

This weekend, humanitarian aid crossed into Gaza from Egypt. But what exactly does distribution of that aid look like?

Chinese officials are conducting tax inspections into the Taiwan-based company. Then, there was no clear winner in Argentina’s presidential election.

The Nobel laureate says using gene-editing technology to modify human microbiomes, potentially with the help of artificial intelligence, could eliminate some chronic diseases.