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Economics in the News - Feb. 22-28 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.

"Talent is cheaper than table salt. What separates the talented individual from the successful one is a lot of hard work." -- Stephen King, author
China is continuing to test its digital Chinese yuan in an effort to reshape the way government-backed money works. The country’s central bank is testing the national digital currency through a lottery system in which citizens can pay for items with the digital currency through a QR code.

The digital Chinese yuan has been in development since 2014 shortly after the rise of Bitcoin and testing began in four cities across China last year. China is one of more than 60 countries to explore digital currencies, which could allow for money to be moved faster. On the contrary, digital currencies could allow for privacy concerns with governments utilizing tools to easily monitor financial flows. [The New York Times]

The United States will soon have a third COVID-19 vaccine at its disposal. The Federal Food & Drug (FDA) Administration cleared Johnson & Johnson’s one-dose vaccine. The Johnson & Johnson vaccine offers strong protection against the most serious COVID-19 infections.

J&J expects to deliver 20 million doses throughout the United States in March and 100 million by summer. Health experts say that having a one-dose vaccine available will help accelerate vaccinations. J&J is seeking emergency use authorization for its vaccine in Europe, as it hopes to produce 1 billion doses by the end of 2021. [Associated Press]

Stimulus checks and COVID-19 aid have helped increase personal income and consumer spending, according to the Commerce Department. Personal income in the United States increased 10 percent in January from December, while consumers spent 2.4 percent more than December fueled by a rise in the purchase of goods.

The 10 percent increase in income was the second largest on record, eclipsed only by April of 2020. Since February 2020, a month before the pandemic shut down the economy, household income has increased 13 percent. The increase in household income is attributed to pandemic aid, including the latest $600 payment to most Americans. Economists expect the trend to continue because this increase does not include the $1.9 trillion Biden package recently passed by the House of Representatives. [The Wall Street Journal]

Mounting evidence suggests that the COVID-19 vaccines have helped in protecting the elderly in nursing homes. The COVID-19-related deaths linked to nursing homes was down to 1,464 last week from 5,000 in early January.

Elderly care residents were among the first to receive their vaccines, suggesting that the vaccine’s first dose adequately protected residents. Deaths in long-term care facilities represent a third of the more than 500,000 COVID-19 deaths in the United States. [The Wall Street Journal]

Have you experienced COVID-19 pandemic boredom? If so, you aren’t alone. While many essential workers like health care workers, grocery store employees among others have stayed busy, many others have had a lot of time on their hands.

With Americans saving, many are spending while bored. Boredom can increase risk-taking and impulse purchases. Many are investing in do-it-yourself jobs for home improvement. Gardening has been a popular hobby. Sales of video games, books and appliances have also soared. [The New York Times]

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All images credited to iStock