The Daily Economy
New GDP Report Signals Continued Economic Growth
This morning we received word that the second-quarter Gross Domestic Product numbers were revised upward by the Commerce Department, from 3.7 percent in the prior estimate to 3.9 percent. It was the third estimate of these numbers; the initial estimate was just 2.3 percent. Consumer spending rose at a healthy pace of 3.6 percent, and…
Maximize Social Security Benefits: File And Suspend
Fifty-two percent of married Social Security beneficiaries receive at least half their total income from Social Security. Optimizing the claiming decision is critical to making sure they maximize their income. I want to take an opportunity to explain one way to do that: the “file and suspend” strategy for married, two-earner households. This approach has…
Learning Economics With Movie Tickets and Babysitting
Teachers who went through the AIER Teach-the-Teachers Initiative continue to dazzle us with creativity and innovative practices in their classrooms. On September 9, 2015, we observed two American History II lessons taught by Drew Gibson at Mount Greylock Regional School in Williamstown, Mass. The purpose of the lessons was defined by the teacher as “discovering…
Investment Management Isn’t Rocket Science
Financial professionals recognize that many smart people, even those with large sums of money, don’t have a deep understanding of investing. What they’ve found is that if they can make something seem extra difficult, they can convince you that they must be doing a good job.
The Beauty of AIER’s Campus in the Berkshires
As the sun fell on a beautiful day at AIER’s campus in the Berkshires of Western Massachusetts, I snapped these pictures. There’s no better place to clear the mind and think about big subjects like economics than our historic campus, including the Stone House, built in the 1920’s, and our E.C. Harwood Library that overlooks…
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The Fed: December Liftoff Now Likely
The Fed didn’t take action in September, leaving short-term interest rates near zero since December 2008. This was consistent with the majority of market participants’ expectations.
Home Internet Prices Fall, as Smartphone Use Grows
As more Americans buy more powerful smart phones that allow them to access the Internet anywhere, the price of setting up Internet service at home has dropped in the last year. The decreasing price of home internet service is one interesting bit of data from the American Institute for Economic Research’s Everyday Price Index
Economic Headwinds From China
The problems in China are unlikely to have a significant impact on U.S. economic growth, conclude AIER researchers in the September edition of Business Conditions Monthly. Nevertheless, there are some […]
Where the CPI Falls Short
The Consumer Price Index used to be a pretty good approximation for the trend in everyday prices, but it no longer is. That’s the conclusion of a new research brief by Polina Vlasenko of the American Institute for Economic Research. AIER’s Everyday Price Index, she says, is a better way to plan a household budget,…
As Fed Deliberates, More to Consider
As our research fellow Jia Liu pointed out last week, the Federal Open Markets Committee already has all the major information on the economy that it will receive in advance of its two-day meeting that starts on Wednesday. Nevertheless, there are a few data points that will come out just before and during the meeting,…
Drooping Consumer Sentiment Belies Fundamentals
Despite a series of upbeat data on the economy, consumer sentiment was markedly down in new data out late this week. Our senior research fellow, Bob Hughes, says that is likely a psychological reaction to the recent market volatility, and is probably a fleeting phenomenon.
An Economist Approach to Car Shopping
Like for most Americans, buying a car has always been a stressful but necessary personal finance decision for me. This time around, now with the backing of an education and work experience in economics, I was able to take a more methodical, informed approach to one of life’s bigger expenditures
