Category: Economy

Rideshare Drivers Strike in Nashville, Other Major Cities

Peter D'Abrosca
Ride Share Driver

Rideshare application drivers in Nashville and around the country were on strike Wednesday.

“Uber, Lyft, and delivery drivers are DONE with being pushed around by app companies. We’re sick of working 80 hours/week just to make ends meet, being constantly scared for our safety, and worrying about being deactivated with the click of a button,” a group called Justice for App Workers said on its website. “Rideshare drivers and delivery workers will be striking ALL DAY and telling the app companies that WE ARE UNITED and deserve fair pay and deactivation protections.”

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Companies are Slashing Away at Debt as Surging Inflation Casts Shadow over Interest Rate Cuts

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Business meeting

Many companies are looking to cut down on their debts as recent high inflation reports have made borrowing more expensive as the prospect of interest rate cuts by central banks diminishes, The Wall Street Journal reported Wednesday.

Even companies with already high credit outlooks are deleveraging to boost their rating with top agencies and reduce debt costs that have increased along with interest rates, while firms with lower ratings are needing to cut debt to maintain profitable operations, according to the WSJ. Investors have had to adjust their view about when interest rates might decline in recent weeks as persistently high levels of inflation have made it less likely that central banks around the world, including in the U.S., will cut interest rates, reducing the cost of holding debt.

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Commentary: Housing Woes in the Heartland

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Wisconsin could well determine the next president of the United States. President Trump earned his historic upset victory in 2016 with a win in Wisconsin by only 27,000 votes. Four years later, Biden prevailed there by an even smaller 20,000 vote margin, out of 3.2 million total ballots.

This year’s election figures to be another photo finish. The latest battleground state polling shows Trump up +1% in a multi-candidate field. This polling was commissioned by my populist Right labor organization, the League of American Workers, and queried a sampling of likely voters in Wisconsin that split evenly in 2020 between Trump and Biden.

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‘Economic Suicide’: Biden Admin Justifies Tax Hike Based on Racial Criteria

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President Joe Biden

The Biden administration’s analysis of its revenue proposals for fiscal year 2025 argues targeted tax hikes that disproportionately affect white people would ease racial wealth inequality.

Increasing taxes on capital gains and income-based wealth would reduce racial wealth inequality for black and Hispanic families, the Treasury Department outlined in the analysis published in mid-March. The Treasury points out that white families disproportionately hold assets subject to capital gains tax or are in a higher tax bracket, meaning a hike in those taxes would benefit black and Hispanic families.

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More Than 100 Colleges Cave Closed or Merged Over Last Eight Years

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University of Saint Katherine

The University of Saint Katherine, a small nonprofit in North San Diego County, recently announced it will close May 18, citing “financial pressure due to unprecedented inflation and rising state-mandated labor costs.”

It’s not alone. Nationwide, universities face financial hardships that appear to be getting worse. More than 100 colleges and universities have closed or merged, or announced plans to, over the last eight years, according to a tracker updated this month by Higher Ed Dive.

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Airlines Launch Effort Backing Green Jet Fuel Tax Credit that Could Raise Food Prices for Americans

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Plane at gate

A coalition of major airlines has formed a group supporting a tax credit pushed by President Joe Biden that experts say could jack up food prices.

More than 40 companies, including Boeing, American Airlines, JetBlue and United as well as ethanol trade groups, are pushing the federal government to “expand” existing tax credits for “sustainable aviation fuel” (SAF) and to pass legislation to increase the fuel’s availability, Axios reported. Corn-based ethanol is a common component in SAF and experts previously told the Daily Caller News Foundation that increasing the demand for corn by incentivizing its use in jet fuel could indirectly raise food costs for Americans.

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Mounting Evidence Is Pointing to a Nightmare Scenario for the U.S. Economy

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Evicted

U.S. annual economic growth measured just 1.6 percent in the first quarter of 2024, following a report of persistently high inflation in March of 3.5 percent year-over-year. The combination of both low growth and high inflation, in conjunction with continuously high amounts of government spending and debt, has led to signs of stagflation in the U.S. economy, which wreaked havoc on U.S. consumers throughout the 1970’s, according to experts who spoke to the DCNF.

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Economist Uses Big Mac Price Index to Analyze Inflation, Impact of Food Costs

The Center Square
Big Mac Burger

In addition to measuring foreign exchange rates, an economist is using the price of a hamburger to examine inflation.

