Directions: Watch the short video clip, then read the summary below and the articles linked within the summary, and then answer the discussion questions.
Summary: COVID-19 case counts and hospitalizations have spiked to an all-time high in the past week, and aside from the toll on public health, the economy is also impacted. Many cities and states instituting stricter lockdown measures including limiting indoor dining and shopping. Though some sectors of the economy of partially recovered since the spring, unemployment is still high and many suffer from threats to housing and food security. Some shortages of retail goods like paper products remind some consumers of spring shortages.
- In the spring, the Federal Reserve (the central banking system of the U.S. government) helped prop up the economy by offering loans to businesses struggling with reduced consumer spending. Jerome Powell, the head of the Federal Reserve, has said that another stimulus bill like the one passed in the spring is needed to help the economy improve. (Note: you can watch Powell discuss the economy here.)
- Meanwhile, certain stock market indexes such as the Dow Jones set all time highs this week, partly due to optimism over vaccine results and hopes for a government stimulus bill.
Discussion:
Warm up questions:
- What is the Federal Reserve and what is its role in the U.S. economy?
- Who is most impacted economically by the surge of COVID-19 cases?
- Why does COVID-19 surge lead to certain shortages?
- When and where has the federal government tried to help the economy?
- How can the U.S. avoid recession, according to Jerome Powell?
Focus questions:
- Why do you think the stock market continues to rise to new records even as unemployment is high and the Federal Reserve is concerned for the health of the economy?
- What do you think are some of the best actions both federal and local governments take to help avoid the worst economic impacts of a COVID-19 surge?
Media literacy: Watch this short clip of a line of cars waiting outside of a Texas food bank if you haven’t already. What story does this video tell you that the linked articles did not?
Media literacy: If you’d like to learn more about the current economic landscape, watch this interview from The Hill’s Rising on YouTube with economist Prof. Richard Wolff who explains how the coronavirus and the crash in the economy is a “catastrophe squared.” What does Dr. Wolff think government’s role could be in solving these problems? What does he mean by “mass social dislocation”? What do you think the government’s role should be in response to these two problems?
- Rising’s hosts Krystal Ball and Saagar Enjeti often bring varying opinions to current issues and events but do so in a way that is respectful and thoughtful. What do you think makes them get along as colleagues? Do you know someone who has differing political opinions from you, but you are both still friends? Why do you think that is the case? Do you wish more politicians talked to each other in a respectful manner even when they disagreed?
Additional resources:
- Use this lesson to explore who lobbies for money from Congress in relief packages.
- Use this lesson to explore what a vaccine might mean for public health and the future of the economy.
- Use the Kahoot to learn more about how COVID has affected the U.S. economy.
