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Title: World Bank Group Launches First Operations or COVID-19

Link:

https://www.worldbank.org/en/news/press-release/2020/04/02/world-bank-group-launches-first-operations-for-covid-19-coronavirus-emergency-health-support-strengthening-developing-country-responses

Summary: This article discusses how the World Bank is an international organization that offers developmental assistance to middle-income and low-income countries. The world bank was founded in 1944 and has 189 member nations and aims to reduce poverty in the developing world. While the World Bank Group strives to create a poverty-free world, there are groups that are passionately opposed to the international patron as critics feel that its efforts actually make things worse. The World Bank serves two mandates: To end extreme poverty by reducing the share of the global population that lives in extreme poverty to 3% by 2030; and to promote shared prosperity by increasing the incomes of the poorest 40% of people in every country. The president of the World Bank comes from the largest shareholder, which is the United States, and members are represented by a board of governors. The five largest shareholders being the U.S., U.K, France, Germany, and Japan.

Reaction/Relation to Class: In response to the current pandemic, the World Bank is taking broad, fast action to reduce the spread of COVID-19 and they have health response operations moving forward in over 65 countries. The World Bank Group is prepared to deploy up to $160 billion over the next 15 months to support COVID-19 measures that will help countries respond to immediate health consequences of the pandemic and economic recovery. These Groups operations are strongly focusing on poverty, with an emphasis on policy-based financing, and protecting the poorest households and the environment.

Citation:

“World Bank Group Launches First Operations for COVID-19 (Coronavirus) Emergency Health Support, Strengthening Developing Country Responses.” World Bank. Accessed April 22, 2020.

https://www.worldbank.org/en/news/press-release/2020/04/02/world-bank-group-launches-first-operations-for-covid-19-coronavirus-emergency-health-support-strengthening-developing-country-responses

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Title: Fiscal Policies to Protect People During the Coronavirus Outbreak

Link: https://blogs.imf.org/2020/03/05/fiscal-policies-to-protect-people-during-the-coronavirus-outbreak/

Summary: This article talks about how a key role of the government is to protect the well-being of its people, most crucially during emergencies such as coronavirus. The government wants to guarantee that people are not going to die because of a lack of money. The priority for governments and the global community is to prevent people from contracting the disease and to cure those who do. The article then discusses how low-income countries urgently need grants or zero-interest loans to finance the health spending they might not otherwise be able to afford. Past epidemics show that speed in deploying concessional finance is essential to contain the spread of the disease. Then the article talks about how governments can help people and firms during this pandemic by, spending money to prevent, detect, control, treat, and contain the virus, and to provide basic services to people that have to be quarantined and to the businesses affected. The government is supposed to provide timely, targeted, and temporary cash flow relief to the people and firms that are more affected, until the emergency abates.

Reaction/Relation to Class: In class we are learning about chapter 21, and it talked about the fiscal policy, so I related the fiscal policy to the coronavirus to see if it was being affected. I think this article was reassuring because it shows that the government is helping people during this pandemic.

Citation: “Fiscal Policies to Protect People During the Coronavirus Outbreak.” IMF Blog, March 16, 2020. https://blogs.imf.org/2020/03/05/fiscal-policies-to-protect-people-during-the-coronavirus-outbreak/

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Title: Coronavirus and  Macroeconomic Policy

Link:

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Title: Rising food costs lift U.S. consumer prices; coronavirus to weigh on inflation

Link: https://www.reuters.com/article/us-usa-economy-inflation/rising-food-costs-lift-u-s-consumer-prices-coronavirus-to-weigh-on-inflation-idUSKBN20Y1U7

Summary: This article talks about how the U.S. consumer prices unexpectedly rose in February but could drop in the months ahead as the coronavirus outbreak depresses demand for some goods and services, outweighing price increases related to shortages caused by disruptions to the supply chain. The report from the BLS on Wednesday, which showed a steady rise in underlying inflation, did not change financial markets expectations that the Fed will cut interest rates again as its policy meeting next week as the coronavirus spreads across the United States. The U.S. Central bank implemented a 50-basis-point emergency rate cut last Tuesday as the highly contagious coronavirus began fears of a recession in the U.S. and global economies. Economists at this time are predicting the Fed will reduce its benchmark overnight interest rate to zero by year end, given low inflation expectations and a plunge in Treasury yields.

