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GDP, corporate profits soar as Biden calls out companies for ‘price gouging’ on November 30, 2023 at 11:00 am Business News | The Hill

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The American economy grew in the third quarter, but there are signs that its growth is beginning to slow.

U.S. gross domestic product (GDP) came in Wednesday at a revised 5.2 percent increase in the third quarter, higher than the 4.9 percent pop of the initial estimate, to hit the fastest quarterly rate of growth in almost two years.

Corporate profits increased by $105.7 billion in the third quarter, compared to $6.9 billion in the second, the Commerce Department reported Wednesday.

What that 5.2 percent GDP number means

The latest GDP number is the highest since the fourth quarter of 2021, when it hit 7 percent and the economy was still seeing explosive quarterly growth in the recovery from pandemic shutdowns.

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Despite consecutive quarters of negative growth in the first half of 2022, a strong job market and consumer spending pushed the economy out of recession range.

A major contraction predicted by many following the booming recovery has yet to materialize, adding to the likelihood that the economy could achieve a “soft landing” on a path to more regular growth.

Consumer spending continues to heat up

Personal consumption expenditures increased 3.6 percent in the third quarter, up from 0.8 percent in the second quarter, with advances in both goods and services spending.

Spending was up notably in recreational goods and vehicles and in recreational services, such as concerts and movies.

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“The increase in real GDP reflected increases in consumer spending [and] private inventory investment,” the Commerce Department noted.

Corporate profits come in for rough criticism

Earlier this week, President Biden called out the role of private-sector profit-gouging in inflation.

“Let me be clear,” he said Monday. “To any corporation that has not brought their prices back down, even as inflation has come down, even supply chains have been rebuilt — it’s time to stop the price gouging, [give] the American consumer a break.”

Upward revisions to fixed capital investments and state and local government spending drove the higher GDP number, while robust consumer spending was marked down slightly in the third quarter to a 3.6-percent increase.

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“Economic growth was even better than expected in the third quarter, with real GDP rising 5.2 percent versus the advance estimate of 4.9 percent. The additional boost came from 2 sources: investments and government spending,” Sonu Varghese, a strategist at Carson Group, said in an analysis.

Gross domestic income (GDI), an inverse measure of economic productivity, came in at a more modest 1.5 percent. The average of real GDP and real GDI advanced 3.3 percent in the third quarter, up from 1.3 percent in the second.

Profits fly high while consumers face prices

While companies rake in massive profits, consumers are being hammered by prices that are as much as 20 percent higher than they were before the pandemic.

“Pandemic-era supply chain disruptions enabled corporations to hike prices and juice profit margins to highs not seen in more than 60 years,” Kitty Richards, director of Groundwork Collaborative, an economic research and advocacy group, wrote in an analysis.

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“Now supply chains have returned to normal, but corporations in many sectors are still charging inflated prices and extracting exorbitant profit margins,” Richards said.

Corporate profits are now at the highest share of national income in more than 10 years.

“This means the labor share remains flat or declining, depending on the measure you use, in the third quarter. There’s still room to grow back to more historical ranges during this recovery,” Mike Konczal, director of macroeconomic analysis at the Roosevelt Institute, another research and advocacy organization, wrote.

“[It’s] good reason for the President to be flagging corporate profits alongside high prices,” he added.

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Sixty percent of Americans say their income hasn’t kept pace with increases in daily expenses over the past year, according to research released Wednesday by market data company Bankrate. That’s up from 55 percent last year.

“Twenty-nine percent say their pay has kept up, compared to 33 percent last year. Older workers, lower income earners, and hourly workers are more likely to say their pay has not kept up with inflation,” the Bankrate analysis found.

The recession that won’t materialize

The latest GDP numbers come after a deluge of recession predictions from market commentators, economists and even authorities like the Federal Reserve, which forecast a “mild recession” earlier this year before scrapping that call at a later meeting.

“A US recession is effectively certain in the next 12 months,” economists with Bloomberg Economics wrote in October 2022. 

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The company’s recession probability model “forecast a higher recession probability across all timeframes, with the 12-month estimate of a downturn by October 2023 hitting 100 percent.”

Harvard University economist Larry Summers said last year that unemployment would need to skyrocket in order to tame inflation before eventually conceding that “transitory factors” contributing to inflation were easing.

