But still, over the next three years the state budget deficit is expected to grow to $17 billion. In California, the budget forecast is preferable to expected, largely because the tech industry continues to thrive, and more affluent workers who pay most of the state’s income taxes have been able to work from home. Poverty and homelessness could rise sharply if Congress and President Trump do not pass ambitious new COVID-19 economic relief measures, including unemployment insurance and a moratorium on renter evictions, Berkeley experts say. The measure being developed by the bipartisan congressional group — the Emergency COVID Relief Act of 2020 — would extend the two federal programs for 16 weeks. Interactive tools and videos bringing clarity to the national dialogue on economic inequality.
Despite talk of trillion-dollar packages in Washington, it looks today as if no agreement on new fiscal aid will be reached before the November election. Diane Swonk explains what that means to struggling families and small businesses hit by the COVID recession—families and businesses who, as the chairman of the Federal Reserve has repeated, are suffering through no fault of their own. Diane Swonk explains what the K-shaped recovery means, for the haves and have-nots. The COVID-19 is having a huge impact on the global economy, with manufacturers and the travel industry bearing the initial brunt as the impact expands.
Diane is still hoping that housing could be the engine that drives us out of recession. Labor market expert Diane Swonk goes behind the headline job numbers to explain which sectors are calling back workers, and which are limited because of social distancing.
Treasury Secretary nominee Janet Yellen is calling on Congress to do more to fight a deep pandemic-induced recession, saying the threats of a longer and even worse downturn are too great to cut back on support now. The need for massive investment in pandemic relief is clear to many leaders in Washington, both Democratic and Republican. But the nation is so polarized, and the political culture so paralyzed, that Berkeley experts aren’t sure whether any agreement can pass the Democratic House and the Republican Senate and win final approval from Trump. University officials are hoping to receive a similar amount from current negotiations in Washington.
In response, the campus has frozen most hiring, cancelled regular pay increases, increased borrowing and reduced spending in other areas. Transit agencies, on the other hand, have seen ridership — and revenues — plunge, and they’re struggling to avoid layoffs.
She talks about additional federal aid needed from Congress to bridge the gap for households that are struggling in the absence of a vaccine and normal job opportunities. At the end of the September Federal Open Markets Committee meeting, long-time Federal Reserve advisor Diane Swonk of Grant Thornton explains what Fed chairman Jay Powell worries about the most. She also answers what more the central bank can do, when it can only “lend, not spend. ” As Powell well knows, it’s up to Congress to spend money to support the COVID economy.
Exploring how race, ethnicity, and class intersect to affect economic outcomes in the United States. Longtime advisor to the Federal Reserve, Diane Swonk of Grant Thornton, immediately hit on the most important point in the Fed’s short statement following the July meeting. “The path of the economy will depend significantly on the course of the virus. ” Swonk details some of the damage to the economy that worries Fed Chairman Jay Powell. Economist Yelena Maleyev works with Grant Thornton Chief Economist Diane Swonk, covering housing. July figures for housing starts showed strong demand with short supplies boosting construction in many markets.
It’s not enough to resolve the financial threats, but it would help support operations and student services while reducing pressure to borrow, said Berkeley Chief Financial Officer Rosemarie Rae. Remote education, lost research, health screening, increased cleaning and other pandemic-related expenses have created new costs of $340 million at Berkeley, including a $42 million reduction in state aid.