The Price Point

As Stuyvesant students prepare to enter the outside world, understanding the economy becomes an essential skill. In today’s society, knowledge of economics provides us with a foundation for navigating financial issues, understanding the effects of public policy on the market, and making informed decisions about our own personal finances.

The U.S. Economy Remains Strong But Its Future Is Uncertain

The U.S. continues to have a strong economic outlook due to increases in American consumer spending and incomes through 2024. However, President-elect Donald Trump’s proposed tariffs in conjunction with the unknown future of U.S. economic policy makes the sustainability of this trend difficult to forecast. 

Continued Economic Decline in Germany

Germany has not seen significant economic growth in the past two years. This week, their largest auto and appliance supplier Bosch announced that it would cut 5,500 jobs beginning in 2027. This is mostly due to a sluggish manufacturing sector, aging public infrastructure, and heightening energy costs. Since the government lacks funding and is in a state of general instability, it is unlikely that this trend will reverse anytime soon.

China's Industrial Profits Fall by 10 Percent 

In another blow to the Chinese government’s economic policy, Chinese industrial profits in October fell by 10 percent. While China is still the first or second largest monetary power in the world and maintains a growing economy, there are significant problems underlying their economic strength. Although Beijing has implemented some stimulus measures to help their economy stay afloat, they have not been enough to combat the overall decline in profits. This is yet another example of the issues that plague China’s future development.

Economics Concept of the Issue

Federal Income Tax

Federal income tax is a tax imposed by the federal government on an individual’s earnings including salaries, investments, and profits, and it funds government services such as public education, healthcare, and infrastructure. Tax rates vary depending on the country and income level—the U.S. has a tax bracket system that decides income tax rate based on income level range; higher rates are applied for higher income levels. In the U.S., federal tax rates can vary from 10 percent to around 40 percent. When paying taxes, taxpayers report their income through tax returns—they can claim deductions and credits, which reduce the amount of taxes paid. While the federal government levies many taxes, income taxes are nearly 50 percent of total tax revenue, which is the largest amount of revenue from any single tax