How And Why The Right Visuals Can Attract Attention To A Crisis

A picture, as the saying goes, is worth 1,000 words. And the right pictures have the potential to generate more attention and interest about crisis situations than words alone ever could.

People can immediately grasp a story or message that is being told by a picture, illustration, video or other visuals. And, given their increasingly shorter attention spans, many people often don’t want to read about a crisis when a picture or short video on social media or a television newscast is all they think they need.

Christen Costa, CEO of Gadget Review, noted that, “Study after study has shown that humans respond far better to visuals than text alone. You can tell your story in text and have it ignored, misinterpreted, or used against you. Images are harder for people to ignore or willfully misinterpret.  It’s important that the images you use are heavily vetted, however. You need to test them internally to be sure you’re saying exactly what you want to say.”

Challenges

The challenge for business leaders who are managing a crisis for their companies and organizations is to find the best visuals to help show or tell their side of the story in an appropriate and attention-getting way.

Of course, if you don’t provide visuals for a crisis, don’t be surprised when news organizations or people on social media find and post their own. And news outlets, of course, can find the visuals that best illustrates the crisis — but which you might prefer not be seen for whatever reason.

Coronavirus Crisis

Last Tuesday, ABC News reported that, “House Speaker Nancy Pelosi and other lawmakers paid tribute to the more than 676,000 Americans who have died from Covid-19, [by] visiting a memorial on the National Mall that displays hundreds of thousands of small, white flags, one for each life lost.

“As we look at this work of art and see it fluttering in the breeze,” Pelosi said, “it really is an interpretation of the lives of these people waving to us to remember.” The lawmakers walked silently among the rows of flags, trails that stretch more than 3.8 miles, according to ABC News.

Climate Crisis

Earlier this week, motorists passing by the Tidal Basin in Washington, DC might have seen what appeared to be a submerged house near the Jefferson Memorial. According to Washingtonian.com, “Constructed out of wood and floating on pontoons, the hollow house was a warning from climate activists with Extinction Rebellion DC of what the city might face should unchecked climate change continue to contribute to rising sea levels.”

As is often the case with attention-getting visuals, more people likely saw news coverage or the YouTube video of the submerged “house” than saw the visual in-person.

Gun Violence

In 2018, to call attention to the number of children that were killed since the Sandy Hook school shooting, 7,000 pairs of empty shoes were displayed outside the U.S. Capitol.

CNN reported that, “The global advocacy group Avaaz [had] been collecting donated pairs of shoes for two weeks and early Tuesday morning lined them up one by one, 18 inches apart, in roughly 80 rows on the Capitol lawn, as Congress continues to sort through a debate over gun violence and school safety.

“Shoes are individual. They’re so personal. There are ballet slippers here and roller skates. These are kids,” said Nell Greenberg, the campaign director for Avaaz.”

‘The Power Of A Visual Image’

Baruch Labunski, CEO of marketing agency Rank Secure, said, “I’m a marketing expert, but you don’t have to be one to be one to understand the power of a visual image.

“When businesses are communicating with the public during a crisis, optics—both figurative and literal — are everything. Companies in crisis need to project a stable, consistent image that’s coherent with their brand. And in cases of transgressions or when a company is correcting a mistake, a visual image that reflects an amended ideology may be appropriate and effective,” he noted.

Advice For Business Leaders

“Here’s my cautionary advice,” Lubunski said. “Be authentic. Putting pictures of trees on a plastic water bottle doesn’t make your company environmentally friendly. Putting minorities on stage at an event while your entire C-suite is white doesn’t make you genuinely diverse.

“Make sure the visual images you choose reflect the actual values of your company. If you need to make amends, do it for real, rather than just for show,” he advised.

Follow me on Twitter or LinkedIn. Check out my website or some of my other work here.

I am a crisis management/communication expert, consultant, and author of the award-winning Crisis Ahead: 101 Ways to Prepare for and Bounce Back from Disasters, Scandals,

Source: How And Why The Right Visuals Can Attract Attention To A Crisis

.
Related Contents:

Why You Might Feel The Urge To Overspend As The Pandemic Winds Down

I had a budget on the day I looked up when my favorite outdoor venue would again open for concerts.Yes, I had a financial plan in place when I saw the words “Tame Impala rescheduled” and felt a memory flash of standing in a crowd listening to that same band, on that same stage.

Yes, though I have a financial accountability coach, I lost consciousness and came to 90 seconds later with a two-Tame-Impala-ticket-sized hole in my budget. Yes, I am concerned.

After this year of no — no festivals, no plays, no shopping in stores without concern for a deadly virus — “no you can’t” is slowly transforming, with 60 percent of adults in the US now having at least one dose of the vaccine, to “yes you can.” Many of us, regardless of disposable income levels, will and will and will, budgets be damned, if we don’t prepare for the powerful emotions about to swoop through our experience-deprived brains.

Our minds, it turns out, are not spreadsheets. That’s the idea behind behavioral economics, the fairly new field that studies how humans operate around this invention we call money. Unlike previous thinking from the field of economics, our decisions don’t come from formulas, but a mishmash of the feelings, reactions, and mental shortcuts whittled by evolution to keep us alive in the wild, within small tribes, without consideration for targeted Instagram ads for peep-toe espadrilles.

Behavioral economics has identified more than 100 ways people of all financial backgrounds fail to think straight when it comes to money. And as the pandemic shifts in the US, our thinking is about to get much blurrier. Our minds, it turns out, are not spreadsheets

One reigning factor that stands out as a determinant of how we behave is where we fall on the spectrum of cold state to hot state. Ever been hangry? That’s a hot state. Seen a thirst trap? Hot state. It’s when emotions like fear or exhaustion take over.

“What has been building up for a year and what is about to be released is an enormous amount of pressure,” said Brooke Struck, research director at the Decision Lab, a behavioral design think tank. “We are all about to enter a massive hot state, more or less at the same time.”

Hot states aren’t necessarily a bad thing. They can be, as Struck describes them, some of the richest experiences we have. They’re intense and powerful, and they exacerbate other biases. They reduce us to something less like adults and more like toddlers.

“If you think you can talk yourself out of a hot state,” said Struck, “you don’t understand a hot state.”

In Daniel Kahneman’s Thinking, Fast and Slow, he describes our cold, higher thinking as slow thinking, and the hot thinking I did (or didn’t do) before buying those tickets as fast thinking. They’re not discrete, explains Struck, but a wrestling match inside our brains.

“That’s where humanity lives. We’re all struggling with these two things at the same time, all the time,” he said. “So when you see those tickets, what comes to mind is this extremely vivid, positive memory of having been in that place and having that experience … you just have this overwhelming desire of I want.”

The tsunami of want that’s about to crash over us as the country reopens is going to be, as Struck says, very dangerous for our budgets. The hot states will strike intensely, perhaps set off by songs, smells, or the sight of a cafe where you used to meet up for lunch with the friends you haven’t hugged in a year. He talks about it as though we’re all about to get very drunk, and the only thing we can do is make sure we put away the sharp objects ahead of time.

A drunk person, for example, isn’t known to carefully consider the future repercussions of their actions. Similarly, hot states exacerbate our present bias, which makes us overvalue what we have now and devalue what that stranger known as us in the future will have, a trait familiar to anyone with vacation credit card debt.

If you think this doesn’t apply to you and you’ll be fine, that could be your restraint bias talking, the bias that makes you overestimate your ability to resist impulsive behavior. If you think that because you’ve been so good, perhaps by spending an entire year wearing your mask and forgoing public displays of Bon Jovi karaoke, you deserve to be a little bad now, that’s moral licensing. It’s the bias that serves as a little devil on your shoulder, convincing you you’re still doing good, even if you sin just a bit.

You might want to watch out for the bandwagon effect, where you jump into the Roaring Reopening spending just because all the cool kids are doing it, in your real friend group and in the groups you just watch on your social media feeds. Worse, there won’t be a designated financial driver among us, because though our experiences have varied widely, with many Americans continuing to work in public during lockdown, chances are that nearly everyone you know will have some kind of wild emotions about the opportunity to gather in a bar booth, enjoy a funny movie in a sea of IRL laughter, or dance in a laser-light crowd of fellow humans.

(Though of course, there will be some who are so traumatized by the last year that they’ll hold on to everything they have, the same way Nana saves the used Glad Press’n Seal bits because of how she was shaped by the Great Depression.) But we can work with these biases, says Amanda Clayman, financial therapist and host of Financial Therapy. We just have to understand them first. “With awareness comes an opportunity for self-agency,” she says.

Biases didn’t evolve to trip us up. They originally came about to help us. “Just the idea of a cognitive ‘bias,’ I think it’s a bit pejorative. It’s a shortcut. And when we call it a bias, it’s just us identifying where we consistently run into problems,” Clayman told me. “I think we should have as much affection and humor for these cognitive biases as we can.”

One of these mental shortcuts we can admire like a bumbling toddler is our availability bias: the illusion that the more we see something, the more likely it is to occur, and the less we see something, the scarcer it is. The scarcer we sense something is, the higher we value it.

“Our sense of availability has been really reset. You acted as if a concert ticket is completely scarce because your availability heuristic has been reset around when something is going to be an option,” said Clayman. “Our entire sense of what is available when and what is normal has been skewed by this experience.”

You know who has studied your biases? Marketers. And they know exactly where to poke them. Clayman adds that capitalist society trains us from an early age to think that if we have a negative feeling, we can find a product to fix it. We’re all going to be tempted to “solve” the trauma of the last year, as if a wild night at Target on the credit card could cheer us right up after living through a plague that’s killed more than 3 million people and continues to rage in many parts of the world.

She says that what we’ll really need is human connection, safe spaces to talk about what we’ve gone through, and the uncomfortable experience of sitting with our feelings. Without processing the emotions of the last year, we’ll just try to shovel fun, novelty, and pleasure into the pit, and the expense is going to add up before we realize it’s not working.

Natasha Knox, a certified financial planner and chair of business development for the Financial Therapy Association, says to listen for the moral licensing words, “I deserve it because …” It might be because you’ve been through so much or you’ve worked so hard.

“This sort of permission-giving has truth to it. It is true, collectively we have been through a lot and many people do work really hard,” said Knox. “You’re not wrong. You do deserve it. But then there’s future you. What does that person deserve?”

In order to reconnect and enjoy a bit more freedom while also protecting your future self, start setting aside some cash now that is, as Knox describes it, “safe to spend” without putting yourself in financial danger. Then create some cooling space between you and spending. Unsubscribe from all those sale emails. Turn off one-click pay. Don’t save your credit card in your web browser. Try to wait 24 hours before buying something unplanned. Most importantly, keep close the deeper reasons you don’t want to go financially wild (whatever that means to you) over the next few months, in addition to simply not causing yourself more stress and chaos.

“It really does have to boil down to that first, because if we’re just denying ourselves for no reason, that’s not sustainable and it usually doesn’t work,” said Knox. “The bigger why has to be front and center. Because it’s hard, and it’s been a terrible year.”

She recommends finding a photo that represents something you’re working toward getting a year to a few years out and making that your phone’s home screen or otherwise keeping it close. “When something has been as dramatic as this year, the longer-term picture gets a little fuzzy,” Knox said, “So we have to bring that back into focus.”

Like biases, spending itself is not a bad thing. I’m happy to support the venue, the band, and even, if they open in time, Scott and Cindi, the owners of the nearby private campground, whom I’ve been worried about because I watched their business grow for so many years. This is an inextricable truth: Our spending is part of what will alleviate the Covid-19-inflicted financial suffering of our fellow humans. Consumer spending constitutes about 70 percent of the GDP, after all. So I’ll spend, but, knowing what I know now, I’ll spend as slowly as I can, at places I care about, tentatively finding ways to enjoy the new normal, and without causing another crisis for myself.

Paulette Perhach writes about creativity, finances, tech, psychology, and anything else that inspires awe for places like the New York Times, Elle, and Glamour. She posts regularly at WelcomeToTheWritersLife.com.

Source: Why you might feel the urge to overspend as the pandemic winds down – Vox

.

What Is Financial Therapy?

Financial therapy merges finance with emotional support to help people cope with financial stress. Financial advisors must often provide therapy to clients in order to help them make logical monetary decisions and deal with any financial issues they might be facing.

Breaking Down Financial Therapy

Money plays a large role in a person’s overall well-being, and the stresses of managing money and dealing with financial pitfalls can take a huge toll on one’s emotional health. If left uncontrolled, this emotional burden can spread into other areas of a person’s life. Just as with any other form of therapy that addresses other aspects of a person’s life, financial therapy provides support and advice geared specifically toward the financial realm and the stresses that go along with it. The end goal is to get a person’s finances in order and provide the necessary advice to keep them in order.

Financial Therapy Reasoning

There are a range of reasons why a person would seek out or need financial therapy. In many cases, behavioral issues cause a person to adapt unhealthy financial routines, including unhealthy spending habits (such as gambling or compulsive shopping), overworking oneself to hoard money, completely avoiding financial issues that must be dealt with, or hiding finances from a partner. Often, bad saving, spending, or working habits are a symptom of other bad habits related to mental or physical health.

Financial Therapy vs. Other Types of Therapy

The most effective forms of financial therapy involve a collaboration between a person’s financial advisor and a licensed therapist or specialist. Both the financial advisor and the therapist have unique qualifications that the other does not possess. Because of this, it’s hard for one to provide complete financial therapy support, and trying to do so could potentially steer a person in the wrong direction and violate ethical codes. However, financial advisors often find themselves providing informal therapy to clients, and therapists often deal with emotional issues related to financial stress.

Financial advisors are well-versed on their clients’ specific situations and are able to advise on the best courses of action. They’re able to share their expertise in the hopes of alleviating the financial burdens their clients face. However, therapy is not a financial advisor’s area of expertise, and if a person requires real emotional support or needs help breaking bad habits, a licensed professional should be involved. The financial advisor tends to be more adept at providing advice on how best to move forward with financial issues, while the licensed professional can provide support that gets to the root of a deeper problem.

