Rising unemployment rates, end to unemployment benefits and surge in Covid-19 cases may soon leave people homeless in the US. As fresh outbreaks continue across the world, there is a need for local measures and more stimulus, macroeconomic influencers share their views on the Covid -19 impact.
Sudeep Reddy, managing editor at Politico, shared an article on how the recession induced by the Covid-19 pandemic is causing a housing crisis that is worse than the 2008 crisis. Approximately 50% of tenants in the US have been burdened by rent during pandemic.
The situation has mainly resulted as fiscal aid has not been distributed among everyone as applications for unemployment benefits are not being cleared quickly. As a result, one third of US households have not been able to make their full housing payments for July. By October, more than 28 million people in the US may be evicted if prompt action is not taken.
“In New York City, one-quarter of all renters haven’t paid their landlords since March.”
The Coronavirus Recession Is a Housing Crisis https://t.co/nlk1RjQyzM
— Gloria Pazmino (@GloriaPazmino) July 27, 2020
Christophe Barraud, an economist, shared an article on how the several countries are struggling to control a second wave of Covid-19 infections and imposing fresh lockdowns. The fresh outbreaks have led to new travel restrictions being imposed across the world.
Australia and Vietnam recorded a daily rise in cases after appearing to have the pandemic under control. Hong Kong also banned public gatherings and closed restaurants, while the UK was forced to ban travellers from Spain after new infections were reported in the country.
The article noted that rather than lockdowns, local measures such as social distancing and making face masks mandatory should be implemented.
— Christophe Barraud🛢 (@C_Barraud) July 27, 2020
Linda Yueh, an economist at the University of Oxford, shared an article on UK Chancellor Rishi Sunak’s plans to impose a new tax on online retailers to generate sustainable revenue for the government. The move is also expected to help bricks-and-mortar retailers to compete with online retailers.
The new tax will enable the tax system to raise sufficient revenue and provide a fair platform for high street retailers who were suffering amid the pandemic.
Times: Chancellor understood to be considering 2 forms of online sales tax. The first would be a levy of around 2% on goods sold online, which would raise about £2 billion a year. The second would be a mandatory charge on consumer deliveries. https://t.co/KJCJagF2gh
— Linda Yueh (@lindayueh) July 27, 2020
Daniel Lacalle, an economist and author, shared an article on the closure of consulates of the US and China over rising tensions between the two countries. Disagreement over the origin of the Covid-19 disease and tensions over the South China Sea have increased tensions.
The article notes that the biggest error made by China was to alienate the business community in the US. The South China Sea has also remained a point of tension for the two countries as China claims it as its own, while the US promotes freedom of navigation.
The quarrel between the world’s two biggest powers came to a head last week as both shut down each other’s consulates
China alienates its Washington allies as its relationship with the U.S. worsens, analysts say https://t.co/cH7XvcJcdi
— Daniel Lacalle (@dlacalle_IA) July 27, 2020