America's jobs crisis could be about to get even worse

While the coronavirus cases continue to increase, the brief recovery of the american job market begins to flatten. Through June and July, about 6 million new jobs were predicted added, but the marks was missed entirely. Now, after the number of cases decreased briefly before taking a sharp rise again as more states began to open up their businesses and public spaces, and with federal funds for businesses (particularly the PPP) beginning to dry up, that job growth that we had briefly experienced has come to a near complete halt. 

Although it may hurt us in the present moment, in order for us to experience constant and consistent job growth again, the economy is going to have to shut down again for the most part, or we may be stuck in this constant cycle of of jobs growth and loss.

https://www.cnn.com/2020/08/05/economy/july-jobs-report-preview/index.html

Interest Rates Are Low, but Loans Are Harder to Get

Because of the current economic crisis caused by the coronavirus pandemic, interest rates are now extremely low. This should mean that banks and lenders are handing out loans left and right, but that is not the case. Because of how the virus has spread, shutting down many parts of the country, forcing millions of people out of work, and leaving the remaining workers in a precarious situation, lenders have tightened their requirements for qualifying for loans, including requiring higher credit scores and more documentation. Despite having literal billions of dollars available to loan, lenders are holding onto this money even tighter now.

https://www.nytimes.com/2020/08/04/your-money/mortgage-loans-credit-cards-coronavirus.html

Deep Recession in European Union

There is a projection for a deep recession and immense unemployment in Europe. The troubling times that were living in have made stocks drift as oil prices have reversed their early gains. The European Union's economy is expected to shrink by 7.4 percent this year, as investment is expected to fall drastically and unemployment, debts, and deficits with grow beyond measure. The European Commission states that the aftermath of the coronavirus pandemic will be brutal. In comparison, the EU's economy was supposed to grow 1.2 percent this year, and in its worst recession ever it only shrank by 4.5 percent. The breath of this recession is set to be devastating. The two countries who suffered the most by the disease, Italy and Spain, will shrink by more than 9 percent each. Further, Greece is forecasted to suffer the most, losing 9,7 of its economic output this year. The repercussions of the coronavirus are not just lives, but also the potential prosperity of people all over Europe. How do you think the EU will respond and try to smoothen the blow?

Models Project Sharp Rise in Deaths as States Reopen

Several models, run by multiple different organizations, show that if the economy reopens soon, it will cause a huge uptick in the number of cases and deaths caused by covid-19. Yet, the white house is adamant about reopening the economy as soon as possible.
This brings up 2 points. Firstly, this is beginning to become more of an ethical issue than an economic one. Are we really prepared to open the economy given the possible 10,000 american deaths that could occur as a result. Secondly, the speed at which the economy fumbled makes me wonder if the supply-side economics that we are currently practicing is actually effective and more importantly secure and stable.

Coronavirus Task Force

Trump received great criticism for his inaction during the early stages of the Coronavirus Pandemic. Now the President has stated that the Coronavirus task force will focus less on dealing with the pandemic, and will shift focus on reopening the economy and safety. Many have argued that this step is too sudden and may just spark a new recurrence of cases. What do you think? Do you think the president is acting too fast? Should we reopen the economy to prevent a depression?

https://www.wsj.com/articles/trump-says-coronavirus-task-force-to-shift-focus-to-safety-and-reopening-economy-11588771597?mod=hp_lead_pos1

After a Terrible First Quarter, Executives Offer Some Hope

Corporate leaders believe that things should be improving from here. Business in April has been on a slight rise unlike the plummeting of sales that happened in March when the virus was spreading. China's recovery seems to have become the blueprint of recovery in the U.S. Many businesses have had a remarkable recovery due to China's economy reopening. With that being said, although there is still uncertainty of the future of some businesses in the U.S., corporate leaders have been trying to ease the minds of shareholders by telling them to look at China. Starbucks has been using its reopening in China as a blueprint for how the company will go about opening its stores in the U.S. as social distancing laws become more lax. It'll be interesting to see how the companies who don't have a strong consumer market in China will be able to bounce back from this pandemic. https://www.nytimes.com/2020/05/05/business/economy/coronavirus-earnings-first-quarter.html?auth=login-google