The Economist magazine developed the Big Mac index in 1986 as an informal way to determine the “purchasing power parity” of different countries and currencies. B. Ravikumar, senior vice president and deputy director of research at the Federal Reserve Bank of St. Louis, recently used the Big Mac index to analyze the U.S. consumer price index, which is widely used as the authoritative inflation measurement.

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Top Automaker Takes $1.3 Billion Bath on Key EV Line

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Ford Headquarters

Top American automaker Ford hemorrhaged over a billion dollars on electric vehicles (EV) in the first quarter, leading to massive losses per vehicle.

Ford sold 10,000 vehicles in its EV Model e unit in the first three months of the year, losing $1.3 billion on the line altogether, equating to a loss of $130,000 per vehicle sold, according to data from the company’s first quarter earnings report. Despite the loss on EVs, Ford’s net income was $1.3 billion, selling over a million vehicles with $42.8 billion in revenue in the quarter.

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Youngkin Travels to Europe for ‘International Trade Mission’ Ahead of May Special Session for Virginia Budget

Tom Pappert
Glenn Youngkin

Governor Glenn Youngkin announced on Wednesday he will embark on a week-long “international trade mission” to Europe as lawmakers continue work on the biennial Virginia budget ahead of the May special legislative session.

The governor’s office confirmed Youngkin’s “third international trade mission” will include stops in Germany, Denmark, Finland and Swizterland between April 28 to May 3. He plans to meet with business leaders, public officials and Finnish President Alexander Stubb.

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Tesla Reports One of Its Worst Quarters in Years in Latest Sign of Trouble for EV Market

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Tesla Factory

Tesla disclosed a shaky earnings report to the public on Tuesday in the latest sign of weakness in the U.S. electric vehicle (EV) market.

The EV maker’s revenue for the first quarter of this year came in nearly 10 percent below its revenue for the first quarter of 2023, marking the largest decline the company has seen since 2012, according to its quarterly report and CNBC. Tesla’s net income also fell by about 55 percent relative to 2023, and the company warned investors that “volume growth rate may be notably lower than the growth rate achieved in 2023.”

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Taiwanese TSMC Workers Reportedly Aim to Have Children in Arizona so Kids Become U.S. Citizens

Tom Pappert

A Tuesday report which detailed alleged culture clashes between local workers and those from Taiwan at the Taiwan Semiconductor Manufacturing Company (TSMC) facilities in Arizona reveals some workers from Taiwan, who relocated to Arizona to build the plants, will seek to start or expand families so their children reap the benefits of U.S. citizenship.

The Rest of World report described TSMC’s ventures in Arizona as a “debacle,” with American engineers subjected to intense scrutiny, public humiliation and restricted communications while being trained by TSMC in Taiwan.

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Ukrainian Aid Costs Each American Household Almost $1,500, Economists Say

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Ukraine President Volodymyr Zelenskyy with United States President Joe Biden

Even as Americans grow increasingly pessimistic and agitated about their personal finances, Congress is about to ask struggling families to cover the cost of more funding for Ukraine.

The $95 billion foreign aid package adopted Saturday by the House and facing near-certain passage in the Senate includes an additional $61 billion for Ukraine. Once added to the money already appropriated for Ukraine since 2022, the United States will have spent approximately $173 billion.

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Virginia Drivers Must Obtain Car Insurance by July 1 as 2022 Law Goes Live

Tom Pappert
Driving a BMW in the country

Drivers in Virginia have until June 1 to obtain insurance for their motor vehicles due to a law passed in 2022 that removes the option to avoid insurance premiums with an annual fee to the commonwealth.

Governor Glenn Youngkin signed in 2022 legislation to end Virginia’s Uninsured Motor Vehicle (UMV) fee, which previously allowed citizens to annually pay $500 to the Virginia Department of Motor Vehicles (DMV) to register a vehicle without insurance.

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Tennessee Treasurer Absent from Letter to Bank of America Demanding End to De-Banking Conservatives

Matthew Giffin
David H. Lillard, Jr.

Several state treasurers and other officials sent a letter to Bank of America warning the banking giant of apparently targeting customers with conservative politics by de-banking them—however, Tennessee State Treasurer David Lillard’s signature was absent.

The letter to Bank of America CEO Brian Moynihan said its signatories are concerned that Bank of America has a “track record of discriminating against religious ministries,” a “systemic bias” against politically conservative views, and supporters of former President Donald Trump.

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International Money Fund Warns on U.S. Debt ‘Something Will Have to Give’

The Center Square
Congress Spending

The International Monetary Fund warned the United States that government spending and increasing national debt are not sustainable and could hurt the global economy.