Reaction/Relation to class:
It is crazy that the United States’ ocean trade with china has stopped, supplies are expected to lead to shortages of some goods, including prescription medication, which could boost prices. In addition, travel restrictions and social distancing have basically put a stop to the demand for services such as travel, hotels, entertainment and eating out at restaurants. We are living through this pandemic that will change the way we live our lives forever and it leaves us speechless. In relation to our macroeconomics class, chapter 17 was about inflation rates and we have obviously been discussing COVID19 and its impact on the economy, which relates directly to this article.

Citation: Mutikani, Lucia. “Rising Food Costs Lift U.S. Consumer Prices; Coronavirus to Weigh on Inflation.” Reuters. Thomson Reuters, March 11, 2020. https://www.reuters.com/article/us-usa-economy-inflation/rising-food-costs-lift-u-s-consumer-prices-coronavirus-to-weigh-on-inflation-idUSKBN20Y1U7

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Title: States Rush to Prepare for Wave of U.S. Unemployed

Link:
https://www.nytimes.com/reuters/2020/03/20/business/20reuters-health-coronavirus-usa-unemployment.html?searchResultPosition=2

Summary: This article talks about the U.S. unemployment benefits program, a key part of the safety net for the labor market, is facing its biggest test in more than a decade. Economists said that more than 2 million applications for unemployment could be filed this week, as people who work for restaurants, bars, hotels, and other businesses suddenly finding themselves out of work because of this coronavirus. The pandemic is causing states to already be facing budget shortfalls, 23 states were short on unemployment insurance trust funds as of last year, before the coronavirus. Some of the workers who applied for the unemployment program this week were met with downed websites, long waits on phone lines and many other delays during their application process.

The article also reports updates on how some of the states are handling the benefits. California made unemployment benefits available to people who had their hours cut due to the virus. New York waived the One-week waiting period for benefits for people who are out of work because of closures or quarantines related to the virus. Massachusetts is providing more leeway for people who are currently receiving benefits but miss a deadline because of the virus.

Reaction/Relation to Class:  In relation to class, we have been learning about unemployment rates and the coronavirus. This is a very relevant article about what is going on in the economy because of the virus. This article discusses how a bill was passed by the Senate this week that could increase funding for State Labor Departments and would make extended benefits available in the states where the unemployment rate rises by at least 10%. This funding could provide needed support to states that are now hiring rapidly to rebuild their staffs because they fired all their employees when the virus was so bad.

Citation:
Reuters. “States Rush to Prepare for Wave of U.S. Unemployed.” The New York Times. The New York Times, March 20, 2020.
https://www.nytimes.com/reuters/2020/03/20/business/20reuters-health-coronavirus-usa-unemployment.html?searchResultPosition=2

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Title: Trump Now Claims he Always Knew the Coronavirus would be a Pandemic

Link:  https://www.nytimes.com/2020/03/17/us/politics/trump-coronavirus.html?action=click&module=Spotlight&pgtype=Homepage

Summary: This article talks about how President Trump seemed to know about the COVID-19 long before it became a pandemic. Some reporters have even questioned President Trump about this pandemic and he continuously told the public that they had it all under control and that everything was going to be fine. This article brings together all the comments that President Trump has made about this virus and pandemic publicly and puts them in order. This article analyzes every comment that Trump has made and Trump, besides denying the seriousness of the coronavirus over the past two months, he also displayed an acerbic tone toward people who took it more seriously, which goes against everything he has said in his conferences.

