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Luisa Vieira

Why US partisan gridlock might be good for the economy, stupid

Thirty years ago, Democratic strategist James Carville had a simple message to get Americans to vote for Bill Clinton: "It's the economy, stupid."

Rather than ideology, Carville believed most voters picked candidates over their perceived ability to handle bread-and-butter economic issues. By putting money in their wallets, you're more likely to get votes from independents and moderates — crucial for winning tight state races.

Yet, in 2022 it's Republicans who are channeling their inner Carville to woo voters for a midterm election in which the GOP is favored to win control of the House, and perhaps the Senate too.

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US inflation slows a bit

GZERO Media

The Graphic Truth: US inflation slows a bit, but ...

The US inflation rate for August was released on Tuesday and the figures are sure to cause anxiety in the White House. Overall, the consumer price index, which measures a range of consumer prices, rose 8.3% from the same time last year – 0.2% more than many economists anticipated – though it’s down from 8.5% in July and 9.1% in June.

Indeed, the latest findings surprised many analysts who predicted that the drop in US gas prices in recent months – down from $5 a gallon in June to a current national average of $3.70 – is a sign that the economy is cooling across the board.

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What We Need To Know To Fix US Inflation | Economist Austan Goolsbee | GZERO World

What we need to know to fix US inflation

The recipe to fixing inflation depends on whether you see it as a demand or supply problem, economist and University of Chicago professor Austan Golsbee tells Ian Bremmer on GZERO World.

If inflation is being driven by too much stimulus, as economist Larry Summers believes, then the Federal Reserve is doing the right thing by raising interest rates to cool demand, Goolsbee explains. But if inflation is mostly due to the war in Ukraine or supply chain disruptions, rate hikes might result in stagflation.

US inflation is at a 40-year high and is therefore drives the perception among Americans that the economy is bad.

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Ask An Economist: How to Lower Inflation | GZERO World

Ask An Economist: How to lower inflation

US inflation is now at a 40-year high. So, what are we going to do about it?

That depends on where you think the problem is coming from, American economist and University of Chicago professor Austan Goolsbee says on GZERO World with Ian Bremmer.

If inflation is being driven by too much stimulus, like some economists such as Larry Summers believe, Goolsbee believes the Federal Reserve is doing the right thing by raising interest rates to cool demand. But if inflation is mostly due to the war in Ukraine or supply chain disruptions, rate hikes might result in stagflation.

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Trump & Biden Spent Too Much On COVID Stimulus, Says Austan Goolsbee | GZERO World

Trump & Biden spent too much on COVID stimulus, says Austan Goolsbee

The brief recession the US economy experienced during the pandemic was arguably the weirdest one ever.

Why? Because it was "an unprecedentedly steep downturn [followed by] an unprecedentedly rapid comeback," says economist and University of Chicago professor Austan Goolsbee tells Ian Bremmer on GZERO World.

What's more, that recession was driven by less demand for theoretically recession-proof services instead of stuff like goods and real estate.

And then there was the government response.

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People run away during an anti-government protest, in Freetown, Sierra Leone.

Reuters

What We’re Watching: Uproar in Sierra Leone, falling US gas prices, Baltic states balk at China

Fracas in Freetown

Sierra Leone on Thursday declared a nationwide curfew and cut access to the internet by 95% amid deadly anti-government protests over inflation. Six cops and 21 civilians have been killed in the West African nation, where about half the population lives under the poverty line. Most Sierra Leonians are struggling to meet their basic needs due to high food and fuel prices, which have jumped 40% in recent months, mainly due to the effect of Russia’s war in Ukraine on global commodities. Such unrest is unusual in Sierra Leone, which has been relatively peaceful and politically stable since its civil war 20 years ago. More broadly, in recent weeks similar protests over the cost of living have also turned deadly across the continent in Ghana, Kenya, and South Africa. So far the demonstrations have yet to topple an African government, many of which are mired in debt and simply don’t have the cash to offer relief to their citizens. But if food and fuel prices continue to climb, so will levels of civilian desperation.

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Power to the Workers? What Historical Trends Suggest About Newfound Employee Influence | GZERO World

Power to the workers? What historical trends suggest about newfound employee influence

During the initial stages of COVID, Americans responded to shortages of basic items by making them domestically.

That's a blip that'll likely end once the economy (really) goes back to normal, says economist and University of Chicago professor Austan Goolsbee.

"Why," he asks Ian Bremmer on GZERO World, "do we have a giant warehouse full of socks that we made here that we could buy on the open market for one third the price, and we could just have shipped here when we need them?"

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Austrian Chancellor Nehammer's Meeting with Putin: No Optimism | World In :60 | GZERO Media

No optimism after Austrian leader’s meeting with Putin on Ukraine

After Austrian Chancellor Nehammer's meeting with Putin, will more peace talks become possible? Is Shanghai's lockdown a humanitarian crisis? With the US inflation rate rising to 8.5%, what will happen if imposing further sanctions against Russia? Ian Bremmer shares his insights on global politics this week on World In :60.

After Austrian Chancellor Nehammer's meeting with Putin, will more peace talks become possible?

Was the first time a foreign leader from Europe actually met Putin in person in the seven weeks since the war has occurred. Did not go anywhere, no optimism, lots of war crimes, and the Russians are sending more troops into the Donbas as we speak. It seems pretty clear that Putin intends to declare victory. And before that happens, it is hard to imagine any utility of further negotiations. Doesn't mean you can't try. But I think we have to wait, frankly, until the military situation on the ground plays out more fully and then perhaps we might be able to get some form of frozen conflict or ceasefire. That's kind of where we are right now.

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