THE NEW YORK TIMES: Edgar Dworsky has become the go-to expert on “shrinkflation,” when products or packaging are manipulated so people get less for their money.
SOMERVILLE, Mass. — A few weeks ago, Edgar Dworsky got a promising tip by email. “Diluted cough syrup,” read the message, accompanied by a photo of two packages of syrup with a curious difference: The new one appeared to be half the strength of the old one.
Mr. Dworsky gets emails like this frequently, alerting him to things like a bag of dog food that discreetly shrank from 50 pounds to 44 pounds. A cereal box that switched from “giant” to “family” size and grew about an inch taller — but a few ounces lighter. Bottles of detergent that look the same, but the newer ones come with less detergent.
The cough syrup message looked intriguing. Mr. Dworsky made plans to investigate.
He has dedicated much of his life to exposing what is one of the sneakier tricks in the modern consumer economy: “shrinkflation,” when products or packaging are subtly manipulated so that a person pays the same price, or even slightly more, for something but gets less of it. » | Clare Toeniskoetter | Saturday, November 26, 2022
Sunday 27 November 2022
Friday 25 November 2022
This Holiday Season, the Poor Buckle Under Inflation as the Rich Spend
THE NEW YORK TIMES: Even if policymakers achieve a gentle economic slowdown, it won’t be smooth for everyone.
November has been busier than expected at the Langham Hotel in Boston as luxury travelers book rooms in plush suites and hold meetings in gilded conference rooms. The $135-per-adult Thanksgiving brunch at its in-house restaurant sold out weeks ago.
Across town, in Dorchester, demand has been booming for a different kind of food service. Catholic Charities is seeing so many families at its free pantry that Beth Chambers, vice president of basic needs at Catholic Charities Boston, has had to close early some days and tell patrons to come back first thing in the morning. On the frigid Saturday morning before Thanksgiving, patrons waiting for free turkeys began to line the street at 4:30 a.m. — more than four hours before the pantry opened.
The contrast illustrates a divide that is rippling through America’s topsy-turvy economy nearly three years into the pandemic. Many well-off consumers are still flush with savings and faring well financially, bolstering luxury brands and keeping some high-end retailers and travel companies optimistic about the holiday season. At the same time, America’s poor are running low on cash buffers, struggling to keep up with rising prices and facing climbing borrowing costs if they use credit cards or loans to make ends meet.
The situation underlines a grim reality of the pandemic era. The Federal Reserve is raising interest rates to make borrowing more expensive and temper demand, hoping to cool the economy and bring the fastest inflation in decades back under control. Central bankers are trying to manage that without a recession that leaves families out of work. But the adjustment period is already a painful one for many Americans — evidence that even if the central bank can pull off a so-called “soft landing,” it won’t feel benign to everyone. » | Jeanna Smialek, Photographs by Tony Luong | Reporting from Boston | Friday, November 25, 2022
November has been busier than expected at the Langham Hotel in Boston as luxury travelers book rooms in plush suites and hold meetings in gilded conference rooms. The $135-per-adult Thanksgiving brunch at its in-house restaurant sold out weeks ago.
Across town, in Dorchester, demand has been booming for a different kind of food service. Catholic Charities is seeing so many families at its free pantry that Beth Chambers, vice president of basic needs at Catholic Charities Boston, has had to close early some days and tell patrons to come back first thing in the morning. On the frigid Saturday morning before Thanksgiving, patrons waiting for free turkeys began to line the street at 4:30 a.m. — more than four hours before the pantry opened.
The contrast illustrates a divide that is rippling through America’s topsy-turvy economy nearly three years into the pandemic. Many well-off consumers are still flush with savings and faring well financially, bolstering luxury brands and keeping some high-end retailers and travel companies optimistic about the holiday season. At the same time, America’s poor are running low on cash buffers, struggling to keep up with rising prices and facing climbing borrowing costs if they use credit cards or loans to make ends meet.