As Pandemic Upends Teaching, Fewer Students Want to Pursue It

Kianna Ameni-Melvin’s parents used to tell her that there wasn’t much money to be made in education. But it was easy enough for her to tune them out as she enrolled in an education studies program, with her mind set on teaching high school special education.

Then the coronavirus shut down her campus at Towson University in Maryland, and she sat home watching her twin brother, who has autism, as he struggled through online classes. She began to question how the profession’s low pay could impact the challenges of pandemic teaching.

She asked her classmates whether they, too, were considering other fields. Some of them were. Then she began researching roles with transferable skills, like human resources. “I didn’t want to start despising a career I had a passion for because of the salary,” Ms. Ameni-Melvin, 21, said.

Few professions have been more upended by the pandemic than teaching, as school districts have vacillated between in-person, remote and hybrid models of learning, leaving teachers concerned for their health and scrambling to do their jobs effectively.

For students considering a profession in turmoil, the disruptions have seeded doubts, which can be seen in declining enrollment numbers.

A survey by the American Association of Colleges for Teacher Education found that 19 percent of undergraduate-level and 11 percent of graduate-level teaching programs saw a significant drop in enrollment this year. And Teach for America, which recruits recent college graduates to teach in low-income schools across the country, said it had received fewer applications for its fall 2021 corps compared with this period last year.

Credit…Rosem Morton for The New York Times

Many program leaders believe enrollment fell because of the perceived hazards posed by in-person teaching and the difficulties of remote learning, combined with longstanding frustrations over low pay compared with professions that require similar levels of education. (The national average for a public-school teacher’s salary is roughly $61,000.) Some are hopeful that enrollment will return to its prepandemic level as vaccines roll out and schools resume in-person learning.

But the challenges in teacher recruitment and retention run deeper: The number of education degrees conferred by American colleges and universities dropped by 22 percent between 2006 and 2019, despite an overall increase in U.S. university graduates, stoking concerns about a future teacher shortage.

For some young people, doubts about entering the teaching work force amid the pandemic are straightforward: They fear that the job now entails increased risk.

Nicole Blagsvedt, an education major at the University of Wisconsin-La Crosse, felt a jolt of anxiety when she began her classroom training in a local public school that recently brought its students back for full in-person learning. After months of seeing only her roommates, moving around a classroom brimming with fourth and fifth graders was nerve-racking.

Ms. Blagsvedt’s role also encompassed new responsibilities: sanitizing fidget toys, enforcing mask use, coordinating the cleaning of the water bottles that students brought to school because they couldn’t use the water fountains. In her first week, she received a call from an office assistant informing her that one of her students had been exposed to Covid-19, and that she had to help shepherd the students out of the classroom so it could be disinfected.

“This panic crossed my mind,” she said. “I thought: This was what it’s going to be like now.”

Administrators running teacher preparation programs said the new anxieties were most likely scaring away some potential applicants. “People are weighing whether or not it makes sense to go to a classroom when there are alternatives that may seem safer,” said David J. Chard, dean of the Wheelock College of Education and Human Development at Boston University.

But for many students, the challenges posed by remote teaching can be just as steep. Those training in districts with virtual classes have had to adjust their expectations; while they might have pictured themselves holding students’ hands and forming deep relationships, they’re now finding themselves staring at faces on a Zoom grid instead.

“Being online is draining,” said Oscar Nollette-Patulski, who had started an education degree at the University of Michigan but is now considering swapping majors. “You have to like what you’re doing a lot more for it to translate on a computer. I’m wondering, if I don’t like doing this online that much, should I be getting a degree in it?”

In some instances, remote teaching has deprived education students of training opportunities altogether. At Portland State University in Oregon, some students were not able to get classroom placements while schools were operating remotely. Others were given only restricted access to student documents and academic histories because of privacy concerns.

Credit…Benjamin Norman for The New York Times

At the university’s College of Education there was a decline in applications this year, which the dean, Marvin Lynn, attributed to students in the community hearing about the difficulties in training during the pandemic.

Applications may tick back up as schools return to in-person learning, Dr. Lynn said, but the challenges are likely to outlast this year. Educators have struggled with recruitment to the profession since long before the pandemic. In recent years, about 8 percent of public schoolteachers were leaving the work force annually, through retirement or attrition. National surveys of teachers have pointed to low compensation and poor working conditions as the causes of turnover.

The pandemic is likely to exacerbate attrition and burnout. In a recent national study of teachers by the RAND Corporation, one quarter of respondents said that they were likely to leave the profession before the end of the school year. Nearly half of public schoolteachers who stopped teaching after March 2020 but before their scheduled retirements did so because of Covid-19.

This attrition comes even as many schools are trying to add staff to handle reduced class sizes and to ensure compliance with Covid-19 safety protocols. Miguel A. Cardona, the secretary of education, recently called for financial help to reopen schools safely, which will allow them to bring on more employees so they can make their classes smaller. The Covid-19 relief package approved by President Biden includes $129 billion in funding for K-12 schools, which can be used to increase staff.

Not all teacher preparation programs are experiencing a decrease in interest. California State University in Long Beach saw enrollment climb 15 percent this year, according to the system’s preliminary data. Marquita Grenot-Scheyer, the assistant vice chancellor for the university system, attributes this partly to an executive order from Gov. Gavin Newsom, which temporarily allowed candidates to enter preparation programs without meeting basic skill requirements because of the state’s teacher shortage.

Teachers College at Columbia University in New York City also saw an increase in applications this year, according to a spokesman, who noted that teaching has historically been a “recession-proof profession” that sometimes attracts more young people in times of crisis.

Even some of those with doubts have chosen to stick with their plans. Ms. Ameni-Melvin, the Towson student, said she would continue her education program for now because she felt invested after three years there.

Maria Ízunza Barba also decided to put aside her doubts and started an education studies program at the Wheelock College of Education at Boston University last fall. Earlier in the pandemic, as she watched her parents, both teachers, stumble through the difficulties of preparing for remote class, she wondered: Was it too late to choose law school instead?

Ms. Ízunza Barba, 19, had promised to help her mother with any technical difficulties that arose during her first class, so she crawled under the desk, out of the students’ sight, and showed her mother which buttons to press in order to share her screen.

Then she watched her mother, anxious about holding the students’ attention, perform a Spanish song about economics.

Ms. Ízunza Barba said she realized then that there was no other career path that could prove as meaningful. “Seeing her make her students laugh made me realize how much a teacher can impact someone’s day,” she said. “I was like, whoa, that’s something I want to do.”

Source: As Pandemic Upends Teaching, Fewer Students Want to Pursue It – The New York Times

.

Former Astronaut Pleads Guilty in Crash That Killed 2 Young Girls

Fox News Intensifies Its Pro-Trump Politics as Dissenters Depart

Opinion: Covid’s Deadliest Phase May Be Here Soon

Opinion: Scenes From a Mogul’s Marriage or: The Troubling Fourth Act of Bill Gates

Man Rescued in Colorado Mountain Pass Is Accused in 1982 Murders

How a Cozy Neighborhood Restaurant Became a Celebrity Hide-Out

Paul Ryan Critiques Trump’s Grip on the Republican Party

A Sexual Abuse Lawsuit Splits the Gucci Family

Pride Said Gay Cops Aren’t Welcome. Then Came the Backlash.

Stephen Colbert Parodies Brian Kemp’s Version of the National Anthem

.

References

Agrba L (27 March 2020). “How Canadian universities are evaluating students during the coronavirus pandemic”. Maclean’s.

World Economy is Suddenly Running Low on Everything

https://i1.wp.com/onlinemarketingscoops.com/wp-content/uploads/2021/05/1x-1.jpg?resize=924%2C616&ssl=1

A year ago, as the pandemic ravaged country after country and economies shuddered, consumers were the ones panic-buying. Today, on the rebound, it’s companies furiously trying to stock up. Mattress producers to car manufacturers to aluminum foil makers are buying more material than they need to survive the breakneck speed at which demand for goods is recovering and assuage that primal fear of running out. The frenzy is pushing supply chains to the brink of seizing up. Shortages, transportation bottlenecks and price spikes are nearing the highest levels in recent memory, raising concern that a supercharged global economy will stoke inflation.

Copper, iron ore and steel. Corn, coffee, wheat and soybeans. Lumber, semiconductors, plastic and cardboard for packaging. The world is seemingly low on all of it. “You name it, and we have a shortage on it,” Tom Linebarger, chairman and chief executive of engine and generator manufacturer Cummins Inc., said on a call this month. Clients are “trying to get everything they can because they see high demand,” Jennifer Rumsey, the Columbus, Indiana-based company’s president, said.“They think it’s going to extend into next year.”

The difference between the big crunch of 2021 and past supply disruptions is the sheer magnitude of it, and the fact that there is — as far as anyone can tell — no clear end in sight. Big or small, few businesses are spared. Europe’s largest fleet of trucks, Girteka Logistics, says there’s been a struggle to find enough capacity. Monster Beverage Corp. of Corona, California, is dealing with an aluminum can scarcity. Hong Kong’s MOMAX Technology Ltd. is delaying production of a new product because of a dearth of semiconductors.

Further exacerbating the situation is an unusually long and growing list of calamities that have rocked commodities in recent months. A freak accident in the Suez Canal backed up global shipping in March. Drought has wreaked havoc upon agricultural crops. A deep freeze and mass blackout wiped out energy and petrochemicals operations across the central U.S. in February. Less than two weeks ago, hackers brought down the largest fuel pipeline in the U.S., driving gasoline prices above $3 a gallon for the first time since 2014. Now India’s massive Covid-19 outbreak is threatening its biggest ports.

For anyone who thinks it’s all going to end in a few months, consider the somewhat obscure U.S. economic indicator known as the Logistics Managers’ Index. The gauge is built on a monthly survey of corporate supply chiefs that asks where they see inventory, transportation and warehouse expenses — the three key components of managing supply chains — now and in 12 months. The current index is at its second-highest level in records dating back to 2016, and the future gauge shows little respite a year from now. The index has proven unnervingly accurate in the past, matching up with actual costs about 90% of the time.

To Zac Rogers, who helps compile the index as an assistant professor at Colorado State University’s College of Business, it’s a paradigm shift. In the past, those three areas were optimized for low costs and reliability. Today, with e-commerce demand soaring, warehouses have moved from the cheap outskirts of urban areas to prime parking garages downtown or vacant department-store space where deliveries can be made quickly, albeit with pricier real estate, labor and utilities.

Once viewed as liabilities before the pandemic, fatter inventories are in vogue. Transport costs, more volatile than the other two, won’t lighten up until demand does. “Essentially what people are telling us to expect is that it’s going to be hard to get supply up to a place where it matches demand,” Rogers said, “and because of that, we’re going to continue to see some price increases over the next 12 months.” More well-known barometers are starting to reflect the higher costs for households and companies. An index of U.S. consumer prices that excludes food and fuel jumped in April from a month earlier by the most since 1982. At the factory gate, the increase in prices charged by American producers was twice as large as economists expected. Unless companies pass that cost along to consumers and boost productivity, it’ll eat into their profit margins.

A growing chorus of observers are warning that inflation is bound to quicken. The threat has been enough to send tremors through world capitals, central banks, factories and supermarkets. The U.S. Federal Reserve is facing new questions about when it will hike rates to stave off inflation — and the perceived political risk already threatens to upset President Joe Biden’s spending plans.“You bring all of these factors in, and it’s an environment that’s ripe for significant inflation, with limited levers” for monetary authorities to pull, said David Landau, chief product officer at BluJay Solutions, a U.K.-based logistics software and services provider.

Policy makers, however, have laid out a number of reasons why they don’t expect inflationary pressures to get out of hand. Fed Governor Lael Brainard said recently that officials should be “patient through the transitory surge.” Among the reasons for calm: The big surges lately are partly blamed on skewed comparisons to the steep drops of a year ago, and many companies that have held the line on price hikes for years remain reticent about them now. What’s more, U.S. retail sales stalled in April after a sharp rise in the month earlier, and commodities prices have recently retreated from multi-year highs.

Caught in the crosscurrents is Dennis Wolkin, whose family has run a business making crib mattresses for three generations. Economic expansions are usually good for baby bed sales. But the extra demand means little without the key ingredient: foam padding. There has been a run on the kind of polyurethane foam Wolkin uses — in part because of the deep freeze across the U.S. South in February, and because of “companies over-ordering and trying to hoard what they can.”

“It’s gotten out of control, especially in the past month,” said Wolkin, vice president of operations at Atlanta-based Colgate Mattress, a 35-employee company that sells products at Target stores and independent retailers. “We’ve never seen anything like this.”Though polyurethane foam is 50% more expensive than it was before the Covid-19 pandemic, Wolkin would buy twice the amount he needs and look for warehouse space rather than reject orders from new customers. “Every company like us is going to overbuy,” he said. Even multinational companies with digital supply-management systems and teams of people monitoring them are just trying to cope. Whirlpool Corp. CEO Marc Bitzer told Bloomberg Television this month its supply chain is “pretty much upside down” and the appliance maker is phasing in price increases. Usually Whirlpool and other large manufacturers produce goods based on incoming orders and forecasts for those sales. Now it’s producing based on what parts are available.

“It is anything but efficient or normal, but that is how you have to run it right now,” Bitzer said. “I know there’s talk of a temporary blip, but we do see this elevated for a sustained period.” The strains stretch all the way back to global output of raw materials and may persist because the capacity to produce more of what’s scarce — with either additional capital or labor — is slow and expensive to ramp up. Read more…..
By Brendan Murray, Enda Curran, Kim Chipman, Bloomberg

Source: World economy: World economy is suddenly running low on everything – The Economic Times

.

References

“Research and development expenditure (% of GDP) | Data”. data.worldbank.org. Retrieved 12 December 2017

It’s Not Just Crypto Crashing: Here Are All The Market Bubbles Popping So Far This Year

Stock exchange market display screen board on the street showing stock market crash sell-off in red colour

As stocks stumble and cryptocurrency markets reel from a steep $400 billion correction, JPMorgan analysts warned in a Monday morning research note that other risky pockets in the broader market, including buzzy special purpose-acquisition companies and clean-energy stocks, are starting to approach bear market territory, unraveling the massive gains priced in under the longest bull market in history as investors worry about problematic inflation ahead.

