Economics in the News – June 29-July 5
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
- The American Academy of Pediatrics [AAP] published a statement in favor of students returning to the classroom this fall because schools are an essential aspect for adolescent children and remote learning can increase the risk for social isolation and severe learning loss. The group cited evidence suggesting that transmission of coronavirus is uncommon in young children. The AAP made recommendations for in-person learning, including social distancing and sanitation guidance. [NPR]
- In mid-March, it looked like 2020 graduates were entering the work force at a great time when businesses were hiring, and the U.S. economy was in its longest recorded expansion. However, the coronavirus pandemic has forced many graduates to compromise and alter their professional plans, especially in the hardest-hit fields such as travel, hospitality, marketing, and advertising. Instead graduates many graduates are seeking jobs in e-commerce, health care, and delivery. [Bloomberg]
- Many users of TV-over-Internet bundles will face a rise in costs to their subscriptions, drawing the bundles closer in price to traditional pay-TV. Beginning next month, Alphabet’s YouTube TV is planning a 30% increase for its basic package to $65 per month. It isn’t the only company raising its price. FuboTV plans to increaase its price by $5 starting next month. YouTube TV and FutboTV are among the five players in TV-over-Internet bundles, joined by Dish’s Sling TV, AT&T Now and Hulu +Live TV. All five have raised their prices since the beginning of 2019. [The Wall Street Journal]
- The recovery from the recession caused by COVID 19 appears to be slowing. What started as a quick V-shaped economic recovery from COVID-19 between mid-April and mid-June has shown signs of slowing. Columnist Greg Ip cites three possible reasons: consumers may not be spending as much in states that have seen a surge in coronavirus cases, the stimulus checks prompted a jump in spending in May, but the money has been spent, or the effect of states slowing plans to reopen businesses. [Wall Street Journal]
- The United States added 4.8 million jobs in June, marking the second straight month of job gains after nearly 20 million lost their jobs in April. The unemployment rate is 11.1% which remains higher than any previous time period since World War II. But the euphoria may be short-lived. Many economists fear that layoffs could accelerate in states with surging COVID-19 cases because governments will slow reopening plans. [The New York Times]
- A lake or ocean is a great place to social distance. Americans are canceling vacation plans due to the coronavirus, but instead many are buying boats. Boat sales have increased during the pandemic. [The New York Times]