The situation underlines a grim reality of the pandemic era. The Federal Reserve is raising interest rates to make borrowing more expensive and temper demand, hoping to cool the economy and bring the fastest inflation in decades back under control. Central bankers are trying to manage that without a recession that leaves families out of work. But the adjustment period is already a painful one for many Americans — evidence that even if the central bank can pull off a so-called “soft landing,” it won’t feel benign to everyone. » | Jeanna Smialek, Photographs by Tony Luong | Reporting from Boston | Friday, November 25, 2022
Friday 18 November 2022
Twitter, Meta, Amazon, Netflix… Dans la Silicon Valley, la fin d’une période d’expansion sans précédent
LE MONDE : Les géants de la tech, qui paraissaient intouchables, enregistrent depuis le début de l’année des pertes monumentales en Bourse et licencient à tour de bras.
Dans la Silicon Valley, la vague de licenciements dans les industries technologiques a été accueillie avec un certain fatalisme. Le ralentissement était inévitable, estiment les experts. Pour l’industrie technologique, la situation marque néanmoins un tournant. La fin d’une période de vingt ans d’expansion sans précédent.
Les géants de la tech, qui paraissaient intouchables, ne le sont plus. Leur puissance était sortie renforcée de la crise sanitaire, lorsque le numérique était devenu l’unique échappatoire vers le monde extérieur. Le travail à distance, le commerce en ligne semblaient promis à devenir la norme ; le tout-numérique, à dominer l’économie post-pandémie. La chute n’en est que plus spectaculaire. » | Par Corine Lesnes (San Francisco, correspondante) | vendredi 18 novembre 2022
Article réservé aux abonnés
Dans la Silicon Valley, la vague de licenciements dans les industries technologiques a été accueillie avec un certain fatalisme. Le ralentissement était inévitable, estiment les experts. Pour l’industrie technologique, la situation marque néanmoins un tournant. La fin d’une période de vingt ans d’expansion sans précédent.
Les géants de la tech, qui paraissaient intouchables, ne le sont plus. Leur puissance était sortie renforcée de la crise sanitaire, lorsque le numérique était devenu l’unique échappatoire vers le monde extérieur. Le travail à distance, le commerce en ligne semblaient promis à devenir la norme ; le tout-numérique, à dominer l’économie post-pandémie. La chute n’en est que plus spectaculaire. » | Par Corine Lesnes (San Francisco, correspondante) | vendredi 18 novembre 2022
Article réservé aux abonnés
A New Kind of Global Recession: Why This Time Is Different | Business Beyond
Deutschland wird ärmer - Abschied vom deutschen Wohlstand? | ZDFzeit
Thursday 17 November 2022
Tech Layoffs Crash Hard into Indian Workers I DW News
Nov 17, 2022 | Online-retailer Amazon has confirmed a coming round of mass layoffs, making it the latest tech-giant to slash jobs amid slowing global-growth. On Tuesday the company filed notice to California regulators that it would scrap jobs in that state. It is expected to shed as many as 10-thousand positions in the coming days, following similar measures by tech giants Meta and Twitter. Amazon employs 1.5 million workers around the world.
One country in which this wave of job cuts is particularly crashing into is India. Twitter cut off half its work force there, and education technology firms Byju and Unacademy laid off hundreds of workers. Workers in India are also among those affected by "Meta" cuts. Ironically, many of them are using those same platforms, including social media, to air their grievances and protests against the unceremonious firings.
One country in which this wave of job cuts is particularly crashing into is India. Twitter cut off half its work force there, and education technology firms Byju and Unacademy laid off hundreds of workers. Workers in India are also among those affected by "Meta" cuts. Ironically, many of them are using those same platforms, including social media, to air their grievances and protests against the unceremonious firings.
Wednesday 16 November 2022
Brexit and Drop in Workforce Harming Economic Recovery, Says Bank Governor
THE GUARDIAN: Andrew Bailey also said disastrous mini-budget had damaged Britain’s international reputation
Britain is suffering worse economic performance than its rivals because of Brexit and a stark drop in the size of the workforce since the Covid pandemic, the governor of the Bank of England has said.
Andrew Bailey said a combination of headwinds had prevented the economy from recovering to pre-pandemic levels, while warning it would also take time for the government to repair damage to Britain’s international reputation caused by the disastrous mini-budget under the former prime minister Liz Truss.