Robust consumer spending, a red hot job market, knock-on effects from $1 trillion in pandemic stimulus, as well as longer-term investments spurred by big pieces of legislation have likely all been working in the opposite direction from a downturn, to varying degrees.

Inflation is coming down but pre-pandemic prices are likely gone forever

The pace of price increases in the economy has come down over the past year, and in a few sectors, such as durable goods, price levels have deflated. Annual price increases topped out at 9 percent last June and are now at 3.2 percent, according to the Labor Department’s consumer price index (CPI).

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But price levels in absolute terms are still way higher than they were before the pandemic and have little chance of returning to their pre-pandemic norms.

An analysis released this week by Bloomberg Economics found that prices are an average of 20 percent higher across the economy than they were in January 2020.

Rent is up 20 percent, groceries are up 25 percent, electricity is up 25 percent, car insurance is up 33 percent and water is up 16 percent, the analysis found.

Dubbing it a “cost-of-living squeeze,” economists noted that “after accounting for inflation, hourly wages have barely budged since 2020.”

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Cost-of-living stresses could be driving poor polling performance

Despite many strong metrics in the national accounting, ranging from consumer spending to the labor market, Americans are disapproving of President Biden’s handling of the economy.

Just 32 percent of respondents said Biden is handling the economy well, according to polling released Tuesday by Gallup.

Slightly stronger marks came in earlier this month from the Harvard CAPS-Harris poll.

That poll found that 44 percent of Americans approved of Biden’s economic stewardship, an increase from 41 percent last month.

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White House spokesperson Karine Jean-Pierre echoed Biden’s remarks on the effect of profits and price-gouging on inflation Wednesday.

“Many corporations [have seen] input costs grow more slowly or even fall recently. Some companies are passing those savings on to consumers, but some aren’t,” she said.

“Companies should pass those savings on to consumers by lowering their high markups from the last two years,” Jean-Pierre said. “That’s why taking on price gouging has been part of the President’s economic agenda for more than two years now.”

The market has already priced in rate cuts

Wall Street is already pricing in rate cuts, meaning that the path to more regular growth following the recovery from the pandemic may already be laid out.

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This would imply that the soft landing scenario desired by policymakers is already coming to pass.

On Monday, the Wall Street Journal reported that interest-rate futures were at 60-40 odds that “the Fed will lower rates by a quarter-of-a-percentage point by its May 2024 policy meeting.”

That’s up from 29 percent at the end of October, according to CME Group data, the Journal reported.

The U.S. central bank, in its latest summary of economic projections, is still officially predicting one more quarter-point rate hike this year, to max out at a range of 5.5 percent to 5.75 percent.

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​Administration, Business, News, Policy, corporate profits, GDP, gdp report, inflation, prices, Recession, recession fears The American economy grew in the third quarter, but there are signs that its growth is beginning to slow. U.S. gross domestic product (GDP) came in Wednesday at a revised 5.2 percent increase in the third quarter, higher than the 4.9 percent pop of the initial estimate, to hit the fastest quarterly rate of growth…  

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Google Accused Of Favoring White, Asian Staff As It Reaches $28 Million Deal That Excludes Black Workers

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Google has tentatively agreed to a $28 million settlement in a California class‑action lawsuit alleging that white and Asian employees were routinely paid more and placed on faster career tracks than colleagues from other racial and ethnic backgrounds.

How The Discrimination Claims Emerged

The lawsuit was brought by former Google employee Ana Cantu, who identifies as Mexican and racially Indigenous and worked in people operations and cloud departments for about seven years. Cantu alleges that despite strong performance, she remained stuck at the same level while white and Asian colleagues doing similar work received higher pay, higher “levels,” and more frequent promotions.

Cantu’s complaint claims that Latino, Indigenous, Native American, Native Hawaiian, Pacific Islander, and Alaska Native employees were systematically underpaid compared with white and Asian coworkers performing substantially similar roles. The suit also says employees who raised concerns about pay and leveling saw raises and promotions withheld, reinforcing what plaintiffs describe as a two‑tiered system inside the company.

Why Black Employees Were Left Out

Cantu’s legal team ultimately agreed to narrow the class to employees whose race and ethnicity were “most closely aligned” with hers, a condition that cleared the path to the current settlement.