Though global stocks are only down 2.5% from their peaks in April and May, some stock indexes—including the tech-heavy Nasdaq—are down about twice as much in a telltale sign that “markets are expensive and inflation is running hot” enough to doubt the central bank policy that’s been supporting economic growth, JPMorgan analysts wrote in a Monday note.

Headlining the stark reversal of fortunes, the value of the world’s cryptocurrencies—after roughly tripling this year—has crashed nearly 18% from a Wednesday high due in large part to a slew of negative tweets from billionaire Elon Musk, a vocal cryptosupporter who’s recently soured on the world’s largest cryptocurrency.

Meanwhile, clean energy stocks, which tripled last year in anticipation of sweeping progressive climate legislation, have fallen more than 35% since January as the broader tech sector slips and inflation hikes up the prices of the commodities necessary to manufacture products in the field.

Blockbuster public-market debuts have been a hallmark of the pandemic stock market—with new listings from Airbnb, Coinbase, DoorDash and more—but after soaring more than 100% in a year to a peak in February, newly listed U.S. stocks are down 26%, according to the Renaissance IPO ETF.

It gets even worse for SPACs (themselves a frothy market indicator) and the companies they’ve taken public, which have plummeted an average of nearly 38% from a February high, according to the first-ever SPAC ETF.

That big drop is in line with the 34% plunge the ARK Innovation ETF—a fund invested in “disruptive” tech and whose biggest holding is Tesla—has witnessed since February.

Crucial Quote

“All of these moves are consistent with a chain reaction that occurs when markets are expensive . . . but the ecosystem connecting the economy, markets and the [Federal Reserve] isn’t a nuclear power plant destined for meltdown,” JPMorgan analysts led by John Normand wrote Monday, pointing out that past market cycles have shown about 80% of “seemingly expensive asset classes” that crash in one business cycle end up returning to previous highs in the next cycle.

Key Background

Analysts agree that the Federal Reserve’s unprecedented pandemic stimulus efforts have helped lift stocks and other assets to meteoric new price highs. However, concerns that pent-up demand and an economy awash with cash could spark problematic inflation and force the Fed to rethink its policy are now starting to rock the market. Stocks posted their worst week in three months last week, and at the same time, other assets have become increasingly sensitive to unpredictable shocks—most notably in the crypto market’s volatile reactions to Musk’s hot-and-cold tweets.

What To Watch For

“An inflation-induced stock market correction is possible, but an inflation-fueled shift in market leadership is more likely,” analysts at wealth advisory Glenmede wrote in a Monday note to clients, echoing commentary from other experts predicting that value stocks in recently hard-hit sectors like energy and financials will lead the market this year, as opposed to longtime market leaders in technology.

Tangent

Noteworthy investments to protect against inflation include energy stocks, gold and Treasury bonds indexed to inflation (also known as TIPS).

Further Reading

Elon Musk Sends Bitcoin Tumbling With A One-Word Tweet (Forbes)

These Solar Stocks Were Among The Worst Performers Of The Week. Here’s Why. (Forbes)

Stocks Finish Rough Week Down Over Rising Inflation Fears (Forbes)

I’m a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com.

Source: The 12 Best Laptops For Working, Studying, Creating And Playing Anywhere You Can Imagine

.

References

Surowiecki, James (January 5, 2009). “WHAT PRECIPITATED THE STOCK MARKET CRASH OF 2008?”. The New Yorker.

 

Are You Prepared for the Coming Existential Crisis

Many people have, throughout their lives, experienced varying degrees of existential angst: the feeling of being some combination of unmoored, bored, anxious, restless, depressed, lost, isolated, and/or alienated, and simply wondering what it’s all about.

For many too, these feelings of existential angst have been exacerbated over the past pandemic-burdened year. Yet, heightened though these feelings may have been, they may have also, in a strange way, been easier to deal with during this period than they were prior to its start — and still easier than they’ll be after it’s through.

One of the most difficult things about existential angst, is that it can be isolatingly individual, of indeterminate length, with a cause, and solution, that is vexingly difficult to pin down. During the pandemic, however, the cause of one’s angst became external, clear, tangible, and universal, with an end date that was at least (semi) defined. People could point to the pandemic and say, “That’s why I’m feeling off,” and reason to themselves: “Once x, y, and z return to normal, then I’ll feel fine.” This buttressing, in the form of having a definable explanation for one’s malaise, thus allowed for that malaise to be both more acute and easier to bear.

In the post-COVID landscape, feelings of existential angst may return to their pre-pandemic levels, and yet are likely to stand out in starker, more disorienting relief than ever. When a weight once wholly carried, is for a time buttressed by supports, but then loses those supports, the original weight feels heavier than before.

This hypothesis may seem off the mark at the moment. Hope and optimism are in the air; a light at the end of the tunnel is warming the blood. We feel certain that a resumption in indoor dining, and parties, and travel will entirely eliminate our feelings of existential angst. And indeed they will, for a time. When the dopamine that accompanies novelty (or the re-novelization of old habits) surges, we’ll be all aglow with anticipation and excitement and momentum.

But when that parabolic arc of dopamine hits its peak and begins its descent — which it always, always does — we’ll recognize the old feelings of angst again, once more shorn of any ready-made concrete cause. And the re-realization that visits to the local ramen bar and trips to Hawaii don’t resolve the desire for greater meaning, the resettling of the full weight of yearning on the soul, may usher in a widespread existential crisis.

When it comes to “emergency prep,” we prepare for natural disasters by building bug out bags, prepare for a breakdown of the utility grid by storing up a long-term water supply, and will one day ready ourselves for the possibility of a future pandemic by . . . buying toilet paper? But are we preparing for a potential existential emergency? Is there any way to prepare for such a crisis?

Perhaps the best form of preparation is simply to accept that while existential angst may lessen and deepen according to one’s external circumstances, it will never entirely go away. To accept that restlessness is intrinsic to the human experience. That we are, as Kierkeegaard argued, made up of both the infinite and the finite, and that these two parts of our nature will always be in conflict and never entirely fit together in a neat, tensionless way.

While existential restlessness can never be extinguished, it can be tamed. The other part of existential emergency prep, then, is to start asking bigger questions, studying profounder writings and ideas that may furnish tools on how to get a handle on things. Ironically, while your angst may have gotten deeper during the pandemic, your media consumption may have gotten shallower; more Netflix, more Twitter scrolling, more headline scanning. Less pearl diving.

To avoid emerging from a health crisis, only to step into an existential one, reverse that trend and start getting into heartier fare. Start stocking your existential cupboard with sustaining insights and perspectives that transcend this moment of time. And start equipping your philosophical first aid kit with supplies that will help you survive whatever moments come next — daily habits in thinking and doing that point not only beyond restaurant-dining and world-traveling, but beyond the narrow, and ultimately unsatisfying, confines of the self.

By: Brett and Kate McKay

Source: Are You Prepared for the Coming Existential Crisis? | The Art of Manliness

.

More Contents:

The 7 Key Mindset Changes for Shifting from Passive Idleness to Active Readiness

The Overlooked Key to Maintaining Your Sanity During Quarantine

Plenty of advice has been dispensed on how to maintain one’s sanity 

Podcast #429: Taking Control of the Brain Chemical That Drives Excitement, Motivation,

Why do you feel so motivated and excited about tackling a new project at first, but then get bored a…

People often speak of going through an ‘existential crisis’; but what do they really mean by the term? And when can it be useful to have it to hand? To undertake the journey of self-exploration the Existentialists thought crucial, take a look at our “Know Yourself” cards: http://bit.ly/29NH4Px Watch more films on SELF in our playlist: http://bit.ly/TSOLself If you like our films, take a look at our shop (we ship worldwide): http://bit.ly/29kPm2S FURTHER READING
You can read more about self and other topics on our blog TheBookofLife.org: http://bit.ly/29weaXW SOCIAL MEDIA Feel free to follow us at the links below: Facebook: https://www.facebook.com/theschoolofl… Twitter: https://twitter.com/TheSchoolOfLife Instagram: https://www.instagram.com/theschoolof… CREDITS Produced in collaboration with Damn Fine Media http://www.damnfinemedia.co.uk #TheSchoolOfLife

 

Eight Ways To Emerge Stronger From The Crisis

With the pandemic easing, it’s time for businesses to square their shoulders and aggressively move toward a digital-first strategy, says Paul Roehrig, Head of Strategy at Cognizant Digital Business & Technology.

The COVID-19 pandemic has taken millions of lives and triggered trillions of dollars’ worth of economic wreckage. And while news regarding vaccines is encouraging, now is not the time for the world to turn its back on safety measures proven to help slow the spread of the virus.

Nevertheless, vaccines are taking hold at various rates worldwide, and there is every reason to believe the grip the coronavirus has held on the world for over a year is easing.

Early in the crisis, we explored steps businesses should take to eventually emerge from the pandemic in a strong position. We believe that advice has held up, and that now is the time for forward-looking companies to accelerate digital initiatives.

Eight ways to catalyze post-crisis gains:

A year ago, “becoming digital” was seen by many as a desirable elective, but now — in our new world — it’s mandatory. The most common questions from business leaders from every industry and region have been: “I get the theory, but where do I start? What specific steps can I take today to ensure a healthy tomorrow?” These eight critical tactics will help:

1) Modernize data

It’s more important than ever to turn data from a liability into an asset. Companies that haven’t gotten control of their data are already behind, and the new economy will make it harder to recover. It’s no longer justifiable to pay to maintain terabytes (or more) of data and then not use it for business outcomes.

Improving decisions and experiences — and growth — with applied intelligence is infinitely more difficult (or impossible) without data that is relevant, accessible, secure and used to improve decisions or customer experiences. A data audit — figuring out what data is available, being accessed and for what purpose — was a no-regret decision 13 months ago. Now it’s a condition for survival.

2) Unshackle from legacy applications 

Roughly $3 trillion of economic value per day still runs on COBOL. That’s a staggering reliance on a programming language dating back to 1959. Going forward, business pressures will make it unsustainable to be trapped by this heritage software. Consumer relevance, faster time-to-market and cost savings have never been more important.

Many companies feel trapped by their legacy software, but there are new tools, processes, engineering methods and partners to help unlock value that is trapped in data centers. The first step is a complete software audit to understand which applications make the most sense to modernize, which should be left alone and which can be turned off.

3) Modernize how employees work

Remember going into an office? Getting on a train? The TSA pat-down? We’ll do all that again, but ideas and practices about how we work together will never be the same. The pandemic shock accelerates the imperative to be able to work from an office, the home, the car, the … well, anywhere! Today’s employees seek the same high-quality experience as a consumer using the best software.

Old, difficult-to-use interfaces and systems hinder how employees interact and collaborate, and store and exchange information. Seamless, secure connections across web, mobile, voice, collaboration systems, platforms and processes have made great strides during lockdowns. We aren’t going backward, so the time is now to extend the modern employee experience.

4) Modernize consumer experiences

In just a few painful weeks in 2020, elegant, secure, scalable online content and commerce went from critical to essential for every consumer-facing industry. Content has always been important, but with more transactions online, the ability to deliver that content to the right person, at the right time, in any place, via any device, via beautiful software is now and forever a business imperative.

Regardless of industry, expectations for engagement have shifted. The immediate reaction for too many businesses was to throw cash at front-end consumer-facing apps. A better bet is to take a step back and understand how the lifecycle of demand can be changed longer-term. That starts with deeply understanding how human wants and needs are likely to unfold in line with specific products and services.

5) Engineer software for the new economy

Every modern business needs software that can be built quickly and scaled effectively to deliver modern (human-first) experiences across the value chain for employees, partners and customers. It’s not necessary to be better at software engineering than Google or Microsoft, but it is necessary for every company to become more software-centric.

Tools, engineering methods and technologies already exist to help an enterprise become a better bank, a better insurer, a better retailer. This requires rethinking how core IT teams are structured, how they work and how they are incented, plus reevaluating the partner ecosystem critical to the business. Every major company is building software all the time, but it’s now time to explore new methods. Starting small can show near-term progress while mitigating risk.

6) Virtualize core work

The total impact of the COVID-19 pandemic will take years to become clear. However, one irrefutable shift is the new requirement for companies to modernize core process work. Middle- and back-office work that is slow, labor-intensive, expensive, opaque and unchanging is no longer allowable. Nearly every organization we know of can improve supply chain management, HR, finance and industry-specific process work.

Notably, the pandemic unlocked virtualized medical care as medical workers used technology to provide at-home solutions or even in-hospital solutions more safely and effectively. And that’s just one example. Automation, applied intelligence and worker enhancement have all moved from “helpful” to “critical” during the COVID crisis. Now is the time to begin exploring which points on the value chain make the most sense to modernize today.

7) Modernize the cloud foundation

For years, IT has been chipping away at costs by moving work to service providers and pushing centralized computer loads to the cloud, but that was really just Phase One. The unprecedented economic downturn has shone a spotlight on how much more can be done, and how rapidly. Threadbare arguments against reducing IT costs — e.g., by more aggressively moving into the cloud, deploying cost-effective software-as-a-service platforms, reducing operating costs of non-core work – must be overruled. We recommend a pivoting from, “What can we move into the cloud?” to, “What can’t we move to the cloud?”

8) Make every space smart (and safe)

For years, sensor-enabling industrial equipment has improved productivity, reduced downtime and paved the way for more “as-a-service” business models. In the post-pandemic economy — as demand evolves and our expectations and concerns about staying safe in public spaces remain top of mind — nearly every company that operates in physical space will have to adopt the same philosophy.

COVID accelerated the development of technologies that assess occupant health and help us maintain safe distances, clean surfaces, etc. This takes a coordinated solution linking sensors, analytics and software. Business leaders must continue to be proactive in applying instrumentation, analytics and software engineering to make every space intelligent, less expensive to manage, more comfortable and safer.

