Economics in the News - July 27-Aug 2 How economics impacts our lives on a daily basis

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 magnitude of the economic recession caused by the coronavirus became much clearer when the Bureau of Economic Analysis detailed the largest quarterly collapse on record.

Gross Domestic Product (GDP) fell 9.5% in the second quarter – the equivalent to a 32.9% annual rate of decline. The drop was largely due to a decline in consumer spending and a lack of global trade. [The New York Times]

The additional $600 a week unemployment assistance stemming from The Coronavirus Aid, Relief and Economic Security (CARES) Act came to an end on Friday.

Without an extension of the benefit from the federal government, many of the estimated 30 million Americans who are receiving unemployment benefits will struggle to make ends meet. [The New York Times]

The use of electric vehicles is on the rise. With that, comes an increase in the demand for electric charging stations.

Currently there are 84,000 plugs across the United States, as electric vehicles make up roughly 1.3% of total new vehicle sales. Most automobile manufacturers plan to introduce more electrical vehicles over the next several years. More charging stations and plugs will be needed to accommodate the increase in sales. But the additional charging stations will further increase the demand for electrical vehicles. [Associated Press]

A July heat wave across the United States, along with more time spent at home during the COVID-19 pandemic has pushed electricity bills higher for many Americans.

One-third of the country should expect to pay 10% to 15% more than last year due to higher energy usage resulting from staying home. [USA Today]

COVID - 19 has forced many households to eat locally-sourced foods. Such behavior changes has many benefits.

Forbes put together a list of five good reasons why eating locally-sourced food may be the way of the future, while benefiting the consumer and economy. [Forbes]


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