Summary: February inflation numbers are out and the bottom line is that inflation remains stubbornly high. However, the Fed’s job, laser focused on price stability till now, gets complicated in the aftermath of the SVB collapse. Today’s exercise asks students to debate whether the Fed should pause interest rate hikes as it weighs the tradeoffs between fighting inflation and stressing bank balance sheets.
2021 Nobel Memorial Prize in Economic Sciences recipient David Card used a natural experiment to challenge the Econ 101 concept that a higher minimum wage drives unemployment. Through his research, Card also discovered a way to possibly address issues like the gender wage gap and the wage gap between nonwhite and white workers.
Later in the segment, Card discusses his recognized research on how immigration does not reduce wages according to the Modern Growth Theory.
The COVID-19 pandemic has disproportionately affected black women, not only in growing unemployment rates but also in increased death rates. Goldman Sachs has committed to $10 billion going toward expanding economic opportunities for black women, having found that a black woman’s wealth is 90% lower than a white man’s, in addition to the struggles the pandemic has presented for the black community. This episode of Marketplace also discusses how restaurants will benefit from the relief package and why grocery stores are making investments into robots.
Housing insecurity is a major issue that is facing our nation especially in a pandemic with millions out of jobs. As a result of this people have began taking their living situation into their own hands. A group in California who call themselves the “Reclaimers” decided to break into and reclaim vacant houses owned by the state. State officials decided to not evict any of these new tenets but instead leased the properties out to the housing authority, which allowed for the homes to be part of a transitional housing program. Sasha Atkins, one of the “Reclaimers”, discusses how housing insecurity could be lessened greatly if more states employed programs like the one put forth in California.
IMF chief Kristalina Georgieva discusses the need for sustained financial support from governments across the globe. Georgieva emphasizes that policymakers must keep in mind the future of their economies, and promote job creation in sectors which are developing, such as the green energy sector. Additionally, Georgieva discusses the need for investment everywhere in order to inhibit worsening global inequalities.
Within the past week, over 3 million people have filed for unemployment, a record number in the United States. Unemployment insurance was intended to help people, while also providing motivation to seek work. Seeking work, however, is close to impossible when you cannot leave your home.
Original Air Date: March 28, 2020
Length: 22 minutes 58 seconds
Discussion Prompt: What are the incentives inherent in the unemployment insurance policy? Do you believe the pandemic will change who qualifies for unemployment/how accessible unemployment benefits in either the short- or the long-run?
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?
Summary: When the recession hit, many workers within the United States not only lost their jobs, but they also had to cut back a significant amount of their hours. In this podcast, THE INDICATOR checks on three groups to see how they are doing now, part-time workers who want to be full-time, African-American unemployment, and people without college degrees.
Summary: Former head of the Federal Reserve of America, Janet Yellen, communicated about inflation, uncertainty, and monetary policy in one of her speeches last fall. With the current low inflation, the Fed hopes more consumers go out and purchase more goods to help reach the ideal inflation in the country. But as inflation remains low, the Fed is left puzzling over this mystery.
Summary: What would a liberal economist say about the state of America’s economy today? THE INDICATOR discusses how the country’s economy may need some form of stimulus to boost further economic growth. However, would the benefits of the short run stimulus for the economy that we say we need, outweigh the cost of the long-term tax cuts?
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