Americans are wary of in person spending amid potential coronavirus reopenings. About a third of the money that should have been distributed to jobless...
29% of Americans Wary of Returning to Dine-In Restaurants According to a new survey, outright majorities of Americans are unlikely to go back to movie theaters, sports events, hotels, air travel, and public transit until at least three months have passed.
The data fit with the experiences of other countries, which show that lifting restrictions on businesses and personal movement aren’t sufficient to restore economic activity to pre-virus levels. The virus itself is the problem, and until people feel safe, many will be unwilling to go out and spend in person. $67 Billion in Unemployment Benefits Is Missing in Action The figure the difference between how much Americans should have received in unemployment benefits since the coronavirus crisis began and how much they actually got, according to a new analysis from Bloomberg. About a third of the money that should have been distributed to jobless Americans hasn’t yet been disbursed. The gap reflects the weaknesses in America’s unemployment insurance system, which was built more than half a century ago and was never designed to handle tens of millions of new claims at once. Some states use software written in Cobol, an ancient programming language that few engineers today know. Analysts who assume the amount of income support approved by Congress is sufficient may be surprised when it turns out administrative backlogs have prevented money from getting where it needs to go. The economy could fail to snap back the way they expect. American Labor Share Is Up, But Not for Long The share of net value added by U.S. nonfinancial corporations paid to workers in the first quarter of 2020 was 73%, according to new data from the Bureau of Economic Analysis. It is the most that workers have received since 2003. The reason is that the decline in American business output in the first quarter was absorbed entirely through lower after-tax profits, rather than layoffs. The labor share often peaks at the beginning of recessions because companies try to avoid firing employees before they feel they have no choice. More recent data suggests companies have since focused on their bottom lines by shedding tens of millions of workers to cut costs in the face of collapsing demand. The first-quarter number therefore probably represents the end of the gradual increase in the labor share from its recent low in 2013, when the labor share was just 67%. That bottom, in turn, was the endpoint of a sustained decline in worker power from the previous high in 2001, when the labor share peaked at 77%.Write to Matt Klein at matthew.klein@barrons.com
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'It's Like A Nightmare': Options Dwindle For Renters Facing Economic DistressEven as the unprecedented rate of unemployment continues to climb, protections for renters are running out, as extra unemployment benefits and suspension of evictions expire.
Read more »
That $600 unemployment benefit is likely going away. New plan would pay Americans a 'bonus' to return to workThat extra $600 in your weekly unemployment check is likely disappearing after July. Lawmakers have a few ideas to replace the policy.
Read more »
This is a lucrative — but little-used — unemployment benefit: 'It's a complete windfall'Work-sharing programs, which are part of the unemployment insurance system, could financially benefit workers and businesses amid the coronavirus pandemic. Turns out, they're rarely used.
Read more »
Amid Uprisings, Schools Consider Terminating Their Contracts With PoliceThe number of cops in schools has exploded in the last two decades. Now, some districts are starting to take a second look.
Read more »
One-third of unemployment benefits have yet to reach Americans - 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 »