The Washington, D.C.-based group that represents 190 member countries also called the U.S. economy “overheated.” The debt warning follows several other high-profile calls to address growing U.S. debt.

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Youngkin to ‘Work with Legislators’ on Skill Games Concerns After Senate Tosses Governor’s Amended Bill

Tom Pappert
Virginia Gov. Glenn Youngkin

Governor Glenn Youngkin confirmed he will “work with legislators” to achieve compromise legislation addressing controversial skill games machines.

The Virginia Senate tossed Youngkin’s version of the bill, with just six senators voting in favor and 34 voting against. Youngkin’s amended bill sought to place strict restrictions on legislation that originally would have allowed skill games in convenience stores throughout the commonwealth.

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Home Sales Drop in March as Mortgage Rates Surge over 7 Percent

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Sale Pending Home

Existing home sales shrank in March as consumers respond to continuing price increases and rising mortgage rates.

Sales for existing homes fell 4.3% in March compared to the previous month and 3.7% year-over-year, to an annual rate of 4.19 million, according to a press release from the National Association of Realtors (NAR). The average for a 30-year fixed-rate mortgage reached 7.10% this week, a substantial jump from 6.88% last week, depressing Americans’ desire to switch homes and possibly acquire a higher interest rate, according to a release from real estate giant Freddie Mac.

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Nashville’s East Bank Development Moving Forward

The Center Square

Development on Nashville’s East Bank is moving forward as the area prepares for a new $2.1 billion Tennessee Titans stadium, set to open in 2027, and development in the area surrounding it.

Both the House and Senate will soon discuss companion bills to create an East Bank Development Authority board after Nashville’s Metro Council approved a deal to have Fallon Co. develop the initial 30 acres of Nashville-owned land in the development area.

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Report: Biden has Taken over 200 Actions Against U.S. Oil

The Center Square
Oil Drilling

President Joe Biden and his administration have taken over 200 actions against the U.S. oil and natural gas industry as energy prices have gone up, according to a new report. 

“President Biden and Democrats have a plan for American energy: make it harder to produce and more expensive to purchase,” the Institute for Energy Research states in a new report. “Since Mr. Biden took office, his administration and its allies have taken over 200 actions deliberately designed to make it harder to produce energy here in America.”

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Electric Vehicle Maker Launches Another Round of Layoffs as Demand Slows

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Rivian factory

Electric vehicle (EV) manufacturer Rivian announced its second round of layoffs just this year on Wednesday as consumer demand for EVs stalls.

The layoffs at Rivian will affect around 1 percent of the company’s staff as they continue to look for ways to cut costs to bolster struggling profits due to less-than-expected EV sales, the company confirmed to the Daily Caller News Foundation. Rivian announced in February that it was laying off 10 percent of its workforce after it released its 2024 production forecast, which was well below analyst expectations, according to Reuters.

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U.S. Wheat Farmers Stare Down Huge Losses as Foreign Goods Flood Market

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Wheat combine

Many American wheat farmers may face losses in 2024 due to a glut of foreign supply coupled with soaring equipment and labor costs amid high inflation, Reuters reported Wednesday.

Wheat prices are near their lowest point in nearly four years as supply from the Black Sea and Europe has unexpectedly flooded the market after three years of droughts draining reserves, hitting winter wheat farmers in the Great Plains particularly hard, according to Reuters. Costs for transporting and producing American wheat have soared compared to foreign wheat suppliers, with high inflation increasing costs for farm equipment, repairs and labor for farmers.

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Tennessee Lottery Raises over $113 Million for Education in Third Quarter of Fiscal Year 2024

Kaitlin Housler
Lottery Balls

The Tennessee Education Lottery Corporation announced Tuesday it raised $113,820,000 for education in the Volunteer State during the third quarter of Fiscal Year 2024 (FY24), which spanned from January 1 through March 31.

“The Lottery is proud to announce this quarter’s results, which reinforce our commitment to funding vital education programs for Tennesseans,” Tennessee Education Lottery President and CEO Rebecca Paul said in a statement.

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Commentary: Inflation Will Stick Around as Long as The Big Spenders Do

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President Joe Biden signing a bill

August came early to the nation’s capital with last week’s round of March inflation data. The late summer weather in Washington, D.C., is notoriously hot and sticky, two accurate descriptors of the latest price increases facing families and businesses alike. Inflation is stubbornly high, and the Biden administration’s spendthrift public policies are to blame.

