Friday, January 10

BUSINESS

According To Economists: Biden’s $1,400 COVID-19 Checks Is Questionable Economics, May Be Great Politics
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BUSINESS, POLITICS

According To Economists: Biden’s $1,400 COVID-19 Checks Is Questionable Economics, May Be Great Politics

The US$1,400 direct checks to people are the most expensive and perhaps most popular part of the $1.9 trillion coronavirus relief package racing its way through Congress right now. The House is set to vote on a final version of the package narrowly passed by the Senate on March 6 before it moves on to President Joe Biden’s desk for his signature. Moderate Senate Democrats, who had voiced concerns about how many people would receive direct payments in the original proposal endorsed by the House, managed to make them more targeted at lower-income households, which means an estimated 17 million fewer people will get a check. The coronavirus package contains a lot of provisions that will help struggling Americans, and we understand why the checks are so popular – with 78% support among adult...
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Here’s Why The Oil Industry’s Support Of A Carbon Tax Could Be Good For Producers And The Public Alike
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BUSINESS

Here’s Why The Oil Industry’s Support Of A Carbon Tax Could Be Good For Producers And The Public Alike

The oil industry’s lobbying arm, the American Petroleum Institute, suggested in a new draft statement that it might support Congress putting a price on carbon emissions to combat climate change, even though oil and gas are major sources of those greenhouse gas emissions. An industry calling for a tax on the use of its products sounds as bizarre as “man bites dog.” Yet, there’s a reason for the oil industry to consider that shift. With the election of President Joe Biden and rising public concern about climate change, Washington seems increasingly likely to act to reduce greenhouse gas emissions. The industry and many economists and regulatory experts, ourselves included, believe it would be better for the oil industry – and for consumers – if that action were taxation rather than regulat...
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Here’s How To Make The Real And Risky Rollout Of Johnson & Johnson’s COVID-19 Vaccine A Success
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BUSINESS

Here’s How To Make The Real And Risky Rollout Of Johnson & Johnson’s COVID-19 Vaccine A Success

More than 50 million Americans have received at least one dose of either the Pfizer or Moderna COVID-19 vaccine. So far, Americans have been largely brand-agnostic, but that’s about to change as a new vaccine rolls out. The Johnson & Johnson vaccine has been hailed as a game changer. It requires only a single dose rather than two doses spaced weeks apart, and it does not need freezer storage, making it a natural fit for hard-to-reach rural areas and underserved communities with limited access to health care and storage facilities. But while many people are excited about the prospects of only one shot, the new vaccine is also getting backlash. Part of that is coming from lack of clarify about the vaccines’ efficacy numbers, and part of it is more nuanced. On March 2, the U.S. Conferen...
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The Coal Power’s Demise, What’s Really Driving It
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BUSINESS

The Coal Power’s Demise, What’s Really Driving It

People often point to plunging natural gas prices as the reason U.S. coal-fired power plants have been shutting down at a faster pace in recent years. However, new research shows two other forces had a much larger effect: federal regulation and a well-funded activist campaign that launched in 2011 with the goal of ending coal power. We studied the retirement of U.S. coal-fired units from January 2008 to September 2016 and compared the effects of various market factors, regulations and activism on their early closure. In all, 348 coal-fired units either retired or switched to natural gas during that time. Among the many pressures on coal power that we reviewed, a federal regulation implemented in 2015 had the biggest overall effect. The Cross State Air Pollution Rule requires states to re...
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The Best Way To Help Workers And Preserve FDR’s Legacy – Ensuring The Minimum Wage Keeps Up With Economic Growth
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BUSINESS

The Best Way To Help Workers And Preserve FDR’s Legacy – Ensuring The Minimum Wage Keeps Up With Economic Growth

The US$1.9 trillion pandemic relief bill that the House just passed includes a gradual increase in the federal minimum wage to $15 per hour by 2025. While its chances in the Senate appear slim, the proposal has brought national attention to the minimum wage, which has been stuck at $7.25 since 2009. Supporters argue a higher minimum wage would translate into higher incomes for millions of low-wage employees, such as restaurant waiters, retail salespeople and child care workers, and thereby lift a lot of people out of poverty. Opponents claim it would hurt businesses and lead to a lot of job losses. As an economist who studies labor markets and income inequality, I believe both claims exaggerate the impact and miss a key point of what the minimum wage is meant to achieve. The current deba...
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In Australia Facebook’s News Blockade Shows How Tech Giants Are Swallowing The Web
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BUSINESS, TECHNOLOGY

