The American economy is in a race against time. As the coronavirus downturn deepens, many workers will struggle to make ends meet if they miss a single paycheck. And the picture is grim for small businesses, too.
Justin LahartThe American economy is in a race against time. My latest, on the thin cash buffers of many households and small businesses in the face of the crisis.
When unemployment goes down, inflation picks up, and vice versa. That has been a central tenet of economics for the past 60 years—but that trade-off hasn’t been behaving the way it is supposed to lately.
Groups of people are often better at figuring things out together than alone. But the wisdom of the crowd can get dumbed down when everybody shares a similar perspective—and research suggests that goes for analysts, too.
With venture-capital funds flowing freely, the competition to be a “disrupter” is brisk. Thing is, the battle for dominance burns lots of cash and hinders profitability while not disrupting much besides investors.
Americans are less likely to own their homes, cars or even their music these days, giving them flexibility and creating business opportunities, but those businesses are largely untested in an economic downturn.