Reaction/Relation to Class: At a campaign rally on February 10th, Trump suggested that the virus would be gone by April, a claim he has stuck with until recently. This deadline has now reached the possibility of lasting through the summer until August. On February 29th Trump said that a vaccine for this virus would be available “very quickly and very rapidly”, but just this week Trump announced that a vaccine candidate was entering a clinical trial, which is only the first phase of the process, a very long process. I was very shocked when I read these comments that our President has said, but then gone back on, or has been wrong. I think this virus is scary enough and is worry enough people, on top of that we don't need our president being unsure, or found lying about something so scary and so deadly.

Citation:
Rogers, Katie. “Trump Now Claims He Always Knew the Coronavirus Would Be a Pandemic.” The New York Times. The New York Times, March 17, 2020.
https://www.nytimes.com/2020/03/17/us/politics/trump-coronavirus.html?action=click&module=Spotlight&pgtype=Homepage

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Title: Veterans Are Working, But Not in Jobs That Match Their Advanced Training

Link: https://www.nytimes.com/2020/03/07/us/politics/veterans-jobs-employment.html

Summary: This article talks about a woman named Erica Uleski, who's extensive combat medical experience had little relevance when she was sent home in the civilian healthcare world. Erica came to realize that she lacked all the required licenses to have a job in the field she wanted. The article discusses how Trump has declined the Veteran unemployment by 3% since his presidency began. Unemployment is one of the greatest issues that Veterans' face when returning home, statistics reported that 37% of Veterans are more likely to be unemployed when they return home. Veterans have difficulty converting skills that they have gained in war, to private-sector jobs in civilian life. They are often pushed toward low-skill jobs, because most jobs require certain training and licenses at the beginning of the application process.

Reaction/Relation to Class: Reading this article shocked me because I honestly had no idea that Veterans face these obstacles when they return home from war. On top of their PTSD from the war, they have to worry about finding jobs that will pay enough to support their family and a job that is at their skill level. It is shocking that the men and women who risk their lives to fight for our country, are sent back to their families, and aren't even given jobs they are capable of because they don't have to correct education or training, that is ridiculous to me because they can do what they do out in a battlefield but they cant in the civilian world? I don't get that.

Citation:
Steinhauer, Jennifer. “Veterans Are Working, but Not in Jobs That Match Their Advanced Training.” The New York Times. The New York Times, March 7, 2020.
https://www.nytimes.com/2020/03/07/us/politics/veterans-jobs-employment.html

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Title: How Major US Stocks Indexes Fared Friday

Link:
https://www.nytimes.com/aponline/2020/02/14/business/ap-financial-markets-box.html?searchResultPosition=8

Summary: This article discusses how stock indexes finished mostly higher on Wall Street Friday as technology, real estate and utilities companies outweighed losses elsewhere in the market. Bond yields fell and the price of gold rose as traders remained cautious following China’s report Thursday of a surge in cases of a new virus that raised fears of a slowdown in global economic growth. U.S. This article included statistics reported on Friday February 14th that suggested; The S&P 500 index rose 6.22 points (2%), The Dow Jones Industrial Average dropped 0.1%, The Nasdaq composite gained 0.2%. The article then reported statistics for the year of each department, as they all increased at least 1%.

Reaction/Relation to class: In relation to this class I chose this article because in chapter 13 we learned about financial institutions, one of which was the stock market. An index is an indicator/measure of something, and in finance, it typically refers to a statistical measure of change in a securities market. You cannot invest directly in an index. The S&P 500 and the US Aggregate Bond Index are common benchmarks for the American stock and bonds markets, referring to a benchmark interest rate created by a third party.

