The U.S Reaches Highest Unadjusted Monthly Rate of Inflation Since March 1980

The U.S Reaches Highest Unadjusted Monthly Rate of Inflation Since March 1980

The U.S Reaches Highest Unadjusted Monthly Rate of Inflation Since March 1980

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A look at the highest unadjusted monthly rate of inflation

Today, the U.S. Bureau of Labor Statistics announced that in March the Consumer Price Index (CPI) rose 1.3%, not seasonally adjusted. This is the highest unadjusted monthly rate of inflation since March 1980. When annualized, it would equal 17.3%.  The seasonally-adjusted monthly increase is 1.2%. The 12-month CPI increase continues to climb, which now stands at 8.5%, not seasonally adjusted.

The Georgia Center for Opportunity’s (GCO) take: “Unsurprising for anyone who paid attention to prices last month, energy prices rose 32% over the last 12 months and food prices rose 8.8%. This is bad for everyone but worse for low-income and impoverished Americans, ” said Erik Randolph, GCO’s director of research. “The U.S. inflation rate reflects not only energy and food price increases, but it is also spreading to more and more industries as businesses are forced to raise prices.”“Also concerning are disturbing signs pointing to a possible economic slowdown, giving credence to those who have been predicting stagflation will return. This crisis may have been initiated by the pandemic, but it was exacerbated when state governments shut down their economies and the federal government pumped unprecedented levels of money into the system to sustain aggregate demand. We’re paying for that now. The only way out of this mess is to refocus on supply-side policies at both the federal and state levels to encourage investments, risk taking, and production. It also requires fiscal restraint in the halls of Congress to reign in deficit spending.”

 

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State Unemployment Rate Stands At a Record Low of 3.2%,

State Unemployment Rate Stands At a Record Low of 3.2%,

State Unemployment Rate Stands At a Record Low of 3.2%,

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Unemployment rate stands at a record low of 3.2%

On Friday, the U.S. Bureau of Labor Statistics released state employment numbers for Georgia. They show that our state unemployment rate stands at a record low of 3.2%, the lowest since the BLS began tracking in 1976.

The Georgia Center for Opportunity’s (GCO) take: “Georgia’s unemployment rate should be cause for celebration. Our state ranks 15th in the nation on this metric,” said Erik Randolph, GCO’s director of research. “On the less positive side, Georgia continues to have a labor force participation problem. Our labor force participation rate is only 61.9%, and we know that for 2021, there were around 250,000 men between the ages of 25 and 54 (the prime working years) who were absent from the labor force. That’s a staggering 12.3% of the 25-54 male population. Policymakers in Georgia must work harder to integrate our state’s workforce services with safety-net programs to encourage participation in the labor force. We also must remove barriers to entrepreneurship and allow businesses and start-ups to be unleashed, helping to reduce inflation and employ more people.” For more, read Randolph’s research report on the economic impact of the pandemic shutdowns.

 

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Update: State Employment Numbers Includes Major Revisions Going Back to 1990

Update: State Employment Numbers Includes Major Revisions Going Back to 1990

Update: State Employment Numbers Includes Major Revisions Going Back to 1990

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A look at the state employment numbers.

Yesterday, the U.S. Bureau of Labor Statistics released state employment numbers that included major revisions going back to 1990. According to the revisions, Georgia had recovered all its jobs lost during the pandemic in December 2021. Prior to the revision, Georgia was three percentage points shy of that goal.

The Georgia Center for Opportunity’s (GCO) take: “For the January 2022 estimates, Georgia ranks 9th in the nation in recovering lost jobs due to the pandemic, having recovered 4.5% more than what were lost,” said Erik Randolph, GCO’s director of research. “Although Georgia remains short 137,600 jobs from its pre-pandemic job-growth trajectory, our state is fairing much better than other states that imposed more draconian lockdown measures due to COVID-19.”

 

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Consumer Price Index Increased 7.9% Over the Last 12 Months

Consumer Price Index Increased 7.9% Over the Last 12 Months

Consumer Price Index Increased 7.9% Over the Last 12 Months

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The CPI is up 7.9% over the last 12 months, not seasonally adjusted.

