April 13, 2024

What the gigantic skeletons and lack of puppies told us about the 2020 economy

What the gigantic skeletons and lack of puppies told us about the 2020 economy

The result is often referred to as the “K-economy”, in which the wealthy are on the rampage while those with fewer resources – disproportionately. blackMale and female Hispanic workers – are suffering the economic consequences of the epidemic. As rich people get richer and more mobile in the age of work from home, they are buying homes.

Many of the middle-class millennials who have been on the sidelines of the housing market for years mentioned The pandemic has precipitated their purchasing plans. they have Has been lured Through epidemic-related interest rate cuts at the Fed that have made mortgages cheap, and by the prospect of more space.

Some millennials, freed from office buildings through remote work arrangements, seem to aim to create cities where single-family homes are relatively affordable – which some writers have described.Zoom inCities. People ages 21 to 40 account for a large share of home-purchase loans in places like New Castle, Pennsylvania, and Frankfurt, Indiana, according to Data from Eli Mae, A mortgage software company. At the same time, Rentals In expensive cities like New York, San Francisco, and Boston it may go down.

Since people find themselves spending time indoors, many finally decide to repair a back porch or renovate the garden – or invest in stranger types of decor. Home Depot and its competitors It was a good year overall As America switched from spending on services to spending on goods as restaurants closed and long vacations banned. But the home repair store saw the trend of merchandise overrun playing in a big way this Halloween. The company offered a giant $ 300 skeleton that became a national sensation. Sale before October Until it started. People went to decorate the 12-foot frame for the holidays The joy of social media users.

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

This idea – called modern monetary theory – attracted a lot of attention in 2020, especially since some Democratic presidential candidates have promised sweeping government spending programs. It even hit Hollywood. Actor and musician suggested Ice Cube In a tweet That America must be able to deal with problems like hunger and homelessness because it can print money. Lest fans miss the point, post Follow the picture From economist Stephanie Kelton’s book on Theory, released in 2020.

Celebrity endorsements aside, the theory is her Many criticsAnd, apparently not yet effective in Washington: deficits were central to the debate over a A $ 900 billion relief package Signed by President Trump Sunday night. But government debt increased rapidly during the year as Congress and the White House stepped in to cushion the effects of the pandemic, so it looks like an era of bigger spending will fall on us.