WASHINGTON - The global economy is recovering faster than expected from the coronavirus pandemic, the International Monetary Fund (IMF) said Tuesday. The IMF said the world economy is now expected to grow by 6% this year and advance another 4.4% in 2022, sharp increases from the 3.3% decline last year during the worst months of the pandemic that spread across the globe after originating in China in late 2019. Chief IMF economist Gita Gopinath said in Washington that the improved economic outlook “reflects the additional fiscal support provided in the United States, vaccination efforts that are going to lead to a strengthening of recovery in the second half of this year, and also the continued resilience of economic activity to the pandemic in many parts of the world.” The U.S. reported last week it added 916,000 more jobs in March. On Tuesday, the Labor Department said U.S. job openings rose to a two-year high in February, 5.1% above their pre-pandemic level. Job openings, a … [Read more...] about IMF: Global Economy Recovering From Coronavirus
The United States has poured trillions of dollars into its economy during the pandemic, and if President Joe Biden has his way, it will continue doing so for the next several years. While most of the attention to the stimulus and recovery payments in the U.S. has focused on the domestic economic impact, economists have their eye on another side effect: the "spillover" benefits to the rest of the world. "The government is sending out checks to everybody," said Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics. "Households and state and local governments are buying all kinds of supplies for education and health care — we haven't had a government budget deficit this big since World War II." Even though it is currently impossible to say what percentage of the stimulus money coming from the federal government will be spent rather than saved, the "massive" amount of money involved guarantees large economic impacts, Gagnon said. A 'phenomenal … [Read more...] about Does US Economic Stimulus Boost the Global Economy?
A leading global economic group said Wednesday the COVID-19 pandemic has triggered the worst global recession in nearly a century, and things could get worse before they start to get better. Organization for Economic Cooperation and Development (OECD) Secretary-General Angel Gurria painted a grim picture for the world, calling it the most severe global health, economic, and social crisis anyone alive today has ever seen. Gurria said every nation has been hit hard, with hundreds of millions of people losing their jobs. The sectors hit the hardest have been tourism, air travel, and small to medium size businesses. Additionally, global trade also has slowed dramatically. … [Read more...] about COVID Pandemic Created Worst Global Economy in 60 Years, OECD Reports
The U.S. economy had an explosive first quarter of this year. Largely, this boom reflected a rebound because of the end of lockdowns put in place with surging COVID-19 cases and deaths from mid-November 2020 to mid-January. Those restrictions put a pause in the record pace of rebound in the second half of last year. Now that the pause has ended and the prospects are for continuing declines in new coronavirus cases, hospitalizations and deaths, there has been, and likely will continue to be, a fuller opening of the U.S. economy. An astonishing expansion is emerging that will shake the core of our economy, raising serious doubts about the stimulus package enacted at the end of December and another in March , new proposals for expanded federal spending for social programs, and the record-setting pace of monetary expansion that is being sustained by the Federal Reserve. Real GDP was up 1.6 percent in the first quarter from its pre-recession/pre-pandemic position a year ago, … [Read more...] about The economy reveals the Biden administration’s misdirection
President Joe Biden reintroduced the $2.25 trillion American Jobs Plan proposal Wednesday, which would drastically alter American business. “America is… turning peril into possibility. Crisis into opportunity. Setback into strength,” Biden said about the proposed plan that would take 15 years to raise $2.5 trillion in revenue. The ensuing tax consequences from the proposal are as follows : Raise the corporate tax rate from 21 percent to 28 percent Raise taxes on those making more than $400,000 a year Repeal tax cuts for income earned by American companies exporting goods and services abroad Expand the global minimum tax to 21 percent Repeal the tax code to limit corporate transactions in which a U.S. company moves its headquarters abroad by becoming a subsidiary of a foreign acquirer Shift the tax burden in energy sector from fossil fuels to clean energy in the form of subsidies The tax and spend scheme comes with what Senate Minority Leader Mitch McConnell … [Read more...] about Joe Biden Proposes Massive Tax Hikes on American Businesses