Heather Long

Nineteen states raised the minimum wage on Jan. 1, with some reaching $15/hour while 20 states remain at $7.25. Economists Heather Long and Scott Beaulier highlight both benefits for workers and risks of automation and job loss if wages rise too sharply. Housing costs, up 50% in five years, are a key factor in the debate.

Rising inflation and energy prices in the US have intensified political divisions, with Democrats criticizing President Donald Trump's Iran policy and trade tariffs for worsening economic conditions. Senate and House leaders, including Chuck Schumer and Hakeem Jeffries, accuse Trump of starting a 'reckless war' with Iran, which they claim has spiked gas prices and eroded household incomes. Analysts link the conflict to global energy market disruptions, amplifying inflationary pressures.

The U.S. job market added 172,000 jobs in May, with an unemployment rate of 4.3%, showing resilience despite the Iran war and high energy prices. Job growth was broad-based, including gains in local governments, restaurants, and healthcare, though wage increases remained modest and inflation concerns persist.

US employers added 172,000 jobs in May, with the unemployment rate remaining at 4.3%. Job growth was broad-based across sectors like local governments, restaurants, and healthcare, despite high energy prices from the Iran war. Wage gains were modest, aligning with the Fed's inflation targets, though challenges like long-term unemployment and a stagnant job market persist.

Retail sales rose 1.7% in March 2026, driven by a 15.5% spike in gas prices due to the Iran war, which disrupted oil supply. Excluding gas, sales grew 0.6%, supported by tax refunds and warm weather, though consumer sentiment hit a record low amid war-related concerns.