For Ask an Economist this week I have a question from Hal who asks, “What is the difference between a ‘non-profit’ and a ‘not for profit’?”
In order to address this question, I think it’s important to discuss what separates a for-profit business from these two forms of organization.
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Employee turnover has surged since the pandemic, and the need to replace and train new employees at high volume has hampered productivity for businesses, according to The New York Times.
More than 4.5 million workers voluntarily left their jobs in November 2021, the highest since the government began tracking this data 20 years earlier, and the turnover rate remains significantly higher than it was before the pandemic, according to the NYT. Businesses are struggling with the costs of high turnover; new employees take time to become productive, and existing employees lose productivity because of the time they spend training others.
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Private companies added 127,000 jobs in November, missing investor expectations by more than 70,000 to post the worst result since January 2021, according to private payroll firm ADP and CNBC Monday.
The addition represented a sharp decline from the 239,000 new jobs reported by the firm in October. Industries that were most directly impacted by higher interest rates, such as construction, were hit the hardest by job cuts, while consumer-facing industries, such as hospitality, largely weathered the storm, according to ADP.
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Newly released data from the Commerce Department show what some people have been saying for months: The nation is in recession.
Furthermore, the Biden administration’s cherry-picking of data has come back to bite it, with even its selected data points now being revised to indicate a recession. And while these numbers confirm the economy shrank in the first half of the year, the rest of this year holds little promise of recovery.
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Arizona Attorney General Mark Brnovich is leading a coalition of 24 states objecting to proposed rule changes by the U.S. Securities & Exchange Commission (SEC) that would require publicly-traded businesses to disclose information about their greenhouse gas emissions and discuss climate risks. The coalition filed formal comments indicating the 500-page rule titled “The Enhancement and Standardization of Climate-Related Disclosures for Investors” goes beyond the jurisdiction of the SEC and into environmental regulation.
In a 44-page letter addressed to the SEC, Brnovich and the others stated that the Biden “administration has tried and failed to impose regulation directly, and it now appears content to use back-door financial regulatory actions to implement its political will.” The coalition warned, “profit will become secondary to political interests, and capitalism will fall by the wayside.” The proposed rule “seeks to make ‘decisions of vast economic and political significance.’” They accused the SEC of “taking on major policy decisions that belong to Congress.”
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A new labor market survey found that a majority of employers, particularly restaurants, still cannot find enough workers.
The new report from Alignable said that 83% of restaurants can’t find enough workers. Overall, the report found that “63% of all small business employers can’t find the help they need, after a year of an ongoing labor shortage.”
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President Joe Biden unveiled a new 2023 budget proposal Monday along with major tax increases to help pay for it.
Biden’s budget, which comes in at about $5.8 trillion, is not expected to become law, but presidential budgets help set the legislative priorities for the year to come.
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Religious employees in Arizona who suffer an injury due to being required to get the COVID-19 vaccine by their employer will have a remedy if a proposed bill makes it into law. State Rep. Quang Nguyen (R-Prescott), along with several co-sponsors, introduced HB 2043 that makes employers liable for a “significant injury” to an employee resulting from the vaccine if the employer denies them a religious exemption.
“This is one of the most important bills I’m introducing this coming session,” Nguyen said in a statement. “The reality is COVID-19 is going to be with us for a long time. Public and private health mandates are not a good solution and could instead cause harm in some cases. If businesses and employers are intent on mandating vaccinations as a condition of employment, they should be held accountable if their employees face serious harm or illness.”
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Three Arizona members of Congress are joining in on a lawsuit against the Biden administration over its COVID-19 vaccine mandate for businesses with 100 or more employees. Reps. Paul Gosar (R-04-Ariz.), Andy Biggs (R-05-Ariz.), and Debbie Lesko (R-08-Ariz.) along with 180 other members of the U.S. House of Representatives and U.S. Senate filed an amicus curiae brief in NFIB v. OSHA challenging the authority of the Occupational Safety and Health Administration (OSHA) to implement the mandate.
The members of Congress argued that the mandate violates federalism, encroaching on the states’ authority. “[T]he sudden ‘discovery’ of authority under the OSH Act confirms that it was never intended to displace state authority in this area.” They assert, “Congress did not give that power to an agency bureaucrat.”
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After filing the first lawsuit in the country against President Joe Biden over his sweeping business COVID-19 vaccine mandate, Arizona Attorney General Mark Brnovich next signed onto a letter with 23 other attorneys general to Biden listing their objections, including non-legal ones. The attorneys general stress that the mandate will drive healthcare workers out of hospitals where they are desperately needed. If Biden does not reverse course, the 24 threaten to sue the administration.
“President Biden’s vaccine mandate lacks both legal authority and integrity,” Brnovich said in a statement. “I am proud to stand alongside my colleagues to push back on this assault on state sovereignty and the liberties of Americans.”
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U.S. retail sales jumped in June, boosted by states widely loosening coronavirus restrictions and businesses returning to full capacity.
Retail sales increased 0.6% and totaled $621.3 billion in June, according to the Department of Commerce report released Wednesday. The monthly increase was driven by general merchandise, including food service, clothing, personal care, electronics and gasoline sales, the report showed.
“Sectors that were buoyed by the pandemic are slowing down a little bit, but not to a degree that I’d be concerned about,” Square economist Felipe Chacon told The Wall Street Journal. “Household finances have been bolstered by a few rounds of stimulus spending, so it bodes pretty well.”
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