Michigan Archive

Economy Faces a Jolt as Benefit Checks Run Out

When there is a lack of aggregate demand due to high ‘savings desires’ as the unemployed take jobs when benefits expire, it just means someone else loses a job, and then some, as govt deficit spending falls as well, further reducing aggregate demand. It also serves to drive down wages, as per ...Read More


[Skip to the end] Karim writes: Trade improves both in balance and direction, likely benefitting from inventory restocking as goods balance improves much more than services balance Exports up 1.6% and imports down 0.6% Real trade balance narrows by 3.9bn; will likely boost Q2 GDP estimates by 0.25-0.50% (median estimate now -1.8%) ...Read More