unemployment rate

July 10, Michael Davis, economics professor at the Cox School of Business, SMU Dallas, for an op-ed analyzing the latest economic indicators and concluding that this is no time for Americans to get comfortable. Published in the Orange County Register under the heading When the economy satisfies like comfort food, could be time to exit your comfort zone: https://tinyurl.com/4pf2473v

The latest numbers on unemployment remind me of our family’s normal dinner routine.

That’s because we don’t have a normal dinner routine. Our daughter does four sports, one of them year-round. There is dance, homework and — sacred of sacreds — Family Movie Night. Sure, some nights end in a delicious pot roast served the minute the soccer cleats come off. We’d like to think that’s normal. But what about the other nights (OK, many other nights) that end with peanut butter and banana sandwiches eaten in the car?

The employment numbers feel like that pot roast dinner — an economic comfort food moment in a time where the political news is going from weird to weirder.

Continue reading “When the economy satisfies like comfort food, could be time to exit your comfort zone”

April 6, Michael Davis, Cox School of Business at SMU Dallas, for a piece warning about the impact of sudden 11 percent unemployment on the U.S. economy. Published in the Orange County Register and affiliates in the Southern California News Group: https://bit.ly/3e0bvTh

Not sure you’re worried enough about the economy? You’ve come to the right place. As bad as the numbers look right now, I’m about to show you the reality is even worse.

This isn’t going to be pretty but if you think you can handle the truth, stick with me while I take you through the data.

Start with the news that the U.S. unemployment rate has risen to 4.4 percent. Sure, you might think, that’s a huge one-month increase. But, so what? Let’s look on the bright side. The unemployment rate was at an historic low of 3.5 percent. Until recently most economists would tell you that the “natural” rate of unemployment was around 5 percent. The U.S. does fine with a 4.5 percent rate of unemployment. Don’t worry, be happy. . .

Continue reading “The shock and impact of instant 11 percent unemployment is just the beginning”