https://padlet.com/mvan216/mvan216 Mica van der Meulen EC202 Macroeconomics en-us 2020-07-15 20:46:04 UTC 2025-11-30 14:28:35 UTC hello@padlet.com https://padlet.net/icons/png/1f9a1.png mvan216 https://padlet.com/mvan216/mvan216/wish/690465308 In an article published by CNBC on August 20th, 2020, author Fred Imbert headlines with "US weekly jobless claims jump back above 1 million." In a brief synopsis, the US Department of Labor stated that initial unemployment claims for the week ending August 15th, 2020 demonstrate that 1.106 million Americans filed for unemployment. This exceeds the expectations of economists who predicted 923,000 people would file for unemployment. Because the claims for unemployment were much higher than predicted, the public, economists and policymakers struggle to move forward with a new pandemic stimulus package. Previous to this spike, the requests of unemployment benefits was in a downward trend.

This article demonstrates how the pandemic is no where near being over in terms of the economy. People are desperate to be able to afford their basic necessities. Moreover, in most states, the unemployment package provides more financial aide than working a minimum wage job. Additionally, as people are concerned with their health, it is crucial to consider that even if citizens were capable to return to work, they may want to limit their exposure to COVID-19. Finally, the current job market is not abundant with jobs for most industries, leaving those with higher education and those with entry-level skills unable to get jobs.

Citation: Imbert, F. (2020, August 20). U.S. weekly jobless claims jump back above 1 million. Retrieved August 20, 2020, from https://www.cnbc.com/2020/08/20/weekly-jobless-claims.html]]> 2020-08-20 21:11:54 UTC https://padlet.com/mvan216/mvan216/wish/690465308 mvan216 https://padlet.com/mvan216/mvan216/wish/690493373 In the first wave of hysteria surrounding the COVID-19 pandemic, The Atlantic writer Derek Thompson wrote an article on "The Four Rules of Pandemic Economics." In this article Thompson declares four rules that outline some of the truths and fallacies behind American economics. The first rule states, " 'Save the economy or save lives' is a false choice." From an economic standpoint, it was initially believed that states or cities that were harsh on social distancing guidelines would have a hard time rebounding their local economies. However, over time it has shown that states that were initially very strict on social distancing measures were some of the first to see a rebound whilst also keeping COVID-19 cases to a minimum. The second rule is, "Pay people a living wage to stop working." This rule comes from the idea that asking millions of Americans to stay home and do nothing is unjust. This would lead to those in low economic standings to fall even lower and those in a high economic standing to be okay but still filled with worry. This would split the wealth gap even further and do an injustice to the entire US economy. Rather than fall into this kind of misery, by providing a financial relief package to American citizens would aide in health efforts as well as economic efforts. Rule number three is to, "Build companies a time machine." As silly or unachievable as this sounds, there is possibility behind this claim. If financial institutions could support small and medium size businesses by providing stimulus packages to these businesses, they could shift their expenses to the future whilst still being able to pay their fixed costs in the mean time. These loans would be paid back in the future, once life returns to its new normal. Finally, the fourth rule is, "The business of America is now science." Meaning, to navigate through these rough waters and economic and social turmoil, knowledge becomes even more crucial. The root of these issues comes to the mere fact that there is a lack of knowledge surrounding COVID-19. There is no vaccine yet, socially people are provided with misinformation or no information at all, and in efforts to remain compliant with social distancing regulations, it is very difficult to amend these issues. The domino effect then shines the light on the fact that people need money to survive. This article shines the light on the economic and social injustices throughout the pandemic. As this article has been released in April of 2020, reflecting back now in August of 2020, it is evident that there are efforts to follow these rules but incredible varied by state.

Citation: Thompson, D. (2020, May 06). The Four Rules of Pandemic Economics. Retrieved August 20, 2020, from https://www.theatlantic.com/ideas/archive/2020/04/new-laws-pandemic-economics/609265/]]> 2020-08-20 21:34:28 UTC https://padlet.com/mvan216/mvan216/wish/690493373 mvan216 https://padlet.com/mvan216/mvan216/wish/692895994 The US Postal Service has been at the cornerstone of connecting individuals across the country for decades. Now more than ever, Americans are paying attention to the USPS. In a podcast released by Keith Romer and Alexi Horowitz-Ghazi under the outlet NPR the discussion of what went wrong and how to fix it is discussed. There has been a long standing battle between the public service sector and private enterprise. This conflict has driven the revenues of the USPS straight into the ground. Newest Postmaster General Louis DeJoy has put a plan in place to cut overtime, remove mailboxes and delaying mail. There are ethical implications to removing mail boxes, especially when it is likely that the 2020 Presidential election will be by mail-in ballots. Reducing access to mailboxes and slowing down that mail service is in turn, taking the way the rights of American citizens.

