Protesting student debt

This video is another example of the student debt crisis we face in this country.

One fundamental issue is that we’ve created an incentive structure to push students into borrowing money in order to get an education. The rational decision would be to pick an affordable school, but those options are limited. The college experience is so ingrained in our culture that many families want that for their children.

Also, we have young people making bad financial decisions, and too many parents aren’t helping. You shouldn’t take out a big student loan to go to a small, private college if you can pay much less at a state school. Also, if you’re going into a field with little earning power, this decision is even more important.

This video also discusses the Debt Collective, which was born out of the Occupy Wall Street movement and helps people dispute debts with a goal of cancelling their loans. It currently has over 700 people who are planning to never repay their loans.

  

App for workers to access wages before payday

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So many workers live paycheck to paycheck, and this has led to the proliferation of payday loans. Unfortunately, these high-interest loans are a terrible burden on workers.

A new startup called Immediate wants workers to be able to get access to their wages before payday if they have an immediate need such as an emergency bill. The difference is that Immediate will charge a small flat fee instead of a high-interest loan, providing an important service to workers.

  

Leisure and hospitality jobs are hardest hit

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This article gets into which jobs have been lost due to the Coronavirus by sector, and not surprisingly the Leisure and Hospitality sector leads the way. It’s hard to imagine these types of jobs coming back soon as many people will be afraid to travel and congregate until a vaccine is available.

The other challenge will be slower economic activity in general. Jobs tied to consumer spending will have trouble rebounding if the overall economy is still in recession.

  

Some post-pandemic workplaces will be a “hybrid model”

workers at computer stations

How soon will workplaces return to normal? In many cases, will there be a new normal?

Not surprisingly, the answers will vary sector-to-sector and business-to-business.

Cisco Systems CEO Chuck Robbins said the following: “I think you’ll see many employees that will continue to work from home, you’ll have many that will get back to the office and then you’ll have some that’ll do a little bit of both.”

Companies that navigate this successfully will have a huge advantage over companies who don’t adapt, and this can lead to greater productivity and also reduce overhead costs such as expensive office space in the future.

  

Danger of a prolonged recession affecting job market

Federal Reserve Chairman Jerome Powell threw some cold water on the notion of a quick snap-back for the economy and job markets in the wake of the Coronavirus. He argued that policymakers may have to use additional weapons to pull the country out of a crisis that has cost at least 20 million jobs and caused “a level of pain that is hard to capture in words.”

This doesn’t bode well for many sectors like travel and dining and will make it very difficult for jobs to come back quickly.