The judge noted that Black employees were explicitly excluded from the settlement class after negotiations, meaning they will not share in the $28 million payout even though they were named in earlier versions of the case. Separate litigation on behalf of Black Google employees alleging racial bias in pay and promotions remains pending, leaving their claims to be resolved in a different forum.

What The Settlement Provides

Of the $28 million total, about $20.4 million is expected to be distributed to eligible class members after legal fees and penalties are deducted. Eligible workers include those in California who self‑identified as Hispanic, Latinx, Indigenous, Native American, American Indian, Native Hawaiian, Pacific Islander, and/or Alaska Native during the covered period.

Beyond cash payments, Google has also agreed to take steps aimed at addressing the alleged disparities, including reviewing pay and leveling practices for racial and ethnic gaps. The settlement still needs final court approval at a hearing scheduled for later this year, and affected employees will have a chance to opt out or object before any money is distributed.

H2: Google’s Response And The Broader Stakes

A Google spokesperson has said the company disputes the allegations but chose to settle in order to move forward, while reiterating its public commitment to fair pay, hiring, and advancement for all employees. The company has emphasized ongoing internal audits and equity initiatives, though plaintiffs argue those efforts did not prevent or correct the disparities outlined in the lawsuit.

For many observers, the exclusion of Black workers from the settlement highlights the legal and strategic complexities of class‑action discrimination cases, especially in large, diverse workplaces. The outcome of the remaining lawsuit brought on behalf of Black employees, alongside this $28 million deal, will help define how one of the world’s most powerful tech companies is held accountable for alleged racial inequities in pay and promotion.

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Luana Lopes Lara: How a 29‑Year‑Old Became the Youngest Self‑Made Woman Billionaire

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At just 29, Luana Lopes Lara has taken a title that usually belongs to pop stars and consumer‑app founders.

Multiple business outlets now recognize her as the world’s youngest self‑made woman billionaire, after her company Kalshi hit an 11 billion dollar valuation in a new funding round.

That round, a 1 billion dollar Series E led by Paradigm with Sequoia Capital, Andreessen Horowitz, CapitalG and others participating, instantly pushed both co‑founders into the three‑comma club. Estimates place Luana’s personal stake at roughly 12 percent of Kalshi, valuing her net worth at about 1.3 billion dollars—wealth tied directly to equity she helped create rather than inheritance.

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Kalshi itself is a big part of why her ascent matters.

Founded in 2019, the New York–based company runs a federally regulated prediction‑market exchange where users trade yes‑or‑no contracts on real‑world events, from inflation reports to elections and sports outcomes.

As of late 2025, the platform has reached around 50 billion dollars in annualized trading volume, a thousand‑fold jump from roughly 300 million the year before, according to figures cited in TechCrunch and other financial press. That hyper‑growth convinced investors that event contracts are more than a niche curiosity, and it is this conviction—expressed in billions of dollars of new capital—that turned Luana’s share of Kalshi into a billion‑dollar fortune almost overnight.

Her path to that point is unusually demanding even by founder standards. Luana grew up in Brazil and trained at the Bolshoi Theater School’s Brazilian campus, where reports say she spent up to 13 hours a day in class and rehearsal, competing for places in a program that accepts fewer than 3 percent of applicants. After a stint dancing professionally in Austria, she pivoted into academics, enrolling at the Massachusetts Institute of Technology to study computer science and mathematics and later completing a master’s in engineering.

During summers she interned at major firms including Bridgewater Associates and Citadel, gaining a front‑row view of how global macro traders constantly bet on future events—but without a simple, regulated way for ordinary people to do the same.

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That realization shaped Kalshi’s founding thesis and ultimately her billionaire status. Together with co‑founder Tarek Mansour, whom she met at MIT, Luana spent years persuading lawyers and U.S. regulators that a fully legal event‑trading exchange could exist under commodities law. Reports say more than 60 law firms turned them down before one agreed to help, and the company then spent roughly three years in licensing discussions with the Commodity Futures Trading Commission before gaining approval. The payoff is visible in 2025’s numbers: an 11‑billion‑dollar valuation, a 1‑billion‑dollar fresh capital injection, and a founder’s stake that makes Luana Lopes Lara not just a compelling story but a data point in how fast wealth can now be created at the intersection of finance, regulation, and software.