Clothing Stores Reopening

 Clothing stores received the approval to open up in multiple states including Ohio. One of the local retailers based in Columbus L Brands plans, as of
 A statement made at the beginning of the COVID-19 Pandemic in the United States informed us that this would take affect immediately:
"The cash compensation of Chairman and CEO Leslie H. Wexner and other members of the Board of Directors has been suspended. 
We are temporarily reducing base compensation by 20 percent for senior vice presidents and above.  Additionally, the company is deferring annual merit increases for all associates.
We are suspending our quarterly cash dividend beginning in the second quarter of fiscal 2020.
We are executing a substantial reduction in expenses and capital expenditures. 
We will be furloughing hourly associates who support the businesses that are not operating at this time."
Not stated in this briefing were over 50 Victoria's secret stores (owned by L Brands) closing to limit their loss in profit margin. Other companies are taking similar steps including a giant clothing and apparel rival, Gap Inc. L Brands and competitors plan to return to normal activities and claim that it is possible to run 100% even though 2% of stores have closed in the United States.

https://www.lb.com/associates/covid19/covid-19-guide

 This past weekend, several states started to re-opened their economies. Certain stores, such as salons and retailers have opened their businesses back up. Wow the United States is starting to see a decline in coronavirus cases, it appears that we may not return to normalcy for quite some time. Treasury secretary Stephen Mnuchin believes that the economy will re-open in June and will start to rebounds in July, August, September. Do you agree with Mnuchins believe that the economy will resume and bounce back within the next couple of months?  Do you think that the effects of this economy shut down will last for years?

https://www.wsj.com/articles/virus-fallout-continues-as-u-s-deaths-near-54-000-11587885746?mod=hp_lead_pos1

As States Push to Reopen, Business Leaders Say Not So Fast

In an article published to The New York Times, business executives are asked for their take on what seems like an early reopening of the economy in select states. Many responded by saying that they refuse to open because the effects of a second shut down would be much more devastating then just staying closed. Many others expressed that they feared for the health of their employees and would judge when to reopen based on the feedback they received from them. There are a lot of fears that if these businesses decide to open too early that they will be met with no business and that a lot of their employees would not be willing to come back.

What do you think? Do you think that it's too early for non-essential businesses to reopen? Or do you think that they need to open to help the economy?

Virus pushes US unemployment toward highest since Depression

Currently, the coronavirus, and the subsequent industrial shutdowns, has led to a substantial increase in the unemployment rate, within the United States. These figures, according to the article, have reached historic levels, with unemployment “swelling to levels last seen during the Great Depression of the 1930s, with one in six American workers” out of a job. The article notes that the American government has had to institute several stimulus packages to help alleviate this increase in the unemployment rate, but more stimulus packages may be needed. Also, according to recent economic figures, unemployment benefit claims have reached a historic and unprecedented level with 26 million people filing for unemployment benefits. 

https://apnews.com/e928d091f81f75b9bc8830c7370f41fb

Corporate Debt Could Make Economic Recovery Harder

According to an article published by CNN Business, the increasing levels of corporate debt could make it much harder for the U.S. economy to recover from the hit it is taking from the coronavirus. Before the spread of the virus corporate debt was already reaching a historically high level. Now, the amount of corporate debt is almost twice the amount that it was at this time last year.  So far, investment-grade corporate bonds have reached $425 billion, but are continuing to rise. In order to combat the effects of this, companies may be forced to scale back their planned investments, defer capital spending projects, and even delay bringing back the employees that have been temporarily laid off. Debt will also lead firms to run into problems not only with their employees, but with their shareholders and lenders as well. While debt is a major problem for struggling companies, the article also stated that healthy companies are also contributing to the rise in corporate debt. For example, Netflix, which is currently thriving, has added $1 billion in order to invest in more movies and shows.

