Lawsuit against Google

 Antitrust laws are simply laws put in place to prevent monopolies. These laws according to the Merriam-Webster dictionary define them as "consisting of laws to protect trade and commerce from unlawful restraints and monopolies or unfair business practices"

In the past, these laws have been used against huge corporations such as Microsoft and their "Internet Explorer" web browser. Since every Windows computer came with the browser pre-installed, the Justice Department argued it had an unfair advantage over other web browsers and won the case against Microsoft. This judgment helped many other companies including Google founded a year later. 

Now the time for Google to face that same fate seems near. On Tuesday, 20th October the Department of Justice filed a lawsuit against Google accusing it of engaging in anticompetitive practices similar to those of Microsoft. The lawsuit goes into detail about partnerships among others that have made Google accountable for 80% of search queries on the internet, in the USA. 

Integellencer writes " the DOJ argues that the company takes the windfall profits that it reaps from its dominance of search advertising and invests them in paying mobile-phone manufacturers, carriers, and web browsers to make Google their preset search engine — which only increases Google’s search dominance and thus its ability to further lock out competitors through similar business arrangements. The suit also takes issue with Google’s practice of making its search app undeletable on its own Android operating system. Taken together, the government argues that these deals erect insurmountable barriers to competing search engines, leaving Google with the power to dictate terms to advertisers and consumers."

Google on the other hand argues that “people use Google because they choose to — not because they’re forced to or because they can’t find alternatives.” 

It is only a matter of time until we see the court’s verdict and the effects of this verdict brings on tech companies. 

Source: https://nymag.com/intelligencer/2020/10/doj-google-antitrust-lawsuit-explained.html

Coronavirus and the Housing Market

 https://www.economist.com/finance-and-economics/2020/09/30/why-despite-the-coronavirus-pandemic-house-prices-continue-to-rise

Counter to the performance of the housing market in the last recession, the housing market in 2020 has not mirrored these same downturns. In the second quarter of this year, housing prices in middle and high-income countries have increased: rising at an annual rate of 5%. Domestically, prices in medium-sized houses have increased more than in any time prior to the ‘07-’09 recession. These increases can be explained by monetary and fiscal policy, as well as buyers’ consumption preferences. Internationally, central banks have cut policy rates by two percent this year and Americans can take out a 30-year fixed mortgage at an annual rate almost a percentage lower than at the beginning of the year. Historically, decreasing interest rates, as experienced now, have directly correlated to increased housing prices. However, this increased tendency to lend has not affected everyone equally, as those with lower incomes are not receiving large loans. Fiscally, governments have instituted a host of bailout bills, intending to maintain the income of average consumers. In G7 countries, household disposable income was roughly $100 billion higher than before Covid-19, despite the rise in unemployment. Various countries have instituted policies to preserve incomes, such as Netherlands’ banning of foreclosures and Japanese banks’ deferral of principal repayments on mortgages. Finally, buyers’ preferences have appeared to lead to an increased desire to increase the size of their home. While housing markets in big American cities are not doing well, reports do not indicate Americans are fleeing cities to move to suburban areas. In fact, housing prices in urban and suburban areas have increased at the same rate. People are likely looking for larger houses in areas they already live in, rather than seeing to purchase larger houses elsewhere — possibly due to the fact that homes are becoming both residential and office spaces.

It will be interesting to see how housing prices change as we get further into the pandemic. If fiscal stimulus ceases, it is possible that consumers will be less willing to purchase houses, as they will lose disposable income. Additionally, the expected market volatility brought by the upcoming election will also likely create uncertainty regarding the housing market. If the pandemic worsens an increased demand for housing may not match the limited supply of construction. However, as the author declares: “It may take more than the deepest downturn since the Depression to shake the housing market’s foundations.”

Federal Budget Deficit Skyrockets to Record High of $3.1 Trillion

https://www.wsj.com/articles/u-s-budget-gap-tripled-to-record-3-1-trillion-in-fiscal-year-2020-treasury-says-11602871210

Workers move towards more flexible hours

 Since the invention of the clock and time zones, laborers have been compensated from their work based on the hours of work rather than level of production. This has created an incentive and desire to work as many hours as possible to gain more money. Previously, there was a system dubbed "putting out" which paid workers based on their output. Yet the clock completely usurped this system and gave way to set shifts and schedules that still persist today.

 There has been a slight transition since the pandemic hit. Flexible working existed well before the pandemic. But it only offered employees the ability to choose when in the day they worked their allotted hours. Now, companies are allowing more and more employees to work from home and are allowing them to focus on tasks rather than working for a set 40 hours a week. 

A growing trend for millennials is the abolition of the 40 hour work week. Advances in machinery, increased wealth, and literacy has allowed companies to be more efficient which could ultimately eliminate the need for workers to stay and essentially "take up time".

Do you believe America is trending towards a more production based wage system or will they stick with the hours as a basis of measurement?

https://www.economist.com/business/2020/10/17/countering-the-tyranny-of-the-clock

Coronavirus Pandemic Putting Damper on Holiday Shopping Season

The article talks about that the coronavirus pandemic and how it is creating novel hurdles for Americans’ spending this holiday season, posing potential challenges for an economy that leans heavily on their willingness to consume, which we will observe during the holiday season how people will spend this year compared to last year. Likewise, the households will face the prospect of Halloween without treaters, Thanksgiving without family travels, Black Friday without crowds, and a December without parties and in-person gift-giving. 