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Harvard Grads Jobless? How AI & Ghost Jobs Broke Hiring

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America’s job market is facing an unprecedented crisis—and nowhere is this more painfully obvious than at Harvard, the world’s gold standard for elite education. A stunning 25% of Harvard’s MBA class of 2025 remains unemployed months after graduation, the highest rate recorded in university history. The Ivy League dream has become a harsh wakeup call, and it’s sending shockwaves across the professional landscape.

Jobless at the Top: Why Graduates Can’t Find Work

For decades, a Harvard diploma was considered a golden ticket. Now, graduates send out hundreds of résumés, often from their parents’ homes, only to get ghosted or auto-rejected by machines. Only 30% of all 2025 graduates nationally have found full-time work in their field, and nearly half feel unprepared for the workforce. Go to college, get a good job“—that promise is slipping away, even for the smartest and most driven.​

Tech’s Iron Grip: ATS and AI Gatekeepers

Applicant tracking systems (ATS) and AI algorithms have become ruthless gatekeepers. If a résumé doesn’t perfectly match the keywords or formatting demanded by the bots, it never reaches human eyes. The age of human connection is gone—now, you’re just a data point to be sorted and discarded.

AI screening has gone beyond basic qualifications. New tools “read” for inferred personality and tone, rejecting candidates for reasons they never see. Worse, up to half of online job listings may be fake—created simply to collect résumés, pad company metrics, or fulfill compliance without ever intending to fill the role.

The Experience Trap: Entry-Level Jobs Require Years

It’s not just Harvard grads who are hurting. Entry-level roles demand years of experience, unpaid internships, and portfolios that resemble a seasoned professional, not a fresh graduate. A bachelor’s degree, once the key to entry, is now just the price of admission. Overqualified candidates compete for underpaid jobs, often just to survive.

One Harvard MBA described applying to 1,000 jobs with no results. Companies, inundated by applications, are now so selective that only those who precisely “game the system” have a shot. This has fundamentally flipped the hiring pyramid: enormous demand for experience, shrinking chances for new entrants, and a brutal gauntlet for anyone not perfectly groomed by internships and coaching.

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Burnout Before Day One

The cost is more than financial—mental health and optimism are collapsing among the newest generation of workers. Many come out of elite programs and immediately end up in jobs that don’t require degrees, or take positions far below their qualifications just to pay the bills. There’s a sense of burnout before careers even begin, trapping talent in a cycle of exhaustion, frustration, and disillusionment.

Cultural Collapse: From Relationships to Algorithms

What’s really broken? The culture of hiring itself. Companies have traded trust, mentorship, and relationships for metrics, optimizations, and cost-cutting. Managers no longer hire on potential—they rely on machines, rankings, and personality tests that filter out individuality and reward those who play the algorithmic game best.

AI has automated the very entry-level work that used to build careers—research, drafting, and analysis—and erased the first rung of the professional ladder for thousands of new graduates. The result is a workforce filled with people who know how to pass tests, not necessarily solve problems or drive innovation.

The Ghost Job Phenomenon

Up to half of all listings for entry-level jobs may be “ghost jobs”—positions posted online for optics, compliance, or future needs, but never intended for real hiring. This means millions of job seekers spend hours on applications destined for digital purgatory, further fueling exhaustion and cynicism.

Not Lazy—Just Locked Out

Despite the headlines, the new class of unemployed graduates is not lazy or entitled—they are overqualified, underleveraged, and battered by a broken process. Harvard’s brand means less to AI and ATS systems than the right keyword or résumé format. Human judgment has been sidelined; individuality is filtered out.

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What’s Next? Back to Human Connection

Unless companies rediscover the value of human potential, mentorship, and relationships, the job search will remain a brutal numbers game—one that even the “best and brightest” struggle to win. The current system doesn’t just hurt workers—it holds companies back from hiring bold, creative talent who don’t fit perfect digital boxes.

Key Facts:

  • 25% of Harvard MBAs unemployed, highest on record
  • Only 30% of 2025 grads nationwide have jobs in their field
  • Nearly half of grads feel unprepared for real work
  • Up to 50% of entry-level listings are “ghost jobs”
  • AI and ATS have replaced human judgment at most companies

If you’ve felt this struggle—or see it happening around you—share your story in the comments. And make sure to subscribe for more deep dives on the reality of today’s economy and job market.

This is not just a Harvard problem. It’s a sign that America’s job engine is running on empty, and it’s time to reboot—before another generation is locked out.

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