It came as rampant inflation of 11.1% – the highest figure since October 1981 – piled more pressure on the Bank to continue raising interest rates.
In a downbeat assessment on the eve of the chancellor’s autumn statement, the Bank’s governor told MPs on the Commons Treasury committee: “I’m afraid it’s not a good story.” » | Richard Partington, Economics correspondent | Wednesday, November 16, 2022
Britain is suffering worse economic performance than its rivals because of Brexit and a stark drop in the size of the workforce since the Covid pandemic, the governor of the Bank of England has said.
Andrew Bailey said a combination of headwinds had prevented the economy from recovering to pre-pandemic levels, while warning it would also take time for the government to repair damage to Britain’s international reputation caused by the disastrous mini-budget under the former prime minister Liz Truss.
It came as rampant inflation of 11.1% – the highest figure since October 1981 – piled more pressure on the Bank to continue raising interest rates.
In a downbeat assessment on the eve of the chancellor’s autumn statement, the Bank’s governor told MPs on the Commons Treasury committee: “I’m afraid it’s not a good story.” » | Richard Partington, Economics correspondent | Wednesday, November 16, 2022
UK Inflation Jumps to 11.1% on Back of Energy and Food Price Rises
THE GUARDIAN: Rishi Sunak vows to prioritise fight against the rising cost of living
Rishi Sunak has pledged to make the fight against a rising cost of living his No 1 priority after surging energy bills sent the UK’s annual inflation rate to a 41-year-high of 11.1%.
Preparing the ground for tough action in Thursday’s autumn statement, the prime minister responded to the highest figure since October 1981 by describing inflation as an “enemy” that needed to be faced down.
Data from the Office for National Statistics (ONS) showed the annual inflation rate last month jumped a percentage point from 10.1% in September, despite help provided to households through the launch of the government’s energy price guarantee.
Dearer food also contributed to prices rising 2% in October alone compared with the previous month, a bigger increase than the Bank of England and the City had been anticipating. Milk, cheese and egg prices rose by more than 27% compared with a year earlier. » | Larry Elliott, Economics editor | Wednesday, November 6, 2022
Rishi Sunak has pledged to make the fight against a rising cost of living his No 1 priority after surging energy bills sent the UK’s annual inflation rate to a 41-year-high of 11.1%.
Preparing the ground for tough action in Thursday’s autumn statement, the prime minister responded to the highest figure since October 1981 by describing inflation as an “enemy” that needed to be faced down.
Data from the Office for National Statistics (ONS) showed the annual inflation rate last month jumped a percentage point from 10.1% in September, despite help provided to households through the launch of the government’s energy price guarantee.
Dearer food also contributed to prices rising 2% in October alone compared with the previous month, a bigger increase than the Bank of England and the City had been anticipating. Milk, cheese and egg prices rose by more than 27% compared with a year earlier. » | Larry Elliott, Economics editor | Wednesday, November 6, 2022
Monday 14 November 2022
London Loses Position as Most Valuable European Stock Market
BBC: Britain's stock market has lost its position as Europe's most-valued, with France taking the top spot, data shows.
A weak pound, fears of recession in the UK and surging sales at French luxury goods makers are thought to be behind the shift, according to data from Bloomberg.
It's the first time Paris has overtaken London since records began in 2003.
It comes as the UK is expected to fall into recession this year, although the French economy is also under pressure.
The combined value of British shares is now around $2.821 trillion (£2.3 trillion), while France's are worth around $2.823 trillion, Bloomberg calculates.
It marks a huge reversal of fortunes for the London Stock Exchange, which was worth about $1.4 trillion more than its Parisian rival back in 2016.
France has been catching up for some time but shares in the UK's medium sized companies have been doing particularly badly this year, as consumers cut back their spending and businesses struggle with higher costs.
London's FTSE 250 share index - which is made up of medium sized companies focused on the UK - has slumped by almost 17% in the last 12 months. » | Faarea Masud, Business reporter | Monday, November 14, 2022
This must be another Brexit benefit, Nige! – Mark
A weak pound, fears of recession in the UK and surging sales at French luxury goods makers are thought to be behind the shift, according to data from Bloomberg.