To learn more, read our report “From Chaos to Catalyst,” visit the Digital Business & Technology section of our website or contact us.

Paul Roehrig is Head of Strategy for Cognizant Digital Business & Technology. He is the Founder and former Global Managing Director of the Center for The Future of Work at Cognizant. Along with Malcolm Frank and Ben Pring, he is a coauthor of What To Do When Machines Do Everything: How to Get Ahead in a World of AI, Algorithms, Bots, and Big Data and Code Halos: How the Digital Lives of People, Things, and Organizations are Changing the Rules of Business. Paul’s most recent work is Monster: A Tough Love Letter on Taming the Machines that Rule our Jobs, Lives, and Future, which he co-authored with Ben Pring. He can be reached at Paul.Roehrig@cognizant.com.

Source: Eight Ways To Emerge Stronger From The Crisis

.

More Contents:

Our call for action over climate change

Why banding together is the best solution to save South Africa

Climate change tracker hits record low as progress gathers pace

Trends shaping philanthropy in the post-pandemic world

Employee wellbeing affects the bottom line Why is company culture so hard to change? Go beyond the noise and focus on what you can control to build financial wealth

Disney: a 100-year-old business as relevant as ever

Emerging from crisis requires humanity not strategy | Daily FT

How Organizations and Individuals Can Manage Crisis

The alumni of the prestigious Harvard Business School noted that the COVID-19 pandemic forced governments worldwide to make a choice between life, death and economy. He spoke at the NIM’s Management Day lecture in Lagos.

Quoting the World Economic Forum, 2020, Adeshina said an aggregate loss of the health and economic crises is estimated at $9 trillion between 2020 and 2021. He warned that the world needs to de-escalate crisis to avert a humanitarian disaster.

He said: “Crisis is an unstable event or series of events that can emanate from an individual, group, corporate and the government, which can cause disruption in normal business operations, economic, social, reputation and political damage in the society. It threatens to have calamitous human and developmental consequences.”

Nigeria, he said, was facing its worst economic crisis, with over 82.9 million persons classified as poor by the National Bureau of Statistics (NBS) in its Nigerian Living Standards Survey (NLSS) Report, May 2020.

This, the Institute of Bankers’ Fellow noted, amounts to 40.1 per cent of the population. “Nigeria, since its last economic recession in 2016-2017, has witnessed a collapse in the price of crude oil, volatile movement in the exchange rate, rising inflation and food prices, dwindling Foreign Direct Investment,  increasing unemployment, reduced public confidence in the government, Northern region unrest coupled with the Global pandemic; amongst others,” he said.

Adeshina, a Fellow of the Chartered Institute of Bankers of Nigeria (CIBN), stated that businesses must be prepared for a crisis, because “it is a matter of when and not if.  “A crisis should not be perceived as a threat to avoid, rather the focus should be when it comes, how prepared is the organisation to handle it? If a crisis is well managed, it reduces the damage and impact on an organisation and enables the organisation to recover quickly.”

He was of the view that a credible crisis management framework was critical to help maintain confidence in the people, system and government and it minimises risks. “Proper and quick crisis management is critical for public relations and reputation. Since crises come in several forms, it is recommended that organisations should have in place a crisis management plan,” he said.

He lamented the increasing ‘unmodellable’ behaviours, especially at top-most leadership levels. Adeshina, an investment banker for over three decades, blamed the dwindling economy on the inability of governments to curb the high rate of people living below the poverty line.

Citing the recent #EndSARS protest, he said it was a pointer to the end of bad governance and a wake-up call to those in leadership positions to begin to institutionalize good governance. “Attention should be given to the business continuity, cost management, productivity, and implementing safety measures, however, innovation-led growth should not be totally ignored,” he said.

By Brown Chimezie

Source: How organisations, individuals can manage crisis, by expert

.

Related Sources:

Argenti, P. (2002, December).  Crisis communication:  Lessons from 9/11.  Harvard Business Review, 80(12), 103-109. This article provides insights into working with employees during a crisis.  The information is derived from interviews with managers about their responses to the 9/11 tragedies.

Arpan, L.M., & Roskos-Ewoldsen, D.R. (2005). Stealing thunder: An analysis of the effects of proactive disclosure of crisis information. Public Relations Review 31(3), 425-433.
This article discusses an experiment that studies the idea of stealing thunder.  Stealing thunder is when an organization releases information about a crisis before the news media or others release the information.  The results found that stealing thunder results in higher credibility ratings for a company than allowing others to report the crisis information first.  This is additional evidence to support the notion of being quick in a crisis and telling the organization’s side of the story.

Augustine, N. R. (1995, November/December). Managing the crisis you tried to prevent. Harvard Business Review, 73(6), 147-158. This article centers on the six stages of a crisis:  avoiding the crisis, preparing to management the crisis, recognizing the crisis, containing the crisis, resolving the crisis, and profiting from the crisis.  The article reinforces the need to have a crisis management plan and to test both the crisis management plan and team through exercises.  It also reinforces the need to learn (profit) from the crisis.

Barton, L. (2001). Crisis in organizations II (2nd ed.). Cincinnati, OH: College Divisions South-Western. This is a very practice-oriented book that provides a number of useful insights into crisis management.  There is a strong emphasis on the role of communication and public relations/affairs in the crisis management process and the need to speak with one voice.  The book provides excellent information on crisis management plans (a template is in Appendix D pp. 225-262); the composition of crisis management teams (pp. 14-17); the need for exercises (pp.  207-221); and the need to communicate with employees (pp. 86-101).

Benoit, W. L. (1995). Accounts, excuses, and apologies: A theory of image restoration. Albany: State University of New York Press. This book has a scholarly focus on image restoration not crisis manage.  However, his discussion of image restoration strategies is very thorough (pp. 63-96).  These strategies have been used as reputation repair strategies after a crisis.

Benoit, W. L. (1997). Image repair discourse and crisis communication. Public Relations Review, 23(2), 177-180. The article is based on his book Accounts, excuses, and apologies: A theory of image restoration and provides a review of image restoration strategies.  The image restoration strategies are reputation repair strategies that can be used after a crisis.  It is a quicker and easiest to use resource than the book.

Business”>http://www.nfib.com/object/3783593.html.”>Business Roundtable’s Post-9/11 crisis communication toolkit. (2002). Retrieved April 24, 2006, from http://www.nfib.com/object/3783593.html.
This is a very user-friendly PDF files that takes a person through the crisis management process.  There is helpful information on web-based communication (pp. 73-82) including “dark sites” and the use of Intranet and e-mail to keep employees informed.  There is an explanation of templates, what are called holding statements or fill-in-the-blank media statements including a sample statement (pp. 28-29).  It also provides information of the crisis management plan (pp. 21-32), structure of the crisis management team (pp. 33-40) and types of exercises (pp. 89-93) including mock press conferences.

Carney, A., & Jorden, A. (1993, August). Prepare for business-related crises. Public Relations Journal 49, 34-35.
This article emphasize the need for a message strategy during crisis communication.  Developing and sharing a strategy helps an organization to speak with one voice during the crisis.

Cohen, J. R.  (1999).  Advising clients to apologize.  S. California Law Review, 72, 1009-131.
This article examines expressions of concern and full apologies from a legal perspective.  He notes that California, Massachusetts, and Florida have laws that prevent expressions of concern from being used as evidence against someone in a court case.  The evidence from court cases suggests that expressions of concern are helpful because they help to reduce the amount of damages sought and the number of claims filed.

Coombs, W. T. (1995). Choosing the right words: The development of guidelines for the selection of the “appropriate” crisis response strategies. Management Communication Quarterly, 8, 447-476.
This article is the foundation for Situational Crisis Communication Theory.  It uses a decision tree to guide the selection of crisis response strategies.  The guidelines are based on matching the response to nature of the crisis situation.  A number of studies have tested the guidelines in the decision tree and found them to be reliable.

Coombs, W. T. (2004a). Impact of past crises on current crisis communications: Insights from situational crisis communication theory. Journal of Business Communication, 41, 265-289.
This article documents that past crises intensify the reputational threat to a current crisis.  Since the news media reminds people of past crises, it is common for organizations in crisis to face past crises as well.  Crisis managers need to adjust their reputation repair strategies if there are past crises-crisis managers will need to use more accommodative strategies than they normally would.  Accidents are a good example.  Past accidents indicate a pattern of problems so people will view the organization as much more responsible for the crisis than if the accident were isolated.  Greater responsibility means the crisis is more of a threat to the reputation and the organization must focus the response more on addressing victim concerns.

Coombs, W. T. (2004b).  Structuring crisis discourse knowledge: The West Pharmaceutics case.  Public Relations Review, 30, 467-474.
This article is a case analysis of the West Pharmaceutical 2003 explosion at its Kinston, NC facility.  The case documents the extensive use of the Internet to keep employees and other stakeholders informed.  It also develops a list of crisis communication standards based on SCCT.  The crisis communication standards offer suggestions for how crisis managers can match their crisis response to the nature of the crisis situation.

Coombs, W. T. (2006). Code red in the boardroom: Crisis management as organizational DNA. Westport, CN: Praeger.
This is a book written for a practitioner audience.  The book focuses on how to respond to three common types of crises:  attacks on an organization (pp. 13-26), accidents (pp. 27-44), and management misbehavior pp. (45-64).  There are also detailed discussions of how crisis management plans must be a living document (pp. 77-90), different types of exercises for crisis management (pp. 84-87), and samples of specific elements of a crisis management plan in Appendix A (pp. 103-109).

Coombs, W. T. (2007a).  Ongoing crisis communication:  Planning, Managing, and responding (2nd ed.).  Los Angeles:  Sage. This book is designed to teach students and managers about the crisis management process.  There is a detailed discussion of spokesperson training pp. (78-87) and a discussion of the traits and skills crisis team members need to posses to be effective during a crisis (pp. 66-77).  The book emphasizes the value of follow-up information and updates (pp. 147-148) along with the learning from the crisis (pp. 152-162).  There is also a discussion of the utility of mass notification systems during a crisis (pp. 97-98).

Coombs, W. T. (2007b).  Protecting organization reputations during a crisis:The development and application of situational crisis communication theory.  Corporate Reputation Review, 10, 1-14.
This article provides a summary of research conducted on and lessons learned from Situational Crisis Communication Theory (SCCT).  The article includes a discussion how the research can go beyond reputation to include behavioral intentions such as purchase intention and negative word-of-mouth.  The information in the article is based on experimental studies rather than case studies.

Coombs, W. T., & Holladay, S. J. (1996). Communication and attributions in a crisis: An experimental study of crisis communication. Journal of Public Relations Research, 8(4), 279-295. This article uses an experimental design to document the negative effect of crises on an organization’s reputation.  The research also establishes that the type of reputation repair strategies managers use does make a difference on perceptions of the organization.  An important finding is proof that the more an organization is held responsible for the crisis, the more accommodative a reputation repair strategy must be in order to be effective/protect the organization’s reputation.

Coombs, W. T. and Holladay, S. J.  (2001).  An extended examination of the crisis
situation: A fusion of the relational management and symbolic approaches.  Journal of Public Relations Research, 13, 321-340.

This study reports on an experiment designed to test how prior reputation influenced the attributions of crisis responsibility.  The study found that an unfavorable prior reputation had the biggest effect.  People rated an organization as having much greater responsibility for a crisis when the prior reputation was negative than if the prior reputation was neutral or positive.  Similar results were found for the effects of prior reputation on the post-crisis reputation.

Coombs, W. T., & Holladay, S. J. (2002). Helping crisis managers protect reputational assets: Initial tests of the situational crisis communication theory. Management Communication Quarterly, 16, 165-186. This article begins to map how stakeholders respond to some very common crises.  Using the level of responsibility for a crisis that people attribute to an organization, the research found that common crises can be categorized into one of three groups:  victim cluster has minimal attributions of crisis responsibility (natural disasters, rumors, workplace violence, and tampering), accidental cluster has low attributions of crisis responsibility (technical-error product harm and accidents), and preventable cluster has strong attributions of crisis responsibility (human-error product harm and accidents, management misconduct, and organizational misdeeds).  The article recommends different crisis response strategies depending upon the attributions of crisis responsibility.

Coombs, W. T. & Holladay, S. J. (2006).  Halo or reputational capital:  Reputation and crisis management.  Journal of Communication Management, 10(2), 123-137.
This article examines if and when a favorable pre-crisis reputation can protect an organization with a halo effect.  The halo effect says that strong positive feelings will allow people to overlook a negative event-it can shield an organization from reputational damage during a crisis.  The study found that only in a very specific situation does a halo effect occur.  In most crises, the reputation is damaged suggesting reputational capital is a better way to view a strong, positive pre-crisis reputation.  An organization accumulates reputational capital by positively engaging publics.  A crisis causes an organization to loss some reputational capital.  The more pre-crisis reputational capital, the stronger the reputation will be after the crisis and the easier it should be to repair.

Corporate Leadership Council. (2003). Crisis management strategies. Retrieved September 12, 2006, from http://www.executiveboard.com/EXBD/Images/PDF/Crisis%20Management%20Strategies.pdf. [Now available here]
This online PDF file summarizes key crisis management insights from the Corporate Leadership Council.  The topics include the value and elements of a crisis management plan (pp 1-3), structure of a crisis management team (pp. 4-6), communicating with employees (pp. 7-9), using web sites including “dark sites” (p. 7), using pre-packaged information/templates (p. 7), and the value of employee assistance programs (p. 10).  The file is an excellent overview to key elements of crisis management with an emphasis on using new technology.

Dean, D. H.  (2004.  Consumer reaction to negative publicity: Effects of corporate reputation, response, and responsibility for a crisis event.  Journal of Business Communication, 41, 192-211.
This article reports an experimental study that included a comparison how people reacted to expressions of concern verses no expression of concern.  Post-crisis reputations were stronger when an organization provided an expression of concern.

Dilenschneider, R. L. (2000). The corporate communications bible: Everything you need to know to become a public relations expert. Beverly Hills: New Millennium. This book has a strong chapter of crisis communication (pp. 120-142).  It emphasizes how a crisis is a threat to an organization’s reputation and the need to be strategic with the communications response.

