Economics in the News – Feb. 10-16
Economics impacts our lives every day. Below are some of the top storylines from this past week in economic news.
- United States President Donald Trump unveiled a $4.8 trillion budget proposal Monday. According to The Associated Press, the bid would slash $465 million from Medicare and Medicaid programs. The budget also relies upon a projection of 2.8% growth this year, which most economists view as too optimistic. The economy grew at a 2.1% clip in 2019.
- The U.S. Consumer Price Index (CPI) had a modest increase of 0.1 percent in January, according to figures released Thursday by the Labor Department. The increase in CPI was below the 0.2 percent expected increase, according to Nasdaq, and was below the 0.2 percent mark in December. The growth stemmed from a 0.4 percent climb in housing costs in January.
- Disabled people have more employment opportunities than ever before according to The Wall Street Journal ($). Among all working-age disabled people that 33.6% were either employed or currently looking for a job in data released by the Labor Department. That number is improved from 30.2% in 2014. The low unemployment rate advances in health care and technology were highlighted as keys to opening new doors to employment for the disabled.
- China’s economy grew 6.1% in 2019, which is the slowest pace in nearly three decades. The Wall Street Journal ($) highlights that the trade war with the U.S. and reduced consumer spending contributed to the slower pace.
- Consumers in the United States amassed a record $930 billion in credit card debt during the final quarter of 2019, according to the latest figures released Friday by the Federal Reserve Bank of New York. The Wall Street Journal ($) states that the record level of debt has surpassed the $870 billion peak during the 2008 financial crises and that younger Americans (18-29 years old) have a 76% higher delinquency rate than any other age group.
- The S&P 500 and Nasdaq each finished the week at all-time highs. This even with investor concern about the economic impact of the coronavirus, according to The Associated Press. The S&P 500 closed the week at 3,380.16, while the Nasdaq finished at 9,731.18.