Norway, the United Kingdom, California and many other places worldwide plan to ban the sale of gasoline cars within the next 10-15 years. Economist Stephen P. Holland discusses the implications of a simple ban, and instead encourages policies that will incentivize car manufactures to decrease production of gas cars without devastating the economy.
Citation: Holland, Stephen P., Erin T. Mansur, and Andrew J. Yates. 2021. “The Electric Vehicle Transition and the Economics of Banning Gasoline Vehicles.” American Economic Journal: Economic Policy, 13 (3): 316-44. DOI: 10.1257/pol.20200120
This podcast discusses the history and the impact of low wages received by restaurant workers. The federal “tipped” minimum wage has remained stagnant for almost 30 years, while the standard minimum wage has been increased 5 times throughout that time. Policy makers in Washington DC are now proposing the Raise the Wage Act, which, if enacted, would raise the federal minimum wage incrementally to $15 an hour for all workers in all industries, including tipped workers.
$1.86 trillion in relief spending has been authorized by congress, which will be financed by the sale of government bonds and other debt instruments. The Federal Reserve Bank will purchase many of these bonds which will cause an inflow of money into the economy. This podcast also elaborates on the inflationary implications of the stimulus checks entering the economy.
There is also discussion of Google’s market power and vaccination progress.
Discussion Prompt: What is the intended goal of the stimulus checks and what unintended consequences can arise as a result?
The Department of Justice has filed an anti-trust lawsuit against Google due to their alleged monopoly power over the online search and internet search ad market. The DOJ must prove in this case that Google has created this monopoly in a way that is harmful to consumers. If Google loses the case, this would allow for more competition within the market, even if the effects of this case are not seen right away.
Despite national and global efforts to discourage money laundering, there were recent reports from the Financial Crimes Enforcement Network suggest suspicious transactions and funding during the investigation of Russian interference in the 2016 election. This podcast further discusses some of the failures of banks to report suspicious activities in a timely manner. Matthew Collins from the Brookings Institute states that if our government really wants to hammer down on money laundering and other financial crimes, it is crucial to invest more funds into regulatory bodies such as FinCen.
Biden has proposed an economic plan to contain the coronavirus while opening the economy again when it is safe to do so. His plan primarily focuses on affordable child care, creating more jobs in the green energy sector, and closing the racial wealth gap. This podcast discusses his plans to raise taxes on the wealthy, remove certain deductibles for these individuals, and increase taxes on corporations in order to fund some of these programs.
This podcast discusses research conducted by Daniel Reck regarding the enormous amount of wealth American’s keep overseas to avoid being taxed. Different policies that were enacted, specifically in 2008, aimed to increase the disclosure of offshore wealth, which were somewhat successful in the prevention of tax evasion.
There is increasing demand for a Covid-19 vaccine, and although many are developing, scientists are still unsure when an effective vaccine will be finished. There is also concern that low income countries will struggle to gain equitable access to the vaccine once it is produced. Thomas Cueni, the director general of the International Federation of Pharmaceutical Manufacturers and Associations emphasized the importance of high income countries buying into efforts which would subsidize lower income countries.
Keynesian economics was particularly popular after the Great Depression. Keynes revolutionized how government involvement in the economy was seen. Keynesian theories are still applied in financial crises today.
Unemployment benefit registrations have increased dramatically in the past days. The U.S. government is trying to ensure that the current health crisis does not cause a long-term economic crisis. The government is also putting a hold on evictions and foreclosures in certain instances as well in order to prevent an increase in homelessness.
Original Air Date: March 19, 2020
Length: 7 minutes 21 seconds
Discussion Prompt: What are the economic ideas behind the strategies being implemented so far? What other ways could the government support those who lose their jobs during this health crisis? How can the government fund activities such as putting holds on evictions? What are the costs and benefits to be considered here?
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