Downing, J. R. (2003).  American Airlines’ use of mediated employee channels after the 9/11 attacks.  Public Relations Review, 30, 37-48.
This article reviews how American Airlines used its Intranet, web sites, and reservation system to keep employees informed after 9/11.  The article also comments on the use of employee assistance programs after a traumatic event.  Recommendations include using all available channels to inform employees during and after a crisis as well as recommending organizations “gray out” color from their web sites to reflect the somber nature of the situation.

Fearn-Banks, K. (2001). Crisis communications: A casebook approach (2nd ed.). Mahwah, NJ: Lawrence Erlbaum. This book is more a textbook for students using case studies.  Chapter 2 (pp. 18-33) has a useful discussion of elements of the crisis communication plan, a subset of the crisis management plan.  Chapter 4 has some tips on media relations (pp. 63-71).

Hearit, K. M. (1994, Summer). Apologies and public relations crises at Chrysler, Toshiba, and Volvo. Public Relations Review, 20(2), 113-125.
This article provides a strong rationale for the value of quick but accurate crisis response.  The focus is on how a quick response helps an organization to control the crisis situation.

Hearit, K. M. (2006).  Crisis management by apology:  Corporate response to
allegations of wrongdoing.  Mahwah, NJ:  Lawrence Erlbaum Associates.

This book is a detailed, scholarly treatment of apologies that has direct application to crisis management.  Chapter 1 helps to explain the different ways the term
apology is used and concentrates on how it should be treated as a public acceptance of responsibility (pp. 1-18).  Chapter 3 details the legal and liability issues involved when an organization chooses to use an apology.

Kellerman, B. (2006, April). When should a leader apologize and when not? Harvard Business Review, 84(4), 73-81. This article defines an apology as accepting responsibility for a crisis and expressing regret.  The value of apologies is highlighted along with suggestions for when an apology is appropriate and inappropriate.  An apology should be used when it will serve an important purpose, the crisis has serious consequences, and the cost of an apology will be lower than the cost of being silent.

Klein, J. & Dawar, N. (2004).  Corporate social responsibility and consumers’ attributions of brand evaluations in product-harm crisis.  International Journal of Marketing, 21, 203-217.
This article reports on an experimental study that compared how prior information about corporate social responsibility (a dimension of prior reputation) affected attributions of crisis responsibility.  People attribute much greater responsibility to the negative corporate social responsibility condition than to the neutral or positive conditions.  There was no difference between the attributions in the positive and neutral conditions.

Lackluster online PR no aid in crisis response. (2002). PR News. Retrieved April 20, 2006, from http://web.lexis-nexis.com/universe
This short article notes how journalists and other interested parties are using web sites during crises to collect information.  The article highlights the value of having a “dark site” ready before a crisis.  A sample of various criteria for a crisis web are discussed by reviewing Tyco’s web site as a case study.

Lerbinger, O. (1997). The crisis manager: Facing risk and responsibility. Mahwah, NJ: Lawrence Erlbaum.
This book centers on seven types of crises:  natural, technological, confrontation, malevolence, skewed management values, deception, and management misconduct.  There is a strong focus on the role of media relations in crisis management (pp. 27-29 and pp. 31-34).

Mitroff, I. I., Harrington, K., & Gai, E. (1996, September). Thinking about the unthinkable. Across the Board, 33(8), 44-48.
This article reinforces the value of creating and training crisis management teams by having them conduct various types of exercises.

Sonnenfeld, S. (1994, July/August).  Media policy–What media policy?  Harvard Business Review, 72(4), 18-19.
This is a short article that discusses the need for spokesperson training prior to a crisis.

Sturges, D. L. (1994).  Communicating through crisis: A strategy for organizational survival, Management Communication Quarterly, 7, 297-316.
This article emphasizes how communication needs shift during a crisis.  The first need is for instructing information, the information that tells people how to protect themselves physically from a crisis.  The next need is adjusting information, the information that helps people to cope psychologically with the crisis.  The initial crisis response demands a focus on instructing and adjusting information.  The third and final type of communication is reputation repair.  Reputation repair is only used once the instructing and adjusting information have been provided.

Taylor, M., & Kent, M. L. (2007).  Taxonomy of mediated crisis responses.  Public Relations Review, 33, 140-146.
This article summarizes the best practices for using the Internet during a crisis and advocates more organizations should be using the Internet, especially web sites, during a crisis. The six best practices are:  (1) include all your tradition media relations materials on your web site; (2) try to make use of the interactive nature of the Internet for your crisis web content; (3) provide detailed and clear information on web sites during for a product recall; (4) tell your side of the story on the crisis web site including quotations from managers; (5) when necessary, create different web pages for different stakeholders tailored to their interests in the crisis; and (6) work with government agencies including hyperlinks to relevant government agency web sites.

Tyler, L. (1997). Liability means never being able to say you’re sorry: Corporate guilt, legal constraints, and defensiveness in corporate communication. Management Communication Quarterly, 11(1), 51-73.
This article discusses the legal constraints that prevent apologies during a crisis.  It is a hard look at the choices crisis managers must make between addressing victims in a particular way and financial constraints.  The article is a reminder that crisis management occurs within the larger context of organizational operations and is subject to financial constraints.

Ulmer, R. R., Sellnow, T. L., & Seeger, M. W. (2006). Effective crisis communication: Moving from crisis to opportunity. Thousand Oaks: Sage.This book is mix of lessons and case studies.  Many of the cases focus on large scale crises or what some would call disasters.  Large scale crises/disasters are unique because they require multiple agency coordination and are often managed by government agencies.  Chapter 12 (pp. 177-187) on renewal as a reputation repair strategy after a crisis in unique and informative.  Renewal focuses on optimism and an emphasis on moving to some new and better state after the crisis.  Not all organizations can engage in renewal after a crisis.  Renewal requires that an organization have performed ethically before the crisis and have had strong stakeholder relationships before the crisis.

Inflation’s Mixed Basket: 7 Things That Will Cost You More—And 3 That Will Cost You Less—In The Covid Recovery Economy

uncaptioned

 

By most accounts, the U.S economy is set to boom this summer: pent-up pandemic savings are burning a hole in consumers’ pockets, vaccines are rolling out and trillions of dollars in federal stimulus spending are working their way through the economy—not to mention the warmer weather ahead.

But the picture isn’t all rosy: some are worried the recovery might actually be too hot and prompt runaway inflation that erodes purchasing power and hurts households’ bottom lines.

Source: Inflation’s Mixed Basket: 7 Things That Will Cost You More—And 3 That Will Cost You Less—In The Covid Recovery Economy

.

Related Links:

November sees drop in food inflation, overall CPI down to 6.93 %
http://www.thehindu.com – December 14, 2020
[…] In rural India, both overall retail inflation and food price inflation, were about 0 […]
12
UNICEF – Deputy Representative, P-6, Islamabad, Pakistan
untalent.org – December 12, 2020
[…] progress in political and policy domains in last few years, fifty million are malnourished, inflation and food insecurity driving individuals and groups into poverty […]
N/A
Inflation comes in slightly below the CNB’s forecast in November 2020
http://www.marketscreener.com – December 10, 2020
[…] Core inflation and food price inflation will both slow […]
0
How to de-escalate crises, by expert – The Nation Nigeria News
thenationonlineng.net – December 8, 2020
[…] has witnessed a collapse in the price of crude oil,  volatile movement in the exchange rate, rising inflation and food prices, dwindling Foreign Direct Investment,  increasing unemployment, reduced public confidence in […]
0
How organisations, individuals can manage crisis, by expert
http://www.sunnewsonline.com – December 4, 2020
[…] has witnessed a collapse in the price of crude oil, volatile movement in the exchange rate, rising inflation and food prices, dwindling Foreign Direct Investment,  increasing unemployment, reduced public confidence in […]
1
Sudan: It’s Time for Results As Sudan Enters Second Year of NDC Partnership
allafrica.com – November 27, 2020
[…] alone “are experiencing high levels of food insecurity through September due to economic decline, inflation and food price hikes exacerbated by the impacts of the COVID-19 pandemic” […]
N/A
Inflation Convergence and Anchoring of Expectations in India
http://www.epw.in – November 26, 2020
[…] Inflation expectations (both for three months and one year) are influenced by realised inflation and food inflation in the post-inflation targeting period as compared to the pre-inflation targeting period […]
4
About Cotton
http://www.fairtrade.org.uk – November 26, 2020
[…] market prices, decreasing yields and climate change are daily challenges, along with food price inflation and food insecurity […]
1
It’s Time for Results as Sudan Enters Second Year of NDC Partnership — Global Issues
http://www.globalissues.org – November 25, 2020
[…] alone “are experiencing high levels of food insecurity through September due to economic decline, inflation and food price hikes exacerbated by the impacts of the COVID-19 pandemic” […]
1
It’s Time for Results as Sudan Enters Second Year of NDC Partnership
http://www.ipsnews.net – November 24, 2020
[…] alone “are experiencing high levels of food insecurity through September due to economic decline, inflation and food price hikes exacerbated by the impacts of the COVID-19 pandemic” […]
N/A
Turkmenistan’s authoritarian leader unveils huge golden dog statue in the capital
http://www.cnn.com – November 13, 2020
[…] and billions of dollars spent on architectural curiosities, Turkmenistan’s population faces hyper inflation and food shortages […]
10
Why Nigeria struggles to win its security battle | #socialmedia | #hacking | #facebook | #computerhacking
nationalcybersecuritynews.today – October 28, 2020
[…] Inflation and food prices are rising and foreign investment is falling […]
1
Trump says US will remove sanctions on Sudan in historic new chapter in relations
abcnews.go.com – October 20, 2020
[…] Sudan has been overwhelmed by high inflation and food and fuel shortages — challenges that have been exacerbated by COVID-19 and recent flooding […]
3
Twenty-five years after ‘welfare diet’ debacle, social assistance still hasn’t recovered from Mike Harris cuts | The Star
http://www.thestar.com – October 19, 2020
[…] With the “double whammy” of social assistance lagging inflation and food prices outpacing it, single social assistance recipients “simply can’t afford” a reasonable diet […]
283
Views from a Prison – archival treasures in
morrablibrary.org.uk – October 13, 2020
[…] results of Naval Battles, but through Pollard’s journal we are also able to track the effects of inflation and food shortages on France at this time […]
7
Why we should keep choosing sustainable fashion that boosts incomes for farmers and workers
http://www.fairtrade.org.uk – October 6, 2020
[…] decreasing yields and climate change are daily challenges for producers, along with food price inflation and food insecurity […]
N/A
Economic Contractions Might Push Nigeria Into A Hunger Crisis – Campus Reporter
campusreporter.ng – September 30, 2020
[…] The rise in inflation and food prices are not unconnected to the hike in fuel, electricity tariff, household materials an […]
1
Pompeo Makes Last Stop of Latin American Tour in Colombia, Focuses on Venezuela
http://www.statecraft.co.in – September 21, 2020
[…] in Venezuela, as many have crossed the border into the country seeking respite from spiralling inflation and food and medicinal shortages […]
1
Nigeria’s Economy Heats Up As Inflation Rises to 12.82%
http://www.proshareng.com – August 18, 2020
[…] A major reason for the steady rise in both core inflation and food inflation is the huge supply gaps in the economy […]
2
WFP launches nutrition programme in Khartoum state – Sudan
reliefweb.int – August 5, 2020
[…] Khartoum are experiencing high levels of food insecurity through September due to economic decline, inflation and food price hikes exacerbated by the impacts of the COVID-19 pandemic […]
1
The brutal price of Venezuelan populism must act as a lesson for all –
progressivebrief.com – July 24, 2020
[…] Inflation and food shortages were highly prevalent […]
2
Locust: CATASTROPHE for farmers, CRISIS for food security! –
soulengrossed.wordpress.com – July 11, 2020
[…] But a threat to food security that can cause inflation and food crises amidst the COVID19 pandemic has lifted its head! Foods for millions of people is vanishin […]
4
Is Potable Water the ‘Petroleum of the Next Century’?
[…] The results: more poverty, inflation, and food scarcity […]
13
Pakistan’s military pressured to withdraw support for Imran Khan as Covid-19 cases soar
http://www.scmp.com – June 19, 2020
[…] country’s problems range from coronavirus infections to a potential locust infestation, soaring inflation and food shortages Opposition politicians say Khan’s government has become a liability for its sponsors bu […]
52
Reform by stealth
frontline.thehindu.com – June 4, 2020
[…] Agricultural price policies keep in view the issue of food inflation and food availability […]
20
Food For The Poor Provides Reliable Source of Food As Hunger Spikes
[…] with lingering violence and protests, sparked last year by people upset with the government over inflation, and food and fuel shortages […]
1
india stimulus package news: View: No, India doesn’t need a bigger stimulus
economictimes.indiatimes.com – May 21, 2020
[…] At the end of the day, you had [the 2013] taper tantrum, double-digit inflation and food inflation hitting the roof […]
65
Who made my clothes? A look at the current fashion climate for Fashion Revolution Week | Fair Trade Wales |
fairtradewales.com – April 20, 2020
[…] costs, fluctuating market prices, decreasing yields and climate change along with food price inflation and food insecurity are all threats […]
3
African Countries With Confirmed Coronavirus Cases
http://www.okayafrica.com – March 10, 2020
[…] However, due to the country’s struggling economy, hyper-inflation and food shortages due to a long-standing drought, many Zimbabweans fear that they will starve in thei […]
29
Look at Zim, Venezuela before expropriating land
http://www.sowetanlive.co.za – March 6, 2020
[…] the disregard for property rights, ultimately led to an unemployment rate of 90% in Zimbabwe, hyper-inflation and food and fuel shortages […]
108
Apparitions of the Virgin Mary
http://www.inplainsite.org – February 14, 2020
[…] republic had replaced the old monarchy, and there were strikes, crime, corruption, bomb-throwing, inflation and food shortages together with the added complication of the First World War […]
5
NDA Govt has kept inflation, fiscal deficit well under control: FM
http://www.pennews.net – February 11, 2020
[…] a debate in the Rajya Sabha on the General budget, Ms Sitharaman said as a against a double digit inflation and food inflation during the previous UPA Government, the NDA Government has managed to keep inflation well […]
1
Parliament proceedings budget session 2020 live February 11, 2020
http://www.thehindu.com – February 11, 2020
[…] Inflation and food inflation was in double digits […]
9
U.S. should be “prosecuted for genocide over its sanctions policy” –
5pillarsuk.com – January 20, 2020
[…] Iran’s currency has lost a third of its value and inflation and food prices have risen considerably, as has unemployment […]
74
How The Current Situation In Iran Is Affecting People
http://www.refinery29.com – January 15, 2020
[…] economic sanctions on Iran have led to a recession in the country, as well as high levels of inflation and food shortages […]
6
Fords Sales in China has Dropped Since 2016, Down 26.1% in 2019.
mavenroundtable.io – January 15, 2020
[…] Getting to the real numbers of the Chinese economy is always a guessing game, but with inflation and food prices rising China’s market for automobiles has heavily contracted over the past year-and-a-half […]
1
Van Hipp: Trump’s path forward with Iran — six steps to help the US and the Iranian people
http://www.foxnews.com – January 7, 2020
[…]   With 50 percent inflation and food prices that have risen 85 percent, the Islamist regime has been forced to focus on its own problems […]
113
Venezuela: Assailants storm military facility, steal weapons | News | DW | 23.12.2019
http://www.dw.com – December 23, 2019
[…] Nicolas Maduro’s Socialist government has struggled with a three-year recession, spiraling inflation and food shortages […]
13
On brink of ‘man-made’ starvation, Zimbabweans struggling to cope
http://www.newzimbabwe.com – December 12, 2019
[…] government over the years resorted to price controls and money printing to tackle skyrocketing inflation and food shortages, but the measures impoverished local state-owned agricultural companies and contribute […]
1
On brink of ‘man-made’ starvation, Zimbabweans struggling to cope
http://www.news24.com – December 12, 2019
[…] government over the years resorted to price controls and money printing to tackle skyrocketing inflation and food shortages, but the measures impoverished local state-owned agricultural companies and contribute […]
509
On brink of ‘man-made’ starvation, Zimbabweans struggling to cope | Zimbabwe News | Al Jazeera
http://www.aljazeera.com – December 11, 2019
[…] government over the years resorted to price controls and money printing to tackle skyrocketing inflation and food shortages, but the measures impoverished local state-owned agricultural companies and contribute […]
1
On brink of ‘man-made’ starvation, Zimbabweans struggling to cope
m.news24.com – December 11, 2019
[…] government over the years resorted to price controls and money printing to tackle skyrocketing inflation and food shortages, but the measures impoverished local state-owned agricultural companies and contribute […]
17
All Eyes on Sudan’s Transition to a Democracy
http://www.cipe.org – October 25, 2019
[…] the world by Transparency International, has a nearly 13% unemployment rate, and suffers from high inflation and food and water shortages […]
1
UN chief concerned over Haiti’s political crisis
http://www.neweurope.eu – October 18, 2019
[…] The protesters have been calling for Moise to resign amid corruption allegations, rising inflation and food and fuel shortages […]
1
In Defence of Marxism
http://www.marxist.com – October 6, 2019
[…] The women of Paris who bore the brunt of rising inflation and food shortages, and who were awakened to political life, led a march on Versailles, shaming thei […]
105
Low Inflation a Self-inflicted Policy Wound – The Economic Times – Mumbai, 10/4/2019
epaper.timesgroup.com – October 4, 2019
[…] Further, lower food inflation (and food inflation has lagged behind even the low overall headline inflation) translates into lower incom […]
1
policy: Low inflation a self-inflicted policy wound
economictimes.indiatimes.com – October 4, 2019
[…] Further, lower food inflation (and food inflation has lagged behind even the low overall headline inflation) translates into lower incom […]

