What Large Skeletons and Pet Shortages Instructed Us In regards to the 2020 Economic system

The result has often been referred to as a “K-shaped economy,” where the affluent are rising rapidly while those with fewer resources – and disproportionately black, Hispanic and female workers – suffer the economic fallout from the pandemic. As the rich get richer and more mobile in the work-from-home era, they buy houses.

Many middle-class millennials who had been on the fringes of the real estate market for years reported that the pandemic had accelerated their buying plans. They were attracted by the Fed’s pandemic rate cuts that made mortgages cheap and the prospect of more space.

Some millennials who have been freed from office buildings by working remotely appear to be targeting cities where single-family homes are relatively affordable – what some authors have referred to as “zoom” cities. People between the ages of around 21 and 40 have a large percentage of home loans in places like New Castle, Pennsylvania and Frankfort, Indiana, according to Ellie Mae, a mortgage software company. At the same time, rents have fallen in expensive cities like New York, San Francisco and Boston.

With people spending time at home, many decided to finally fix the porch, or renovate the garden – or invest in stranger types of decorations. The Home Depot and its competitors generally had a good year as America shifted from spending on services to spending on goods as restaurants closed and long-distance vacations banned. But the repair shop has seen the trend towards merchandise survivors have a big impact on Halloween. The company offered a $ 300 giant skeleton that became a national sensation and sold out before the start of October. To the delight of social media users, people decorated the 12-foot frame for the holidays.

Skeletons aren’t the only domain some Americans have decided bigger could be better. A group of economists has argued for years that the United States is unnecessarily tying up its potential by trying to contain the federal deficit. They say resource constraints are the real limit to how much the American government, which prints its own currency, can spend.

This idea – called modern monetary theory – caught a lot of attention in 2020, especially as some Democratic presidential candidates promised extensive government spending programs. It even hit Hollywood. Actor and musician Ice Cube suggested in a tweet that America should be able to cope with problems like hunger and homelessness because it can print cash. To keep fans from missing the point, he posted a follow-up photo of economist Stephanie Kelton’s book on the theory, which came out in 2020.

Celebrity support aside, the theory has many critics and is clearly not yet working in Washington: Deficits were at the center of the debate over a $ 900 billion aid package that President Trump put into law on Sunday evening. But government debt soared over the year as Congress and the White House stepped in to mitigate the effects of the pandemic. So an era of major spending seems to lie ahead.

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