Posts Tagged "pandemic"
February 11, 2021
Billionaires Got Much Richer in Pandemic
That’s one perspective on the pandemic. The growing billionaire class is another one.
Since last March, the nation’s 660 billionaires have added more than $1 trillion to their wealth – a 39 percent increase. Their combined net worth is now $4 trillion, which is nearly double the $2 trillion held by the 165 million Americans in the bottom half, according to the Institute for Policy Studies’ new report.
“It’s a troubling sign that too much of society’s wealth and income is flowing upwards to that small group of people,” Chuck Collins of the Institute for Policy Studies said during an interview on NPR’s Fresh Air.
The institute’s report is based on Forbes magazine’s annual estimates of the net worth of the world’s richest people.
Inequality has always been with us, but economists say it has grown as billionaires’ wealth has hit stratospheric levels.
To be sure, inequality would’ve been worse without the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The $500 billion in direct assistance to families last spring prevented a surge in poverty, and the relief bill passed in late December is sending more aid to unemployed and under-employed people who need it.
The billionaires are getting richer for a couple reasons, starting with a surprisingly strong stock market in 2020. Despite the worst public health crisis in a century and a struggling economy, the Standard & Poor’s 500 stock index shot up 18 percent.
But some billionaires were also in the right place at the right time – a pandemic. …Learn More
January 5, 2021
Our Popular Blogs in the Year of COVID
2020 was a year like no other.
But despite the pandemic, most baby boomers’ finances emerged unscathed. The stock market rebounded smartly from its March nosedive. And the economy has improved, though it remains on shaky ground.
Our readers, having largely ridden out last spring’s disruptions, returned to a perennial issue of interest to them: retirement planning.
One of their favorite articles last year was “Unexpected Retirement Costs Can be Big.” So was “Changing Social Security: Who’s Affected,” which was about the toll that increasing the program’s earliest retirement age could take on blue-collar workers in physical jobs who don’t have the luxury of delaying retirement.
COVID-19 in the nation’s nursing homes has caused incomprehensible tragedy. A nursing home advocate explained how this happened in “How COVID-19 Spreads in Nursing Homes.” And the mounting death toll in nursing homes surely confirmed a longstanding preference among baby boomers – as documented in “Most Older Americans Age in their Homes.”
Despite the economy’s halting recovery, layoffs due to COVID-19 still “may be contributing to the jump in boomer retirements,” the Pew Research Center said. Pew estimates that 3.2 million more boomers retired last year than in 2019, far outpacing the increases in recent years.
The layoffs have no doubt forced some boomers to start their Social Security earlier than planned, as explained in “Social Security: Tapped more in Downturn” and “A Laid-off Boomer’s Retirement Plan 2.0.” But unemployed older workers who are still too young for retirement benefits might apply for disability insurance, according to a study described in “Disability Applications Spike in Recession.”
Baby boomers hoping to ease into retirement on their own terms liked a pair of articles about ongoing research by Harvard Business School professor Teresa Amabile: “Mapping Out a Fulfilling Retirement” and “Retirement is Liberating – and Hard Work.”
Other 2020 articles popular with our readers included: …Learn More
October 20, 2020
Expect More Moms to Sacrifice Careers
Working mothers scrambled when the schools shut their doors last spring, but they found ways to cope. The 2020-21 school year may push many of them over the edge.
Last spring, one in four women nationwide who’d either quit their jobs or were laid off blamed the difficulties of working after the schools closed or they lost child care to COVID-19, a Northeastern survey found.
Alicia Sasser Modestino is in the midst of repeating the survey but believes that the situation has only gotten harder for working mothers this fall.
“When you look down the barrel of a full school year of hybrid or remote learning,” the stopgap measures mothers deployed last spring “are not sustainable,” said Modestino, a mother of four and research director for Northeastern’s Dukakis Center for Urban and Regional Policy.
“If it’s not going to be Congress giving money for schools to reopen safely or the state opening child care centers, a parent is going to have to give up their job, and we know from history that it’s more likely to be women,” she said.
The impact of school closings on Millennials and Generation X can’t be overstated. In 75 of the 100 largest U.S. school districts, returning to school has meant students connecting to Zoom from their bedrooms or kitchen tables.
In the COVID-19 pandemic, a disproportionate share of women have been laid off, because they dominate face-to-face industries – nursing, retail, customer service – that are more vulnerable to closing. But something new is happening to mothers in this downturn. …Learn More
September 17, 2020
2020 Disability Blogs Tackle Myriad Issues
Squared Away has featured numerous articles this year – the 30th anniversary of the Americans with Disabilities Act – about the challenges that people with disabilities must deal with.
One in four adults in this country has some type of disability. What becomes clear when looking back at this collection of articles is the importance of ensuring that those who are capable of working get the support they need to overcome their unique challenges.
Employment rates, which are lower for people with disabilities, can be improved greatly if they receive support. One recent blog examined a program to assist people with severe intellectual or learning disabilities. The federal-state Vocational Rehabilitation program supplies coaches who help their clients find appropriate work and then smooth the bumps in the employer-employee relationship.
Another program that provides day care to children with disabilities has been effective in keeping their mothers – often single, low-income workers – in the labor force.
The logistical barriers to working are inherently higher for people with disabilities. Yet they are more likely than others to hold low-paying jobs with just-in-time scheduling or shifts that aren’t the same from week to week, according to research covered in an August blog. Imagine arranging special transportation or child care to accommodate these unpredictable schedules.
