Higher Rock Education - Economics Blog

State of the Economy - August 2020

Tuesday, September 15, 2020

The US economy continues to improve as it reopens for business. Workers continue to be rehired after being furloughed. Wages and salaries paid by private companies are increasing. Households continue to spend. But the reason for the contraction remains – COVID cases have not diminished. The debate among our leaders is if additional fiscal stimulus is needed. Should the government resume paying supplemental unemployment? Should it issue another round of stimulus checks? Many economists, including Federal Reserve Chairman Jerome Powell, believe now is not the time to cut off struggling households. But some policy makers argue that no additional stimulus is needed. Deficits are out of control, and the government needs to resist increasing spending. What should be done? These options are discussed in the Summary and Analysis section. More

State of the Economy - July 2020

Friday, August 14, 2020

It was not a surprise when the Commerce Department reported that the U.S. economy contracted 9.5% in the second quarter. Containment measures and approximately $3 trillion in aide prevented a steeper recession, but more is needed – just when most of the programs put in place have expired. What should be done? Several actions including President Trump’s recent executive orders are discussed in the Summary and Analysis section at the end of this post. More

State of The Economy - June 2020

Wednesday, July 15, 2020

An economic recovery depends on containing the spread of COVID-19. The US economy was headed in the right direction in June. Employment was up. Consumer spending increased. Much of the good news was driven by government actions. States reopened their economies and millions of furloughed workers were rehired. Government transfer payments earlier in the quarter helped propel April’s income to record increases, which in turn contributed to a rise in May’s consumer spending. But, for continued improvements to be sustainable, more people need to return to work and public confidence needs to be restored. More

State of the Economy - May 2020

Thursday, June 18, 2020

The US economy has begun to reopen. Millions of people have returned to the workforce. Yet cases of the coronavirus continue to increase. Some consumers remain cautious and maintain social distancing and only venture out when they need to. Others are tired of the containment measures and completely ignore social distancing. State and local governments are gambling that any spike in cases is manageable and the economic benefits of opening exceed the potential risk of returning to containment measures. Review the state of the US economy by reviewing four government documents released last month. More

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