Forget Greece. The biggest question mark in the never-ending eurozone debacle is now Italy. European markets have been getting slammed over fears that Italy may be the next domino to fall. But why is Italy — whose debt problems have until now been on the back-burner — suddenly feeling the heat? First, eurozone finance ministers [...]
Dollar stores were the stars of the recession – and recovery. During the depths of the financial crisis, customers flocked to these super-discount retailers, as they “traded down” from even cheaper outlets like Wal-Mart in order to save some sparse cash. When the economy bounced back, analysts worried that more confident consumers would “trade up” again, [...]
Higher unemployment isn’t the only thing putting the American dream at risk. Americans live by the idea that each generation can do better than the last and that, for those who have a job, working hard leads to more success. But that’s not panning out, according to a new paper by the Brookings Institution. Since [...]
Back when the financial crisis hit, there were few things more irritating to Americans than seeing huge bonuses go to the top dogs at big corporations. Two years later, and apparently nobody cares. 98.5% of companies that put their executive pay plans up for a vote by shareholders have received a resounding ‘a-ok’, the Wall [...]
Forget jobs. Where are the workers? The unemployment rate rose and job growth was nearly non-existent in what was probably the most disappointing piece of economic news since the start of the recovery in mid-2009. The government reported on Friday that employers added just 18,000 workers in June. That was the slowest rate of job [...]
The word “Japan” has become synonymous with economic malaise. Any time an economist wants to describe how bad things could get for an industrialized economy, he or she inevitably says something like the place “could end up like Japan.” And there is good reason why Japan has become a four-letter word in the world of [...]
A few years ago, policy wonks, retirement experts and politicians came up with what they thought was a great way to fix the 401(k) system – automatic enrollment. So in 2006, they passed a law that allowed businesses to put a portion of their employees’ money into 401(k) plans without their permission. The employees were [...]
Everyone knows that when Americans buy stuff, the economy does better. But just how much better off does our economy get when we indulge in growth-driving consumer spending on American products? And how does that compare to what our buying does for other countries? A new study by The Journal of International Commerce and Economics [...]
Consumer sentiment may have dropped to a seven-month low in June. But wallets are sending a different message.
There are a number of possible reasons the recovery has been slower than expected. Foreclosures. Banks making fewer loans. American companies doing more of their hiring overseas. The adoption of new regulations to stop another financial crisis. My colleague Roya Wolverson has discussed, here and here, the things that could be a continued drag on [...]
