econ essay

June 2020 Topic List

1 Explain the BLS unemployment “error” that happened at the end of May. Explain to someone how BLS data is collected and how individuals are classified. Was this a conspiracy as some have alleged or hinted (Krugman actually suggested this on Twitter!), or was it just a product of the methods used to classify individuals that was amplified by Covid-19?

2 Explain how the unemployment rate change and GDP change is so unprecedented.

3 How long will it take for the economy to recover? Will it be V-shaped or take longer?

4 Discuss the trade-off (if there is one) between the economy and public health. Is it correct to frame the trade-off this way? Can we have one without the other? Do we need to choose one or the other?

5 Explain the economics of mandating face-masks if we do in fact need to so.

6 Explain to someone why following through with plans (flights, weddings, large events, concerts, etc.) is a version of the Sunk Cost fallacy in the era of Covid-19.

7 Discuss the details of this recession and what is different between it and the recession of 2007. (Asset bubble vs. pandemic and resulting unemployment and how different economic variables cascade into a recession in both cases). What does any of this analysis imply about the duration of the recession and the nature of the recovery.

8 Explain the incentives facing someone wearing or not wearing a mask. Look at recent developments in AZ, TX and CA for insight into whether or not a ‘mandate’ is necessary. You could look at this also from the perspective of businesses and their employees, uniform vs. voluntary compliance.

9 Compare the Covid-19 economic response of at least one other country to that of the United States. Countries handled their bail outs/safety net differently. Additionally, some countries did not require a ‘bail out’ in the first place – in other words their domestic policy is already set up to handle shocks to the economy that do not necessarily require additional intervention. Compare these responses in terms of their speed, efficiency, effectiveness, etc.