Making Sense of the National Debt
The current total national debt is over $22 trillion—and growing—with no reduction in sight. How much debt is too much? Are there risks from too much debt? This issue of Page One Economics addresses these questions and how government debt differs from household debt.
Minding the Output Gap: What Is Potential GDP and Why Does It Matter?
Potential output is an estimate of what the economy could produce. Actual output is what the economy does produce. If actual is below potential -- a negative output gap -- there is "slack" in the economy. If actual is above potential -- a positive output gap -- resources are fully employed, or perhaps overutilized. This issue of Page One Economics explains how the output gap is useful for checking the health of the economy. It also points out how errors in the estimation of potential real GDP can reduce the effectiveness of policy.
Automation and the Minimum Wage
This issue explains how a higher mandated minimum wage may lead some firms to substitute capital for labor, likely reducing job opportunities.
The Importance of Diverse Perspectives: Strategies for Supporting Women in Economics
There is a lack of diversity in the field on economics, which limits the range of perspectives during research and policy discussions. Without diverse perspectives, economists are in danger of not identifying key parts of a problem and not considering a full array of solutions. This Women in Economics special issue of Page One Economics presents the case that diversity among economists is needed to gain a wider perspective during economic research and policy development.
Education, Income, and Wealth
No surprise?people with more education often earn higher incomes and are unemployed less than those with less education. Those with higher incomes also tend to accumulate more wealth. Why? Research shows that well-educated people tend to make financial decisions that help build wealth. Their strategies, though, can be used by anyone. Learn valuable tips in the January 2017 issue of Page One Economics.
Why Is It So Difficult To Buy a High-Quality Used Car?
With prices of new vehicles at all-time highs, many buyers are looking for used vehicles. It can be challenging, though, to figure out what is or isn?t a good deal. The September 2016 issue of Page One Economics explains why asymmetric information makes it difficult for used-car buyers to avoid ?lemons? and why lemons are a larger problem for the used-car market.
How Do Imports Affect GDP?
Gross domestic product (GDP) is the total market value, expressed in dollars, of all final goods and services produced in an economy in a given year. When compared with previous periods, GDP tells whether an economy is producing more output (expanding) or less output (contracting). As such, it is a useful measure of the health of the economy and among the most important and widely reported economic data. A variety of people, from business owners to policymakers, consider GDP when making decisions. Additionally, international trade is measured as part of GDP and is a large and growing ...
The Productivity Puzzle
Are many products made in the United States anymore? As it turns out, yes. In fact, U.S. manufacturing output is near its highest level ever?and with fewer workers. How is that possible? Productivity growth. The March 2017 issue of Page One Economics describes what affects productivity, why economists are concerned about its recent slowdown, and what can be done about it.
Traditional versus shadow banking
Modern economies rely heavily on financial intermediaries to channel funds between borrowers and lenders. In the first edition of the Page One Economics Newsletter, the role of traditional banking is outlined and a parallel system?shadow banking?is explored.