Highest Minimum Wage in the World

 Recently Geneva Switzerland voted to make the minimum wage 23 Swiss francs which is equivalent to $25 U.S dollars. This seemed like a very staggering rate since the United States has a minimum wage of about $7.50. However Geneva is one of the most expensive places to live in the world. It ranks 10th on the most expensive cities in the world. Some believed this was a necessary measure because unemployment is such a big risk for low income workers. If they loose their jobs it could cost them the food they eat. They do not have the ability to save for the future. The idea of raising the minimum wage is not a new one as it was proposed twice before. However with the devastation of the coronavirus, the measure was able to pass this time around. It will be interesting I think to see if the cost of living will increase now that the minimum wage has increased.

https://www.cnn.com/2020/10/03/world/geneva-switzerland-minimum-wage-trnd/index.html

Is the US economy getting better or worse?

 https://www.marketwatch.com/story/the-u-s-economy-is-getting-better-no-its-getting-worse-which-is-it-11602879859

Retail surged 1.9% in September, and consumer sentiment and optimism rose as well. On the flip side, jobless claims actually rose, unlike predictions, mainly from several large corporations announced large layoffs. Not to mention, we are seeing another spike in covid cases. Restaurants are beginning to bounce back and figure out ways to socially distance and still maintain similar levels of revenues. However, with winter and cold weather arriving, restaurants will once again have to adapt, as outdoor seating will not be possible.

There is much uncertainty, from stimulus checks to vaccines to the election, there is a lot that could sway the U.S. economy. I think the data shows conflicting trends, we seem to be growing while also contracting. 

So what do you think? Is the economy getting better or worse? and will this trend continue into the future?

Rupee and US Dollar Exchange Rate

 The Rupee has recently gone up 26 paise against the US dollar to settle at a point of 75.94. The financial minister of India says they are working on a relief package due to the coronavirus, so they expect the value of the Rupee to make its way back to where it should be. The value is being monitored on the stock market three times a day to ensure that it doesn't get to out of hand. The outbreak of the virus has impacted the domestic economy as well as the global economy, which will continue to impact the value of the Rupee. There has been a reported 500 cases in India and is likely to continue to rise. The Rupee is expected to have a value of 80 compared to the US dollar in 2021, which is up from its current value of 77.

Fed’s Kashkari warns that delaying stimulus will have ‘enormous consequences

 Many central bankers have been warning about not getting more stimulus to the U.S. economy, saying that the cost of doing nothing could be major. Minneapolis Federal Reserve President Neel Kashkari is the latest. He went on to say that things can get much worse if we choose to not support the people that have lost their jobs then they cant pay their bills. This will create a domino effect in the economy. On last Tuesday the negotiation came to a halt thanks to Trump's tweet which called for a negotiation stand down by his party until after the election. He then had to correct his tweet to push funding more towards airlines. Thanks to the economies problem being caused by covid it has made congress a lot more willing to use public funds to support people in need. So far congress has approved 2 trillion dollars for funding and the fed has been slashing interest rates to help the economy as well.

Do you think another round of stimulus checks are desperately needed?

https://www.cnbc.com/2020/10/07/feds-kashkari-warns-delaying-stimulus-will-have-enormous-consequences-.html#:~:text=Fed's%20Kashkari%20warns%20that%20delaying%20stimulus%20will%20have%20'enormous%20consequences',-Published%20Wed%2C%20Oct&text=Minneapolis%20Fed%20President%20Neel%20Kashkari,is%20important%2C%E2%80%9D%20he%20said.

Germany Debates whether to import hydrogen or produce domestically

 [Source]

Germany, on its way to attempt to go completely carbon-neutral in the near future, along with other EU states, is currently debating whether to chemically produce the hydrogen needed to fuel the future locally, or opt for importing it elsewhere. 

Hydrogen is used in clean energy as an "energy carrier" and storage, not a primary source, using electricity to split water into oxygen and hydrogen. It is likely they will need to produce locally and import from overseas in order to meet demand, although the conversation is being shifted to attempt to produce locally first in order to stimulate their economy. 

Germany, Europe's largest economy by far, has had a focus in recent years in attempting to help the economies of surrounding countries that aren't as well off before helping themselves. 

In your opinion, should Germany seek to produce locally and help build up their economy even more, or put the production burden on their EU neighbors in order to stimulate the EU more as a whole?

Amazon Workers Take Company to Court

 Recently, amazon reinstated a policy that penalizes its workers from taking breaks. The workers are claiming that this attempt to be more productive can put them at a greater risk of contracting coronavirus on the job. The company had previously suspended these productivity quotas due to the ongoing pandemic, but has now recklessly reinstated them, making the workplace oppressive and dangerous. The. attorney representing the workers has said the Amazon is treating the ongoing pandemic as a thing of the past, and is now abandoning policies put in place in order to make a safe working environment. This change in policies has come on the brink of Prime Day, which is one of amazons busiest days of the year. What do you think about this change in policy, and do you think that the workers are making valid point through this lawsuit?

Settembre, Jeanette. “Amazon Reinstates Policy That Penalizes Workers for Taking Too Many Breaks, Lawsuit Alleges.” Fox Business, Fox Business, 15 Oct. 2020, www.foxbusiness.com/lifestyle/amazon-policy-fires-workers-breaks. 