Why do you think a healthy company like Netflix would add to the already high level of corporate debt?

https://www.cnn.com/2020/04/25/economy/corporate-debt/index.html

Coronavirus Testing

This article brought up a good point on testing larger populations for the coronavirus in order to get better estimates and results on the larger picture. It is difficult, right now, to predict anything that will happen for sure in the near future regarding the coronavirus, the economy, and the people themselves.  The article talks about how it is important to have all the factual information first before assuming anything and taking steps in order to improve the situation. The current pandemic numbers are predicted to be not very representative of what is really going on. The best example it gives as to what is happening is if there was a toll on the Trump-Biden race, but the toll was taken at a Trump rally. Nobody would rely on that toll or believe it to be accurate and the same may be happening with the COVID-19 testing. I agree with the article in terms of the fact that we should most definitely have more elaborate and widespread testing done on the large population to get a sense of what may be happening and the action steps we should take next.

https://www.nytimes.com/2020/04/24/opinion/coronavirus-testing.html

Jobless Numbers Are ‘Eye-Watering’ but Understate the Crisis

The description at the beginning of the article stats that the total unemployment claims have surpassed over 26 million, and that number is still going to continue to grow in the coming weeks. This pandemic has taken away so much employment that it will most likely take many months and possibly years to recover from. This kind of unemployment has not been seen in a long time, and with many companies still worried about the possibility of the date being pushed back or there even may be a second outbreak that would rock every business and these numbers would grow tremendously. This has all happened so fast too that it is almost hard to even fathom what the impact is currently because it's changing every second and also is getting harder to predict. What point do you think the unemployment numbers will rise to? Also, how long do you think it will take the US and world economies to recover and get unemployment back around where it was?

Link to article: https://www.nytimes.com/2020/04/23/business/economy/unemployment-claims-coronavirus.html

Pandemic Geopolitics - Is China Winning?

China began 2020 in a dire situation, having been the source of the coronavirus and therefore its first major victim. The country struggled at the beginning with containing the virus, but has since used its totalitarian state and one-minded unity to utilize extreme testing measures and mitigate the spread.

The country is now attempting to take advantage of their position by donating masks and other equipment to other nations in need (4 billion masks)! This appears suspicious, but in reality they are filling the hole of a power vacuum. The leader of the free world, President Trump, appears to have no interest in leading a global response to the virus. China has taken his place in steed, a continuation of what has occured at global summits during Trump's time in office.

While China's role in virus spreading is still muddled, it is clear they are taking every opportunity they can to play the "savior" as much as possible. So far, everyone else has let them.

https://www.economist.com/leaders/2020/04/16/is-china-winning

The US economy has erased nearly all the job gains since the Great Recession

The US economy has erased nearly all the job gains since the Great Recession

As stated in the article, soon the US will have exceeded the number of jobs lost during the Great Recession.. all of this happening in just the past 5 weeks. The last time this happened, it took 11 years for us to recover. How do you think they plan to rectify this situation this time around? What industries do you think will pick up extra employees considering a lot of companies went out of business for good?

Trump will sign executive order banning immigration into the U.S.

President Trump stated on Monday the 20th, that he will sign an executive order that will suspend immigration into the U.S. temporarily amid the pandemic. Trump tweeted out that "In the light of the attack from the Invisible Enemy, as well as the need to protect the jobs of our GREAT American Citizens.." After this, a lot of questions came about seeing as hours before he tweeted this, he was talking optimistically about certain states opening up their economies despite the treat of the virus. It is also unclear if Trump had made other countries aware of this decision before tweeted out his statement.

As of right now, Trump has not provided any major details on when this suspension would go into place and how long it will last.

Do you think that President Trump's order will stay in place even after the pandemic ends seeing as he has already tried to limit immigration into the U.S. well before the pandemic started?

https://thehill.com/homenews/administration/493812-trump-says-he-will-sign-executive-order-temporarily-suspending 

They Filed for Unemployment Last Month. They Haven’t Seen a Dime.

When I think about the United States economy, New York automatically pops into my head. 

It is the foundation of the US economy given its landmarks such as wall street and its portrayal in films. 

Therefore, it worries me that there is an entire street dedicated to keeping up with stocks, but 1.2 million New York residents haven't received their unemployment claims. 

