A new paper suggests that poverty, as measured on an annual basis, may have actually fallen a bit in April and May thanks to the coronavirus stimulus
NO ONE WELCOMES a recession, but downturns are especially difficult when you are poor. Rising unemployment means rising poverty: the recession of 2007-09 prompted the share of Americans classified as poor, on a widely used measure, to jump from 12% to 17%, as jobs vanished by the million and businesses went bust. That economic shock, as bad as it was, pales in comparison with what America is seeing today under the coronavirus pandemic.
Yet these trends, as shocking as they are, do not appear to be part of a generalised rise in poverty. The official data will not be available for some time. A new paper from economists at the University of Chicago and the University of Notre Dame, however, suggests that poverty, as measured on an annual basis, may have actually fallen a bit in April and May, continuing a trend seen in the months before the pandemic hit .
The upshot is that the current downturn looks different from previous ones. Household income usually falls during a recession—as it did the last time, pushing up poverty. But a paper in mid-June from Goldman Sachs, a bank, suggests that this year nominal household disposable income will actually increase by about 4%, pretty much in line with its growth rate before the pandemic hit .
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
20 TV shows Netflix canceled even though critics loved them - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
Colin Kaepernick signs production deal with DisneyFollowing the huge success of 'The Last Dance' and renewed discussions about racial injustice in America, Disney has announced a production deal with Colin Kaepernick. The first project will be a docuseries from ESPN Films on Kaepernick's life and journey.
Read more »
Most Congressional Interns Are Still WhiteGet your own house in order!
Read more »
China ETFs on pace for best day ever after government hints at market stimulusChina-focused exchange-traded funds were on pace for their best day on record after a state-owned newspaper urged investors to purchase equities, saying,...
Read more »
Chile announces new $1.5 billion stimulus for middle class as pandemic ragesChilean President Sebastian Pinera announced on Sunday a new $1.5 billion package of measures to help keep the country´s ailing middle class afloat as the coronavirus pandemic continues to ravage the economy of the world´s top copper producer.
Read more »