Los Angeles Times, July 28, 2022
Why is it so hard to say if this is a recession?
Because if it’s truly a recession, all the indicators should be moving in the same direction. Right now, it’s only GDP, said Eric Swanson, professor of economics at UC Irvine. Consumer spending is still going up, albeit moderately, and industrial production is also showing slow growth. Significantly, job growth is still robust. “In a recession, more people would be losing jobs. But if you look at the unemployment rate, it is very low,” Swanson said. “The GDP is a volatile measure, and one has to look at some alternative indicators as well.” [Subscription required, you can request an electronic copy of the article by sending an email to email@example.com.]
KTTV-TV Fox 11 News, July 27, 2022 (Video)
Fed Raises Interest Rates
Economists don’t all agree on the way interest rates impact inflation but the belief is the higher rates will help lower inflation. UC Irvine economics [assistant] professor, Jack Liebersohn, explains why. “What most people think is that when interest rates go up then people will spend less and firms will also borrow less and make less investment. And that reduction in overall consumption and overall demand will put less pressure on the economy and inflation will fall,” says Liebersohn.
Financial Times, July 28, 2022
US Senate spending bill takes aim at prized tax break of buyout bosses
The Inflation Reduction Act of 2022, proposed by Senate Democrats and supported by the White House, would extend the holding period of investments eligible for carried interest tax treatment from three years to five years, making it more difficult to claim the lower rate. … To truly close the loophole, the holding period should be extended to 10 years, Victor Fleischer, [law professor], a tax expert at the University of California, Irvine, said on Twitter. Otherwise, he predicted that private equity executives would find ways to maintain their current tax rates. [Subscription required, campus-wide access provided by UCI Libraries. Sign-up here: https://guides.lib.uci.edu/news/ft]
Parents, July 28, 2022
Talking to Kids About Social Class Helps Shape Their Views—Here’s What To Say
I have struggled to get through discussions with my kids about social class. But these conversations are important for a child’s development. Discussing these issues “provides the building blocks for a lot of the other processes—things like perspective taking, empathy, conceptions of privilege are all downstream consequences of the attributions one engages in,” says Paul K. Piff, Ph.D., associate professor of psychological science at the University of California, Irvine, whose research focuses on issues including social hierarchy, status, and inequality.
AARP – Senior Planet, July 28, 2022
Paul Leon and the Illumination Foundation
Paul Leon … talks about how he founded the Illumination Foundation to ease California’s homelessness crisis. … “I was working towards the goal of becoming [a hospital] CEO. It was suggested that I continue my education in order to achieve that goal. This prompted me to enroll in an executive management program at the University of California, Irvine. In order to complete the program, I took a job with the County of Orange as a public health nurse. While I was working as a public health nurse and getting my advanced degree I visited a cold weather armory and was shocked by what I saw. I realized this was an opportunity to expose my fellow MBA classmates to a growing problem that wasn’t understood.”
Previously “In the News”