Tag Archives: Achinty Ray

TSU economist says inflation is here for the long haul

Nashville, Tenn. (TSU News Service) – A Tennessee State University economist says inflation is not going away anytime soon and is poised to be the top economic challenge this year.

Dr. Achintya Ray

Since December 2021, the inflation rate rose to 7 percent, the highest in 40 years. A stronger consumer demand, continuing supply chain issues, and the emergence of the coronavirus omicron variant, continue to plague the economy, making it increasingly tough for working-class citizens to make ends meet.

Recently, U.S. President Joe Biden held a meeting with White House officials to discuss the administration’s plan for combating rising prices as inflation continues to surge throughout the U.S. He talked about steps the administration has taken to increase consumer choice and scrutinize what he called “mega mergers” that reduce competition. 

“The inflationary situation is extremely worrisome,” says Dr. Achintya Ray, an economics professor in the College of Business at Tennessee State University. “Furthermore, the inflationary pressures are likely to be here for a considerable period of time unless an intervening market crash or recession brings about deflationary pressures.”

In July, the president signed an executive order aimed at increasing competition by cracking down on larger firms in industries that the administration sees as too “consolidated.”

Dr. Ray says there is no reason to panic but the American people should be very cautious about what lies ahead.

“Rising inflation, rising public debt, declining employment to population ratio, declining consumer sentiment, unsustainably low tax base, steep increase in inflation causing money supply, rapid decline in blue chip stocks, worrisome unsustainable increase in house prices, all point to enhanced probabilities of a recession,” says Ray.

Here are some figures Dr. Ray cited on the state of the economy:

  • The producer price index has increased nearly 21 percent between January 2020 and December 2021.
  • Public debt in America is now about 23 percent bigger than the country’s gross domestic product (GDP), which is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period.
  • The American tax base may be reaching a breaking point, with more than 100 million U.S. households, or 61 percent of all taxpayers, paying no federal income taxes last year.
  • Median house prices have increased by nearly 26 percent between March 2020 and November 2021. Such a steep increase may be unsustainable over the long run. Discussions about a 2008-09 style housing market crash are increasing.

To learn more about TSU’s College of Business, visit https://www.tnstate.edu/business/.

Department of Media Relations

Tennessee State University
3500 John Merritt Boulevard
Nashville, Tennessee 37209

About Tennessee State University

Founded in 1912, Tennessee State University is Nashville’s only public university, and is a  premier, historically black university and land-grant institution offering 39 bachelor’s degree programs, 24 master’s degree programs, and eight doctoral degrees.  TSU is a comprehensive research intensive institution with a R-2 Carnegie designation, and has a graduate school on its downtown Avon Williams Campus, along with the Otis Floyd Nursery Research Center in McMinnville, Tennessee.  With a commitment to excellence, Tennessee State University provides students  with a quality education in a nurturing and innovative environment that prepares them as alumni to be global leaders in every facet of society. Visit the University online at tnstate.edu.

TSU leader, expert say university can play major role to land Amazon in Nashville

NASHVILLE, Tenn. (TSU News Service) – Tennessee State University President Glenda Glover says the institution can play a major role in luring retail giant Amazon, which is looking to open a second headquarters — possibly in Nashville.

Tennessee’s capital city was recently named one of the remaining 20 locations vying for the economic jackpot.

President Glenda Glover

“TSU is Nashville’s only public university with outstanding technology and business and commerce degree programs,” says Glover.

“We produce a diverse group of very talented and workforce-ready students. In addition to TSU establishing a student employment pipeline of business and tech-savvy employees for Amazon, we have an array of accredited and professional development programs to help their current workers enhance their skills and career path within the company.”

Glover adds that TSU’s executive MBA and continuing education offerings are just a few of the tools the university can readily offer Amazon through the corporate employee education program.

Called HQ2, the new facility will cost at least $5 billion to construct and operate, and will create as many as 50,000 high-paying jobs. According to USA Today, the facility will also add $38 billion to the local economy, create 53,000 non-Amazon jobs and boost the personal income of non-Amazon employees by $17 billion.

TSU expert Dr. Achintya Ray agrees that a potential relationship between the university and Amazon would offer a unique opportunity.

“Rarely does history present such an outstanding opportunity to bring together a fast-growing city, a corporate giant, and a strong public university in a close partnership with each other,” says Dr. Achintya Ray, professor of economics.

“In many ways, a partnership between Nashville, Amazon, and Tennessee State University can help define the ushering of a transformative century of economic development while further cementing America’s leadership role in the global economy.”

Last year, Amazon, based in Seattle, Washington, received bids from 238 cities and regions from across 54 states, provinces, districts and territories across North America. The company said it would make a decision in 2018.

Department of Media Relations

Tennessee State University
3500 John Merritt Boulevard
Nashville, Tennessee 37209

About Tennessee State University

With more than 8,000 students, Tennessee State University is Nashville’s only public university, and is a comprehensive, urban, co-educational, land-grant university offering 38 bachelor’s degree programs, 25 master’s degree programs and seven doctoral degrees. TSU has earned a top 20 ranking for Historically Black Colleges and Universities according to U.S. News and World Report, and rated as one of the top universities in the country by Washington Monthly for social mobility, research and community service. Founded in 1912, Tennessee State University celebrated 100 years in Nashville during 2012. Visit the University online at tnstate.edu.