How do you think this will change the hustle and bustle of New York life once they open back up? 

https://www.nytimes.com/2020/04/17/nyregion/coronavirus-pandemic-unemployment-assistance-ny-delays.html

Institutional Investment is Pouring into Cryptocurrency

Despite the economic turmoil being covered in the news worldwide, there is still investment going on in the cryptocurrency sphere. According to the digital asset management firm Grayscale, recently there has been $498.9 million invested into different cryptocurrency-backed trusts. While there is still debate as to whether Bitcoin can be considered the "digital gold" and be a safe investment for tough economic times like now, or that it is still to volatile, there are positive signs for the industry.

With large investments like this, and the price of BTC rising recently very quickly while investors are seeing the coronavirus take its toll on many other industries, there is more trust in the industry for many. In addition to more governments adding new laws to combat criminal activity being financed through cryptocurrency, I believe there is a lot of hope for crypto still.

Has any of these recent events changed your thoughts about cryptocurrency?

Consequences of a Controversial Decision by Sweden

The fear that was instilled in many Americans was in large part due to models that predicted as many as 2 million deaths. If nothing else, such models, whether accurate or not, give proof that social distancing measures are effective in limiting the virus' impact. In nations across the world, government mandated stay-at-home orders have undeniably lessened the mortality rate of covid-19. This is evident in Scandinavia, where Sweden made a controversial choice to allow citizens to be self-accountable when it comes to social distancing, and did not order any lockdowns. This has resulted in a death toll in the country as much as 17 times higher than neighboring Nordic countries. There have been over 1,300 virus related deaths in Sweden, compared to just 321 in Denmark, 150 in Norway and 75 in Finland, each of which did order government mandated lockdowns early on. This decision from Sweden comes very much as a surprise to me, as the Swedes are known for their progressive nature and tremendous welfare state, I  would've expected them to be steps ahead of the virus and protecting their citizens. 

Are you also surprised by the decision of the Swedish government to not mandate any stay at home orders, and instead allow the citizens to be accountable themselves? Do you think this decision has costed people's lives?

Stocks Rally After Talk of Reopening Economy

Stocks recovered this past Friday from talk about reopening the economy. Investors seem undeterred by the economic damage caused by the COVID-19 pandemic. President Trump said he hopes to have businesses back open by May 1st. This will be the first attempt at a large-scale resumption since we have gone into quarantine. As a result from this news, the S&P 500 rose 2.7 percent, and Boeing led the Dow Jones industrial average with a 3 percent rise. This leaves the S&P 500 28 percent above this year's low, but still 18 percent below its high. Additionally, China has reported that their economy has shrank for the first time in decades. The jump in stocks is believed to be a result of recent medical news.

In a recent clinical trial by Gilead Sciences, the antiviral drug, remdesivir, was reported to have helped patients recover quickly from severe coronavirus symptoms at a Chicago Hospital. As a result, Gilead's stocks have increased by nearly 10 percent. This gives some security and hope to citizens.

Do you think it is a wise move for the economy to begin to reopen? Should we have fears of a second wave? Do you believe the medical field is ready if we end up having a second wave?

https://www.nytimes.com/2020/04/17/business/stock-market-live-coronavirus.html

Bridging Divides, Most Agree on Economic Outlook: It’s Bleak

https://www.nytimes.com/2020/04/18/business/economy/coronavirus-economy-survey.html

Six in ten Americans are expecting a five-year depression after the coronavirus, but it is also bringing people together. Those who have lost their low-income jobs don't have hopes they will be employed anytime soon. Even if people are employed they are worried about losing their jobs quickly. On the other hand, some people believe the economy will return back to its normal success soon. People have less confidence in our economy and will be spending less, which doesn't help our economy. Do you think our economy will continue on its success soon, or do you think there is more to worry about a possible depression?

