Since 2010, Social Security’s cash flow has been negative, meaning that the agency does not collect enough money through taxes to cover what it is paying out. Even though there was still this vast trust fund behind Social Security, they started tapping that fund’s interest.
Starting in 2021, they will have to dip into the trust fund itself to cover those benefit payments, and even that pool of cash has an expiration date. Trustees of the fund expect that by 2035 it will not be enough to cover full benefit payments. Due to COVID-19, that date may come years sooner than expected, which has some retirees seriously worried about their future.
The outcome of the 2020 election between Joe Biden and Donald Trump will likely have a major impact on the equity market. Although the economy has historically performed better under a Democratic president, that doesn’t always necessarily reflect on market performance. However, which party controls the White House can still be an important element for those looking to earn big in the market. So how does the U.S. election impact the stock market and how should investors prepare?
To stimulate its pandemic-hit economy, a province in South Korea has been experimenting with universal basic income programs by regularly giving out cash, no questions asked. Now, some politicians want to go national with the concept.
Predicting the path ahead has become nearly impossible, but we can speculate about the size and scale of the economic shock. Economic contagion is now spreading as fast as Covid-19 itself. Social distancing, intended to physically disrupt the spread, has severed the flow of goods and people, stalled economies, and is in the process of delivering a global recession.
Predicting the path ahead has become nearly impossible, as multiple dimensions of the crisis are unprecedented and unknowable. Pressing questions include the path of the shock and recovery, whether economies will be able to return to their pre-shock output levels and growth rates, and whether there will be any structural legacy from the coronavirus crisis.
This Explainer explores several scenarios to model the size and scale of the economic shock and the path ahead.
Based on the HBR article by Philipp Carlsson-Szlezak, Martin Reeves and Paul Swartz
A selection of three essential articles read aloud from the latest issue of The Economist. This week, the business of survival—those companies that survive the coronavirus crisis will need to master a new environment. Plus, how to reopen factories after covid-19 (9:23) and Venezuela’s navy battles a cruise ship, and loses (17:41).
Though U.S. legislation targeting the problem of surprise medical bills advanced out of key congressional committees in 2019 with support from leaders in both parties, Congress ultimately failed to pass a law to end such bills.
Erin Fuse Brown is an associate professor of law at Georgia State University. Stephen Morrissey, the interviewer, is the Executive Managing Editor of the Journal.
Dr. Paul Krugman is a Nobel Prize-Winning economist, and a regular commentator for the New York Times. Though academically recognised for his contributions to international trade theory, he writes about a wide range of economic issues, and is well known for making economic theory accessible to non-academics through his columns and numerous popular books. A liberal, Dr. Krugman is a fierce opponent of the modern Republican party, though he previously served as an economic advisor in Reagan’s White House.
ABOUT THE OXFORD UNION SOCIETY: The Oxford Union is the world’s most prestigious debating society, with an unparalleled reputation for bringing international guests and speakers to Oxford. Since 1823, the Union has been promoting debate and discussion not just in Oxford University, but across the globe.
In the new series “Economics For People” from the Institute for New Economic Thinking (INET), University of Cambridge economist and bestselling author Ha-Joon Chang explains key concepts in economics, empowering anyone to hold their government, society, and economy accountable.
Lecture 1.1: The Nature of Economics
Lecture 1.2: Five Reasons Why Economics Is Political
He became one of the most unpopular Fed chairmen in history for pushing interest rates as high as 20% to break the soaring inflation that consumed the U.S. economy in the 1970s. But his actions succeeded in bringing inflation, making Mr. Volcker one of the most successful central bankers in history.
Paul Volcker, who defeated runaway inflation as Federal Reserve chairman in the 1980s, establishing the importance to the economy of an independent central bank, and whose “Volcker Rule” became a controversial element of postcrisis banking regulation in the Obama administration, has died at 92 years old.
Mr. Volcker died Sunday at his home following a long illness, his family said.
Mr. Volcker served in government across Democratic and Republican administrations for almost three decades in roles guiding monetary policy and overseeing the nation’s financial system.