Sound Economics

Beyond the need for medical gear and proper public handwashing stations to adequately curb the transmission of Covid-19, institutional shortcomings in low- and middle-income countries (LMICs) present distinct challenges for effective public health measures. From crowded living spaces in slums and informal markets to the vulnerable livelihoods of refugee and migrant populations alongside women and children, LMICs are most fragile to this crisis. Urban slums and rural areas People living in overcrowded situations with little access to water and sanitation are at the greatest risk of exposure. The one-eighth of the world’s population who live in urban slums cannot properly Continue reading Covid-19 and Development, Explained→

As many people have been social distancing and staying at home for quarantine, markets adjust to keep up with the public’s needs. Nonessential operations have either closed, reduced hours, or switched to virtual operations to protect employees and consumers in the COVID-19 pandemic. With these virtual shifts came many layoffs and downsizings as many businesses struggle to remain open until reintegration. This shift holds the expectations that operations will eventually return to normal as the number of cases decrease. Realistically, the increase in virtual connections will likely leave a lasting impact on a variety of industries that many were not Continue reading Performing in a Pandemic→

As the semester comes to an end, I reflect on my time at the University of Puget Sound and appreciate the unique experiences that are only offered here, both in and outside of the classroom. One of the highlights of my senior year was taking the Law and Economics course during the fall semester. This course was one that I genuinely enjoyed learning about and was sad the few times that I had to miss class. The course analyzes the costs and benefits of taking risks and precautions to various types of accidents to come up with a solution that Continue reading  Equity and Efficiency in Graduation→

The CARES Act (Coronavirus Aid, Relief, and Economic Securities Act) passed in late march was the largest stimulus package passed in modern US history. This complex bill’s allocations can be simplified in the following chart: While this is certainly a good start, there are many shortcomings to this plan. One of which is the unnecessary excess funding given to big businesses (through backing up a new federal reserve program) that are much more capable of fending for themselves during this time than are small businesses. The strategy here is that the functionality of our economy relies on big businesses, but Continue reading Where the funding from the most recent stimulus package is ACTUALLY going→

The closing of restaurants, schools, and hotels has left many farmers with no choice but to put thousands of gallons of milk and pounds and pounds of fresh produce to waste. The nation’s largest dairy cooperative, Dairy Farmers of America, estimates that farmers are dumping as much as 3.7 million gallons of milk each day. A single chicken processor is smashing 750,000 unhatched eggs every week. Although this decline in demand from restaurants, schools, and hotels has translated to a spike in food sales among grocery stores, as families are forced to eat at home, the increases are not great Continue reading Food Waste Amidst a Time of Food Scarcity→

With 2 billion people working informally, 93 percent in low- and middle-income countries, informality has consistently been associated with low productivity and poverty. The informal sector refers to activities that occur outside of regulated markets and is characterized by workers who often do not pay taxes and have weak social protection. As in most other markets, gender disparities are persistent. Globally, women have an employment rate of 58.1 percent with overrepresentation in sub-Saharan Africa, Latin America and the Caribbean, and Asia and the Pacific. These circumstances present unique challenges and opportunities in decisions about motherhood. The International Labour Office identifies Continue reading Motherhood, Labor, and Informal Markets→

Due to the travel restrictions, lockdowns, and shelter in places around the world, there has been a freeze in trade around the world. In the United States, about 80 percent west coast ports have reported that they have significantly lower inventories due to the actions caused by the coronavirus. Now this may not seem like a shock, however, it does mean that a large sector of the world economy is slowing down, which is trade. Now the trade of goods will recover with time, which is expected. When there is no risk of virus transmission, trade will be able to Continue reading The Future Impacts of Coronavirus on Global Trade (Part 1)→

Decisions, decisions, decisions, we all have to make them. Some of us struggle with making a decision while others are good at it. Some of us would rather have others make those decisions for us while others simply just flip a coin as a compass for directions. In psychology decision making is categorize as the cognitive process that encompasses our ability to select a course of action among several alternative possibilities. It is the process of identifying and picking alternatives based on value preferences.  Every decision-making may produce a final choice that may or may not need prompt action. A Continue reading The Economics of Decision Making→

The two of ways to combat the impact of the coronavirus are government spending and rate cuts from the FED. Government spending injects money into the circular flow to help give it a jump, while rate cuts attempt to increase investment spending, which in turn, helps the circular flow. When it comes to the present situation with the coronavirus, rate cuts by the FED will be less useful when compared to government spending, and we can see this through the response to both in the stock market. When the FED initially cut rates, stocks continued to drop by a large Continue reading How Should the Economy Combat Coronavirus? (Part 2)→