For Small Businesses, Recovery from COVID Could Take Years

Latresa McLawhorn Ryan knows well the havoc that COVID has reaped upon small businesses of color in the Atlanta area and believes the effects of COVID are likely to hang over these businesses for some time. She also knows that small businesses of color can bounce back if they get the right kind of assistance.

“We’ve lost a lot of businesses, some that were really anchors in their community,” said McLawhorn Ryan, executive director of the Atlanta Wealth Building Initiative, a nonprofit organization of community investors, advocates, and activists that supports Black-owned firms. She added that the casualties have included yoga studios, restaurants, and other businesses that rely on high traffic and face-to-face interaction. “It will take three to five years, depending on the sector, for businesses to recover from the impact of COVID.”

Because small businesses of color are an important driver of employment and asset building in their communities, the COVID-related business failures send a message throughout the community that perhaps it is more vulnerable to market forces, McLawhorn Ryan added.

The Federal Reserve Banks of Atlanta and Kansas City published a recovery guide in late 2020 to offer strategies that can help small businesses of color bounce back from the COVID crisis. The guide begins by discussing the state of small businesses of color before the COVID-19 pandemic, placing these firms’ challenges into historical context.

.

.

Entrepreneur-In-Residence Scott Shigeoka talks with economic experts and small business owners about overcoming hardships and their message of hope for recovery after COVID-19. Robert Brown, Sr. Director of Business Analytics at GoDaddy, breaks down Venture Forward, a multi-year study looking at the impact of micro and small businesses on the American economy. Resources for Small Businesses: Venture Forward study: https://www.godaddy.com/ventureforward Up-to-date info on COVID-19: https://www.cdc.gov

.

.

A second section provides recommendations for communities looking to assist small businesses of color in the areas of credit and capital, education and training, policy, and community support. The final section shares tools for communities to develop an entrepreneurship network focused on small businesses of color.

Atlanta Fed president Raphael Bostic led a January 14 panel discussion with Southeast community leaders discussing ways to support small businesses. The webinar focused on the need to establish networks that can deliver resources and coaching.

Issue number 1 is funding

Janelle Williams, a senior adviser in the Atlanta Fed’s Community and Economic Development group who wrote the recovery guide with two Kansas City Fed advisers, said businesses owned by nonwhites face especially daunting challenges to regain their footing, with access to funding and credit topping the list.

“There are still structural barriers that limit small businesses of color from securing the capitalization needed to sustain and scale their businesses in a valuable way,” she said.

Much of the funds approved by U.S. lawmakers last year under the Paycheck Protection Program (PPP) to help businesses preserve employment did not reach the smallest companies and many firms owned by people of color. For example, a Federal Reserve Bank of New York analysis found that PPP loans were given to just 20 percent of eligible companies in states with the highest densities of Black-owned firms. In Fulton County, Georgia—which includes the city of Atlanta—a total of 20.8 percent of businesses received loans from the program. In Florida’s Miami-Dade County, just 15 percent of eligible firms obtained PPP funds.

In mid-January, a third round of PPP loans opened. Small business owners of color are hopeful that more funds will reach them this time. A portion of the $284 billion approved for small businesses in the December 2020 COVID relief legislation was set aside for firms with 10 or fewer employees and lenders that cater to underserved communities, including minority-owned banks and community development financial institutions.

Small businesses of color face barriers that make it harder to gain access to capital. They often lack relationships with traditional banks and access to social networks that could help them learn about and apply for available loans. Most entrepreneurs of color don’t have family wealth that could be used to start a business.

Other factors hinder the success of nonwhite small businesses. Williams noted research showing that in the six southeastern states that are part of the Atlanta Fed’s coverage area, small businesses of color are overrepresented in sectors such as food services and retail that have been particularly vulnerable during the pandemic because of required lockdowns, social distancing guidelines, and lower demand for goods and services.

“There is a need for a broader conversation around addressing barriers to entry for small businesses of color that seek to access higher-growth industries that are moderately insulated from market pressures,” Williams said.

Different approaches to financing

The tougher path to viability that small businesses of color face has been well documented. A 2017 report from Prosperity Now, a public policy nonprofit group, notes that deep and persistent patterns of racial discrimination against business owners of color have resulted in greater loan denials and higher interest rates for loans they do obtain. Those financing outcomes result in lower profit margins and limit the opportunities for businesses of color to build thriving enterprises.

The Reserve Banks’ recovery guide notes that the needs of small businesses of color call for financing methods that are nimbler and more accessible to help level the playing field. Those could include interest-free loans, loans with rates that start low and gradually rise, deferred payments and longer repayment time frames, and flexible underwriting terms. Many community organizations consulted in developing the recovery guide “shared that grants, forgivable loans, and patient equity capital will be needed” to help these businesses spring back, the report states.

Williams said the pandemic has challenged the funders that support small businesses of color to think about the kinds of financial assistance that would be meaningful and to understand that some types of aid may not help. “Small businesses of color already are debt averse, so asking them to incur additional debt is a challenge, especially when many rely on their personal income to stay afloat,” she said.

To address these issues, community stakeholders have begun to embrace alternate financing solutions, Williams said. She noted that philanthropic groups were offering program-related investments that provide capital at lower interest rates, while community development financial institutions were introducing funding products that include opportunities for credit enhancement.

The Atlanta Wealth Building Initiative launched a COVID relief fund last year that has provided money to at least 65 small businesses and 18 nonprofits, mainly located in the northwest, southwest, and southeast parts of metro Atlanta where residents’ health and personal income both suffered acutely. The program offers loans that include flexible terms, a six-month grace period, and 30 months of repayment. Through three rounds of grants and two rounds of loans to date, the nonprofit group has dispersed about $800,000 to Black-owned businesses, McLawhorn Ryan said.

The grants and loans have helped in many ways. One restaurant, for example, used a loan from the nonprofit to acquire a food truck that enabled it to sell in different communities and expand its customer base, she said.

“All of our loans were accompanied by specific technical assistance—it helps to have capital, but it also helps to have access to expertise to help think through how to get to the next stage or how to manage cash flow,” McLawhorn Ryan noted.

McLawhorn Ryan said it’s important for funding partners to keep offering funding and general support that will enable small businesses of color to recover and advance to the next phases of development, and she cautioned against a return to business as usual over the next few years.

“This is a new economy, and therefore it requires a new perspective,” McLawhorn Ryan said. “If we are intentional about creating inclusive products, inclusive opportunities for businesses to thrive and survive during this time, we have to be dedicated to the tools that are needed to create a truly equitable environment.”

Staff writer for Economy Matters

 

Source: For Small Businesses, Recovery from COVID Could Take Years – Federal Reserve Bank of Atlanta

.

More Contents:

Financial Well-Being: Highlights from the Fed’s Report

July 20, 2020

The Federal Reserve regularly assesses Americans’ financial situation. This Economy Matters article summarizes the Fed’s latest snapshot and looks at how the early stages of the coronavirus pandemic affected people’s finances.

Small Businesses Feel Pressure from COVID-19 Pandemic, Fed Research Shows

June 12, 2020

Nearly all firms have been hit by the coronavirus pandemic, but small firms have been hit the hardest. A recent Federal Reserve study surveyed small businesses about business conditions and expectations, and this Economy Matters article looks at the results.

Homebuilders, Brokers Expect Lower Sales and Construction, Atlanta Fed Poll Shows

June 11, 2020

Residential real estate, long a bulwark of the southeastern economy, has been dampened by COVID-19. This Economy Matters article examines recent poll results to view the pandemic’s impact on the industry.

Assessing the Regional Impact of COVID-19 on Southeastern Employment

May 27, 2020

The coronavirus pandemic has profoundly affected employment. This Economy Matters article introduces the Atlanta Fed’s updated state-level Jobs Calculator, using it to show possible future scenarios, including what it would take to return to pre-pandemic employment numbers.

“You Can Build the Infrastructure from Zero”: A Conversation about Digital Adoption in Emerging Economies

March 26, 2020

Much has been written about the digital revolution’s impact on developed economies, but what about developing and emerging economies? The Economy Matters podcast features an Atlanta Fed economist who discusses his research into the question. podcast

“These Local Problems Do Have Some National Solutions”: A Conversation about Inequality

February 27, 2020

In this special episode of the Economy Matters podcast, Atlanta Fed president Raphael Bostic talks with researcher Anthony Orlando about income inequality and how a seemingly national problem can have solutions that begin close to home. podcast

Wings over America: A Conversation with Author James Fallows

January 2, 2020

In this special episode of the Economy Matters podcast, Atlanta Fed president Raphael Bostic talks with author James Fallows about Our Town, his book that attempts to deepen our understanding of American social, regional, and cultural diversity. podcast

Diplomats: U.S.-Mexico-Canada Agreement to Bring Certainty

December 26, 2019

Trade negotiations always require patience and persistence, and the pending deal among the United States, Canada, and Mexico was no different. An Economy Matters story presents the perspectives of Mexico’s and Canada’s diplomats.

Why the Big Fuss about Little Dots?

December 5, 2019

The insights of the members of the Federal Open Market Committee go into formulating the “dot plot,” a visual depiction of how they see the future path of the fed funds rate. This Economy Matters article explains what the dot plot is—and isn’t.

Delving Into a (Venture) Capital Idea

November 20, 2019

Venture capital is always on the lookout for the Next Big Thing. Economy Matters looks at the research of an Atlanta Fed economist who furthers our understanding of the important role venture capital plays in the U.S. economy.

“They’re Really Punching above Their Own Weight”: Venture Capital and Firm Growth

November 19, 2019

What role does venture capital play in finding and nurturing the Next Big Thing? The Economy Matters podcast tries to answer that question by talking to an Atlanta Fed economist about venture capital’s impact on firm growth and employment. podcast

“Get to Know Your Workforce”: Discussing the Benefits Cliff

November 7, 2019

In this special episode of the Economy Matters podcast, Meghan Cummings of the Women’s Fund of the Greater Cincinnati Foundation talks with Atlanta Fed research director Dave Altig about the benefits cliff and ways employers can make the workplace more accommodating to lower-wage employees. podcast

Talking Trade and Other Things China with Economist Tao Zha

October 10, 2019

China and its economy—the world’s second largest, after only the United States—have become staples of the daily news cycle. Economy Matters spoke to an Atlanta Fed economist about Chinese trade, economic growth, the unrest in Hong Kong, and more.