In the past 12 months, consumer prices rose 3.5 percent, the second month of accelerating annual inflation. In March alone, prices rose 0.4 percent. That may not sound like much, but it’s actually terrible. If that monthly inflation rate holds steady, prices will double in less than 16 years.

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Tennessee Governor Bill Lee Joins Group of Governors in Opposing UAW’s Unionization Campaign

Kaitlin Housler
Bill Lee Volkswagen

Tennessee Governor Bill Lee joined the governors of Alabama, Georgia, Mississippi, South Carolina, and Texas in issuing a joint statement in opposition of the United Auto Workers’ (UAW) unionization campaign.

The coalition of governors said it is “highly concerned” about the unionization campaign, adding such efforts are “driven by misinformation and scare tactics.”

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Report: States with Low Taxes, Fewer Restrictions Tops for Economic Outlook

The Center Square
Work Meeting

States with lower tax rates, lower debt and fewer government restrictions generally have stronger economic outlooks, according to the latest report that ranks states from best to worst based on how friendly their policies are to economic growth.

The American Legislative Exchange Council released its “Rich States Poor States” report Tuesday. The report ranks states based on “economic outlook” using 15 factors.

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Minneapolis City Council Votes to Delay New Pay Standards for Uber, Lyft Drivers

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Uber Driver

The Minneapolis City Council voted to delay the enforcement date for new minimum compensation standards for drivers with transportation network companies such as Uber and Lyft. Pending approval from Minneapolis Mayor Jacob Frey, the minimum compensation standards would go into effect on July 1.

In March, the Minneapolis City Council authorized an ordinance which mandates that a driver for Uber or Lyft must be paid $1.40 for every mile driven while transporting a rider, and $0.51 for every minute a rider is being transported, or $5.00 (whichever is greater). The per mile and per minute rates would be annually adjusted under the ordinance.

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Electricity Prices have Risen Seven Times Faster Under Biden than Trump

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Electricity prices have experienced a significant rise since the beginning of the Biden administration, rising more than seven times faster than under the entire Trump administration.

The average price of electricity has increased by 29.4% since January 2021 as of March, far greater than the preceding four years under the Trump administration, when electricity prices increased by only 4.0%, according to the Federal Reserve Bank of St. Louis. The jump in electricity prices accompanies a number of policies from the Biden administration that have curbed energy production, such as a regulation from the Environmental Protection Agency that requires that existing coal-fired power plants cut their greenhouse gas emissions by 90% by 2040.

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Investors Scramble to Adjust Their Portfolios After Inflation Surge

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New York Stock Exchange trading floor

Many investors are diversifying their portfolios from standard stocks and bonds as March’s inflation surge casts doubt on economy-boosting rate cuts from the Federal Reserve happening this year, according to Reuters.

The consumer price index increased to 3.5 percent year-over-year in March, up from 3.2 percent in February and far from the Fed’s 2 percent target. Markets prior to March’s inflation report anticipated a few rate cuts this year, leading investors to buy up stock in anticipation that markets would rise when cuts materialize, but the increasing possibility that the Fed will not cut rates this year has led investors to switch up their market strategy, according to Reuters.

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Prices Edge Even Higher as Fed Chair Speculates If Inflation Is Really Under Control

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Woman shopping at supermarket

Inflation jumped year-over-year in March amid speculation over whether the rate of inflation is really decelerating, according to the latest Bureau of Labor Statistics release on Wednesday.

The consumer price index (CPI), a broad measure of the price of everyday goods, increased 3.5 percent on an annual basis in March and 0.4 percent month-over-month, compared to 3.2 percent in February year-over-year, according to the BLS. Core CPI, which excludes the volatile categories of energy and food, remained high, rising 3.8 percent year-over-year in March, compared to 3.8 percent in February.

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Commentary: High Gold Price Points to Sustained Inflation

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Gold Bars in vault

The economy looms large in the minds of most people and not simply because it is an election year. It affects us directly. We spend a lot of our waking hours at work, and our jobs are often connected to the welfare of families and children. With everything being more expensive, getting a toe hold on mere middle-class status is harder now than it was for older generations. Many people are slipping down a rung or three.

In addition to long-term trends like the decline of manufacturing and the cut-throat financialization of corporate America, unique recent events loom large. COVID lockdowns, soon followed by the government money giveaway—PPP loans, augmented unemployment benefits, rent relief, and other stimulus plans—disrupted our routines and affected the entire economy. While these measures likely prevented a deep recession, the shutdowns ruined a lot of businesses, and the various stimulus funds ended up unleashing inflation.

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