Each week we learn about the new job losses caused by the COVID crisis. Through the first part of May, the number of people who had lost their jobs and had filed for unemployment insurance had accumulated to 36 million—22 percent of the labor force. Many others have faced cutbacks in hours worked. The job … Continue reading What Are We Learning About the Economic Decline?
Socializing Risk
Over recent decades, the United States has in small steps extended the socialization of risk. We have become more responsive to those experiencing losses that threaten their livelihood. This has taken the form of growing assistance to those hit by natural disasters—tornados, earthquakes, hurricanes, and floods. It has also taken the form of coverage of … Continue reading Socializing Risk
Why is the Federal Government the One to Pay for This?
Heating up is the issue of whether the next COVID-19 bill to be considered by Congress will include massive assistance from the federal to state and local governments, especially those most strapped. If enacted, this will involve the federal government borrowing even more in the credit market to be able to achieve the transfer. Why, … Continue reading Why is the Federal Government the One to Pay for This?
The Ideas Will Still Remain
With the suspension of his campaign, Sanders' days as a presidential candidate have ended. However, his economic proposals such as universal health care, free higher education, and a sharp boost to the minimum wage, will still be around. Some of his proposed policies may even work their way into the 2020 platform of the Democrat … Continue reading The Ideas Will Still Remain
Are We Drowning in Fed Liquidity?
The Federal Reserve—the Fed—is the only institution in our economy that is authorized to create money, essentially out of thin air. This can take the form of cash, those greenbacks in your wallet, or electronic credits to bank accounts. Since early March, the Fed has ramped up liquidity roughly $2-1/2 trillion—yes, trillion. This has been … Continue reading Are We Drowning in Fed Liquidity?
Who Pays the Bill?
You may be wondering how all the losses being incurred during the COVID-19 crisis are going to covered. Many households and businesses are experiencing staggering shortfalls of income from their outlays. These shortfalls are being dealt with in various ways: Drawing down assets;Borrowing from banks and others;Receiving assistance from the Treasury and others; and/orFalling behind … Continue reading Who Pays the Bill?
Job Losses
The number of people filing for unemployment insurance has soared to 26 million over recent weeks—16 percent of our labor force. For some segments of the workforce—restaurant and hotel workers — it is much higher. Still, others have had their hours cut back. For all, this has greatly compounded the anguish of coping with the … Continue reading Job Losses
The Bible and Economics: Connecting the Two
Is the field of economics in a different sphere from the Bible? For a good part of my professional life, I treated them as such. I found the tools of economics to be extremely useful for addressing the policy problems through which I was working. And I marveled at how well a decentralized, market-based (capitalist) … Continue reading The Bible and Economics: Connecting the Two
Books Under Construction
The current COVID-19 crisis is causing great distress for many people. Unfortunately, small business owners who sell "non-essential" items, people who work for small business that sell "non-essential" items, and people who work for larger businesses that just can't operate in a shut down climate, are really hurting. No work and no income. But for … Continue reading Books Under Construction
Thomas D. Simpson, PH.D. 