The United States has poured trillions of dollars into its economy during the pandemic, and if President Joe Biden has his way, it will continue doing so for the next several years. While most of the attention to the stimulus and recovery payments in the U.S. has focused on the domestic economic impact, economists have their eye on another side effect: the "spillover" benefits to the rest of the world. "The government is sending out checks to everybody," said Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics. "Households and state and local governments are buying all kinds of supplies for education and health care — we haven't had a government budget deficit this big since World War II." Even though it is currently impossible to say what percentage of the stimulus money coming from the federal government will be spent rather than saved, the "massive" amount of money involved guarantees large economic impacts, Gagnon said. A 'phenomenal … [Read more...] about Does US Economic Stimulus Boost the Global Economy?
Frankfurt, Apr 30 (AP) Europe's economy shrank 0.6 per cent in the first three months of the year as slow vaccine rollouts and extended lockdowns delayed a hoped-for recovery - and underlined how the region is lagging other major economies in rebounding from the coronavirus pandemic. The fall in output for the 19 countries that use the euro currency was smaller than the 1 per cent contraction expected by economists but still far short of the rebound underway in the United States and China, two other pillars of the global economy. Figures announced Thursday showed the U.S. Economy grew 1.6 per cent during the first quarter, with business supported by strong consumer demand. On an annualised basis, the U.S. Grew 6.4 per cent. In Europe, the second straight quarter of falling output confirms the region is in a double-dip pandemic recession after a rebound in growth in the third quarter. Two quarters of falling output is one definition of a recession. France showed … [Read more...] about Europe’s economy shrinks in first quarter as US rolls ahead
Germany's Oktoberfest, the world's largest beer festival held every year in Munich, will not take place in 2021 due to the coronavirus crisis, officials said on Monday. The pandemic has forced the cancellation of the hugely popular festival for the second consecutive year. It had been scheduled from September 18 to October 3. The decision was made by Bavarian state Premier Markus Söder and Munich Mayor Dieter Reiter. Söder said that Oktoberfest is the "most global" festival there is, and that the pandemic is not yet under enough control to allow people from all over the world to gather in tents. "In the classic beer tents at the big festivals, social distancing, masks and other measures are practically impossible to implement," Söder said. "The situation is too precarious," he added. "Imagine there was a new wave and it then became a superspreader event. The brand would be damaged forever and we don't want that." Oktoberfest around the world Munich, Germany … [Read more...] about Germany’s Oktoberfest canceled again in 2021 due to coronavirus
Germany's Social Democrats (SPD) said Friday they are ready to hold talks with other parties on resolving the political crisis by forming a new government without calling new elections. Chancellor Angela Merkel, whose conservative bloc won a September 24 vote, has since failed to form a coalition government to lead EU's largest economy for a fourth term. The SPD have governed in coalition under Merkel since 2013, but party leader Martin Schulz vowed to go into opposition immediately after the election in which they scored a dismal result. However, SPD’s general secretary Hubertus Heil said after an eight-hour, late-night meeting chaired by Schulz that “The SPD is of the firm conviction that there must be talks," adding “The SPD will not be closed to those talks." However, Heil did not say with which parties the Social Democrats would negotiate. SPD's caretaker justice minister, Heiko Maas, seconded Heil's comments, saying "The SPD cannot behave like a child sulking in the … [Read more...] about Germany’s Social Democrats Willing to Help Break Political Deadlock
BERLIN (Reuters) -Germany must update its climate law by the end of next year to set out how it will bring carbon emissions down nearly to zero by 2050, its top court ruled on Thursday, siding with a young woman who argued rising sea levels would engulf her family farm. The court concluded that a law passed in 2019 had failed to make sufficient provision for cuts beyond 2030, casting a shadow over a signature achievement of Chancellor Angela Merkel's final term in office. "The challenged provisions do violate the freedoms of the complainants, some of whom are still very young," the court said in a statement. "The provisions irreversibly offload major emission reduction burdens onto periods after 2030." Ministers said they would draw up the necessary legislation soon, with Economy Minister Peter Altmaier promising proposals next week. Among the plaintiffs was Sophie Backsen … [Read more...] about Germany must tighten climate law to protect young people’s future, court rules