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Showing posts from 2024

Does Asymmetric Monetary Policy Exacerbate Asymmetric Outcomes? Eric J. Gordon, Creative Investment Research,

Eric Gordon, left and Luke Newton, Right, at t he Hutchins Center on Fiscal & Monetary Policy at Brookings, June 14, 2024.  As the Federal Reserve prepares for its five-year public review of the monetary policy framework, ongoing debates persist among experts regarding the most effective strategies to achieve economic stability and growth without exacerbating inequality. The Hutchins Center on Fiscal & Monetary Policy at Brookings recently convened a conference enabling economists to articulate and discuss their recommendations for the Fed's review, including a dialogue on the merits of adopting a symmetric, balanced approach versus an asymmetric, shortfalls-focused one amid rapidly evolving economic conditions. Each strategy carries different implications across the country's financial landscape, yet their impact on minority communities is particularly crucial, serving as a barometer of broader economic health and welfare. This post aims to analyze the competing approa

Inflation Falls from 3.4% to 3.3%

  The Consumer Price Index for All Urban Consumers (CPI-U) was basically unchanged in May, 2024 on a seasonally adjusted basis, after rising 0.3 percent in April, the U.S. Bureau of Labor Statistics reported . Over the last 12 months, the all items index increased 3.3 percent before seasonal adjustment. hashtag # inflation hashtag # cpi hashtag # prices

World Ocean Day, 2024

  Today, we celebrate the beauty and importance of our oceans. From vibrant coral reefs to majestic sea turtles, our oceans are home to an incredible diversity of life. 🌿🐠🐢 We are focused on protecting and preserving these vital ecosystems. See: and   Let's come together to make a positive impact. Every action counts towards a healthier ocean. 

Unemployment by Race, Ethnicity for May, 2024

  The graphic above shows unemployment rates across different racial and ethnic groups from April 2023 to May 2024. The picture reviews unemployment rates for White, Black, Asian, and Hispanic or Latino populations. The data indicates fluctuations in unemployment rates between and among these groups, with disparities that warrant further examination. Trends and Observations 1. White Population:    - The unemployment rate for Whites has shown minor fluctuations, generally staying between 3.10% and 3.50%.    - The lowest recorded rate was in April 2023 (3.10%), and the highest was observed in October and December 2023, and May 2024 (3.50%). 2. Black Population:    -  Blacks experienced the highest volatility in unemployment rates.    - The rate increased from 4.80% in April 2023 to a peak of 6.40% in March 2024, before slightly decreasing to 6.09% in May 2024.    - This group consistently shows higher unemployment rates compared to the other racial and ethnic groups throughout the period

Economic Update: A Strong Economy with Tangible Benefits

The current economic landscape is showing remarkable stability and growth. Key indicators like interest rates, inflation, and unemployment reveal a robust economy that directly impacts individuals and businesses positively. Interest Rates The Federal funds rate has stabilized at 5.25%-5.50%, with a forecasted reduction to 4.75%-5.00% by the end of the year as inflation and economic activity ease. Lower interest rates mean cheaper borrowing costs for consumers and businesses, enabling more investments, expansions, and purchases that drive economic growth and job creation. Personal Impact: Sarah, a small business owner in Dallas, was able to secure a low-interest loan to expand her bakery. With the additional funds, she hired three more employees, boosting the Dallas economy and providing jobs to her community. Inflation The Consumer Price Index (CPI) increased by 3.4% before seasonal adjustment for April. Given the massive economic challenges of recent years, maintaining such a moderate

Estimate: Dollar Value of British Colonialism and Forced Labor

Estimate: Dollar Value of British Colonialism and Forced Labor Our economic impact estimate considers ingenuity, common law, commerce, trade, and the development of joint-stock companies. Ingenuity and Innovation: British advancements in technology, industrialization, and innovation drove economic growth. Inventions like the steam engine, mechanized manufacturing, and improvements in infrastructure, significantly boosted productivity and economic output. Legal and Institutional Framework: The development of common law and legal institutions provided a stable environment for commerce and trade, since property rights, contract enforcement, and the rule of law facilitated exploitative business transactions. Trade and Commerce: British trade networks, particularly with India, North America and Asia, facilitated the exchange of goods and services, driving economic growth. Financial Innovations: The emergence of joint-stock companies and financial institutions, such as the Bank of England, p

