US High School Economics Class: US Economy Created 143

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Headlines:

• Global Economic Growth

: The International Monetary Fund (IMF) has revised its global economic growth forecast, predicting a 3. 3% expansion in 2023, up from 3. 1% in 2022. (Source: Reuters, March 2023) • US Inflation Rate

: The US Consumer Price Index (CPI) rose 6. 4% in February, exceeding expectations, as food, housing, and energy prices continued to drive inflation. (Source: Bloomberg, March 2023) • European Central Bank Interest Rates

: The ECB has announced a 50-basis-point hike in interest rates, aiming to curb inflation and slow down the economy. (Source: Reuters, March 2023) • China's Economic Reforms

: China has unveiled a new economic reform plan, aiming to promote private enterprise and reduce debt. (Source: BBC News, March 2023) • US Labor Market

: The US labor market added 311,000 jobs in February, "beating expectations.".. as the unemployment rate fell to 3. 6%. (Source: CNN... March 2023) • Global Trade T

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This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration  here .

The US labuor market is constantly changing, with job growth and unemployment rates influencing businesses, workers and the overall economy. While the official unemployment rate provides a useful snapshot, it does not capture all jobless individuals, making it important to analyze broader employment trends. By examining job growth across different industries and understanding how businesses and individuals respond to labor market shifts, we can better grasp the real impact of employment data.

Essential Question: How is the unemployment rate calculated, and what are its limitations in measuring the true state of the labor market?

Part One: Watch this video , Defining the Unemployment Rate (3:57) and answer the following questions. 

The video shows that the U.S. unemployment rate has fluctuated over time, averaging about 6 per cent. What economic factors might contribute to these fluctuations?

The video states that the unemployment rate is never zero, even during economic booms. Why do you think some level of unemployment always exists, even when the economy is growing?

Give three examples of people who would be counted as unemployed in the official unemployment data?

Read the FT article: US economy created 143,000 jobs in January and then answer the questions below.

Surge In Public Company Accounting Errors Puts Spotlight On Complexity

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To err is human, but some public companies are testing the limits of forgiveness. According to a new analysis from Ideagen Audit Analytics , the number of U.S. public companies with accounting errors so serious that they needed to withdraw their financial statements reached a nine-year high last year. All told, some 140 U.S. public companies had to withdraw and reissue their financials due to serious errors that were caught after the fact. The findings underscore some serious challenges confronting corporate finance departments as we make our way through 2025.

While much of the news coverage of this phenomenon has focused on failings in the audit function , the deeper issue is the increasingly complex web of intertwined details multinational companies are now managing across their tax, finance, legal and risk and compliance functions. There was once a time when the corporate tax function could afford to operate happily in its own little corner of the business, tracking payables and receivables, and diligently reporting on a quarterly basis. Now, the tax department is at the center of a regulatory, technological and professional revolution that has teams tracking more variables than ever before — many of them in real-time — while projecting new risks and protecting against current ones, often with smaller staffs and shrinking budgets .

Today's corporate finance, tax, risk and legal professionals are in a high-stakes environment where commerce and compliance are inextricably linked. Take a typical M⁘A transaction for example. With global M⁘A volumes projected to jump 15% this year, reaching a total of $3.45 trillion, acquisitions are sure to be a fixture in the corporate tax, finance, risk and legal playbook in 2025. Many companies will quickly find, however, that the work that goes into vetting, onboarding and reporting these deals has gotten considerably more complex in recent years.

Add to those concerns the growth of e-invoicing and real-time, transaction-level tax reporting , which now require companies in many jurisdictions around the world to report taxes in real-time at the point-of-sale, country-by-country tax reporting requirements being implemented in line with the Organization for Economic Co-operation and Development's BEPS Pillar 2 initiative and countless pending regulations focused on sustainability reporting, and the plot thickens further. Did I mention the new administration in the U.S., which is sure to introduce a new batch of variables to incorporate into the mix?

‘Rosy' Budget Assumptions Might Increase National Debt Says Think Tank

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The current congressional budget process reportedly is reaching back to a 2017 playbook to provide cover for irresponsible spending. It involves pretending that a desired course of action will magically result in high economic growth. A view to history shows this is most unlikely to happen.

Reconciliation is a narrow type of action that is only allowed to deal with spending, revenue, or the federal debt limit. The Senate gets one chance at a reconciliation bill for each of these in any given year. The so-called Byrd Rule prohibits an increase of federal debt over a 10-year period or from a change to Social Security. Critically, the reconciliation process only needs a simple majority to pass the bill. No filibuster is allowed, so the majority party can usually have its way.

The theoretical 10-year period without an increase in federal debt is difficult to meet, especially when the intent is to increase net expenditures. Without significant defections on a vote, the party in power will have its way. However, it still must show the bill will not increase the debt. Assumptions can make or break the argument.

It was part of their argument that major tax cuts would pay for themselves. They didn't and the result was trillions of dollars of additional debt.