In Australia Facebook’s News Blockade Shows How Tech Giants Are Swallowing The Web

When Facebook disabled Australians’ access to news articles on its platform, and blocked sharing of articles from Australian news organizations, the company moved a step closer to killing the World Wide Web – the hyperlink-based system of freely connecting online sites created in 1989 by Sir Tim Berners-Lee. Though the social media giant has said it will return to the negotiating table and restore news for now, the company has shown its hand – and how it is continuing to reshape the web. As a social media scholar, I see clearly that the internet in 2021 is not the same open public sphere that Berners-Lee envisioned. Rather, it is a constellation of powerful corporate platforms that have come to dominate how people use the internet, what information they get and who is able to profit from...
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On Very Shaky Ethical Ground – In Texas, Price Gouging During Disasters Is Illegal
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BUSINESS

On Very Shaky Ethical Ground – In Texas, Price Gouging During Disasters Is Illegal

In Houston, as millions suffered power and water outages, food shortages and subfreezing temperatures, another problem confronted families: price hikes. Steep increases in the price of food, gas and fuel have been reported across Texas. And as millions of Texans lost power, exorbitant prices were being asked for hotel rooms with power, with some climbing to US$1,000 a night. As a scholar who has researched disaster ethics, I know this is not uncommon in such circumstances. It follows a pattern: Disaster creates a scarcity of basic necessities; retailers and providers respond by sharply raising the price tags on sought-after commodities. Then comes public outrage and claims of price gouging – a practice deemed illegal in 36 U.S. states, including Texas, in times of disaster. Contrarian ...
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Despite Trillions In Coronavirus Aid Americans Still Need A Lifeline
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BUSINESS

Despite Trillions In Coronavirus Aid Americans Still Need A Lifeline

As Congress prepares another injection of COVID-19 aid for businesses and individuals, there’s been debate about whether it’s necessary on top of the US$3.5 trillion spent so far. President Joe Biden had initially hoped to get bipartisan support for his $1.9 trillion proposal, but the only counteroffer from Republicans was a $600 billion bill, with many in the GOP suggesting more money wasn’t needed. And some economists have expressed concern that giving Americans too much right now could overheat the economy. We are public opinion scholars at the Harvard T.H. Chan School of Public Health. In cooperation with our partners at the Robert Wood Johnson Foundation and National Public Radio, we conducted a survey in July and August of last year to try to understand how the first round of aid h...
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Swooning Over Bumble’s IPO – But What Exactly Is An Initial Public Offering?
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BUSINESS

Swooning Over Bumble’s IPO – But What Exactly Is An Initial Public Offering?

Bumble raised US$2.15 billion in an initial public offering, or IPO, late on Feb. 10, just in time for Valentine’s Day. Investors swooned over the women-go-first dating app, buying more shares and at a higher price than initially expected, valuing the company at $8.3 billion. But what exactly is an IPO? As a finance professor, I believe understanding IPOs are an important part of knowing how markets work. More interesting to me, however, is how a new type of IPO is growing in popularity – including among the Redditors who are upending financial markets – and allowing more investors than ever to buy into the “hype” when a company goes public. Why companies go public Companies use IPOs – known as “going public” – to access the deep pockets of the U.S. stock market. At the end of 2020, the ...
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The Biggest US Donors Gave $25 Billion In 2020 What That Says About High-Dollar Charity Today
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BUSINESS

The Biggest US Donors Gave $25 Billion In 2020 What That Says About High-Dollar Charity Today

According to The Chronicle of Philanthropy, the top 50 Americans who gave the most to charity in 2020 committed to giving a total of US$24.7 billion to hospitals, homeless shelters, universities, museums and more – a boost of roughly 54% from 2019 levels. David Campbell, Elizabeth Dale and Jasmine McGinnis Johnson, three scholars of philanthropy, assess what these gifts mean, the possible motivations behind them and what they hope to see in the future in terms of charitable giving in the United States. What trends stand out? Campbell: Pandemic. Pandemic. Pandemic. The share of giving that went to social service nonprofits, food banks and homelessness assistance groups rose sharply. At the same time, performing arts organizations, largely shut down as a result of the pandemic and starved of...
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