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Economy Tag

Posted by William A. Jacobson on September 20, 2017 11 Comments
It's tough for bricks-and-mortar retailers. We reported earlier this year, how Retailers Filing for Bankruptcy Keep Piling Up, May Set Record in 2017. And recently how Toys R Us Files for Chapter 11 Bankruptcy. Chapter 11 at least allows a retailer to reorganize, and perhaps survive in some form. But other retailers are simply folding up shop and going out of business. Benny's is an iconic discount Rhode Island retailer. It has been part of the Rhode Island landscape for generations. It was a discounter before there were discounters, and somehow it survive the big box stores and Wal Mart.

Posted by Mary Chastain on September 08, 2017 31 Comments
On Thursday, major national credit-reporting company Equifax revealed that a cyberattack from July exposed personal information of about 143 million U.S. consumers. The company wrote in a statement:
The information accessed primarily includes names, Social Security numbers, birth dates, addresses and, in some instances, driver's license numbers. In addition, credit card numbers for approximately 209,000 U.S. consumers, and certain dispute documents with personal identifying information for approximately 182,000 U.S. consumers, were accessed. As part of its investigation of this application vulnerability, Equifax also identified unauthorized access to limited personal information for certain UK and Canadian residents. Equifax will work with UK and Canadian regulators to determine appropriate next steps. The company has found no evidence that personal information of consumers in any other country has been impacted.

Posted by Mary Chastain on September 04, 2017 29 Comments
We've all heard the same advice: get good grades in high school and get a bachelor's degree. A bachelor's degree has become so common that a lot of people have entered graduate school to get a master's or a PhD. That push has led to a shortage of tradespeople, especially as those in jobs usually described as "blue collar work" grow older. So what do we do now? Some states have started to push more money to promote vocational education.

Posted by Mary Chastain on August 30, 2017 4 Comments
The Bureau of Economic Analysis has revised the second quarter GDP growth to reflect 3%, up from the 2.6% growth initially released. This gives the U.S. its strongest quarter since 2015. From The Wall Street Journal:
Growth in the second quarter was “above the trend for the expansion” but came “after a below-trend pace” in the first quarter, said Jim O’Sullivan, chief U.S. economist at High Frequency Economics, in a note to clients. “The trend is probably still not much more than 2%,” he said.

Posted by Mary Chastain on August 25, 2017 22 Comments
Amazon passed two major hurdles on Wednesday after the U.S. Federal Trade Commission and Whole Foods' shareholders cleared the way for the internet giant to acquire the grocery chain. With that out of the away, Amazon is going all in and has already announced it plans on slashing Whole Foods prices as early as Monday.

Posted by Mary Chastain on July 31, 2017 19 Comments
After failing to do anything with Obamacare, Congress has gone on recess without addressing the debt ceiling. Treasury Secretary Steven Mnuchin has warned Congress to address the debt ceiling for the past seven months and do something before recess. Mnuchin said the government needs to raise the debt ceiling before September 29 or it will run out of money to pay the bills.

Posted by Mary Chastain on July 12, 2017 30 Comments
Officials in Cook County, the home of Chicago, have threatened to pass out 1,100 layoff notices since a judge delayed implementation of a soda tax. Circuit Judge Daniel Kubasiak placed a temporary hold on the tax until at least July 21. Cook County Board President Toni Preckwinkle said this move has forced her hand to fire people.

Posted by Mary Chastain on July 10, 2017 9 Comments
We've been chronicling the retail crisis gripping the country as e-commerce continues its rise in popularity. Stores have been closing. Malls are having trouble attracting stores to fill the growing number of empty spaces. Now department stores are taking and unprecedented move to bring in more shoppers: Discount high-end cosmetics.

Posted by Mary Chastain on July 09, 2017 28 Comments
The retail crisis continues as Sears and Kmart will close 43 additional stores. Numerous factors have contributed to stores closing, especially online shopping. But believe it or not, one market correspondent has used the situation to criticize President Donald Trump. However, CNNMoney even reported that Sears Holdings "has struggled to stay afloat as customers turn away from traditional brick-and-mortar stores to shop online."

Posted by Mary Chastain on July 06, 2017 31 Comments
The Illinois House voted to override Republican Governor Bruce Rauner's veto of the income tax hike and budget bill. This is the first budget Illinois has passed in two years. The House voted 71-42, which is the bare minimum House Speaker Mike Madigan needed, after a security incident delayed the vote for two hours.

Posted by Mary Chastain on July 04, 2017 14 Comments
The Illinois Senate has just approved the massive income tax hike, two days after the House approved it. This bill will permanently raise the income tax 32% from 3.75% to a little under 5%. It also raises the corporate tax rate from 5% to 7%. Republican Governor Bruce Rauner vetoed the bill this afternoon. The Senate voted to override Rauner's veto 36-18. Now the bills go back to the House, which will vote tomorrow.

Posted by Mary Chastain on July 03, 2017 20 Comments
Just days after a judge demanded Illinois pay $293 million toward Medicaid bills, the state's House decided to permanently hike the income tax rate by 32%. 15 Republicans voted for the bill, which Illinois Policy documented on Facebook. But Republican Governor Bruce Rauner announced that he will veto the bill if it lands on his desk:
"Under Speaker Madigan's direction, legislators chose to double down on higher taxes while protecting the special interests and refusing to reform the status quo. It's a repeat of the failed policies that created this financial crisis and caused jobs and taxpayers to flee" Rauner said in a statement.

Posted by Mary Chastain on July 02, 2017 38 Comments
I've been blogging about the mess that is my home state of Illinois and just as I thought...it managed to find a way to make things worse. Illinois legislators cannot agree on a budget. It closed the "fiscal year $6 billion in the red." The state also has "unpaid bills to state contractors and vendors that's reached about $14.5 billion and roughly $130 billion in unfunded pension liabilities." S&P downgraded the state's credit rating to a step above junk. Then the state's GOP leader resigned on Friday. A judge has ordered Illinois to pay $293 million towards Medicaid bills just as the state entered its THIRD FISCAL YEAR without a budget.

Posted by Mike LaChance on June 27, 2017 27 Comments
The progressive city of Seattle pushed its minimum wage up to $15 dollars an hour but a new study from economists at the University of Washington suggests the measure is hurting the very people it was intended to help. This is an issue the left often refuses to understand. If you force a higher wage than the market demands, employers are forced to adjust in ways that are less favorable. Ben Casselman and Kathryn Casteel report at FiveThirtyEight:
Seattle’s Minimum Wage Hike May Have Gone Too Far As cities across the country pushed their minimum wages to untested heights in recent years, some economists began to ask: How high is too high?

Posted by Mary Chastain on June 21, 2017 28 Comments
The Illinois lottery may become a victim of the bankrupt state if lawmakers cannot agree and pass a budget. In a last ditch effort, the lawmakers have started a special session on Wednesday that can last for 10 days. From Fox News:
The state lotto requires a payment from the legislature each year. The current appropriation expires June 30, meaning no authority to pay prizes. In anticipation of a budget deadlock, the state already is planning to halt Powerball and Mega Millions sales.
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