America’s dependence on China for rare earth supplies is one of the most serious issues for the U.S. supply chain. Rare earths are critical minerals with uses in military equipment such as fighter jets. On the civilian side, rare earths are required for the motors in electric vehicles, a market that is destined to be…
By Amanda Mayoral Summary Americans are working harder and waiting longer to buy homes The cost of a home is 6 times median household income today, versus 3.2 times in 1967 The disparity between house prices and median incomes was exacerbated by the COVID pandemic which drove a 37% increase in house prices…
The foreign exchange value of the U.S. dollar is soaring on an almost daily basis, causing problems here at home and abroad. There is growing talk of international coordination to stem the rise of the dollar and bring more stability to currency markets. Meanwhile there is support in Congress for the CPA proposal of a…
Key Points China’s global trade surplus is heading for a new all-time high this year. Based on the first seven months of data, we estimate the full-year surplus will reach a record $886 billion. The U.S trade deficit will also set records this year, at an estimated $1.13 trillion trade deficit and a $1.34 trillion…
WASHINGTON — The Coalition for a Prosperous America (CPA) today announced that the U.S. Private Sector Job Quality Index (JQI) edged up by 0.01% to 81.279 in July, as the addition of high-quality jobs slightly exceeded low-quality job additions. High-quality jobs increased in professional and business services and health care and social assistance. Low quality jobs increased…
In my 15 years in Silicon Valley, I found venture capitalists to be the shrewdest and smartest individuals there. The best of them have had previous experience as engineers or managers, sometimes both. They had experience at some of the best, most successful companies but also experience at some of the worst-managed companies (which far…
By Amanda Mayoral Summary Points Higher import dependence makes countries more vulnerable to price shocks Countries that are more import dependent often experienced higher inflation during recent supply chain shocks than less import dependent countries. Comparing countries globally, every four percentage point increase in import dependence is associated with a one percentage point increase…
By Jeff Ferry and Amanda Mayoral Broad-based tariffs including tariffs on manufactured imports would boost U.S. economy by 6% and create 7.5 million jobs. Real household incomes rise by 8%. Tariffs reduce imports and stimulate domestic manufacturing output by 18%. Tariffs would generate $556 billion in new revenue, enabling cuts in income tax or…
By Jeff Ferry and Amanda Mayoral Can tariffs can be effective at raising domestic output and income? We introduce real-world factor supply elasticities to the standard Global Trade and Analysis Project (GTAP) and find that real GDP can grow by nearly 6% and domestic manufacturing by 18%. The increase in GDP leads to…
WASHINGTON — The Coalition for a Prosperous America (CPA) today announced that the U.S. Private Sector Job Quality Index (JQI) edged down by 0.03% to 81.27 in June, as low-quality job growth slightly exceeded high-quality. Low-quality jobs increased in the healthcare, accommodation, and food service industries. High-quality jobs increased in professional and business services. The average weekly wage…