The IMF Predicts the World Will Suffer

     The IMF's latest predictions on October 13th do not look good for the world economy. The IMF expects long term economic damage from the COVID-19 pandemic, and they are not sure how long it will last. The IMF believes that the United States GDP will not return to its 2019 highs until 2022. Other countries face longer roads such as Italy where the GDP isn't expected to recover until 2025. The IMF worries that output will stay below its pre-pandemic levels as labor and capital are moving slowly to be reallocated to better industries. GDP growth in emerging markets will be among the hardest hit with growth predictions dropping about 10%. India for example was expected to grow by 40% based on 2019 predictions, but is now only projected to grow about 20% by 2024.

https://www.economist.com/finance-and-economics/2020/10/17/the-imf-predicts-that-the-world-economy-will-suffer-from-long-covid

Covid-19 Vaccine Deployment Would Give Global Economy a Lift Next Year

“Gaining a vaccine to help contain the novel coronavirus would provide a big boost to the global economy in 2021, but the initial geographic distribution of that benefit will likely depend on which vaccine candidate works first.” “A group of researchers affiliated with the Center for Global Development estimate that there is a 50% probability a vaccine safe and effective enough to be approved by a stringent regulator will be available by April 2021, with an 85% probability of that happening by the end of the year.” In the midst of the panic, governments helped fund research for a vaccine and when they did that they signed up for an early delivery for a certain number of doses which means that not everyone will be getting the vaccine at the same time. This means that some nations will see an economic impact before others. So, you may be thinking where does the United States sit? Eight of the final testing candidates are in China so “their success would be more advantageous for the world’s second-largest economy and a number of developing economies than for the U.S. and Europe.” The IMF has said that uneven access to the vaccines will hold back global economic recovery including the ones with a successful vaccine that will gain initially. Do you think people will be willing to even get the vaccine?

Hannon, Paul. “Covid-19 Vaccine Deployment Would Give Global Economy a Lift Next Year.” The Wall Street Journal, Dow Jones & Company, 4 Oct. 2020, www.wsj.com/articles/covid-19-vaccine-deployment-would-give-global-economy-a-lift-next-year-11601820001.

Bidenomics

 Article: "Bidenomics: The Good, the Bad, and the Unknown," The Economist, October 3rd, 2020

Depending on whether or not you sit on the edges of political spectrum, you may be inclined to see Joe Biden as a radical socialist bent on upending American capitalism or as a candidate that is, unfortunately, not a radical socialist bent on upending American capitalism. Leave it to the British, particularly The Economist, to give us a glimpse of the true candidate: dull, prosaic, and moderate. 

The article indicates that Biden is certainly no radical. His first step will likely be pass a major stimulus bill. Further, if Biden were elected, he will provide economic stability simply by relieving the White House of its Trumpian chaos, incompetence, and disregard for institutions.

What is more interesting is the areas in which The Economist suggests Biden could be more bold. For instance, the article predicts a Biden presidency would see little of the "creative destruction" needed for long-run improvement in the standard of living. Biden is too keen on protecting incumbent firms, and would thus also oppose ending tech monopolies. These tendencies, coupled with complex regulations, would likely protect existing (and even poor-performing) firms, decreasing the dynamism of the American economy in the long run. 

With regard to climate change, the one area in which, in my opinion, we cannot afford to be insufficiently bold, Biden lags behind in supporting even non-controversial policy measures, such as carbon pricing. Last month, the article points out, the Business Roundtable said it supported such a policy. Then again, we all know that the Business Roundtable is a radical eco-Marxist collective unworthy of consideration by a serious presidential candidate. 

What do you think? Have Biden's economic plans gone too far? Not far enough? What should he do if he wins in November? 

Stimulus Negotiations Continue

Days after halting negotiations on a stimulus package, the sparked criticism has led to the White House taking a more aggressive push at passing a government rescue package before the election. On Friday, Trump made a $1.8 trillion stimulus offer to the Democrats, the largest one yet in negotiations with Speaker Nancy Pelosi. Trump has favored a broad economic aid package, with measures to provide more government support to businesses and individuals. Some of the provisions in the plan include:

• $1,200 direct payments to adults plus $1,000 for each dependent child

• $400 weekly federal unemployment benefits (end-date unclear)

• $300 billion in aid to state and local governments

• $75 billion for coronavirus testing and tracing 

The responses from the new proposal were not promising on reaching an agreement anytime soon. Despite the new offer being the biggest yet, Pelosi rebuffed it insisting that it did not provide a fuller strategy for COVID-19 testing and tracing. She further called the plan “insufficient” and that it amounted to “one step forward, two steps back.” The Democrats continue to push for more details and funding from the administration. Furthermore, Trump’s offer is also faced with the disposition of many Republicans, as many GOP senators are citing concern over the growing federal debt. 

If the government does not provide further relief, nearly a dozen major companies are planning to move ahead with at least 75,000 layoffs. Meanwhile, the U.S. still has not recovered half the jobs it lost in March and April. 

Do you think that an agreement for a stimulus package will be made before the election? What are your thoughts on the new stimulus package proposed from Trump, should it be higher? Lower? 

https://www.businessinsider.com/trump-administration-stimulus-plan-direct-payments-unemployment-benefits-2020-10