Near-Zero interest rate is one step the FED is implementing to try to help our economic state. Near Zero interest rates means that the rate banks pay to borrow from each other overnight is being cut. The FED is cutting it by a total of 1.5 percentage points since March 3, bringing it down to a range of 0 percent to 0.25 percent. Because the federal funds rate is a benchmark for other short-term rates, and also affects longer-term rates, it is aimed at lowering the cost of borrowing on mortgages,
As reported in Economy - CNBC
Amid Covide-19 fears, U.S. import prices took a drastic drop in March of this year. Import taxes dropped by 2.3% in March, fueling fears that import deflation could worsen as the pandemic runs it's course. This drop was viewed as relating to petroleum prices and goods related to them. The consumer price index relating to gas and petroleum prices reflected the low demand for these products. As a consumer, the largest insecurity to support these report's claims c
In an article from Fox News, it is explained that President Trump, with Congress backing him up, will essentially shatter the federal deficit record by the end of 2020. Goldman Sachs has predicted that the deficit will reach $3.6 trillion, more than double last year's deficit. Much of this is no one's fault other than COVID-19's, since the president along with congress are expected to spend around $5 trillion on virus relief and things of that nature. The article states that where this is Trump'
COVID-19, also described by some as an economic apocalypse, has been the most-covered topic in today's media. Will the economy hit rock bottom or rise from the dead? This is a question that is being highly hypothesized about. Expecting what is going to happen to the economy next is very difficult because there are a lot of positive variables trying to even out negative variables to keep the economy from collapsing. Although the economy is being affected in many ways, I was more interested in how
We all are clearly aware of what is going on in the world right now. It all started around late December when the coronavirus first came into the news. a month later it became something far more serious in Asia. A month or two later this virus has spread throughout the whole world. It was not stopping and was growing rapidly more and more every day. The reason why this virus plays such a big part in the world's economy is because due to this virus there have been several stores and businesses fo
During this time of a pandemic, more people are filing for unemployment and people are losing their jobs. Causing them to not receive a paycheck to help survive during this bad time. During this time, Trump has signed a stimulus package called the Coronavirus Aid, Relief, and Economic Security (CARES) Act. With a price tag of $2 trillion, it is to help provide emergency financial assistance to businesses and people to help out during a time of a recession. The amount of money you can receive fro
As we go through these scary and unpredictable times, many are wondering what will the world be like after the pandemic. Will we use it as motivation and rebuild the great economy we had going on prior to the virus? Will people lay down and be complacent after facing the traumas of a unexpected event?"The responses to the COVID-19 pandemic are simply the amplification of the dynamic that drives other social and ecological crises: the prioritisation of one type of value over others. This dynamic
The caronavirus has disrupted everything with lockdowns and reduction in business due to the necessity for social distancing. Due to this pandemic event that has taken over our lives, the S&P's forecast for global growth in 2020 has dropped from 3.3% to 0.4%. This is the first time that global growth has been this low since 38 years ago during the economic crash of 1982, which at that time was the worst since the Great Depression. Over 3.2 million people have filed for unemployment which i
According to the New York Times, while many companies are being hit hard by the Corona virus, companies like Amazon, Facebook and Netflix are thriving. With people told to work from home and stay away from others, the pandemic has deepened reliance on services from the technology industry’s biggest companies while accelerating trends that were already benefiting them.
Amazon for example was hiring 100,000 warehouse workers to meet surging demand since shoppers now reluctant to go to the store are
Through a virtual meeting on Monday, March 30th, G20 leaders spoke about a temporary period of free trade of medical supplies due to the Coronavirus. However, while countries with extra medical supplies will be allowed to trade freely, the WTO is also rolling back penalties against countries forcing supplies to be sold domestically. The World Trade Organization “rules generally prohibit export restrictions but allow them in times of crisis. Exceptions can be made if the measures are necessary to
Challenges faced by Airbnb:
Airbnb is facing huge problems when it tried to expand itself. As the business model of Airbnb is such that the activities are provided by experts that are located locally. But there are many travel agencies operating locally and are providing services there for many years. They already established their names in the market. Localization is the main feature of Airbnb, as they can’t provide better experience packages then local travel agencies. Local companies have a be
As we advance through time, society is evolving with technology. Digitization has made it possible to access anything in an instant. With the new release of 5G services, applications such as Zoom, Facetime, and Google Chat, colleagues can meet “Face to face” from anywhere in the world to discuss business endeavors or personal pleasure. More than 5 billion people across the world use or have used the internet in 2019 alone, making this digital platform the most popular item used in history. Estab
As the coronavirus pandemic rages on, one of the major concerns worldwide has become the status of the global economy. Significant declines of nearly every market have been realized and many economists wonder how long it will take for the economy to return to its natural state, and how they can prevent another recession. One course of action that may be taken is to reduce the restrictions on pollution permissible in order to increase economic productivity and stabilize the country.
It is clear to everybody how much an effect the Coronavirus is having on their everyday lives, the economy and travel. When I saw this article, I found this very relevant to post because our lives have also been effected by this by not allowing us to return back to New Haven.
Fear surrounding the impact of COVID-19 on the global economy has hurt investor sentiment and brought down stock price
The new phase of globalization is digitalization. Indeed digitalization has helped to change globalization into a new age in which it will offer numerous opportunities. Over the centuries, globalization was based on trading goods; however, with the innovation in technology, trading goods are still heaping in a different way. For example, E-books, applications, music, online games, and video streaming services all considered to be part of global trading. Digitalization has changed globalization t
Trading at around $30 per barrel, oil prices are at low points not experienced since the Gulf War in the early 90's. The sharp decline in prices is attributed to a number of factors that are affecting the global economy as a whole. Chief of these factors is the current oil price war spearheaded by the Kingdom of Saudi Arabia and Russia. Negotiations between the OPEC+ (which is an alliance between the OPEC nations and Russia) to control the falling prices of oil, failed when Russia refused to c
Revolutionary means I want to change the world (Ernesto Cardenal, in Elisabeth Malkin)
The passing of Nicaraguan poet, priest, artist, and activist Ernesto Cardenal on March 1, after I celebrated the news that the University had granted me tenure, led to a swirl of reflection and gratitude about how I got to this place in my life, how a first-generation college graduate from a place in Indiana where Amish buggies are more common than BMWs, became an expert in Latin American history. My journey,
We live in a world where digital is now everywhere. Despite broadly using and benefitting from technology, people are expressing concerns about how it is used and what it is used. On the other hand, models that companies have been relying on for decades are becoming roadblocks, demanding companies’ leaders to rethink core assumptions about how an enterprise works and redefine the intersection between people and technology.
According to Technology vision 2020, 76% of executives agree that organ
The coronavirus has recently spread to Europe and caused Italy to rise its Warning Level to 3. This means that it is highly advised not to travel to/from this country. Italy is spiraling towards Level 4 which would mean that the country is essentially a ‘no fly zone’ and no one should be travelling in or out of the country. Capital Economics, a London research consultancy projected that the “economic effects of a severe pandemic could be as bad as those of the global financial crisis” (Lynch & W
On Friday, February 28th at the Air Warfare Symposium in Orlando, Florida, Elon Musk predicted that the Chinese ecomony could surpass the US economy by two or even three times. He had also made the claim that economics is the foundation of warfare and that if the US cannot keep up with China's economy, then the US would have to take the lead in terms of innovation. Currently, the US economy is on top with over $21 trillion GDP while China is gaining with just over $14 trillion. Contributing fact
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