Coronavirus could cause more countries to default on their debt, economist say

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• An increasing number of countries could default on their debt in the coming 12-18 months as governments globally increase spending to limit the economic damage from the coronavirus pandemic, said Simon Baptist, global chief economist at The Economist Intelligence Unit. The International Monetary Fund on Tuesday downgraded its economic forecasts, saying that it now expects the global economy to shrink by 3% this year – compared to its previous projection for growth of 3.3%.  
• Many governments have announced large amounts of stimulus to support their respective economies, with some taking up more debt to fund those expenditure. The U.S. has raised its issuance of Treasury securities, while the usually fiscally conservative Germany said it plans to increase borrowing by as much as 150 billion euros ($164.4 billion).  But Baptist said not all governments could get the funding that they seek. In particular, he said those in emerging economies would face “a big challenge” in convincing international investors to lend them more money at a time when investors are seeking safer places to park their funds.“A lot of emerging markets are reliant on international investors, international financial flows to get the funding to run a budget deficit, they find it harder to borrow in local currency — although there are a few exceptions,” said the economist. “At the moment, with this big turn to risk aversion in international markets, even though there may be some emerging world governments that would like to spend more, they’re not going to be able to get funding.”  
• https://www.cnbc.com/2020/04/15/coronavirus-more-countries-could-default-on-debt-economist-says.html
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The coronavirus crisis could pave the way to universal basic income

The coronavirus crisis has revitalized calls for a universal basic income, with even the Pope suggesting that now may be the time to consider giving everyone free money.

The Covid-19 outbreak has meant countries across the globe have effectively had to shut down, with many governments imposing draconian measures on the lives of billions of people.To be sure, the International Monetary Fund now expects the global economy in 2020 to suffer its worst financial crisis since the Great Depression. Universal basic income is not a new idea. But it has gained more traction of late, more recently through the likes of U.S. presidential candidate Andrew Yang, who based his platform on the policy.

The IMF describes universal basic income as an income support mechanism, in which regular cash payments are intended to reach all (or a very large) portion of the population with no (or minimal) conditions. 

Guy Standing, a research professor in development studies at SOAS, University of London, told CNBC via telephone that there was no prospect of a global economic revival without a universal basic income. Standing, who has been an advocate for a universal basic income for more than three decades, said he believed the coronavirus crisis would be “the trigger” for a basic wage. Standing urged world leaders and policymakers to avoid repeating the same mistakes that were made in the aftermath of the 2008 global financial crisis, saying another “toxic combination” of austerity and quantitative easing would simply stoke up another crisis.

Some governments, including the U.K., Austria and Denmark, have introduced wage subsidies in an effort to protect households from an expected economic downturn. They are intended to help protect jobs and cover the salaries of millions of people.

Standing dismissed such an approach as “regressive” and “inefficient,” arguing wage subsidies of this nature would only ever result in a large number of vulnerable people being excluded from the system. “It’s atrocious economics.”

“So, for me, all of the arguments are tilting us toward saying: ‘We’ve got to protect everybody. We are all vulnerable.’” 

Could we see such an approach being followed by governments across the world in the near future? 

https://www.cnbc.com/2020/04/16/coronavirus-crisis-could-pave-the-way-to-a-universal-basic-income.html

Coronavirus: Ohio workers waiting for expanded unemployment benefits

Congress just recently passed a $2.2 trillion stimulus plan that has expanded unemployment benefits to those that under normal circumstances, would not have been eligible to file a claim for unemployment benefits such as part-time workers that would not have met the wage a week minimum requirement which in Ohio is $269-a-week, self-contractors or “gig” workers. But even though the stimulus plan expanded the group of people now eligible for unemployment benefits, the state of Ohio is not in a position where it can process the surge in claims and hand out the money to those desperately in need of the aid. The Ohio Department of Job and Family Services is essentially overwhelmed as claims and unemployment rate continue to rise. This is a problem in that people need the money to make car payments, rent, utilities, food, etc. that need to be paid regardless unless they find alternatives to help survive this time of unemployment. The only reason why the system is so inadequate is due to the fact that the Department of Jobs and Family Services never experienced a time where there was a massive layoff of people at the same time.
https://www.dispatch.com/business/20200412/coronavirus-ohio-workers-waiting-for-expanded-unemployment-benefits

Can we compare the COVID-19 and 2008 crises?

Can we compare the COVID-19 and 2008 crises?