CIR Review: MSNBC on "Algebra of Wealth" by Anish Thota, Intern, Charlotte Latin School

In a world where financial security seems increasingly elusive for the younger generation, the fight against climate change emerges as another battleground where youth are grappling with the consequences of decisions made by older generations. The conversation above sheds light on the structural inequities embedded in the tax system, which disproportionately burden younger individuals striving to achieve economic stability. As wealth becomes concentrated in the hands of a select few, exacerbated by policies favoring capital gains and mortgage industry interests, younger Americans find themselves facing stagnant wages, unaffordable housing, and diminishing opportunities. These economic challenges intersect with the urgency of addressing climate change, as younger generations inherit a planet ravaged by environmental degradation and unchecked resource exploitation. As young people mobilize to demand action on climate change, they are not only advocating for a sustainable future but also

Commerce Secretary Gina Raimondo at Semafor. Daniel Merritt, Gonzaga University, Intern.

  Commerce Secretary Gina Raimondo spoke at the  Semafor World Economy Summit 2024 on the role of her institution going forward. Secretary Raimondo spoke highly of Biden’s economic policy, specifically citing the Chips Act capacity to empower her Department to make significant progress in  semiconductors. According to the Secretary, "America currently manufactures zero percent of leading-edge chips." Raimondo envisions twenty percent of all chips being made on American soil by 2030. She further emphasized localizing the chip ecosystem, claiming that ‘technological security is economic security, and economic security is national security’.         Raimondo makes clear that her advocacy for bolstering domestic semiconductor production does not connote an inclination toward economic isolationism. On the contrary, she underscored the need for continued engagement with international trade partners, including China, while cautioning against overreliance on foreign technology. Her


COST-SAVING OPTIONS FOR BLACK AMERICANS TO CONSIDER AS MORTGAGE RATES EXCEED 7%. William Michael Cunningham, an economist and owner of Creative Investment Research, says that though the 30-year rate has increased, it is still much lower than it was in October 2023, when it was about 7.8%. He says that means the monthly costs for today’s buyer on a $250,000 mortgage with a $10,000 down payment is $1,728 at 7.8%, as opposed to $1,613 on a 7.1 % mortgage. He says the difference would save a buyer over $41,300 over the life of the mortgage in payment and interest costs. “That’s four times the amount of the down payment than you placed on the home that you’re buying, giving you more money to buy another house if you decide to do so.” He says another cost-saving option Black homebuyers should consider is energy-efficient mortgages . See:


Presenting a thought-provoking take: The latest unemployment rate for Black Americans may have risen because of a recent rash of anti-DEI efforts, mainly from the education and corporate sectors. According to a new report by Creative Investment Research, the higher jobless rate for Blacks nationwide in March 2024 potentially stems from specific incidents that accentuate the impact of anti-DEI measures on Black employment. That analysis was provided to BLACK ENTERPRISE by William Michael Cunningham, an economist and the owner of Creative Investment Research in Washington, D.C. In his report, Cunningham explained that the unemployment rate for whites stayed relatively stable from January 2023 to March 2024, hitting between 3.1% and 3.5%. For Blacks, he says the rate rose from 5.4% to 5.8% in November 2023 before falling to 5.2% in December 2023 but soared to 6.4% in March 2024. Conversely, Cunningham noted the unemployment rate for Asians is lower among all groups. It was 3.5% in Novemb

Charlamagne and DEI. Daniel Merritt, Gonzaga University, Intern.

