On Thursday Federal Reserve Chairman Jerome Powell indicated that his main concern regarding the pandemic surrounds women, children, and business owner who are susceptible to the long term consequences from the pandemic. He goes on to explain by elaborating on each piece of his statement. He first begins by saying that it is not by choice that women are out of the labor market as the pandemic has caused this. What was interesting is when he explained his concern about children he said he was concerned about kids not receiving the education that they should be getting. Within the grand scheme of things Powell talks about the business owners who have just simply been out of work and are losing the connection to the labor force as well as the life they had. With the expected surge in COVID cases Powell indicates that displaced workers will need to receive extended support. An interesting point that Powell makes is that the economy we will be returning to will be heavily leveraged in technology, this poses a challenge for many workers who are not versed in technology like the younger generations. Overall Powell's main take away was that even after the pandemic becomes subdued with the vaccine there will still exist a group of people who will still require support due to the fact that the economy is vastly different than the one they once worked in.
https://www.cnbc.com/2020/11/12/here-are-the-things-that-scare-jerome-powell-the-most-about-the-economy-right-now.html
2 comments:
This makes me wonder if there will be major reform in our social welfare system in the future to help those during hard times or those unable to adapt to rapidly changing job markets.
I wonder the same thing as Maia. Even a country as wealthy as ours was devastated by the pandemic. I expect citizens to demand more social reforms to aide them during times of uncertainty.
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