Corona Virus is not one of its kind since similar events of worldwide epidemics have occurred. The relation between Covid-19 and the 2008 global depression is quite identical. The latter occurred abruptly and spread to affect many nations of the world. The factors that influenced it were known to very few individuals. The daily collapse of big institutions that were financially secure caught the world by surprise. This event is the same case with Covid-19. There’s so much uncertainty of the damage it will cause to the economy and other sectors, and the time it will take to curb it. As scientists and economists estimate the impact it will have in the ordinary lives of people, the masses are left to guess and hope. 

https://atlanticcouncil.org/blogs/new-atlanticist/can-we-compare-the-covid-19-and-2008-crises/

Economic impact of COVID-19 on tourism and remittance

Economic impact of COVID-19 on tourism and remittance

The lockdown experienced in many nations of the world as an attempt to curb Covid-19 has impacted the tourism sector considerably. Restrictions on movement have reduced revenue in the industry significantly. Countries that rely primarily on tourism have witnessed a reduction in their Gross Domestic Product. These countries will have to look for alternative options that will enhance and sustain the health and wealth of the nation. Otherwise, relying on the unpredictable effect of the Covid-19 is an unwise decision.

https://www.ifpri.org/blog/economic-impact-covid-19-tourism-and-remittances-insights-egypt

U.S. Food Supply Chain is Strained as Virus Spreads

As COVID-19 continues to spread throughout the United States, pressure is being placed on the nation's food supply industry. There has been an increasing number of positive COVID-19 cases in meat processing plants, warehouses, and grocery store workers. Many meat processing plants are being forced to temporarily close their doors due to the spike in sick workers. Smithfield Foods in Sioux Falls, South Dakota has been ordered to close down for at least the next two weeks after 230 workers became ill with the virus. This plant alone produces 5% of our nations pork. Workers in the food and grocery industry are considered essential workers as they are responsible for feeding the country. However, many workers are becoming sick and some are choosing not to come to work in fear of the disease. Consumers have been reassured that we will not run out of food. There will just be less options to pick from. We might not get our first choice at the grocery store, but we will get fed. What do you think could be a long term impact on the food and grocery industry if there continues to be a shortage of labor?

https://www.nytimes.com/2020/04/13/business/coronavirus-food-supply.html

G-20 Backs Temporary Debt Relief for World’s Poorest Nations

https://www.bloomberg.com/news/articles/2020-04-15/g-20-supports-time-bound-suspension-of-debt-for-poor-nations

G20 Finance ministers and Central Bank Governors, endorsed the G20 Action Plan in response to the COVID19 pandemic. According to the plan, G20 members will back the IMF's support relief to economically vulnerable countries, temporary suspend the debt servicing payments from the poorest countries, and work closely to implement the emergency relief packages by the World Bank and Development Banks. G20 members will work closely together to promote and sustain a successful global economic recovery. For a short term period, G20 members have committed to help contain the spread of the COVID19, and provide assistance to minimise the social and economic damage in the emerging markets and developing countries.

How Covid-19 is changing America's Spending Patterns

Nielsen believes that once the pandemic is finally over, consumers will return to their spending habits with a "new normal". This implies that they will return to their regular lives, but with a new precautionary attitude.  Supply-chain changes along with an evolved relationship with e-commerce are a predicted outcome, as before the virus, many were skeptical about e-commerce, but now their preferences might have changed. This shift in preferences could impact a lot of businesses in the future, and some might need to change their models in order to adapt.  Flexible models could include more online services, more pick up and delivery options and less human contact in the long run. With changing consumer behavior, preferences and attitudes, where do you think purchasing patterns in the country might end up after the virus is over? Do you think this "new normal" could be better for the future to avoid a possible second wave of the virus?


https://news4sanantonio.com/features/digital-discoveries/consumer-behavior-will-change-forever-post-covid-19-will-your-business-be-ready

Billionaire Mark Cuban says "Banks are leaving small businesses out in the cold."