Economic factors also affect whether people find work or wind up on Social Security disability insurance. Amid the COVID-19 recession, researchers are concerned about the long-term impact of workers with disabilities losing their jobs. During the Great Recession, applications for Social Security disability benefits surged. Once people apply for disability benefits, the odds of ever going back to work decline.
Recessions are also an obstacle for people from low-income families trying to move up the economic ladder. Yet a researcher found that if they can manage to earn more than their parents, they will have more success staying off the disability rolls. One big reason: workers with good jobs and higher incomes are healthier because they can afford better medical care.
Our disability blogs cover research being funded by the U.S. Social Security Administration, which also supports this blog. Here is the complete list of the 2020 headlines:
Same Disability: Some Have Tougher Jobs
Same Arthritis but Some Feel More Pain
Disabilities and the Toll of Irregular Hours
Economy: …Learn More
September 3, 2020
Relocating Can Boost Living Standards
COVID-19, by rearranging work arrangements, is allowing people to rethink where they live.
As the virus started to spread in Manhattan last spring, some residents fled the city and began snapping up houses in Westchester County and on Long Island. There is preliminary evidence some people are moving farther afield, to rural areas where small populations create the potential for lower COVID-19 transmission rates.
In a Pew Research Center survey, about one in five Americans said the pandemic had either prompted them or someone they know to relocate.
The map below shows the big changes in living standards that can accompany a move from a high- to a low-cost part of the country. In each location, the Tax Foundation calculated each region’s purchasing power, based on what $100 will buy, on average, nationwide.
For example, $100 will purchase $75 to $80 worth of goods in Manhattan. By moving to Upstate New York or New Mexico, someone who keeps her job and works remotely can increase her purchasing power to around $110 – the equivalent of at least a 37 percent increase.
Typically, an area’s cost-of-living is correlated with local incomes. For example, employers must pay more to attract workers to high-cost areas. But not in North Carolina, which has “higher-than-average incomes without corresponding higher-than-average prices,” the Tax Foundation said.
Offsetting the benefits of relocating to a low-cost area is the employment risk. If a remote job evaporates, it may be difficult to find a suburban or rural employer that pays as much or an employer in a larger city willing to hire someone new to work remotely. Poor wifi connections are a common problem in rural areas.
Moving is a complex decision with an array of considerations, from the health benefits to the difficulty collaborating with coworkers over Zoom. But what seems clear is that working remotely is, for many, becoming the new normal. …Learn More
August 18, 2020
Recession’s Hit to Cities Varies Widely
The COVID-19 recession is unlike anything this country has seen.
If the second-quarter contraction were to continue at the same pace for a full year, the economy would shrink by a third! This is the deepest downturn since the Great Depression, and low-income Americans are feeling the brunt of it.
What makes this recession unique, however, is that the low-income people living in the most affluent metropolitan areas are worse off than low-income residents of less affluent cities, Harvard economist Raj Chetty explained during a recent interview on Boston’s public radio station, WBUR.
“What’s going on is that affluent folks have the capacity to self-isolate, to work remotely, to not go on vacation,” he said. “So in affluent areas, you see enormous drops in consumer spending and business revenue.” In these areas, more than half of the lowest-income workers have lost their jobs, and many of them worked in small businesses, he said.
In less affluent cities, people have to go to work and “are out and about more, and business revenue hasn’t fallen nearly as much,” he told his radio host. “In previous recessions, we haven’t seen those sort of patterns.”
Chetty’s point is demonstrated by comparing what happened to consumer spending this year in San Francisco and Fresno, California, on the tracktherecovery.org website he and other economists have created. (Visitors can sort the spending data by state, industry, and consumer income levels, as well as by city.) …Learn More
July 21, 2020
Pandemic Puts More Retirements at Risk
Americans’ retirement outlook has gone from bleak to bleaker.
The unemployment caused by COVID-19 has pushed up the share of working-age households not able to afford their current standard of living in retirement from 50 percent to 55 percent, according to a new analysis by the Center for Retirement Research, which sponsors this blog.
The analysis updates a previous estimate, based on 2016 data, to include the harmful effects of surging unemployment. The researchers estimate that perhaps 30 percent of workers – far more than is reflected in the monthly jobless rate – could be affected by layoffs now and in the future. They did not factor in the recession’s impact on the housing and financial markets, which could make things worse.
Unemployment hurts retirement in a variety of ways. Laid-off workers’ paychecks vanish immediately, but they may also earn less in the next job. The depressed earnings, over months or years, reduce the money flowing into their 401(k)s, and the amount they’ll receive in pensions and future Social Security benefits. It may also force some to spend down savings that, had they not lost their jobs, would’ve been preserved for retirement.
Interestingly, the impact on low-income workers is mixed. In one way, they’re protected by Social Security’s progressive benefit formula, which will replace a higher percentage of their earnings as their lifetime earnings decline. But low-income workers have had more layoffs, which widens the gap in their retirement savings – between what they can save and what they should be saving – more than for higher-income people.
The 2020 recession will impact retirement “in a very different way” than the Great Recession, the researchers said. This time, “the destruction is occurring more through widespread unemployment and less through a collapse in the value of financial assets and housing.” However, the lessons of the previous recession can’t be dismissed either. …Learn More