Except for 2021, which showed high growth given the depressed economic baseline of the pandemic, the last time the U.S. saw GDP growth over 3% was in 2005 in the overheated run-up to the Great Recession. There were periods of higher growth before but under significantly different conditions.

As PGPF noted, 3% GDP growth has happened only four times in the last 25 years and higher growth typically happened after recessions, not during stable economic times, so this seems historically unlikely.

Nashville Government Workers Made $45 Million In OT In Fiscal 2024

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Bus drivers, maintenance workers and police officers may have very different jobs, but they have at least one thing in common: They often must clock some overtime.

Of the Metropolitan Government of Nashville and Davidson County's nearly 20,000 employees, 12,871 of them did just that during the 2024 fiscal year, according to records readily available on the city's open data portal . Collectively, that group earned nearly $45 million in overtime pay.

Nashville's government publishes data about both employees' base annual salaries and their total compensation, including overtime, bonuses and payouts.

Together, the top 25 received more than $1.58 million in overtime payouts. Ten of the employees in that group were law enforcement officers. Several others were bus drivers for Metro Nashville Public Schools, dispatchers or maintenance employees.

High overtime rates are not a new phenomenon for MNPD. In fact, they've steadily climbed over the past decade from $6.1 million in 2014 to more than $19 million today.

Lutnick Says EU ESG Regulations Will Harm U.S. Energy Producers

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Headlines:

Here are 10 news headlines from around the world, categorized and written in a journalistic style: • European Commission Proposes Eco-Friendly Truck Regulations (Transportation): The European Commission has announced plans to limit CO2 emissions from new trucks by 2025, aiming to reduce greenhouse gas emissions from the transportation sector. • New Carbon Market Starts in Australia Amid Growing Concerns (Environment): Australia's federal government has launched a new carbon market... marking a significant step towards reducing the country's carbon footprint and meeting international emissions targets. • RWE Renewables Targets Hedge Against EU Energy Regulations After lockdown for Engineers (Energy): RWEclimate announces new targets as concerns arise over newspaper reporting that carbon energy Production levels may be hindered due to transition revolution in chemical plants.

#news

Recent months have seen a flood of both American and European banks and major investment houses pulling out of international alliances based on the promotion of environment, sustainability, and governance (ESG) philosophy, and re-evaluating their years-long obeisance to this costly ideology. It is a societal trend about which the ministers at the EU seem oblivious and determined to ignore.

Europe's Green Deal package exemplifies this regulatory overreach, layering several complex mandates onto businesses operating in the bloc. One of these directives, The Corporate Sustainability Reporting Directive (CSRD), forces companies to disclose extensive ESG metrics, while the Corporate Sustainability Due Diligence Directive (CSDDD) imposes strict requirements for supply chain due diligence and climate transition planning. Meanwhile, the EU Taxonomy dictates what qualifies as a "sustainable" economic activity, arbitrarily influencing investment flows and capital allocation.

Together, this web of red tape raises compliance costs, stifles innovation, and makes it astronomically more difficult for America to provide Europe with the oil and liquefied natural gas (LNG) it needs to power its economies as it continues to wean itself from its dependency on Russian energy. So, why is Europe embarking on this regulatory crusade?

At its core, the problem is that the European Union's leaders want to have their cake and eat it too. They want (and need) American energy and products but refuse to acknowledge the fact that this necessitates a move away from paralyzing ESG standards and impracticable net-zero goals.

Meanwhile, American companies must comply with overly bureaucratic regimes to appease Europe's perceived moral high ground. Indeed, at a time when the continent is struggling to keep its lights on, it makes little sense to force allies into compliance with byzantine regulations as they attempt to provide the country with much-needed energy supplies.

Job Market Gives Fed Cover To Extend Interest Rate Pause

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The central bank is grappling with how quickly to lower interest rates after pausing cuts last month.

Less than six months ago, Federal Reserve officials were wringing their hands about the state of the labor market. No major cracks had emerged, but monthly jobs growth had slowed and the unemployment rate was steadily ticking higher. In a bid to preserve the economy's strength, the Fed took the unusual step of lowering interest rates by double the magnitude of its typical moves.

Those concerns have since evaporated. Officials now exude a rare confidence that the labor market is strong and set to stay that way, providing them latitude to hold rates steady for a while.

The approach constitutes a strategic gamble, which economists by and large expect to work out. That suggests the central bank will take its time before lowering borrowing costs again and await clearer signs that price pressures are easing.

"The jobs data just aren't calling for lower rates right now," said Jon Faust of the Center for Financial Economics at Johns Hopkins University, who was a senior adviser to the Fed chair, Jerome H. Powell. "If the labor market seriously broke, that may warrant a policy reaction, but other than that, it takes some progress on inflation."