Mark Cuban stated that the small business loan program (Paycheck Protection Loan) that was recently launched could have a terrible impact on small business long-term. Banks are making decisions about who gets loans based on an individual business' credit. With that being said, Cuban believes that a lot of small businesses will be "left out in the cold". He also stated that the economy is now at a turning point to get money into the system for all different types of businesses. Cuban is also a major investor on shark tank and expressed that a lot of the businesses he has invested in are struggling to acquire loans. Banks have put hurdles to make applying for the Paycheck Protection Loan extremely difficult. The government has set aside $350 billion dollars for the small business loan program in order to help prevent businesses from going under and helping them maintain paying their employees. However, banks have been making it extremely difficult for businesses to gain access to the fund. Until that friction between banks and businesses are resolved, many businesses are going to capsize.https://www.cnbc.com/2020/04/13/mark-cuban-banks-are-playing-leaving-small-businesses-out-in-the-cold.html?&qsearchterm=mark%20cuban

Amazon puts online grocery customers on the waitlist

Amazon has had a huge increase in demand for online groceries as the coronavirus outbreak continues to grow. There has been such a huge increase in demand that Amazon has decided to put new grocery delivery customers on a wait-list. They have also decided to restrict online store hours for some Whole Foods stores. Existing customers had already begun to experience a shortage in delivery slots which is what led this decision which was put in place today. Amazon acquired Whole Foods in 2017 for about $14 billion. Amazon's grocery delivery service includes Whole Foods, Amazon Prime, and Amazon Fresh, making the company a huge force to be reckoned with. The company's grocery order capacity has increased by over 60% during the virus outbreak. Amazon is now hiring more workers to help ease the large amount of traffic. They're even offering hire wages for grocery delivery versus the normal warehouse workers, hoping to incite a shift in the labor sector.https://www.cnbc.com/2020/04/13/amazon-stops-accepting-new-online-grocery-customers-amid-surging-demand.html

The Fed Reveals How It Plans to Fund the $2.3 Trillion in Stimulus Packages

As the article details, the government plans to fund the $2.3 trillion in stimulus packages by taking out $600 billion in loans and $85 billion that will be backed by the Federal Reserve. What future consequences could you see this causing the U.S. economy? Do you see a potential high rise in inflation or taxes? If so do you believe this is intentional?

Food Waste of the Pandemic

Due to the impact of Covid - 19 many farmers are wasting a large amount produces due to the closure of restaurants, hotel, and school. Farms have also been directly impacted due to the large amount of hording of non-fresh foods. Many farmers are having to get crafty with ideas on where to put the produce they are now unable to sell.

Farmers have made an effort to donate the access food but food banks are unable to keep large amounts of time sensitive food at once. Many farmers are finding themselves financially in a rut due to the lack of business and are not quite sure on how to move forward. Not only are they burdened with the lack of business, but they also have to spend in order to remove the unusable produce off of their land.

Link - https://www.nytimes.com/2020/04/11/business/coronavirus-destroying-food.html

JPMorgan now sees economy contracting by 40% in second quarter, and unemployment reaching 20%

Recently, economic advisors at J.P. Morgan released a dire economic forecast for the United States and its future economic situation. Specifically, their forecast is now foreseeing “a 40% decline in the nation’s gross domestic product for the second quarter and a surge in April’s unemployment rate to 20% with 25 million jobs lost” and this is primarily due to the increasing economic impact of the coronavirus. This Forecast has reached historic levels, with no modern precedent, and is a dramatic decline in America’s economic performance. This same forecast does predict a second-half recovery for the United States, with a third quarter growth rate of 23% and a fourth quarter growth rate of 13%, which will boost America’s economic performance. 

https://www.cnbc.com/2020/04/09/jpmorgan-now-sees-economy-contracting-by-40percent-and-unemployment-reaching-20percent.html 

We must start preparing for the next pandemic now

https://www.cnn.com/2020/04/11/opinions/prevent-pandemic-economically-opinion-ruger/index.html

The United States does not seem to have had a detailed, large-scale plan for pandemic response approaching 2020, or at least not one that was implemented in the face of COVID-19. There are numerous possible reasons for this, not least of which the fact that President Trump chose to dissolve the US pandemic response team, nested under the National Security Council, in 2018. However, this CNN article argues that preparing for a future pandemic (which, given the increasing prevalence of emerging diseases throughout the world, is likely a matter of when, rather than if) is not only crucial to prevent the crippling of our healthcare infrastructure that we are seeing now in places such as New York City, but would also yield significant economic benefits. The World Bank estimates that the development of a timely, holistic, empowered pandemic preparedness system would cost roughly 3.4 billion dollars annually, but reap an annual return of 37 billion dollars. The math is clear -- we must start preparing now for the next pandemic.