In a personal reflection of this podcast, it becomes clear that the US economy is focused on large corporations rather than providing public services that part of government aid pays for as well as people purchasing stamps and other mail services. Although there is a claim that the USPS is obsolete in modern times, especially with major corporations like Amazon becoming increasingly popular. However, if the USPS is gone, government official mail is much harder to send and receive. In a mandate to reduce government spending on the USPS, the government required the USPS to act as a business itself. However, the USPS must get approval to raise prices, open new offices, and place new mailboxes. This idea is a lose-lose for the USPS, all in an effort to privatize mail delivery for good.

Citation: Romer, K., & Horowitz-Ghazi, A. (Directors). (2020, August 22). Crisis at the Post Office [Video file]. Retrieved August 22, 2020, from https://www.npr.org/2020/08/21/904855736/crisis-at-the-post-office]]> 2020-08-22 15:16:17 UTC https://padlet.com/mvan216/mvan216/wish/692895994 mvan216 https://padlet.com/mvan216/mvan216/wish/696026956 Over the course of the pandemic, the US has faced one of the sharpest inclines in unemployment since the Great Depression. In an article by The Atlantic reporter Joe Pinsker, statistics show that unemployment reached 15% in the last month. At the start of the COVID-19 pandemic, US legislatures funded the CARES Act which provided households with some financial relief. This act provided people with $600 a week for expenses such as rent and food. This help cut off last month and Americans are facing a crisis of potential starvation and evictions. At the time of the Great Depression, Americans relied heavily on government support. This time around, however, there's been some efforts, but not enough to sustain the people. Americans are very concerned as to how they are going to make ends meet without the weekly government assistance. Although US legislatures are pledging to provide more assistance, it may not be enough or in good time. This article demonstrates the short-comings and lack of empathy the higher class has towards the lower income classes. In today's times, money is the key to survival. Without some assistance, this recession could be deadly.

Citation: Pinsker, J. (2020, August 23). The Pandemic Recession Is Approaching a Dire Turning Point. Retrieved August 24, 2020, from https://www.theatlantic.com/family/archive/2020/08/600-week-pandemic-unemployment-families/615580/]]> 2020-08-24 21:41:28 UTC https://padlet.com/mvan216/mvan216/wish/696026956 mvan216 https://padlet.com/mvan216/mvan216/wish/703877840 In an article posted on MarketWatch, author Greg Robb headlines that the Fed adopts a new strategy to allow higher inflation and welcome strong labor markets. A new policy was agreed upon by all seventeen Fed officials. This policy would allow inflation to run over 2% for an unstated period of time. The method of letting the inflation rate run high is known as the average inflation target. Economists were surprised at this policy as the works of this plan were only briefly mentioned in July. Historically, in the past two decades, American and international markets have begun to save more and invest less. The result being that banks have had to alter their strategies because interest rates are so low. Arguably, this strategy is put in place as an academic strategy and even somewhat experimental. 

Citation: Robb, G. (2020, August 27). Fed adopts new strategy to allow higher inflation and welcome strong labor markets. Retrieved August 27, 2020, from https://www.marketwatch.com/story/fed-unanimously-adopts-new-strategy-widely-seen-as-leading-to-easier-policy-2020-08-27?mod=economy-politics]]> 2020-08-27 21:27:14 UTC https://padlet.com/mvan216/mvan216/wish/703877840 mvan216 https://padlet.com/mvan216/mvan216/wish/706851333 As the US continues through the COVID-19 pandemic and looming recession, a series of additional lay-offs hit Americans hard. One of the hardest hit industries as a result of the pandemic is the travel industry. Airline and hotel chains made announcements that they would have to lay-off more than 40,000 employees. Moreover, universities have also stated that they would have to furlough employees. This additional hit to the economy demonstrates that sustainability and recovery are not in the near future. In better news however, the private sector is hiring up to 250,000 temporary workers. These jobs should last only through the end of 2020, however. The next financial aid bill is still in a deadlock between the Republican and Democrats in Congress. There has been no agreement, leaving Americans without any government aid.