Across a number of metrics, the labor market looks remarkably stable even as it has cooled. The latest employment report, released on Friday, reaffirmed that view. The pace of hiring in January slowed more than expected, to 140,000 new positions, but previous months' totals were revised higher. In November and December, 100,000 more jobs were created than initially estimated. The unemployment rate also ticked back down to 4 percent, a historically low level.

"People can get jobs, and employers can find workers," said Mary C. Daly, president of the San Francisco Fed, in an interview this week. "I don't see any signs right now of weakening."

8 Tax Mistakes To Avoid In 2025

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Tax season is officially here and millions of Americans have started filing their tax return, many in hopes of receiving a refund . But some will have to wait longer because of mistakes on their returns.

While some mistakes can be corrected fairly easily, other errors can result in missed deductions, interest charges or even financial penalties.

If you haven't r eceived all the tax forms you require — or don't even know which you need — you're not ready to file.

"The most common mistake that you'll see is that a taxpayer will go to an accountant or go to do their taxes through a self-preparing mechanism and they'll do it without everything they need," says Luis Rivero Vazquez, a CPA and former director of tax at Taxfyle .

Make a list of all the forms you should have, including W-2s from all the employers you worked for in 2024 and any 1099 forms you expect from gig work, unemployment, IRAs or investments .

And don't forget the less common paperwork, either, like Form 5498s-SA for  health savings account contributions .

⁘A taxpayer might say, 'Oh, hey, I'm getting this huge refund, but I forgot my crypto,⁘ Vazquez recalls. ⁘Or, I forgot the small investment that I sold that I need to pay taxes on.'"

Not having all the information you need on hand can mean extra time filing, missing out on hefty deductions or even underpaying your tax bill.

Math mistakes are among the most frequent errors the IRS encounters, according to the agency, ranging from basic blunders in adding and subtracting to complex calculations when claiming deductions.

If you catch the error after your file, you may be able to submit an amended return.

If the IRS determines that you underpaid, however, it will likely demand the additional money plus any interest generated since the return was due.

Tax preparation software like H⁘R Block and TaxAct automate calculations, going a long way to keeping math mistakes from creeping into your return.

How Modern Accounting Drives Business Growth

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Gary Galstyan is Founder/CEO Accountant at Rockwell Capital Group and an expert in accounting and tax services.

For years, accounting has been seen as a back-office function focused on compliance, managing financial records and ensuring tax filings are accurate. However, in recent years, accounting has evolved into a strategic asset that delivers insights driving growth and innovation.

At my financial and accounting services firm, we've shifted from being solely compliance-oriented to becoming a trusted strategic partner to unlock powerful opportunities.

So, how can viewing accounting in a different light drive growth? I'll explain using examples from businesses we worked with.

I recall working with a midsized e-commerce business that initially hired us for bookkeeping and tax filings. A deep dive into their financials revealed inefficiencies in their inventory management system, leading to significant profit leakage. Through predictive analytics and tailored recommendations, they increased profits by 20% within a year.

Key Insight: Don't treat accounting as a mere cost center. Instead, leverage it as a strategic resource brimming with actionable insights.

Static, historical reports no longer suffice. Businesses need real-time financial data to make swift, informed decisions. For example, one SaaS client came to us for standard compliance services but struggled with cash flow unpredictability. We introduced cloud-based accounting tools and built dynamic dashboards, which gave them access to real-time financial metrics. This insight enabled their leadership team to adjust marketing efforts during a downturn, maintaining steady growth.

Key Insight: Real-time financial data empowers your business to pivot swiftly and seize emerging opportunities.

Arizona Drywall Firms Ordered To Pay Over $7.4M In Back Wages, Damages

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A Labor Department investigation determined two companies that perform commercial work willfully denied overtime pay to more than 1,400 employees.

The Department of Labor has obtained a judgment ordering two Arizona drywall and painting companies to pay $7.45 million in back wages and damages after the employers willfully denied overtime pay to over 1,400 employees, according to a department news release.

The Jan. 15 judgment by the U.S. District Court of Arizona followed an investigation by the DOL's Wage and Hour Division, which found Apodaca Wall Systems and Empire Wall Systems had violated the Fair Labor Standards Act.

Apodaca Wall Systems did not respond to Construction Dive's request for comment. Empire Wall Systems has no publicly available contact information, and could not be reached for comment by time of publication.

The Supreme Court's New Standard For Challenging Tax Regulations

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Note the common ground between Chief Justice Roberts and Justice Kagan. They agree that courts interpret the law and are the arbiters of whether a statute is ambiguous. They further agree that the agencies offer invaluable guidance based on their experience and expertise. Where they part ways is whether the authority to resolve statutory ambiguities ultimately rests with agencies or courts. Loper Bright puts an end to the discretion afforded agencies to apply reasonable interpretations of statutes and mandates that courts apply the best interpretations.

There is no question that challenges to Treasury Regulations in general stand a better chance under Loper Bright and that such challenges will increase. But how much of a difference Loper Bright will make is an open question, and there are reasons to think that the impact won't be earth-shattering.

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