How will we react to reopening the economy?

The President of the United States has created a task force to reopen the economy, although individuals differ on how soon they believe he should act. It has been hinted that the end of May could potentially be when the economy reopens. Eventually people will need to return to work and social distancing guidelines will be relaxed. However, acting too soon can spur a resurgence of the virus. There is talk about having some parts of the country open up faster than others? Do you think that May is too early to open up the economy? Also, what do you think will be the effects of this long shut down that the country endured? Below is a relevant article.

https://www.wsj.com/articles/dire-economic-numbers-intensify-debate-over-lifting-coronavirus-restrictions-11586459653?mod=hp_lead_pos1

Borders Didn't Stop The Pandemic. But They Might Block The Trade Of Medical Goods

In the world of coronavirus, governments have imposed new barriers for trade to protect their own supplies. As of March 21, 54 governments had placed limits on exporting of medical goods. Some trade analysts said that the could backfire to some governments at some point. The white house warned 3M, which is the company that produces N95 masks to stop shipping the masks to other countries. But, 3M warned that blocking exports could actually reduce the availability of masks. 3M also said that if other countries retaliated by blocking masks from being sent to the US, the number of respirators being made available to the United States would decrease and that is the opposite of what everyone wants in the US. It could also have a negative impact on the smaller countries as they all depend on these big countries to import masks. 

So, what do you think should happen regarding trade barriers due to COVID-19?

https://www.npr.org/2020/04/08/828789521/borders-didnt-stop-the-pandemic-but-they-might-block-the-trade-of-medical-goods

What Missed Payments and Mortgages Mean for the Financial System

As it becomes harder for America's 120 million households to pay off their bills in the midst of the coronavirus pandemic, it becomes more and more possible that the country will face a financial crisis much like the last Great Recession over a decade prior.

Estimates show that on April 1st this year, approximately $43 billion dollars in payments may have been due. How many of those households could still afford their share of the payment after possibly losing their job? It is possible that renters may ask for forgiveness on their landlords, but that leads to a trickle-down effect of stripping income from the property owners, and them reevaluating their potential cash flow from their properties.

This article proposes that the government intervention should allow many households to postpone payments. The vast majority of residential mortgages are held/backed by government sponsored entities like Fannie Mae and Freddie Mac. Is it beneficial in this instance that the government has a personal hand in the housing market, so that they may be able to postpone disaster of 2008 proportions? Or could it make the situation even worse?

https://www.economist.com/finance-and-economics/2020/04/03/what-missed-rent-and-mortgage-payments-mean-for-the-financial-system

US is Nowhere Close to Reopening the Economy, Experts Say

Economists say there won't be a fully functioning economy again until people are confident that they can go about business without a high risk of catching the virus. "Our ability to reopen the economy ultimately depends on our ability to better understand the spread and risk of the virus,” said Betsey Stevenson, a University of Michigan economist. The US needs more testing for the virus to give policymakers more evidence to determine when it is safe for people to return to work. It is important to not restart activity too quickly because the pandemic can have a second spike which could deal more damage than the first. While we wait for the infection rates to fall, policymakers will need to continue to support workers who have lost their jobs and small businesses that are on the brink of failure. That could mean trillions in small business loans, unemployment benefits, and direct payments to individuals. When do you think we'll be able to return to normal economic activity?

https://www.nytimes.com/2020/04/06/business/economy/coronavirus-economy.html

Small Businesses Loan Program Needs More Funding

The $350 billion loan program for small businesses will soon need more funds because of the huge demand for federal assistance. Senate Majority Leader, Mitch McConnell, said "It is quickly becoming clear that Congress will need to provide more funding or this crucial program may run dry. That cannot happen." On Monday, House Speaker Nancy Pelosi (D., Calif.) told the Democratic caucus in a call that there must be more assistance for small businesses and for those who rely on food stamps, according to multiple Democratic aides. She indicated she saw this new funding as part of a new $1 trillion bill, on top of the $2.2 trillion bill signed into law last month.

Will we see a great amount of small businesses go under in the coming weeks, even with this aid package? How much are small businesses really suffering?