In a recent episode of the Daily Show, anchor and host Charlamagne expressed a lack of faith  in the use of DEI programs in America. Charlamagne explains how he believes DEI is a front for companies to feign diversity-mindsets while maintaining predominantly white employee populations.  He gives the example of Nike who encourages diversity but has a completely white board of directors. His main qualm with this is that DEI is just serving as corporate PR, even going on to explain how DEI programs can act as evidence in a corporation’s favor when facing a civil rights lawsuit. Charlamagne is warranted in these beliefs; the world of corporate DEI is often lacking integrity and authenticity.  Where he is wrong, however, is the conclusions he draws from them.        Charlamagne claims that DEI is mostly ‘garbage’. He states that over 900 studies have shown that DEI is ineffective. He does not provide sources for these studies or mention any specifics. (Forbes Magazine noted this inaccuracy:

Anti DEI Efforts Lead to Higher Black Unemployment in March

  From January 2023 to March 2024, the unemployment rate for whites remained relatively stable, fluctuating between 3.1% and 3.5%. For Black individuals, the unemployment rate initially increased from 5.4% to 5.8% in November 2023 before decreasing to 5.2% in December 2023. The rate reached 6.4% in March 2024. In contrast, the unemployment rate for Asians remains the lowest among all groups, dropping to 2.5% in March 2024. Hispanic individuals saw a modest fluctuation in their unemployment rates, staying within the 4.5% to 5% range. One reason for the increasing unemployment rate for Black individuals, along with the decrease and stability in rates for Asians and Hispanics, is preferential hiring of Asian and Hispanic individuals over Black individuals. We attribute this to systemic biases and to growing anti-Black hiring practices due, in part, to recent anti-DEI efforts. Specific recent incidents quantify and underscore the impact of anti-DEI measures on Black employment. For instanc

Black vs White Labor Force Participation, 1972 to 2024

  "The labor force participation rate is the percentage of the civilian noninstitutional population 16 years and older that is working or actively looking for work. It is an important labor market measure because it represents the relative amount of labor resources available for the production of goods and services." Source: US Department of Labor.

Banking on AI: How financial institutions are deploying new tech. American Banker Newspaper. By Frank Gargano March 19, 2024 11:23 AM

Despite both consumer and institutional interest in artificial intelligence continuing to grow across the financial services industry, the majority of leaders are still unsure about the technology and its potential uses — leaving a select group of executives to lead their organizations into the fray.  Arizent, the publisher of American Banker, surveyed 127 financial institution professionals to find out how traditional and generative AI is unfolding in the industry with respect to applications, risks versus rewards, impact on the workforce and more. Respondents represent banks ranging from less than $10 billion of assets to more than $100 billion of assets, as well as credit unions of all asset sizes. The results showed that familiarity is the largest hurdle for adoption. Tech-minded changemakers helping prepare their organizations for AI said the top two things they are doing are researching providers and attending industry conferences or events on AI. They are also creating worki

MBDA Decision From A Young Person's Perspective, Anish Thota, Impact Investing Intern. Charlotte Latin School

A federal judge in Texas has ruled that the Minority Business Development Agency (MBDA) can no longer provide exclusive assistance to businesses owned by people of color, following a lawsuit alleging unconstitutional policies. The MBDA, originally established to promote growth in minority-owned businesses, must now provide support to all businesses regardless of race. The judge emphasized the need for concrete evidence of past discrimination to justify race-based assistance programs, indicating a shift away from policies that prioritize minority businesses without sufficient evidence of discrimination. This ruling reflects broader debates around affirmative action and equity measures, suggesting a trend of legal challenges to programs aimed at addressing inequity. Opinion from a young person’s perspective As a young person, witnessing this decision regarding the Minority Business Development Agency (MBDA) prompts a deep reflection on the complexities of addressing systemic inequalities

Unemployment by Race, Ethnicity for February 2024

Unemployment data indicates persistent disparities in unemployment rates among the racial/ethnic groups studied. Over the period from January 2023 to February 2024, the Black population consistently experienced higher unemployment rates compared to other groups. In contrast, the Asian population, aside from a spike in November 2023, generally had the lowest unemployment rates. Differences Between Groups: - Black unemployment rates were 1.3% to 2.9% higher than those of the White group throughout the period. This suggests a significant and persistent gap that does not close over the months observed. Even when the Black unemployment rate decreased from its peak in November 2023, it was still higher than the rates for other groups. Black small business ownership has been on the rise in recent years, but it is important to note that Black-owned businesses have had less access to capital, higher loan denial rates , and less favorable loan conditions compared to businesses owned by other rac

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