Citation:
Press, The Associated. “How Major US Stock Indexes Fared Friday.” The New York Times. The New York Times, February 14, 2020.
https://www.nytimes.com/aponline/2020/02/14/business/ap-financial-markets-box.html?searchResultPosition=8

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Title: U.S. Productivity Up 1.7% in 2019, Best Gain in 9 Years

Link:
https://www.nytimes.com/aponline/2020/02/06/business/bc-us-productivity.html?searchResultPosition=6

Summary: This article discusses how the Unites States's productivity has rebounded in the final three months of 2019, helping boost productivity growth for the year to the best showing in nearly a decade. The Labor Department's Bureau of Labor Statistics said that productivity grew at an annual rate of 1.4% in the last quarter of the year. Since productivity is a key factor needed to boost living standards, it is calming to know that Economists believe there are some signs that productivity may finally be starting to improve. Also mentioned in this article is how Donald Trump pledged to boost overall economic growth, as measured by the gross domestic product, to double the 2% average during the elongated expansion. However, Trump has failed to achieve his campaign pledge, as the GDP growth in 2019 slowed to 2.3%, the slowest pace in three years. In order for Trump to follow through with his promise, he must find ways to increase productivity so the GDP growth goes faster.

Reaction/Reaction to Class: I found this article very enlightening, as I have not researched the U.S. growth rates or GDP. For the past couple weeks in class we have been discussing GDP, Productivity, growth rates, unemployment and many more topics that are mentioned in this article. I was surprised when I read that Trump pledged to boost the economic growth, but has actually lowered it. That doesn't seem very assuring, that our President has actually lowered the overall economic growth. It was interesting that the labor costs rose 1.4% in the fourth quarter, a slowdown from 2.5% jump in the third quarter and for the year, labor costs rose 2%, up from a 1.8% gain in 2018. It is crazy how much the rates and numbers fluctuate over the years but it is assuring to know that economists believe productivity, unemployment and economic growth rates will all increase positively.

Citation:
Press, The Associated. “US Productivity Up 1.7% in 2019, Best Gain in 9 Years.” The New York Times. The New York Times, February 6, 2020.
https://www.nytimes.com/aponline/2020/02/06/business/bc-us-productivity.html?searchResultPosition=6

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Title: The Economy is Expanding. Why are Economists so Glum?

Link: https://www.nytimes.com/2020/01/08/business/economy-recession-economists.html?auth=login-google&searchResultPosition=6

Summary: This article discusses an issue regarding Janet Yellen, a former Fed chair, who is among the economists expressing concerns about the ability of the United States to use monetary policy to fully combat a future recession. The Monetary policy controls either the interest rate payable on very short-term borrowing or the money supply, often targeting inflation or the interest rate to ensure price stability and general trust in the currency. This article focuses on people in San Diego who people warned one another about President Trump’s trade war, about government budget deficits and about the inability of central banks to fully combat another recession. Many economists researched Trump’s economic policies and even though unemployment is at a 50-year low, wages are rising, and the economy is experiencing its longest expansion on record. Researchers presented estimates that tariffs imposed by the Unites States and China which remain in place despite the recent truce in trade talks- have reduced wages for workers in both countries already.

Reaction/Relation to Class: I found it very interesting to read that the American economy grew more than 2% in 2019, likely the slowest rate of Trump’s presidency, and well below the growth he promised that his economic and regulatory policies would produce. In relation to class, we have been discussing interest rates, inflation and recession, which is everything described in this article. The article says that interest rates have been dropping across advanced economies, leaving central banks- which usually stroke growth by making borrowing cheaper- with far less conventional power in a recession. After the 2007-09 recession, economists speculated that the conditions that destroyed developed nations was- low growth, low inflation, and low interest rates- would be short lived. After reading this article, I related the information back to our student course learning outcomes, one of which is, knowing what Monetary policy is, as well as inflation, price stability and real wages.