It's the first time Paris has overtaken London since records began in 2003.
It comes as the UK is expected to fall into recession this year, although the French economy is also under pressure.
The combined value of British shares is now around $2.821 trillion (£2.3 trillion), while France's are worth around $2.823 trillion, Bloomberg calculates.
It marks a huge reversal of fortunes for the London Stock Exchange, which was worth about $1.4 trillion more than its Parisian rival back in 2016.
France has been catching up for some time but shares in the UK's medium sized companies have been doing particularly badly this year, as consumers cut back their spending and businesses struggle with higher costs.
London's FTSE 250 share index - which is made up of medium sized companies focused on the UK - has slumped by almost 17% in the last 12 months. » | Faarea Masud, Business reporter | Monday, November 14, 2022
This must be another Brexit benefit, Nige! – Mark
Brexit a Major Cause of UK’s Return to Austerity, Says Senior Economist
THE GUARDIAN: Former Bank of England policymaker Michael Saunders says leaving EU has ‘permanently damaged’ economy
Brexit is the ultimate reason why the UK now faces a fresh round of austerity, a former interest rate-setter at the Bank of England has said.
“The UK economy as a whole has been permanently damaged by Brexit,” Michael Saunders, who was an external member of the central bank’s monetary policy committee, said in an interview with Bloomberg TV.
“It’s reduced the economy’s potential output significantly, eroded business investment,” he said, adding: “If we hadn’t had Brexit, we probably wouldn’t be talking about an austerity budget this week.”
“The need for tax rises, spending cuts wouldn’t be there, if Brexit hadn’t reduced the economy’s potential output so much.” » | Anna Isaac, City editor | Monday, November 14, 2022
Brexit is the ultimate reason why the UK now faces a fresh round of austerity, a former interest rate-setter at the Bank of England has said.
“The UK economy as a whole has been permanently damaged by Brexit,” Michael Saunders, who was an external member of the central bank’s monetary policy committee, said in an interview with Bloomberg TV.
“It’s reduced the economy’s potential output significantly, eroded business investment,” he said, adding: “If we hadn’t had Brexit, we probably wouldn’t be talking about an austerity budget this week.”
“The need for tax rises, spending cuts wouldn’t be there, if Brexit hadn’t reduced the economy’s potential output so much.” » | Anna Isaac, City editor | Monday, November 14, 2022
Friday 11 November 2022
How Elon Musk Got Rich: The $230 Billion Myth | The Class Room ft. Second Thought
UK Heads for Long Recession as Economy Shrinks by 0.2%
THE GUARDIAN: ONS figures for three months to September give bleak picture in run-up to chancellor’s autumn statement
Britain’s economy shrank by 0.2% in the three months to September, in what is expected to be the beginning of a long recession.
In its first estimate of growth in the third quarter, the Office for National Statistics (ONS) presented a bleak picture of the economy before next week’s autumn statement from the chancellor, Jeremy Hunt.
Activity in the service sector ground to a halt, with zero growth over the quarter, driven by a fall in consumer spending as households came under mounting pressure from the cost of living crisis.
Growth in the construction sector slowed, while factory output slumped because of a sharp decline in manufacturing as some businesses continued to struggle with supply chain difficulties and shortages of key materials. » | Larry Elliott and Richard Partington | Friday, November 11, 2022
Europe Braces for Recession as Economies Falter: Britain’s economic output fell in the third quarter and European Union officials forecast weakening growth for countries across the continent. »
Britain’s economy shrank by 0.2% in the three months to September, in what is expected to be the beginning of a long recession.
In its first estimate of growth in the third quarter, the Office for National Statistics (ONS) presented a bleak picture of the economy before next week’s autumn statement from the chancellor, Jeremy Hunt.
Activity in the service sector ground to a halt, with zero growth over the quarter, driven by a fall in consumer spending as households came under mounting pressure from the cost of living crisis.