Citation: Bartash, J. (2020, August 29). New wave of layoffs points to fresh hurdles for U.S. economic recovery heading into the fall. Retrieved August 29, 2020, from https://www.marketwatch.com/story/new-wave-of-layoffs-points-to-fresh-hurdles-for-us-economic-recovery-heading-into-the-fall-2020-08-29]]> 2020-08-29 22:33:42 UTC https://padlet.com/mvan216/mvan216/wish/706851333 mvan216 https://padlet.com/mvan216/mvan216/wish/713313196 In a US News article by Senior Editor, Susannah Sinder, the headlining question is posed: Is Unemployment Insurance Retroactive? After thousands of Americans lost the $600 government aide at the end of July, many were left will absolutely no source of income. Now, with increasing unemployment rates, Americans are not receiving their benefits right away. However, from the date unemployment is filed, these benefits can be dated back to eligibility. This retroactive aide can also makeup for the delays in financial assistance. These payouts however, vary by state and no household is guaranteed to receive retroactive insurance. As a method to ensure that this may occur, Snider offers the advice to contact state legislatures to make this official. 

Through this article it becomes more and more evident that Americans are struggling in every state collect their unemployment benefits. Because the unemployment rate is so high and only increasing, there are significant delays and this is concerning for those who are lower income or have no savings. 

Citation: Snider, S. (2020, September 1). Is Unemployment Insurance Retroactive – And How Does It Work? Retrieved September 01, 2020, from https://money.usnews.com/money/personal-finance/family-finance/articles/is-unemployment-insurance-retroactive-and-how-does-it-work]]> 2020-09-01 21:26:24 UTC https://padlet.com/mvan216/mvan216/wish/713313196 mvan216 https://padlet.com/mvan216/mvan216/wish/721800013 In an article playing on pathos released by the New York Times, there is more evidence that the low income, service industry are the ones that are getting hit the hardest as the COVID-19 pandemic carries on. With more and more white collar workers being subject to remote working and collaboration, the service and hospitality industries are falling way behind. In cities, the majority of the population work minimum wage jobs at retailers, restaurants and hotels. Because travel and frankly, indulgement is no longer permitted due to the stay at home orders. The employees of these industries are being laid off and left without pay or potential benefits. This is increasing the wage gap in cities especially. Although the vast improvements on remote working and collaboration aid major corporations and the white collar jobs, this is detrimental to the travel industry. With lasting solutions to removing the extra cost, time, and reducing travel, millions of Americans could have to change professions entirely. 

Citation:  Porter, E. (2020, September 04). The Service Economy Meltdown. Retrieved September 04, 2020, from https://www.nytimes.com/2020/09/04/business/economy/service-economy-workers.html]]> 2020-09-04 18:29:51 UTC https://padlet.com/mvan216/mvan216/wish/721800013 mvan216 https://padlet.com/mvan216/mvan216/wish/725520129 Charles Riley, A CNN Business reporter argues that a vaccine for COVID-19 will not cure the global economy. The implications thus far have been drastic and will take time and government support to be mended. The main focus in terms of health throughout the course of the pandemic has been a vaccine. Commercial companies and the CDC have been working for months to find a vaccine for COVID-19. Economist Neil Shearing stated that there are various outcomes for the economy when the vaccine arrives to the general population, but to assume that a vaccine will transform the economic outlook for next year is wrong. Some of the challenges that the World Health Organization are expecting is first to find a suitable vaccine, then supply and finally the reluctance of Americans to actually use the vaccine. Throughout the course of the pandemic, there has been a constant battle between the health of the greater population and economic stability. However, as mentioned, if a vaccine is found and can be supplied, this will not automatically refresh the economy. People will still face all of the implications of a recession. 