Atlanta Fed Research Explores Impact of Teen Driver License Programs on Labor Participation

September 26, 2019

Restricting teens’ ability to drive has had measurable improvements on accident rates, but the restrictions have also impeded their ability to participate in the labor force. An Economy Matters article looks at Atlanta Fed research into the impact of teen driving restrictions.

Round and Round: The Basics of the Business Cycle

September 17, 2019

What ignites an economic expansion? What brings one to a halt? The answer: it depends. Economy Matters looks at the business cycle and why its behavior is inherently challenging to predict.

The Economics of Aging and the Frailty Index

September 3, 2019

Gaining a better understanding of people’s health is key to fashioning policies that serve them better as they age and become more frail. Economy Matters examines Atlanta Fed research into the frailty index, a tool that helps assess individuals’ well-being.

“What Are Businesses Reacting To?” A Conversation about Uncertainty

August 28, 2019

The Economy Matters podcast talks to an Atlanta Fed economist about his survey to measure business uncertainty. podcast

“We Do Find a Meaningful Impact”: Novice Driver Restrictions and the Labor Force

July 25, 2019

States have grown increasingly strict about novice teenage drivers. The Economy Matters podcast talks to an Atlanta Fed economist about the impact of stricter policies on teen labor force participation. podcast

Examining the Effects of Cashless Stores

June 19, 2019

Economy Matters looks at research into the impact on consumers (especially the unbanked or underbanked) of businesses’ refusal to accept cash.

Over the Cliff’s Edge? Incentives Hurting Low-Wage Workers

June 13, 2019

Some workers are forced to choose between a pay raise and the loss of a crucial form of public assistance. Economy Matters looks at the vexing phenomenon known as the “benefits cliff” and how to reduce its challenge.

“A Puzzle That Everyone Wants to Solve”: Discussing the Price-Rent Ratio

May 30, 2019

Sometimes an area’s rents increase faster than house prices. But sometimes they don’t. This episode of the Economy Matters podcast discusses the price-rent ratio and what it indicates about housing markets. podcast

Red State, Blue State: Examining the Tax Law’s Spending Effects

May 9, 2019

The 2017 tax law implemented extensive changes to people’s deductions, but the law’s impact varied widely among states. Economy Matters looks at some conclusions based on recent research from the Atlanta Fed.

Speaking Publicly on Privacy: A Conversation about Digital Privacy

April 2, 2019

Safeguarding personal data is a challenge in our digital era. In this special episode of the Economy Matters podcast, Atlanta Fed president Raphael Bostic speaks with Heinz College professor Alessandro Acquisti about the field of privacy economics. podcast

Under Pressure: The Pluses and Minuses of a Hot Economy

March 28, 2019

Does economic history hold any lessons about an economy in a sustained period of full employment? Atlanta Fed economist Julie Hotchkiss discusses her recent research into the question on this episode of the Economy Matters podcast. podcast

Brazil’s Economy, Emerging from Turmoil, Looks to Future

March 14, 2019

Brazil, Latin America’s largest economy and an important U.S. trading partner, is feeling optimistic about its economic future after years of sluggish growth and uncertainty. Economy Matters presents some expert views of the country’s prospects.

Millennials’ Spending Preferences: All That Different?

March 12, 2019

The popular perception of millennials is that their habits differ markedly from those of older generations. But Economy Matters looks at recent survey data and learns that—at least in terms of how they spend money—they’re not very different after all.

New Survey Aims to Sharpen Understanding of Uncertainty

January 24, 2019

If one thing is certain, it’s that the Atlanta Fed is measuring uncertainty. Economy Matters discusses the Survey of Business Uncertainty, which recently made its debut.

Atlanta Fed Economist Researches a “High-Pressure” Economy

January 17, 2019

When the unemployment rate becomes very low, is it beneficial to try to keep it there? An Atlanta Fed economist looked into the question, and Economy Matters discusses her research.

Untangling the Complex Causes of Inequality

December 4, 2018

Arriving at answers about economic inequality requires research from a variety of perspectives because isolating the relevant factors behind it is a formidable challenge. Some top researchers recently visited the Atlanta Fed to discuss their work on the matter.

Piecing Together the Wage Puzzle

November 29, 2018

Wages and their movements offer an important perspective on the macroeconomy. A new episode of the Economy Matters podcast features an Atlanta Fed economist discussing his observations on recent trends. podcast

A Conversation about the Role of Subprime Loans in the Home Price Boom

November 1, 2018

What relationship did the growth of subprime loans have to booming house prices last decade? The Economy Matters podcast talks to two Atlanta Fed economists who researched the question. podcast

“It’s a Really Dramatic Change”: A Discussion of the Economics of Food

October 12, 2018

How our food is sourced has changed dramatically over time. In this Economy Matters podcast episode, Atlanta Fed president Raphael Bostic talks with Purdue University professor Jayson Lusk about food production and economics and their impact on people’s lives. podcast

Tan cerca y, sin embargo, tan lejos

August 14, 2018

A relação dos EUA com Cuba tem sido tensa por dácadas, mas continua a evoluir. A revista EconomyMatters discute algumas das recentes mudanças e quais poderão ser seus impactos econômicos.

Tão Perto, e Ainda Tão Longe?

August 14, 2018

A relação dos EUA com Cuba tem sido tensa por dácadas, mas continua a evoluir. A revista EconomyMatters discute algumas das recentes mudanças e quais poderão ser seus impactos econômicos.

So Close, Yet So Far?

August 14, 2018

The U.S. relationship with Cuba has been a fraught one for decades, but it continues to evolve. Economy Matters discusses some of the recent changes and what their economic impact might be.

Where We Live: Social Capital and Migration

June 28, 2018

What factors go into where people choose to live? What makes some places more attractive than others? The Economy Matters podcast talks to an Atlanta Fed economist about new research into these questions. podcast

The Myth of Rising Home Prices

June 19, 2018

In the run-up to the housing crisis, Atlanta Fed economist Kris Gerardi and his Fed colleagues were seeing an alarming increase in mortgage defaults. This Economy Matters story looks at Gerardi’s research in the housing market, before the crisis and now.

Immigration in the United States: A Historical Perspective

May 24, 2018

In this special episode of the Economy Matters podcast, economic historian Ran Abramitzky discusses ways he has tried to measure the economic effects of immigration. podcast

The Challenge of Predicting Tariffs’ Impact

May 15, 2018

Tariffs have largely fallen into disuse, which complicates a study of their economic effects. Economy Matters looks at how tariffs and their implementation have evolved over decades.

Seeing the Workforce through the Lens of Economics

April 12, 2018

For economists, examining the job market is like looking through a kaleidoscope: many perspectives are available. In this Economy Matters story, Atlanta Fed economist John Robertson discusses some of the ways he views the labor market and some of the tools he has helped develop to improve that view.

A Hemispheric Perspective: Exploring the Atlanta Fed’s Americas Center

February 28, 2018

Economies throughout the Americas are tightly linked, and understanding those linkages is vitally important. Economy Matters looks at the work of the Atlanta Fed’s Americas Center, which furthers our understanding of these relationships.

Atlanta Fed Economist Delivers Housing Finance Expertise

February 8, 2018

Before the U.S. housing market grabbed the headlines, Atlanta Fed economist Scott Frame devoted himself to intensely studying it. Economy Matters looks at Frame’s work and what led him to his professional path.

Atlanta Fed Surveyor Constantly Refines His Craft

January 30, 2018

Taking the pulse of businesses and attempting to divine the future from the findings is an exacting business. In this Economy Matters article, the Atlanta Fed’s director of surveys discusses the craft of constructing useful surveys.

Student Loan Borrowers Face Tough Choices

January 26, 2018

Budgeting is rarely easy, and decisions, especially for young adults, can have lifetime implications. Economy Matters looks at the choices involved in saving for retirement while paying off student loans.

Estudiantes que solicitan préstamos estudiantiles enfrentan decisiones difíciles

January 26, 2018

Los presupuestos rara vez son fáciles, y las decisiones, especialmente para los adultos jóvenes, pueden tener implicaciones de por vida. Economy Matters analiza las opciones de ahorro para la jubilación mientras paga los préstamos estudiantiles.

In Pursuit of Imperfection: An Economist Builds a Better Model

December 19, 2017

Understanding an increasingly complex economy requires increasingly powerful tools. Economy Matters looks at the research of Atlanta Fed economist Nikolay Gospodinov, who is committed to supplying them.

In through the Out Door (and Back In): A Discussion of Industry Regulation

November 29, 2017

Industry regulators often return to work in the industries they had overseen. This episode of the Economy Matters podcast talks to an economist about approaches that have been successful (or not so successful) in remedying the revolving door. podcast

Putting a Price on Unemployment

October 26, 2017

When unemployment hits, how do you quantify its impact? Economy Matters looks at some research.

A Discussion of Unemployment’s Impact on Family Welfare

October 26, 2017

What is the cost of rising unemployment to a family? The Economy Matters podcast talks to an Atlanta Fed economist about her new research that seeks to find out. podcast

What’s Going On with the Labor Force Participation Rate?

October 10, 2017

Who’s working, who’s not, and why? This episode of the Economy Matters podcast delves into recent trends in the U.S. labor force participation rate.  podcast

Atlanta Fed Economist Explores the Future of Finance

September 7, 2017

Economy Matters: Is the financial supermarket poised to go mainstream?

The Economics of Health Insurance

August 31, 2017

What is the financial impact of losing health care insurance? Economy Matters looks at the fallout in Tennessee.

The Economic Impact on Individuals of Losing Public Health Insurance

August 29, 2017

What is the financial consequence to people when they lose public health insurance? An episode of the Economy Matters podcast looks at new Atlanta Fed research that attempts to quantify the effects. podcast

Taking the Pulse of Firm Optimism

July 31, 2017

This Economy Matters podcast looks at southeastern firm optimism during the presidential transition. podcast

Economists Untangling Complex Insurance Issues

June 22, 2017

About half of Americans over 50 will stay in a nursing home at some point. Yet only about 10 percent of those over 65 have long-term care insurance. Atlanta Fed economists are researching this and other puzzles in U.S. health insurance.

An Eye on the Future: A Discussion about the Long-term Care Insurance Market

June 22, 2017

The Economy Matters podcast talks to Atlanta Fed economists about the long-term care insurance market. podcast

The Wherefores and Whys of Wages

May 24, 2017

After an extended period of relative stagnation, wages have been showing signs of growth. This episode of the Economy Matters podcast discusses recent wage trends and how the Atlanta Fed views wage behavior. podcast

Atlanta Fed Research Examines Debt’s Effects on Health

March 7, 2017

Everyone knows that money woes can prey on one’s mind. But what about on one’s health? Economy Matters looks at recent Atlanta Fed research that explores the impact of delinquent debt on mortality.

Travel Blooms in Cuba as U.S. Relations Thaw, but Obstacles Remain

March 2, 2017

Once off limits to U.S. tourists for decades, Cuba is now luring growing numbers of American visitors. But a number of questions loom, and the answers to them will determine if this growth will continue. Economy Matters looks at the perspective of Cuba experts to learn more.

A Conversation about the Health Effects of Delinquent Debt

March 2, 2017

It’s no surprise that carrying unmanageable debt is stressful. But can it also bring adverse health effects? The Economy Matters podcast features an Atlanta Fed economist who looked into the question. podcast

An Eventful Decade: Atlanta Fed President Dennis Lockhart Looks Back at His Tenure

February 3, 2017

After a decade at the helm of the Atlanta Fed, Dennis Lockhart is preparing to step down as president and CEO. In this Economy Matters podcast episode, Lockhart looks back at his time leading the Bank. podcast

To Fail or Not to Fail? A Discussion of Banking’s “Too Big to Fail” Problem

January 5, 2017

The problem of financial institutions whose distress would be large enough to imperil the larger economy has vexed policymakers for decades. The Economy Matters podcast looks at some of the challenges involved in solving too big to fail. podcast

A Healthy Labor Market Still Includes Many Puzzles

December 8, 2016

Today’s labor market poses numerous questions for economists. Economy Matters looks at some of these questions and considers the good news they portend, as well as the not-so-good news.

Immigration, Offshoring, and Their Effects on U.S. Wages

December 1, 2016

When low-skill immigrants arrive in the United States, and middle-skill jobs are offshored, how are wages affected? An episode of the Economy Matters podcast looks at research into the question. podcast

​Examining China’s Economy: A Conversation with Atlanta Fed Researchers

September 22, 2016

The Chinese economy—the world’s second largest—is of broad interest to economists and many others, and efforts to better understand it are numerous. This episode of the Economy Matters podcast talks to Atlanta Fed economists who have worked to provide clearer data about China’s economy.

Trade Dynamics and China, Part 3: How Do the United States and China Compare?

September 20, 2016

This final article in a three-part series in Economy Matters looks at trade flows between China and the rest of the world, comparing them with the trade flows of the United States. How have these patterns changed over time and across what types of goods?

Dinámica Comercial y China, Parte 3: Una comparación entre Estados Unidos y China

September 20, 2016

Este último artículo de una serie de tres partes publicado en Economy Matters aborda el flujo comercial entre China y otros países del resto del mundo, y lo compara con el flujo comercial de Estados Unidos. ¿De qué manera han cambiado estos patrones comerciales a través del tiempo y con respecto a los tipos de bienes?

A Dinâmica Comercial e a China, 3a Parte: Como Comparar os Estados Unidos e a China?

September 20, 2016

Este último artigo de uma série de três da Economy Matters examina os fluxos comerciais entre a China e o resto do mundo comparando-os aos fluxos comerciais dos Estados Unidos. Como esses padrões de comércio mudaram ao longo do tempo e entre quais tipos de mercadorias?

Economistas do FED de Atlanta Investigam os Mistérios da Economia Chinesa

September 8, 2016

A China é a segunda maior economia do mundo, mas ainda é desafiador entender totalmente sua economia. Uma equipe de economistas do FED de Atlanta está trabalhando para abreviar esse desafio. Economy Matters conversou recentemente com a equipe sobre este trabalho.

