Economics in the News

Economics in the News - Nov. 23-29 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.

A range of programs designed to aid relief from the COVID-19 pandemic are set to expire at the start of 2021. Millions of people have relied on the programs in order to stay afloat.

Included in the programs that are set to expire are two federal unemployment-insurance programs, measures which froze student-loan payments, offered mortgage leniency and halted evictions. The loss of assistance will potentially have a negative impact on the recovering economy that has recovered faster than expected but with signs of slowing along with a resurgence in new COVID-19 cases. [Bloomberg]

Be sure to finish your holiday shopping early! A number of Amazon merchants are warning that some products that normally take one or two days to be delivered are now taking longer. Even since hiring 250,000 new workers since the start of the COVID-19 pandemic, Amazon’s merchants appear to be at or near capacity.

The online retail giant expects a record-breaking holiday shopping season. Amazon is expecting U.S.-based shoppers to spend $189 billion in November and December, which is 33 percent higher from the 2019 holiday season. Many merchants believe that Amazon is prioritizing the most in-demand products for faster delivery while slower-selling products are subject to delay. [Bloomberg]

Former Federal Reserve chairwoman Janet Yellen was tabbed by President-elect Joe Biden as the Treasury secretary. If confirmed by the Senate, Yellen would become the first female to serve as Treasury secretary and one of the few people to hold the top three economic roles in the United States – White House Council of Economic Advisors, Federal Reserve Chair and Treasury Secretary.

Yellen was the chair of the Federal Reserve from 2014-18, before President Donald Trump broke precedent by not reappointing her and naming Jerome Powell as Federal Reserve chair. During her time as the head of the Fed, Yellen laid the groundwork for a strong labor market and a record-long expansion. [The Wall Street Journal]

Golf courses have been one of a few beneficiaries during COVID-19. Rounds of golf are up 11 percent from the pace in 2019 and 32 percent ahead of last October. However, the need to social distance has limited the capabilities to fundraise for nonprofit businesses aiming to provide opportunities for those that aren’t able to afford the expenses of golf.

Nonprofit groups such as Youth on Course and The First Tee have had to alter their annual fundraising tournaments and events in order to prevent too many people wouldn’t gather in one place. Charities are relying on the generosity of corporate and community sponsors for the year, but few nonprofit programs are unable to survive without individual donations and fundraising events. [The New York Times]

Thanksgiving Day in the United States saw more than 100,000 new confirmed coronavirus cases and more than 1,000 deaths. Black Friday, typically the busiest shopping day of the year, was different with fewer people shopping at malls and big retailers.

Many stores had protections in place, including temperature checks and barriers at the checkout counters. Stores also spread discounts across November to entice shoppers to shop early. Many Americans did their Black Friday shopping online. Adobe Analytics, which tracks online shopping, predicted that Black Friday and Cyber Monday would be the two largest online sales days in U.S. history. [NPR]

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