Mask mandates are being lifted left and right, rush hour is back in action, and the economy seems to be looking up. As we transition into a new normal, something resembling pre-2020 society, the economy’s rebound will be far from linear.
All in Economics
Ethiopia Industrial Policies Part 1: Value of Import-Substituting Industrial Policies
Ethiopia is one of the few countries in Africa that pursues an active and comprehensive industrial policy. Ethiopia is looking to position itself as the new low-cost manufacturer of the world. To achieve its goal, Ethiopia needs proper industrial policies consideration which comprise “more particular facts than any brain could ascertain or manipulate” (Hayek 1973). The objective of the “Industrial Policies Series” is to examine current outcomes of Ethiopia’s endeavor to identify key elements in the Ethiopia-specific complexity that are pivotal to both success and failure. Targeted sectors used for our examinations are the leather sector, horticulture sector, and cement sector. In part A, a comparison between the leather, horticulture sector and the cement sector will be made to stress on the value of import-substituting policies.
Raising the Minimum Wage: Evidence from Empirical Research
With the Biden administration looking to deliver on its campaign promises and ease the country’s political tension, the minimum wage debate has resurfaced with more potency than ever before.The issue is largely partisan and is often divided into two sides: advocates for a higher minimum wage argue that workers would benefit from having more of a living wage and that they are entitled to such pay, while opponents argue that paying higher wages will cause businesses to pass expenses onto consumers via inflation, lay off workers, cut hours, and shut down entirely. While this simplification doesn’t capture all of the arguments’ nuances, it gives the main strife: will people be better or worse off?
The Food Delivery Industry During COVID-19: Pinnacle Perseverance
Nowadays, we expect our packages to arrive within two days. Convenience has become so highly desired that it is now prioritized over other features, such as quality and price. Due to the widespread implementation of technological advancements in our everyday lives, convenience has become ingrained in our daily lives. Given the huge desire for convenience, the food industry jumped at the opportunity to capitalize on this trend. Companies created websites and apps, allowing customers to simply add an item to cart, and press order for food to be delivered right to their front doors. With this easy accessibility there has become a lack of transparency in the food delivery industry as it is unclear what goes on behind the scenes of an order. Surprisingly enough, the partnership between restaurants and food delivery apps is more parasitic than appears at first glance.
Using Canada as a Future Indicator for the U.S.
Republicans and Democrats can both agree on the fact that the coronavirus is costing the US economy a substantial amount of money. Stimulus is nearly entirely funded through government issued debt, or bonds. Debt has been a gargantuan issue for the US government for the last decade, which leaves Democrats and Republicans fighting over the size of stimulus bills. Canada’s rationale and commentary behind their recent stimulus measures may prove insightful to the United States in deciding how to proceed. The stakes are rising as countries get deeper into debt and the economic horizon is still uncertain. One strategist commented, “Canada could come off as heroic if this spending is done right…If Canada fails, all the emergency spending might have been done in vain because we won’t have the capacity to power the post-vaccine recovery” (Vieira and Mackrael, 2020). As the United States legislature debates another stimulus bill, lawmakers should consider the reasons behind Canada’s recent economic actions.
Effect of International Students on the US Economy
Of the 19.9 million students that attend college in the US, 1 million of those students come from countries from around the world. In light of the pandemic, many of these students have not been able to travel back to their home countries due to travel bans and the danger of traveling abroad. But as per the policy issued by Immigrant and Customs Enforcement (ICE) during the week of July 6th, all international students were forced to leave the country as numerous colleges transitioned to online/hybrid classes for the fall. Under its policy, ICE ruled that all students with study visas will not be allowed to take a full course load or continue living in the United States if their colleges have transitioned to online-only for the fall semester. The policy also states that students that have previously left the country will not be allowed to return either. ICE put this policy in place due to the “extraordinary circumstances” posed by this virus and are calling for a suspension of employment and student visas. Colleges across the country decided to take a stand against this new policy and although the final verdict resulted in the policy being revoked, it is important to recognize the impact these students have on the US economy and our global standing.
Kelp & Climate
As the new President-elect Joe Biden prepares to take office in January, he plans to usher in a new administration and agenda that aims to bring large changes to how America handles climate change. Part of his plan includes “an enforcement mechanism to achieve net-zero emissions no later than 2050” (Plan for Climate Change, 2020). Bringing a nation to net-zero emissions takes more than just talk. It involves compensating for existing carbon dioxide emission sources like cows and industrials, greenhouse gas emitters that won’t simply disappear in the next thirty years. It goes beyond simply reducing our emissions. To accomplish this, we will need to see significant methods of removing these emissions from the atmosphere. One such method, and the focus of this article today, is the farming of kelp.
Tesla’s Inclusion in the S&P 500
In early September 2020, Tesla fell short of what was thought by many to be a done deal: inclusion into the S&P 500 Index. This Index is supposed to reflect the total investable market culture. A reflection on whether or not the market is healthy. Inclusion would help Tesla’s stock boost since investors can see that it is one of the most valuable companies on the market. This index did not include Tesla, the largest automotive maker by market capitalization. Also, by market capital, Tesla is the eighth largest publicly traded company on the market (Elmerraji, 2020), beating companies such as Johnson & Johnson and Proctor & Gamble (Randewich, 2020). Both of which have been included in the S&P 500 for many years.
Automation, From an Economic Point of View
In the next ten years, one out of three American workers (and 800 million globally) are at risk of losing their jobs to new technologies, according to research from McKinsey (Manyika et al., 2019). Automation, the use of largely automatic equipment in a system of manufacturing or other production processes, and Artificial Intelligence, the development of computer systems able to perform tasks that normally require human intelligence, are going to replace millions in the workplace. Many people are freaking out about this; while at the same time, many people are looking forward to it. Should we be worried about automation or should we be happy? That depends. When discussing automation it is crucial to understand that (i) we don’t want jobs, (ii) it will bring about massive economic disparity, and (iii) we must approach this future in an intelligent manner.
THE COVID-19 VACCINE: Does it Come with 2 Day Free Shipping?
Coronavirus has uprooted life for most people and penetrated into every aspect of our lives. New working from home policies, virtual learning, mask mandates, politics, and communication are focused on the raging pandemic. Current data suggests that the worldwide death toll has surpassed 1.34 million deaths, with 254,000 of those being within the US alone [1]. However, there has been hope on the horizon. Pfizer and Moderna have made incredible strides, creating a vaccine that is 95% and 94.5% effective at treating the Coronavirus. While the fact that a vaccine has been discovered is amazing, there is still a huge issue: distribution. With the spread of Coronavirus, the world's optimized supply chain network took significant damage. Now, it is this same crippled system that will be placed in charge of distributing the cure to the Coronavirus. This article intends to highlight the current issues with the distribution network and potential issues to resolve before the vaccine distribution.