Nevada collected $1.92 billion in sales tax last fiscal year, up about 8.5% and $113 million more than the state’s own forecasters expected. Headlines say Nevada struck gold with a $1 billion surplus. So why did private sector pay fall 0.6% once inflation is factored in?

On this episode of Everyday Economics, Center Square publisher Chris Krug and chief economist Dr. Orphe Divounguy explain how states can collect more dollars without becoming any richer. Dr. O breaks down the difference between nominal and real dollars, and why the same rising prices that boost sales tax collections also raise what the state pays for workers, construction, medical care, and contracts.

They also look at why the $1 billion surplus is a preliminary two-year forecast ranging from $900 million to $1.64 billion, why Dr. O says now is the time for states to save rather than spend, who comes out behind in a K-shaped economy, and why Nevada’s dependence on tourism and gaming could be a risk going forward.

Read Dr. O’s Everyday Economics column every Monday at The Center Square, and subscribe to his newsletter, Markets Measured.

#Nevada #Economy #Inflation #StateBudget #Taxes #KShapedEconomy #EverydayEconomics #TheCenterSquare

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The Federal Reserve held interest rates steady last week, so why aren’t credit card, auto loan, and mortgage rates coming down? On this episode of Everyday Economics, Center Square publisher Chris Krug and chief economist Dr. Orphe Divounguy explain why the Fed can make money expensive but can’t create workers, oil, or cheaper imports.

Dr. O breaks down why the Fed’s 3.75% to 4% target range doesn’t set the rates households pay, and why rising long-term Treasury yields matter more for your borrowing costs. They also dig into whether the AI investment boom is a bubble, with data center construction up about 25% while factory construction falls nearly 20%, and why productivity growth of 2.2% is barely above its long-run average of 2.1%.

Ahead of Friday’s October jobs report, Dr. O explains why a consensus forecast of 55,000 jobs is roughly break-even in an economy with almost no labor force growth, and what that means for unemployment, wages, and the Fed. Finally, they look at how an aging America could squeeze state budgets with slower income tax growth and rising Medicaid long-term care costs.

Read Dr. O’s full column at The Center Square.

#Economy #FederalReserve #InterestRates #JobsReport #AI #Inflation #EverydayEconomics #TheCenterSquare

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The housing market is shut to almost everybody, but at the very top, buyers are still lining up and there aren’t enough homes to sell them.

On this episode of Everyday Economics from The Center Square, publisher Chris Krug and PhD economist Dr. Orphe Divounguy dig into his latest column on the luxury buyer pool. With mortgage rates around 7.4% and homebuilder confidence at 32 (down from 68 in 2019), most of the market is strained. But using Redfin data on the top 5% of homes in each market, Dr. Divounguy finds the luxury segment is highly competitive, driven by AI-fueled stock gains and fast-rising incomes at the top.

They look at why luxury inventory is so scarce in Midwest markets like Kansas City, St. Louis, and Chicago; why Jacksonville is tight while Miami and Fort Lauderdale have plenty of supply; and why Seattle is moving the other way, with its luxury buyer pool down 14% and listings up 9% amid tech layoffs, a proposed $100,000 fee on certain new H-1B petitions, and the state’s new tax on income over $1 million. Plus, why policy risk matters for housing demand and investment, and how San Francisco is riding the AI boom.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.