More from @AlecStapp

Alec Stapp

@AlecStapp

13 Jul

Headline inflation just hit 5.4%, the highest rate since 2008.

Here are 4 charts on why it's premature to panic & 3 ideas for policymakers if they want to reduce inflation risk.

1. Market-based forecasts of medium-run inflation (5-10 years from today) remain anchored at 2.2%

@WhiteHouseCEA

2. Most of the inflation in June — 60% — is from cars.

As the global semiconductor shortage ebbs, we can expect inflation related to cars to return to its historical average.

(chart via @WhiteHouseCEA)

3. If you want to know where inflation is heading, look at median CPI.

In contrast to headline CPI, median CPI remains stable at 2.2% year-over-year.

Headline CPI is more volatile than median CPI, but historically it has reverted *toward* median CPI after short deviations.

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Alec Stapp

@AlecStapp

12 Jul

I'm gonna stop you right there

wtf does "ultra, ultra low" even mean

"Interests at 1% were good for economic growth but interest rates at 0% caused GameStop"

got it, makes total sense

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Alec Stapp

@AlecStapp

11 Jul

Wow — students with low test scores from a high-income household are more likely to finish college than students with high test scores from a low-income household

@Noahpinion

Via this @Noahpinion post on the complexities of America as a land of opportunity: noahpinion.substack.com/p/is-the-us-a-…

Two more striking charts (citing a Chetty et al 2018 paper):

"Conditional on parent income, the black-white income gap is driven entirely by large differences in wages and employment rates between black and white men; there are no such differences between black and white women."

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Alec Stapp

@AlecStapp

9 Jul

President Biden is signing a major executive order this afternoon that includes 72 initiatives to increase competition across the economy.

The bulk of the EO is appropriately focused on the lack of competition in labor markets, healthcare markets & agricultural markets.

Thread:

The best part of the EO is the stuff on labor markets.

Banning/limiting non-competes and unnecessary occupational licensing will increase worker power.

Making it easier for workers to switch jobs and pursue economic opportunity will increase wages.

@MartinSGaynor

Healthcare markets are arguably the most broken markets in our economy and are in dire need of more competition.

Encouraging the FTC to ban "pay for delay" is an obvious win.

Highly recommend @MartinSGaynor's paper on how to increase competition: brookings.edu/wp-content/upl…

Read 11 tweets