On March 10th, the U.S. Bureau of Labor Statistics announced that in February the Consumer Price Index (CPI) rose 0.8% on a seasonally adjusted basis. The CPI is up 7.9% over the last 12 months, not seasonally adjusted.

The Georgia Center for Opportunity’s (GCO) take: “The United States is now in a precarious position where our rampant inflation rate is going to begin to infringe on the economic recovery,” said Erik Randolph, GCO’s director of research. “Stagflation could very well be just around the corner. As gas prices surge and there is no let-up in other categories, Americans will begin having to make cutbacks. The impact on the economy will be significant.”

 “We’re seeing firsthand the problem with accepting high levels of inflation as normal. When an unexpected event comes along, like the Russian aggression against Ukraine, it upends everything. The February inflation rate does not fully cover the most recent fallout from the invasion. We’re anticipating that the March CPI will be far worse, as the economic aftershocks of Russia’s war against Ukraine will be more fully baked in.”

 

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Lockdowns Were a Failure. What We Do Next Doesn’t Have To Be | Real Clear Policy

Lockdowns Were a Failure. What We Do Next Doesn’t Have To Be | Real Clear Policy

In The News

Lockdowns Were a Failure. What We Do Next Doesn’t Have To Be | Real Clear Policy

There is new proof government-imposed shutdowns prompted by the COVID-19 pandemic have done more harm than good. A better choice would have been to keep the economy open so people stay connected to work and targeting resources to vulnerable populations.

A new meta-analysis from Johns Hopkins University underscores this truth, revealing that lockdowns in America and Europe during the first pandemic wave in spring 2020 only reduced the death rate by 0.2% on average. Researchers concluded that lockdowns “have had little to no public health effects” while imposing “enormous economic and social costs” and should be “rejected as a pandemic policy instrument.”

While businesses were shuttered, people were forced to stay home, and schools remained closed, the unintended social and economic consequences were clear: rising unemployment, learning loss among students, spiking rates of domestic violence, and a pandemic-level rise in drug abuse and overdoses. All of that social and economic devastation yielded a minimal impact on health-related suffering due to COVID-19.

The new research from Johns Hopkins mirrors our own findings in a recent nationwide study, which found that overreaction by states did substantial damage without much benefit in reducing the effects of the pandemic.

The research shows a statistical correlation between how severe state governmental actions were in shutting down their economies and negative impacts on employment more than a year after the pandemic began. This was the case even after controlling for a state’s dependence on tourism or agriculture, population density, and the prevalence of COVID-19 infections and hospitalizations.

Our research found no correlations between the severity of shutdowns imposed by state governments and the rate of reported COVID-19 hospitalizations or deaths. States like Hawaii, New York, California, and New Mexico that imposed harsher economic restrictions generally have greater job losses even today than those states that were less harsh, such as South Dakota, Iowa, Nebraska, Missouri, and Utah.

For example, New York was 10.2% below its trajectory in October 2021 while Nebraska was just 2.4% below.

The bottom line is that while policymakers were likely working in good faith to do their best in a challenging situation, it’s crucial we learn from these past mistakes so that we don’t repeat them. And make no mistake about it — those mistakes have driven untold amounts of human suffering during the past two years.

The worst part is that the government-imposed shutdowns created even more barriers for people who were already struggling. Every American was impacted, of course. These interventions created challenges and burdens for the middle and upper classes, but for our poorest communities they were outright damaging.

Protecting the rights and opportunities of workers to earn a living is obvious. Equally important are the psychological benefits that come with the dignity of work. And there are socio-economic benefits from work that positively impact everyone, such as building social capital and gaining skills, which are especially important for those in marginalized communities who were most impacted by the shutdowns.

As the states look for a long-term strategy to deal with the pandemic, it is paramount that they consider the empirical evidence and not impose burdensome restrictions — such as business closures, stay-at-home orders, school closures, gathering restrictions, and capacity limits — on economic activity that have proven to do more harm than good.

Instead, policies need to be crafted more carefully to expand opportunities for the poor and preserve jobs in an open economy in which entrepreneurs can solve problems while taking measures when necessary to protect vulnerable populations.

These are the policies that should have been done all along to avoid the severity of the shutdown recession and the effects on lives and livelihoods thereafter. Let’s not make another mistake when so many are already suffering.

This Article Originally Appeared in Real Clear Policy 

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