ECONOMICS IN THE NEWS -- JULY 20-26

ECONOMICS IN THE NEWS -- JULY 20-26 How economics impacts our lives everyday

Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.

"There is one rule for the industrialist and that is: make the best quality goods possible at the lowest cost possible, paying the highest wages possible." -- Henry Ford, Founder of Ford Motor Company.

The demand for services in the nonprofit sector is increasing, but the resources at many of those companies and services are being heavily impacted by the coronavirus pandemic.

Covid-19 has increased the need for social services, food assistance, medical care, and spiritual support, much of which is provided by nonprofits. Nonprofits that rely on charitable giving and municipal support may be forced to close because the recession has lessened giving. Many have reduced their payrolls even though there services are needed more now than ever before. Survival for many will depend on the federal government passing another stimulus package. [The New York Times]

American pharmaceutical company Pfizer, along with Germany’s GioNTech, may be one step closer to a vaccine to combat COVID-19.

The U.S. Government reached a $1.95 billion deal with Pfizer for 100 million doses of its vaccine if it’s approved by the Food & Drug Administration. The vaccine would be free to Americans. Pfizer is the latest company to obtain a contract with the government for a potential vaccine, joining Moderna, AstraZeneca, Johnson & Johnson, and Norvavax. [NPR]

Next time you’re at a store, you may be asked to pay with either card or exact change. The United States is experiencing a coin shortage.

The shortage is happening due to reduced production after the Federal Reserve implemented health and safety protocols to protect employees from the coronavirus. Many people and businesses fear handling money. [Fortune]

The number of people seeking unemployment benefits increased for the week ending July 18

The Labor Department reported that 1.4 million workers applied for unemployment benefits which is the first increase in applications in 16 weeks, suggesting the recovery will stall. An estimated 30 million people, one in five workers, are drawing unemployment benefits. [The New York Times]

Are you thinking of buying a home or refinancing? If you are, you aren’t alone. Others are worried about being evicted.

The summer of 2020 is shaping to be one of the best times for home buyers to make purchases with low interest rates. However, the federal government moratorium that protected renters from eviction expired last week, and the $600 a week in federally supplemented unemployment benefits may end this week. Sixty percent of renter households have had a member of the household impacted economically by the recession and many of them will be evicted in the coming months if they aren’t able to pay rent soon. [The Washington Post]

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