Growth in the construction sector slowed, while factory output slumped because of a sharp decline in manufacturing as some businesses continued to struggle with supply chain difficulties and shortages of key materials. » | Larry Elliott and Richard Partington | Friday, November 11, 2022
Europe Braces for Recession as Economies Falter: Britain’s economic output fell in the third quarter and European Union officials forecast weakening growth for countries across the continent. »
Wednesday 9 November 2022
Rising Asset Wealth and Falling Real Wages ‘Drive Inequality in Britain’
THE GUARDIAN: Young people no longer able to rely on hard work to improve their living standards as they age, says IFS
‘A generation of Britons has ridden a wave of growing asset prices, pushing up the value of their houses and investments,’ says the deputy director of the IFS, Robert Joyce. Photograph: William Barton/Alamy
Working for a living has become a harder way to grow rich in modern Britain amid rising wealth inequality over the past decade, according to research published today that warns of a breakdown in social mobility as inheritances grow in importance.
The Institute for Fiscal Studies said wealth had grown rapidly compared with earnings from work since the 2008 financial crisis, driven by a surge in house prices and financial assets – such as stocks and shares – at a time of flatlining progress for average wages.
Robert Joyce, the deputy director of the IFS, said: “A generation of Britons has ridden a wave of growing asset prices, pushing up the value of their houses and investments. Meanwhile, more than a decade of stagnant earnings has held back younger generations for whom earning their own economic success has become increasingly difficult.
“The fact that we can no longer be sure that the young will grow up with living standards that match [those of] their predecessors is a remarkable social change.” » | Richard Partington, Economics correspondent | Wednesday, November 9, 2022
Working for a living has become a harder way to grow rich in modern Britain amid rising wealth inequality over the past decade, according to research published today that warns of a breakdown in social mobility as inheritances grow in importance.
The Institute for Fiscal Studies said wealth had grown rapidly compared with earnings from work since the 2008 financial crisis, driven by a surge in house prices and financial assets – such as stocks and shares – at a time of flatlining progress for average wages.
Robert Joyce, the deputy director of the IFS, said: “A generation of Britons has ridden a wave of growing asset prices, pushing up the value of their houses and investments. Meanwhile, more than a decade of stagnant earnings has held back younger generations for whom earning their own economic success has become increasingly difficult.
“The fact that we can no longer be sure that the young will grow up with living standards that match [those of] their predecessors is a remarkable social change.” » | Richard Partington, Economics correspondent | Wednesday, November 9, 2022
Friday 4 November 2022
Twitter Employees Sue over Elon Musk's Planned Mass Layoffs | DW News
Twitter sued by former staff as Elon Musk begins mass sackings: Ex-employees say they were not given enough notice under US federal law over job losses »
Thursday 3 November 2022
Economy Latest: Interest Rates Up as Bank of England Warns of Long Recession
Bank of England Hikes Interest Rates to 3% in Biggest Rise since 1989
THE GUARDIAN: Bank fears 0.75 percentage point rise may push UK economy into longer and deeper recession than the 1930s
The Bank of England has increased the cost of borrowing by 0.75 percentage points to 3%, despite predicting that higher interest rates would push the economy into the longest recession since the 1930s.
In a split vote, the central bank’s monetary policy committee (MPC) voted by a 7-2 majority for the biggest increase in rates since 1989 to combat an inflation rate that hit 10.1% in September.
The Bank blamed higher energy prices and a tight labour market for the decision to increase interest rates, matching rises in the last week by the US Federal Reserve and the European Central Bank. » | Phillip Inman | Thursday, November 3, 2022
Bank of England warns of longest recession since the 1930s: Interest rate rise to 3% is biggest since 1989 and fears UK economy may go into longer, deeper recession »
The Bank of England has increased the cost of borrowing by 0.75 percentage points to 3%, despite predicting that higher interest rates would push the economy into the longest recession since the 1930s.
In a split vote, the central bank’s monetary policy committee (MPC) voted by a 7-2 majority for the biggest increase in rates since 1989 to combat an inflation rate that hit 10.1% in September.
The Bank blamed higher energy prices and a tight labour market for the decision to increase interest rates, matching rises in the last week by the US Federal Reserve and the European Central Bank. » | Phillip Inman | Thursday, November 3, 2022
Bank of England warns of longest recession since the 1930s: Interest rate rise to 3% is biggest since 1989 and fears UK economy may go into longer, deeper recession »
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