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Economics in the News - Jan. 11-17 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
President Donald Trump became the first American president to be impeached two times. The House of Representatives charged Trump with “incitement of insurrection” after the mob attack on the United States Capitol building.

The vote to charge Trump comes less than a week before President-elect Joe Biden is sworn into office. The Senate will hold a trial to determine whether or not to convict Trump and ban him from holding public office in the future. [The New York Times]

In a year in which the world economy suffered due to the impact of COVID-19, China’s economy is likely to be the only major economy to grow. China is expected to account for 16.8% of the world’s real gross domestic product (RGDP) in 2020.

China strict containment measures resulted in it being more successful in containing COVID-19, which enabled businesses to reopen sooner. The Chinese government focused its stimulus on factory production and assisting small businesses. Consumer spending also recovered and bounced back in the fall. [The Wall Street Journal]

Retail sales fell for the third consecutive month in December. Retail sales at stores, restaurants and online declined a seasonally adjusted rate of 0.7%, as announced by the Commerce Department.

Online, restaurants and bars, retail stores, and groceries fell, while consumers spent more on home improvements, gyms and personal-care stores, clothing and gas. Retailers reported mixed holiday sales, as the National Retail Federation said that holiday sales exceeded expectations with an 8.3% increase. [The Wall Street Journal]

President-elect Joe Biden unveiled a proposal for a $1.9 trillion coronavirus relief package. Biden’s package calls for $1,400 stimulus checks to most Americans, additional benefits for the unemployed and to speed up the distribution of the COVID-19 vaccines.

The President-elect’s plan calls for increasing the current $300 per week emergency unemployment aid to $400 and extending them through at least September. For small businesses, Biden proposes emergency funding along with grants. [NPR]

The National Rifle Association filed for bankruptcy protection and announced plans to move to Texas as a nonprofit organization.

The organization filed for chapter 11 bankruptcy and has been registered as a New York nonprofit group since 1871, but has recently been immersed in legal battles with the state of New York. [The Wall Street Journal]

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All images credited to iStock