United States

We’ve all heard that globalization lifts all boats and increases our prosperity …

But mainstream economists and organizations are now starting to say that globalization increases inequality.

The National Bureau of Economic Research – the largest economics research organization in the United States, with many Nobel economists and Chairmen of the Council of Economic Advisers as members –  published,  a report in May finding:

Recent globalization trends have increased U.S. inequality by disproportionately raising top incomes.

 

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Cue the latest economic (and Phillips curve) paradox.

On one hand, the US unemployment rate is at a 16 year low of 4.4%, suggesting little if any slack in the US economy, and according to anecdotes from both the Fed's Beige Book and industry sources, labor shortages are so acute that - if one believes the recently discussed report from the NAHB - up to 75% of builders are unable to find construction workers.

With much of the US undergoing a broad revulsion against Confederate statues in the days since the Charlotesville clashes, it was only a matter of time before someone took matters one step too far. This happened today when a Houston man was arrested on allegations he tried to plant explosives at the statue of Confederate officer Richard Dowling in Hermann Park, according to Chron.com citing law enforcement officials.

Absent any major geopolitical shocks, it is set to be a quiet summer week ahead with focus on the Jackson Hole conference. On the data front the key releases will be US durable goods and Eurozone PMIs, as well as Japan inflation & UK and Norway GDP. In Emerging Markets, there are monetary policy meetings in Indonesia, Hungary and Kazakhstan.

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