According to the National Retail Federation, the holiday the sale which usually extends over November and December represents roughly 20% of annual U.S. retail sales each year, and retail spending accounts for about 25% of consumer spending in a typical year.

Several economists are predicting little growth or none whatsoever this year compared with 2019. US chief economist Joe Brusuelas expects retail sales to increase just 0.5% this holiday season, partly because Congress has not passed a new stimulus package. On the other side, Sucharita Kodali, a retail industry analyst at Forrester Research Inc. expects retail spending this holiday season to be flat compared with 2019, She predicts online sales will grow 20% to 25%, the sharp decrease in foot traffic at brick-and-mortar stores are expected to keep overall spending in check this November and December.

The question, which is that given the coronavirus constraints, will there be much Halloween spending this year compared to last year?

https://www.wsj.com/articles/coronavirus-pandemic-putting-damper-on-holiday-shopping-season-11603029601

What Happens if Roe v. Wade is Overturned?

 The almost-certain confirmation of Amy Coney Barrett to the Supreme Court has increased the chances that Roe v. Wade will be weakened or overturned. If that were to happen, abortion access would decline in large regions of the country, a new data analysis shows. Legal abortion access would be unchanged in more than half of states, but it would effectively end for those living in much of the American South and Midwest, especially those who are poor, according to the analysis. 

Because abortion will only be allowed in certain states this causes inequality in abortion access. Women will have to travel to clinics, possibly pay for hospital stays, and leave from work. This could mean that about 100,000 fewer abortions in the United States which could result in many more children in the foster care system or more people needing help from the government to take care of their children. So, my question is will the overturning of Roe v. Wade cause the economy to worsen?

https://www.nytimes.com/interactive/2020/10/15/upshot/what-happens-if-roe-is-overturned.html?smtyp=cur&smid=tw-nytimes

Working From Home Might be the New Normal

In response to the initial wave of the Coronavirus, the amount of people working from home increased dramatically. New innovations in technology allowed the at home worker to be more productive than in the past, we even see this in our own lives, via zoom. This increased productivity is why many companies are planning to keep many workers in their homes, even after we eventually find our way of the pandemic. 

One of the companies listed in this group was Facebook. Mark Zuckerberg said that as many as 50% Facebook employees could be working remotely within the next five to ten years. As of June, Facebook employed over 52,000 people globally. That means that over 25,000 employees will be working from their homes, significantly reducing the amount of physical capital needed for onsite offices.

Do you think in areas of jobs where physical labor isn't needed, that working from home will become the new normal? Personally, I believe that this will be the case. As working from home adds overall efficiency and utility of resources in the economy. 

https://www.cnn.com/2020/10/18/business/virtual-work-offices-pandemic/index.html

US election 2020: The young people struggling in the 2020 economy

The pandemic has had a huge impact on the young people in the US.S it is getting worse with the election being there. 

Joshua Boyer, a 30-year-old, was living his American dream. He planned to launch his social work career and start a family with his Fiancee in a few years and buy a new house. Since his graduation, he remains without a job for 5 months even though he has applied for about 300 openings. he had a similar experience in 2008 when he graduated from high school in the midst of a global financial crisis. At that time, he entered the military to escape the desolate prospects that were ready to face him in the labor market. His only concern was that this would be another year where the world will face another lost generation.

A'Naiya Davis, a 23-year-old, worked in the minimum wage retail positions after she graduated from college in 2018. She finally ended up moving out from her parent's home as she had landed a role as a content specialist but ended up losing it in June during the Pandemic cuts. Even though she got another job in September the intervening months made her take money out from her savings. She talks about how she would have really liked to live without a roommate or even buy a new home, but now all those things feel out of reach since the pandemic has cut her off.

Do you think we will face the same situations after graduating?

https://www.bbc.com/news/election-us-2020-54471388

Shoppers Came Back To Department Stores In September, Lifting Retail Sales

In September, shoppers' spending on clothes and cars had increased. Also, so has the amount spent at departmental stores. U.S retail spending has gone up by 1.9% compared to August which has given a boost of confidence even though signs have indicated a slowing down in economic recovery. All types of stores had an increase in spending with the exception of electronic stores. Clothing as well as departmental stores saw the biggest boost which is good for them because these stores have faced major financial losses during spring. Over the summer retail spending has improved so much to even surpass the pre-pandemic levels. However, there was a sense of worry in July/August as this growth had severely slowed down. This slowing-down has also affected job growth, and women have abandoned jobs/ left the workforce. People are still relying on unemployment benefits. As holiday season approaches will shoppers continue this way and spend a lot like they always do or will the pandemic affect their budgets and net spending. The retail industry will be tested during these end of year sales and economists say that the amount spent will be divided between those badly affected during the pandemic and those who were well off during these times. Only time will tell what the retail industry is going to look like in the next few months.

https://www.npr.org/sections/coronavirus-live-updates/2020/10/16/919330560/shoppers-went-back-to-department-stores-in-september