Citation: Riley, C. (2020, September 06). A vaccine won't cure the global economy. Retrieved September 07, 2020, from https://www.cnn.com/2020/09/06/investing/stocks-week-ahead/index.html]]> 2020-09-07 22:39:56 UTC https://padlet.com/mvan216/mvan216/wish/725520129 mvan216 https://padlet.com/mvan216/mvan216/wish/730532940 CNBC reports that the US economy faces $15 trillion hit as a result of school closures, according to the OECD. Author Vickey McKeever highlights that the total cost of missed schooling in the United States could amount to 69% of the current GDP for the typical country. Additionally, the OECD said losses to economic growth could be "proportionately higher" if schools were slow to recover. The OECD is the Organization for Economic Cooperation and Development. Because of the interruption to schooling, focused on children Kindergarten through 12th-grade, the OECD argues that the US could see global economic growth drop 1.5% for the rest of the century. Because the current K-12 generation is having to face the various educational challenges of online learning and a complete interruption, there are long term implications. In these developmental years, the priority is taken off of the education standards themselves and is focused on keeping the students enrolled. Time and resources from school teachers and administrators is currently at an all time high. As teachers are struggling with transitioning to fully online learning, students, especially younger ones are having even more difficulty. In the primary years of elementary school, it is vital that children interact with their peers and learn basic lifelong skills. However, over a video conferencing platform, this is extremely difficult. Over the course of the next century, there will be various negative implications to the economy just merely based on the standard of online education.

Citation: McKeever, V. (2020, September 08). U.S. economy faces $15 trillion hit as a result of school closures, OECD says. Retrieved September 09, 2020, from https://www.cnbc.com/2020/09/08/school-disruption-could-cost-the-us-economy-15point3-trillion-oecd.html]]> 2020-09-09 11:22:00 UTC https://padlet.com/mvan216/mvan216/wish/730532940 mvan216 https://padlet.com/mvan216/mvan216/wish/736948271 Amidst the economic crisis due to the COVID-19 pandemic, many major retailers have been forced to file bankruptcy and close their doors for good. This has left thousands of Americans without jobs and desperate for work. For two of America's largest malls, the landlords have agreed to save JC Penny's retail operations to save the department store from closing. Simon Property Group and Brookfield Property Partners vowed to keep the majority of JC Penny's stores open which would keep 70,000 jobs intact. JC Penny officially filed for bankruptcy in May when the company employed over 80,000 people. The mall owners took over operations in hopes of helping the retail struggles and keep consumers attracted to their properties. Although it is not the responsibility for mall owners and landlords to intervene and save retailers when they are due to close, this is beneficial to both parties. Not only are they saving jobs, but they are keeping the mall "attractive" in hopes that consumers will remain interested in brick-and-mortar stores rather than opting to shop online. The COVID-19 pandemic could result in the end of malls entirely so this action shows the desperation all retailers are currently facing.

Citation: BBC News. (2020, September 09). JC Penney: Landlords plot rescue for department store. Retrieved September 10, 2020, from https://www.bbc.com/news/world-us-canada-54095975?intlink_from_url=https://www.bbc.com/news/topics/c1038wnxypvt/us-economy]]> 2020-09-10 20:39:07 UTC https://padlet.com/mvan216/mvan216/wish/736948271 mvan216 https://padlet.com/mvan216/mvan216/wish/741254749 CNN Business reports that used car sales are booming in the United States and it's pushing up inflation. There are a number of reasons that used cars are in high demand in these times and this is due to the COVID-19 pandemic. People have been forced to move out of large cities because the cost of living is too high without income to support these households. Now the need for a car is present as people have to travel from places that do not offer effective public transportation. Moreover, because air travel is not recommended at the time, people are opting to travel by car to their destinations, both near and far. Prices of air travel, shelter, recreation and household furnishing rose, contributing to the increase of the consumer price index. Prices are now rising again after the large decline when the initial pandemic lockdown occurred. The nature of these events speaks to how much consumer behavior is changing. To save money, people are opting for used cars rather than new ones. There is an increase in home improvement as well that longterm, will yield a higher return on the property investment. Americans are very concerned with money due to the recession.

Citation: Tappe, A. (2020, September 11). Used car sales are booming, and that's pushing up inflation. Retrieved September 12, 2020, from https://www.cnn.com/2020/09/11/economy/inflation-used-cars/index.html]]> 2020-09-12 21:03:19 UTC https://padlet.com/mvan216/mvan216/wish/741254749