Economics

  Dr. Rick Franza, Dean of the Hull College of Business, discusses a different, timely business topic each Monday in this column. This week, he talks about the economy and what’s driving the financial markets. The interview has been edited for clarity and impact. ABD: We’re hearing some economic news that usually indicates strength but the financial markets are reacting as if things are bad. What is causing this disconnect? Rick: There are always some differences between the economy and the markets. Part of that is in the economy we

The Augusta Labor Market Index (LMI) increased 0.2 percent in July from June. It now stands 1.5 percent higher than in July 2021. In the last month, improvements were seen in employment, unemployment, earnings and hours worked. Only the labor force declined, by 700 people. The biggest improvement was seen in average weekly wages which increased 9.8 percent from a year earlier, enough to compensate for higher inflation. This is a sharp turnaround from 2021 when earnings were falling in the local area. Workers have been able to demand higher

  Dr. Rick Franza, Dean of the Hull College of Business, discusses a different, timely business topic each Monday in this column. This week, he talks about student loans, debt, and loan forgiveness. The interview has been edited for clarity and impact. ABD: We’re hearing a lot about student loans these days. Are student loans to pay for college a good idea or a bad idea? Rick: They can be both. I think that student loans as part of a portfolio, and as a means to pay for education, are

The average weekly earnings in the Augusta Metropolitan Statistical Area (MSA) in 2021 was $898. In Atlanta, it was $1,070 and just $682 in Hinesville (see the first chart). In fact, there is quite a clear relationship between the size of MSA, as measured by population, and average weekly earnings (see the second chart). The line of best fit is clearly upward sloping, showing the positive relationship between population and earnings. Why do workers earn more in larger cities than their colleagues in smaller ones? A new paper by Theodore