Updated Nov 4, 2018

Global budgets are loosening up amid fiscal sunshine

Felix Salmon, author of Edge

Americans are enjoying year-on-year wage gains above 3% for the first time in over a decade according to two economic reports this week, including a monthly jobs report that came in comfortably above expectations.

Expand chart
Data: Federal Reserve Bank of St. Louis; Chart: Chris Canipe/Axios

September was the 97th consecutive month that the economy has created jobs. That's an all-time record. Fiscal policy is goosing the economy. The Treasury is going to have to borrow $1.34 trillion this year, more than double the number in 2017. Enjoy the good times while they last.

  • The Fed's economists expect an economic deceleration ahead. They're projecting 2.5% growth in 2019, 2% in 2020 and just 1.8% in 2021.

The big picture: This isn't purely an American story. Budgets are getting looser around the world.

This year's U.K. budget marked the official end of austerity. Finance Minister Philip Hammond is "basking in the largest sustained windfall from improved public finance forecasts since the Office for Budget Responsibility was created in 2010," per the Financial Times.

  • Hammond did warn that austerity could return in the event of a no-deal Brexit. It's not clear whether the Euroskeptic wing of his party believes him.

Italy's government intends to run a budget deficit of 2.4% of GDP next year, which is unacceptable to the EU.

  • Italy's sovereign bonds are now just one notch above junk-bond status, per Moody's.

The other side: The euro-area economy grew at the slowest pace in four years during the most recent quarter. And in the U.S., inflation has been running at more than 2% per year, which makes 3% wage gains rather unimpressive.

Go deeper: Wages rise, but so does inflation

Go deeper

Journalists get caught in the crosshairs as protests unfold

A man waves a Black Lives Matter flag atop the CNN logo during a protest in response to the police killing of George Floyd outside the CNN Center on May 29. Photo: Elijah Nouvelage / Getty Images

Dozens of journalists across the country tweeted videos Saturday night of themselves and their crews getting arrested, being shot at by police with rubber bullets, targeted with tear gas by authorities or assaulted by protestors.

Why it matters: The incidents show how easy it can be for the media to entangled in the stories they cover, especially during a time of civil unrest.

Updated 1 hour ago - Politics & Policy

George Floyd protests: What you need to know

Photo: David Dee Delgado/Getty Images

Clashes erupted between police and protesters in several major U.S. cities Saturday night as demonstrations over the death of George Floyd and other police-related killings of black men spread across the country.

The big picture: Floyd's death in Minneapolis police custody is the latest reminder of the disparities between black and white communities in the U.S. and comes as African Americans grapple with higher death rates from the coronavirus and higher unemployment from trying to stem its spread.

Updated 2 hours ago - Politics & Policy

U.S. cities crack down on protesters

Demonstrators gather at Lafayette Park across from the White House to protest the death of George Floyd in Washington, D.C. Photo: Yasin Ozturk/Anadolu Agency via Getty Images

Major U.S. cities have implemented curfews and called on National Guard to mobilize as thousands of demonstrators gather across the nation to continue protesting the death of George Floyd.

The state of play: Hundreds have already been arrested as tensions continue to rise between protesters and local governments. Protesters are setting police cars on fire as freeways remain blocked and windows are shattered, per the Washington Post. Law enforcement officials are using tear gas and rubber bullets to try to disperse crowds and send protesters home.