Econ70

While spending by the poor (bottom 25%) fell by 23% and by the wealthy (top 25%) by 31% at the start of this pandemic, spending by the poor has recovered. For the wealthy it remains down 17%. The wealthy elect…

A key problem with energy conservation is the “rebound effect” where the monetary savings achieved via conservation results in spending in ways that boost emissions. Research finds this perverse effect negates about 59% of emissions savings. A second problem is…

It is becoming painfully clear that firms that received most of the $500 billion in PPP money laid off few workers between late February and early April, when the PPP money first became available. This is because they were in…

The Friday File: Comparing average scores of the first three golf tournaments played this year without fans to scores in the identical tourneys in 2019, scores were unchanged in the first event, but fell 2 strokes in the second; 1…

The just-released June IMF growth projections are calling for 2020 global economic activity to contract by 4.9%, or $4.3 trillion, compared to a forecasted contraction of 3% in the April report. By comparison, in 2009, during the last global recession,…

In the Great Recession of 2008/09, household net worth declined by over 80% of annual income. In the current recession, household wealth has fallen by 20% of income, 25% as much. Why? A fast-moving and hard charging central bank, massive…

From 4/1/20-6/30/20, state and local tax revenues will fall by $150 billion, exceeding the $100 billion decline experienced during the entire Great Recession. Moreover, spending has soared as states boost expenditures on unemployment insurance, healthcare, and police. Worse, budget shortfalls…

Developing nations are being hit hard due to indirect effects of Sars-Cov-2. Monies sent home from those working in developed nations has plummeted, tourism revenues have evaporated, and collapsing commodity prices have reduced export earnings. Additionally, the strong US dollar…

The Friday File: Tomorrow’s our 244th birthday! In 1776, there were 2.5 million residents of the world’s newest nation, today there are 329.9 million. The state with the longest name, the State of Rhode Island and Providence Plantations. The place…

Net job gains in June were an eyepopping 4.8 million, up from 2.7 million in May! The corrected unemployment rate is down to a still painfully high 12.1% from 16.3% last month. However, new Covid-19 cases are skyrocketing and at…