Citation:
Tankersley, Jim, and Jeanna Smialek. “The Economy Is Expanding. Why Are Economists So Glum?” The New York Times. The New York Times, January 8, 2020. https://www.nytimes.com/2020/01/08/business/economy-recession-economists.html?auth=login-google&searchResultPosition=6

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Title: Think Consumption is The 'Engine' of our Economy? Think Again

Link: https://www.forbes.com/sites/beltway/2013/01/30/think-consumption-is-the-engine-of-our-economy-think-again/#15df9e246497

Summary: This article begins with a popular financial analogy; ‘The Economy is like a car”, the consumption is the ‘engine’ that ‘drives’ economic growth which makes up 70% of the Gross Domestic Product (GDP). The article continues to discuss the Keynesian message, “if you want to put the economic pedal to the metal, get out there and consume!” and how there is a systematic failure in distinguishing between consuming and producing value which is the most damaging fallacy in economic thinking. The author explains GDP as a summary of final sales for new goods and services and not of all economic activity and ways that “consumers” get the money to spend. The author breaks this part down in simpler terms; before we can consumer, we need to produce and earn a paycheck, paychecks have to flow to productive- that is value-creating, a behavior, or value that is simply being transferred and destroyed, where the “Law of Markets” comes into place.

Reaction/Relation to Class: In relation to learning about GDP in class, this article says “in order to invest more, we have to save more and consume less” the GDP demonstrates how large the economy is and whether its growing or shrinking. Since I am not educated on savings and investments I found it very interesting that the farther from a final goof a business’s output is, the more it relies on credit markets and the more it is subject to distortions on the savings and investment side. Savings and investment changes have dramatic impacts on employment which I never knew. Savings and investments, which enable increased productivity, greater specialization and trade, are the true ‘engines’ of economic growth, resulting in increasing consumption. This week in class we learned chapter 10, within this chapter, we learned the Components of Gross Domestic Product, consumption, investment, government purchases and many other topics. This article stuck out to me and was easy to relate to this week’s chapter, as it fulfills the student course learning outcomes for this class, one being; knowing what GDP is, what it’s components are, and another one being; knowing the determinants of consumption and investments and savings. So clearly this article was relative and it helped me understand some of the terms a lot more!!

Citation: Papola, John. “Think Consumption Is The 'Engine' Of Our Economy? Think Again.” Forbes. Forbes Magazine, January 30, 2013. https://www.forbes.com/sites/beltway/2013/01/30/think-consumption-is-the-engine-of-our-economy-think-again/#15df9e246497

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Title: “China’s Improving Economic Data Masks Deeper Problems”

Link: https://www.nytimes.com/2020/01/16/business/economy/china-economy-gdp.html?searchResultPosition=1

Summary: This New York Times article discusses the harsh challenges that China encountered after signing an agreement with the United States. This agreement is expected to protect the United States technology and trade secrets. As the tensions between China and the U.S. die down, China reported economic growth that can suggest its economy is finally stabilizing. China still faced a large amount of debt, putting companies and firms at major risk. Some companies ended up defaulting on bonds from local and foreign investors as they were unable to pay their bills. Due to the number of firms and companies being affected lead the Chinese government to invest in new restraints to keep the economy balanced so that they don’t have to struggle in dept. Many economists are not convinced that the momentum of the economy will continue without government help.

Reaction/Relation to class: This article had many interesting components but I read something that caught my eye, the research firm estimated that the trade war between the United States and China, chipped out about half of a percentage of a point off China’s 2019 Gross Domestic Product and S&P Global. This article also directly relates to chapter 2 in our class textbook, as it talks about GDP throughout the article. Gross Domestic Product is the market value of all final goods and services produced within an economy in a given period of time. Knowing what GDP is, it’s components and real and nominal differences are one of the student course learning outcomes that are described in the syllabus.

Citation: Stevenson, Alexandra. “China's Improving Economic Data Masks Deeper Problems.” The New York Times. The New York Times, January 16, 2020. https://www.nytimes.com/2020/01/16/business/economy/china-economy-gdp.html?searchResultPosition=1.