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Economy Tag

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.

Posted by Mary Chastain on June 16, 2017 23 Comments
Amazon has purchased Whole Foods for $13.7 billion, which will allow the online giant to step into the grocery store sector. Amazon officials have stated in the past they want to expand into groceries. From Bloomberg:
Amazon agreed to pay $42 a share in cash for the organic-food chain, including debt, a roughly 27 percent premium to the stock price at Thursday’s close. John Mackey, Whole Foods’ outspoken co-founder, will continue to run the business -- a victory after a fight with activist investor Jana Partners that threatened to drive him from power.

Posted by Mary Chastain on June 12, 2017 15 Comments
More retailers have decided to close stores while Gymboree has filed for bankruptcy. Ascena Retail Group has decided to close "between 250 and 650 locations over the next two years." This group owns Ann Taylor, Lane Bryant, and Justice stores among others. CEO David Jaffe did not specify which brands the closures will affect. But he guaranteed that 250 stores will close. 400 others will definitely close "unless the company can negotiate lower rents at these locations."

Posted by Vijeta Uniyal on June 01, 2017 12 Comments
With the Greek debt crisis still unresolved and Brexit yet to be negotiated, European Union is rolling out plans to tie up the remaining 27 member states tighter together. In a policy paper released yesterday, the European Commission, the EU's political arm, lays out the roadmap for “completing a genuine financial union” by 2025. The 40-page policy paper calls for "further political integration" as well as a banking union," and a "more integrated Economic and Fiscal Union". Furthermore, the document calls for a unified "Euro Area Treasury" to be headed by a powerful "EU Finance Minister," "who would also be Chair of the Eurogroup." The EU policy paper does not see the need for any national ratification or referenda over this irreversible political-economic union paraded as "reform" -- making it perhaps the biggest ever power garb by an unelected bureaucracy.

Posted by Mary Chastain on May 19, 2017 11 Comments
The Senate Homeland Security and Governmental Affairs Committee has passed Sen. Rand Paul's (R-KY) Regulations from the Executive in Need of Scrutiny (REINS) Act, which means it will finally proceed to the Senate floor. This is a major victory for us who despise too much regulation. From Reason:
Sponsored by Sen. Ran Paul (R-Kentucky), the REINS Act would require every new regulation that costs more than $100 million to be approved by Congress. As it is now, executive branch agencies can pass those rules unilaterally, and even though those major rules account for only 3 percent of annual regulations, they are the ones that cause the most headaches for individuals and businesses.

Posted by Mary Chastain on May 05, 2017 4 Comments
The U.S. economy received a huge boost in April after it added 211,000 jobs and unemployment dropped to 4.4%. That's the lowest unemployment number since May 2007. From Fox News:
In an encouraging sign, the number of part-time workers who'd prefer full-time jobs has reached a nine-year low. That trend suggests that many employers are meeting rising customer demand by shifting part-timers to full-time work. During much of the economic recovery, the number of part-timers remained unusually high, one reason why steady job growth failed to produce sharp gains in pay or consumer spending.

Posted by Mary Chastain on May 05, 2017 16 Comments
Earlier this week, Puerto Rico, an American territory, sought "bankruptcy" protection after years of economic downfalls and facing $123 billion in bond and pension debts. So why did it take over two years for the island to address these problems? First off, it's not exactly bankruptcy since Puerto Rico is only a territory and the island cannot receive the same Chapter 9 protections like the states. Second, it was not until last year that Congress passed the Puerto Rico Debt Relief Bill:
The legislation would create a federal oversight board, appointed by Washington, with power to restructure Puerto Rico's unmanageable debt load.

Posted by Mary Chastain on April 26, 2017 27 Comments
Online shopping has led to many American retailers to file for bankruptcy at a fast pace, which could possibly set records for 2017. Fourteen chains alone have filed in the first three months of this year. Turns out no retailer is safe when it comes to shopping online. S&P found that "discount shoe-sellers, outdoor goods shops, and consumer electronics retailers have all found themselves headed for reorganization." Bloomberg reported:
Meanwhile, America’s retailers are closing stores faster than ever as they try to eliminate a glut of space and shift more business to the web. S&P blamed retailer financial struggles on their inability to adapt to rising pressure from e-commerce.

Posted by Mike LaChance on April 21, 2017 22 Comments
You'll be shocked to learn that Millennials are having a tough time growing up. They're struggling with the economy and putting off major life decisions. Mind you, this is the same generation which helped put Obama in the White House. Twice. NBC News reports:
Most Millennials Are Finding It Hard to Transition Into Adulthood: Report By his twenties, Kyle Kaylor imagined he would be living on his own, nearing a college degree, and on his way to a job that fulfilled him. Instead, at 21, he found himself out of school, living with his parents, and "stuck" working as a manager at a fast food restaurant scraping to make hand-to-mouth. Launching into adulthood has been tricky, he said.

Posted by Vijeta Uniyal on April 04, 2017 18 Comments
President Donald Trump's latest executive orders on foreign trade have irked Chancellor Angela Merkel's government, prompting tough talk from Berlin. On Friday, President Trump signed two orders seeking to identify trade abuse and other malpractices carried out by foreign governments in order to lower the U.S. trade deficit. Merkel's second-in-command, German Vice Chancellor Sigmar Gabriel, described Trump's moves as unlawful, claiming that he wants to "favour American companies, even if it contradicts international law." Germany's Economy Minister Brigitte Zypries said that President Trump was taking the U.S. in  "completely the wrong direction" and "moving away from free trade" by signing those executive orders. Minister Zypries had previously threatened to take the U.S. to court if the Trump administration were to impose import duties on German products.
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