Media clips

• Remote College Is Still More Valuable Than a Gap Year

  With Covid shuttering many college campuses this fall, as many as one out of five college kids may be considering taking a gap year instead of taking online classes from their mother’s couch. A typical rationale: “I’d rather get a Door Dash job than miss out on my college experience.” It could prove an expensive choice.

  Bloomberg August 21, 2020
• Social Security backlog led to bankruptcies and increased risk of death, government watchdog finds

  It’s a frustrating process, says Economic Policy Institute Economist Monique Morrissey, whose expertise lies in retirement security and Social Security.

  She says that claimants receiving benefits after appeal “isn’t necessarily a good thing,” because it highlights that most people should have received their benefits from the start.

  “Their [SSA] M.O. is to say ‘no’ and tell you that you can appeal,” she said. “The process almost requires getting an advocate, if you can afford to get a lawyer.”

  Yahoo Finance August 21, 2020
• These variables affect whether you live, die or get help during the pandemic
  But the ability to work remotely “differs enormously by race and ethnicity,” experts from the Economic Policy Institute have pointed out.

  Black and Hispanic workers in the United States are “much less likely” to be able to work from home, economists Heidi Shierholz and Elise Gould wrote in a post in March.
  CNN August 21, 2020
• Uber & Lyft Legal Battle Exposes The Big Lie About Gig Work
  A well-known Cornell University study estimated that drivers in Seattle earned an average of $23/hr — but a later study by The New School and UC Berkeley argued it was only $9.73/hr when accounting for expenses. The Economic Policy Institute has also broken down how much a driver might really pocket after fees, expenses, and self-employment taxes. According to Alva, pay has gone down in the past several years too. Dubal’s research shows that, between 2014 to 2019, long-term rideshare drivers saw their earnings drop by about 60%.
  Refinery29 August 21, 2020
• Unemployment Claims Jump Back Above 1 Million

  Heidi Shierholz of the progressive Economic Policy Institute said Thursday that the data present a strong argument for Congress to revive the enhanced unemployment benefits that expired at the end of July. “We remain 12.9 million jobs below where we were before the virus hit, and the unemployment rate is higher than it ever was during the Great Recession. Now isn’t the time to cut benefits that support jobs,” she wrote.

  The Fiscal Times August 21, 2020
• With many day cares closed and schools starting virtually, parents search for child care answers

  In Virginia, the average cost of a year of infant care at a daycare center is more than $14,500, and care for a 4-year-old is around $11,500, according to Child Care Aware of America. A study by the Economic Policy institute found a year of child care in Virginia is about as expensive as a year of college or housing — two other areas with their own affordability crises.

  The Virginian-Pilot August 21, 2020
• When the Stock Market and Economy Seem Disconnected

  Meanwhile, even many families with savings don’t have enough money to provide real security during the pandemic. The median savings account balance for families headed by an individual between 56 and 61 years old is just $21,000, according to the Economic Policy Institute. That balance is even lower among younger families.

  The Wall Street Journal August 21, 2020
• Maryland Gov. Hogan seeks extra $300 a week for unemployment benefits, but is that enough?

  Heidi Shierholz, senior economist and policy director with the Economic Policy Institute, a liberal-leaning think tank, said she considers the extra $300 a distraction and a poor substitute for a more comprehensive solution. Unlike the extra $600 in weekly benefits, it is unclear how many states or how many unemployed people will receive the lesser amount, she said.

  “People are going to have to cut back,” Shierholz said. “People’s living standards will drop. Evictions will happen. Hunger will happen. This will create a lot of deeply unnecessary suffering.”

  The Baltimore Sun August 20, 2020
• 401(k) Plans Finally Can Invest in Private Equity, Leveling the Playing Field

  While these graphs may imply that those in the top quintiles disproportionately benefit from the new Department of Labor Guidance on 401(k) PE access, it’s important to remember that many in the top quintile already have access to private equity since they qualify as “accredited investors.” To be an accredited investor, one must either have net assets of at least $2.5 million, or a gross income for each of the last two financial years of at least $250,000. According to the Economic Policy Institute using data from the Social Security Administration, the top 5 percent of earners make $309,348 annually as of 2018.

  The National Review August 20, 2020
• CEO Compensation is 320 Times Typical Worker

  Average CEO compensation at the top 350 U.S. firms grew 14% to $21.3 million on average, according to an analysis from the Economic Policy Institute (EPI), a think tank based in Washington, D.C.

  Industry Week August 20, 2020