Atlanta Fed Economists Probe Mysteries of Chinese Economy

September 8, 2016

China’s growing economy has increasing influence on the economy of the United States. Economy Matters talks to some Atlanta Fed economists who are working to better understand China’s economic data.

Economistas de la Fed de Atlanta investigan misterios de la economía de China

September 8, 2016

China es la segunda mayor economía del mundo pero entender su economía es un desafío. Un equipo de economistas de la Fed de Atlanta está trabajando para dilucidar este desafío. Economy Matters conversó recientemente con ellos acerca de su trabajo.

Are Lemons Sold First? A Discussion of the Mortgage Market

August 18, 2016

The housing crisis made clear that not all mortgage bonds are equally good investments. But what can we learn today from how mortgages are offered for sale as investments? The Economy Matters podcast talks to an Atlanta Fed economist to find out.

Coming to Our Census: A Look at the Atlanta Fed’s Research Data Center

July 21, 2016

The Atlanta Fed is home to a Research Data Center (RDC), which gives qualified researchers access to data available in few other places. In this Economy Matters podcast episode, Julie Hotchkiss, director of the Atlanta RDC, discusses how the facility enables research that otherwise would not be possible.

Part Chart, Part Science: The Evolution of Economic Indicators

July 14, 2016

Just as the economy has evolved over many decades, so too have the ways economic activity is measured. What was once perhaps a key metric might now be only a marginally useful vestige in an economist’s toolbox. Economy Matters looks at some newer tools and how they help assess the economy.

Small Businesses Look to Alternative Funding Sources

June 16, 2016

​Many options are available these days for financing a small business, and this story looks at some of them.

Keeping Up with the Gazelles, Part 5: For Gazelle Founders, Hiring Goes beyond the Resume

June 16, 2016

All businesses seek the right hires, but for a small business, having the right employees is arguably even more crucial. The fifth and final installment of Economy Matters‘ Gazelle Project talked to some founders of gazelles—or fast-growing small businesses—about the role of hiring in establishing and building a business.

ECONversations Explores Aging’s Impact on the Economy

May 26, 2016

​The number of Americans 65 and older will increase by 66 percent over the next two decades. This article offers highlights of a recent ECONversations webcast in which two Atlanta Fed research economists discussed the economic and fiscal implications.

Senior Housing Industry Aging Gracefully

May 26, 2016

The surge in the population of older Americans is fueling the growth of “senior living facilities” to house this population. Economy Matters looks at this nascent industry.

Dinámica del Comercio y China, Parte 2: El Mundo – Espanõl

May 2, 2016

¿Cuánto importa y exporta China en los mercados globales y que tipos de bienes intercambia? La segunda entrega de una serie de tres partes de Economy Matters describe el comercio entre China y el resto del mundo en las últimas décadas.

Trade Dynamics and China, Part 2: The World

May 2, 2016

How much does China import and export globally and what types of goods are exchanged? Economy Matters charts China-world trade over the past few decades in the second of a three-part series.

A Dinâmica Comercial e a China, 2ª Parte: O Mundo – Português

May 2, 2016

Quanto a China importa e exporta globalmente, e que tipos de mercadorias são comercializadas? A segunda parte da série de três artigos da Economy Matters faz um mapa da participação chinesa no mercado mundial nas últimas décadas.

German Central Banker Says Euro Economy Gradually Recovering

April 19, 2016

The European Central Bank loosened monetary policy to boost the euro area economy. But that brings economic risk, said a German central banker at a recent luncheon at the Federal Reserve Bank of Atlanta. Economy Matters offers highlights of his presentation.

Health Care Sector Projected to Expand

April 14, 2016

Medical demands of the increasingly aging population will boost the health care and social assistance sector, contributing substantially to the U.S. labor market. This Economy Matters article investigates where the jobs will be and looks at the balance between aging patients and an aging workforce.

Where Have All the Teen Workers Gone?

April 7, 2016

If you remember the job you held as a teenager, you might be part of a dwindling group. Fewer teens are entering the labor force today, and Economy Matters looks at some of the factors behind the decline.

The State of the States: Uneven Recovery and Tough First Quarters

March 18, 2016

How have states fared since the end of the recession? This Economy Matters article looks at state-level GDP data to find out.

Among Ugly Houses, Ours Is Prettiest

March 17, 2016

​ Soon after the release of Michael Lewis’s book The Big Short, some Fed economists wrote an analysis of the book for the Atlanta Fed’s Real Estate Research blog. Read about them here.

Keeping Up with the Gazelles, Part 4: Social Capital—The Battle Cry of the Gazelle

March 10, 2016

Founders of small businesses always have a vision for what they want to achieve, but they don’t always have all the answers. Economy Matters talked to some founders of gazelles—or fast-growing small businesses—about the role of mentors in establishing and building a business.

A Brighter Picture: Measuring Regional Variation in Labor Utilization

February 23, 2016

By some calculations, labor resource utilization rates across the United States still have not returned to prerecession levels. But according to this story in Economy Matters, the Atlanta Fed’s ZPOP measure paints a brighter picture.

Taking the Temperature of Real Estate

February 18, 2016

Regionally, the real estate sector has been important to the economy and has acted as a bellwether for other sectors, such as employment. In the new episode, two Atlanta Fed experts discuss real estate—and whether we’re in a new bubble.

Ask the Expert: An Interview with Stephen Kay

February 11, 2016

With the U.S. labor force aging and baby boomers moving into retirement, pensions have garnered much attention in recent years. Economy Matters spoke with an Atlanta Fed pension expert about the challenges and opportunities ahead.

Economists’ Views of The Big Short

February 4, 2016

​ Soon after the release of Michael Lewis’s book The Big Short, some Fed economists wrote an analysis of the book for the Atlanta Fed’s Real Estate Research blog. Read about them here.

U.S. and China Trade by the Numbers

February 4, 2016

​ Just as every picture tells a story, numbers can also be quite telling. Economy Matters has selected a few interesting integers about the trade relationship between the United States and China.

A Dinâmica Comercial e a China, 1ª Parte: Os Estados Unidos – Português

January 28, 2016

Quão atrelado ao desempenho econômico da China está o desempenho da economia dos EUA e o desempenho das economias em todo o mundo? Esta primeira parte de uma série de três artigos da Economy Matters lança uma luz sobre essa questão.

Trade Dynamics and China, Part 1: The United States

January 28, 2016

How tied up in China’s economic performance is the performance of the U.S. economy and the performance of economies around the world? This first installment of a three-part series in Economy Matters sheds some light on this issue.

Dinámica del Comercio Internacional y China, Parte 1: Los Estados Unidos – Espanõl

January 28, 2016

Cuál es el grado de asociación de la actividad económica en China y el desempeño de la economía Estados Unidos y del resto del mundo? Esta primera entrega de una serie de tres partes en Economy Matters arroja algo de luz sobre esta cuestión.

Lockhart: Economy Achieving Liftoff Conditions

January 14, 2016

In a recent speech, Atlanta Fed President Dennis Lockhart observed a number of improving economic barometers. Can a monetary policymaking move be far behind? Economy Matters summarizes his remarks.

Expecting Solid Growth, Lockhart Focusing on Inflation

January 14, 2016

Setting monetary policy requires an understanding of current conditions, but it also takes into account how policy changes reverberate down the road. Economy Matterslooks at recent remarks by Atlanta Fed President Dennis Lockhart about considerations that go into the policymaking process.

Going Inside GDPNow

January 14, 2016

Since its 2014 debut, the Atlanta Fed’s GDPNow tool has compiled an impressive track record in estimating changes in the gross domestic product. In this episode, Atlanta Fed economist Pat Higgins, the creator of GDPNow, discusses the tool, how it works, and some of the challenges involved in measuring the economy.

Keeping Up with the Gazelles, Part 3: Financing the Herd

December 23, 2015

Founders of small businesses face innumerable challenges, chief among them financing. Economy Matters talked to some founders of gazelles–or fast-growing small businesses–about how they financed their endeavors and how financing affected their business strategies.

Of Cars and Capital Flows: Mexican Central Bank Leader Discusses Auto Production, Global Challenges

December 17, 2015

Mexico, one of the largest trading partners of the United States, has been experiencing significant economic changes. A representative of Mexico’s central bank recently visited the Atlanta Fed to discuss some of them, and Economy Matters recaps his remarks.

A Story in Charts: Who Works for Minimum Wage?

November 12, 2015

Most minimum wage workers work part-time. This week, Economy Matters tells a story of minimum wage workers in a series of charts.

Keeping Up with the Gazelles, Part 2: Why Gazelle Founders Set Sail

November 12, 2015

There are as many reasons for founding a business as there are businesses. Economy Matters talked to some founders of gazelles, or fast-growing small businesses, to learn their reasons for setting out on their own.

The Death of a Reserve Currency

November 12, 2015

The Dutch bank florin—the dominant currency in Europe during much of the 17th and 18th centuries—lost its reserve currency status during the period 1781–92. In this Economy Matters podcast, Atlanta Fed economist Will Roberds talks about the rise and fall of the currency and what lessons it holds for today’s central bankers.

Atlanta Fed’s Hotchkiss: Don’t Be Overly Alarmed by Shrinking Labor Force

November 5, 2015

Some economists have been fretting about the declining labor force participation rate. But how big a source of concern should it really be? Economy Matters looks at a recent examination of some trends to draw conclusions.

The Relationship between the Minimum Wage and Rates of Youth Drinking and Driving

October 15, 2015

If a young person gets a raise at work, could the extra money lead to increased reckless behavior such as drinking and driving? A new Economy Matters podcast discusses Atlanta Fed research into the question.

Atlanta Fed President Lockhart’s Economic Narrative Considers the Long View

October 15, 2015

Setting monetary policy requires an understanding of current conditions, but it also takes into account how policy changes reverberate down the road. Economy Matters looks at recent remarks by Atlanta Fed President Dennis Lockhart about considerations that go into the policymaking process.

Tools for the Armchair Economist: Taking the Pulse of GDP

October 1, 2015

Gross domestic product, or GDP, is an important measure of the economy’s health. However, official figures are released with a delay, posing challenges in gauging current conditions. Economy Matters explores the Atlanta Fed’s GDPNow model, which provides several real-time forecasts each month.

Gender Equality Is Smart Economics, Expert Says

October 1, 2015

Economists often base decisions on efficiency, but does this sort of decision making consider its gender impact? Economy Matters sat in on a recent talk by an academic who discussed the question.

What History Can Teach Us about E-Money

October 1, 2015

Could government-issued and privately issued electronic money coexist? Based on the 1914 to 1934 experience in the United States, the answer is yes, according to an Atlanta Fed working paper. Economy Matters summarizes the paper.

A Story in Five Charts: Who Works Part-Time?

September 24, 2015

More than three-quarters of all part-time workers in the United States choose to work fewer hours. The remaining quarter are involuntary. Economy Matters tells you who the part-timers are and their reasons for working part-time.

Keeping Up with the Gazelles, Part 1: Is the Herd Thinning?

September 17, 2015

Young, high-growth companies—sometimes known as gazelles—have traditionally been an important source of job creation, but the number of U.S. start-ups is in long-term decline. Economy Matters looks at the impact a diminishing herd of gazelles could have on the employment market.

Tools for the Armchair Economist: What’s Your Number?

September 17, 2015

Track your own personalized level of inflation with myCPI, a new calculator from the Atlanta Fed that tailors the U.S. inflation measure to individual circumstances. Economy Matters introduces this tool for the “armchair economist.”

The Government’s Conservatorship of Fannie Mae and Freddie Mac

September 17, 2015

When the U.S. housing market swooned in 2008, the housing agencies Fannie Mae and Freddie Mac became distressed and entered into a government conservatorship that was intended to be temporary. In this Economy Matters podcast, Atlanta Fed economist Scott Frame discusses the circumstances leading to the ongoing conservatorship.

How Was Steve Jobs Unlike Mark Twain? A Conversation with Economist David Galenson

September 10, 2015

Conceptually creative people do dramatic things, while experimentally creative people just keep working away, eventually accomplishing great things. Economist David Galenson posits two types of creativity, and argues for more research.

Tools for the Armchair Economist: Atlanta Fed Adds Wage Growth Tracker

September 3, 2015

Healthy wage growth has been an important missing ingredient in an otherwise strengthening economy. But recently, the Wage Growth Tracker, a new tool from the Atlanta Fed, showed a sharp rise in wages. Economy Matters introduces this tool for the “armchair economist.”

Ask the Economist

September 3, 2015

Atlanta Fed research director Dave Altig recently sat down with Economy Matters to discuss productivity, technological innovation, and the reasons he feels optimistic about the future of the U.S. economy.

Getting to the FOMC

August 20, 2015

All eyes have been on the Federal Open Market Committee as the central bank’s main policymaking body considers when to raise the federal funds rate for the first time since 2008.

The ABCs of the FOMC: Atlanta Fed President Dennis Lockhart Discusses the Policymaking Process

August 20, 2015

Not many people get the opportunity to sit in on a meeting of the Federal Open Market Committee. But in this debut Economy Matters podcast, Atlanta Fed President Dennis Lockhart, a voting member of the FOMC, takes us behind the scenes, describing how participants conduct deliberations, reach consensus, and cast votes on setting national monetary policy.

Wage Growth Is Intertwined with the Fed’s Dual Mandate

August 20, 2015

Wage growth matters to the Fed. Wages and broader labor costs are crucial to both components of the central bank’s dual mandate: price stability and maximum employment.

How Much Can Monetary Policy Do?

August 20, 2015

Through 2014, a range of indicators suggested that the underutilization of labor market resources gradually diminished. But how much labor market slack remains?

The Smallest of Small Firms: How Are They Financed?

August 20, 2015

Every business has to start somewhere, and most start with one employee. New Atlanta Fed research—summarized in this Economy Matters article—looks into how these firms—known as nonemployers—obtain financing.

%d bloggers like this: