Stimulus payments of $2,000 will be a big boost to those that need it, and won’t do any harm to the economy. Most of all, it’s politically savvy.

By Conor Sen

Let’s get down to brass tacks: Sending $2,000 in direct payments to Americans is a politically effective but economically inefficient way to provide needed relief to workers and families.

When Congress recently approved a new stimulus package, it included $600 cash payments to Americans. But that struck many people as a measly gesture compared to the $1,200 checks issued in the previous stimulus, and considering the economic damage done by the pandemic over the nine months since the Cares Act. …

The iPhone maker has more than enough capital and R&D to make a splash in the auto business

By Liam Denning

Tim Cook must be gutted.

It would be hard on the company’s managers, but not on consumers or society

By Cathy O’Neil

What would happen if Facebook disappeared tomorrow? Would people suddenly be unable to communicate online? Would the economy screech to a halt? Would anyone be deprived of a good, service or piece of information that was somehow crucial to their existence?

Of course not. Which is why the one of the company’s main arguments against a breakup — that it’s too big and complex to dismember — makes no sense.

Some companies play such an important role in the economy or in people’s lives that their failure or disintegration could be disastrous. This allows them to drive a hard bargain with the government if they get into trouble: Help us, or else. During the 2008 financial crisis, for example, the government had little choice but to rescue the largest U.S. banks, lest their demise bring down the country’s whole system of credit and payments. …

Before Trump, outgoing presidents — and even an incoming one — mainly acted out with remarkably personal slights

By Stephen Mihm

In 1797, President George Washington was determined to unambiguously hand over the nation’s reins for the first time. He attended the inauguration ceremony of John Adams, his vice president, to show his support. At its conclusion, he offered a symbolic gesture of subservience, dutifully waiting for Adams to exit the room before he did.

Unfortunately, Adams struggled to follow Washington’s patriotic lead, turning the peaceful transition of power into a stage for his own insecurities and pettiness. He wouldn’t be the last leader to act out during these critical moments for American democracy.

On his first full day as president, John Adams found the time to complain to his wife in a letter about Washington’s magnanimous behavior. His predecessor, he wrote, “seemed to enjoy a triumph over me. Methought I heard him say, ‘Ay, I am fairly out and you fairly in! See which of us will be happiest!” …

Think about fees, security and customer service access

By Erin Lowry

Last month my husband asked me about the trading app Robinhood and whether I’d seen reports of its users getting hacked and having their money stolen. Apparently, the victims had trouble getting in touch with company representatives.

The situation led to a larger conversation about investing apps and whether one should use them in lieu of traditional brokerages. There are a few things investors should consider before deciding that an app is right for them.

Apps like Acorns, Robinhood and Stash — which were founded in 2012, 2013 and 2015 respectively — have grown in popularity recently. …

Beat the pandemic blues by investing in exercise, experiences and other people’s well-being

By Sarah Green Carmichael

As the saying goes, money can’t buy happiness. That certainly seems to be true in 2020 — rates of depression and anxiety are up, even though many households have more cash on hand than usual. Savings rates in the U.S. spiked to a previously unfathomable 34% in April and sat at a still-high 14% in September. Savings in the U.K. have also hit record highs, with households saving 29% of their disposable income.

There must be some way to use this extra cash to brighten our spirits. Even if gyms, cafes, hotels and restaurants aren’t safe. Even if travel is restricted. Even if the best things in life are free. After all, in a pandemic, those free activities — like visiting a house of worship or game nights and dinner parties — can be deadly. …

How much the U.S. economy would be helped by forgiving college debt is a matter for debate

By Noah Smith and Michael R. Strain

A tantalizing possibility has been dangled in front of millions of Americans who took on crippling debt to acquire a college education: What if that financial burden was lifted? The Democratic Party endorses the idea of the government forgiving at least a portion of the nation’s $1.6 trillion in student loans, but opponents in both political parties see it as the wrong move for the economy. Bloomberg Opinion columnists Noah Smith and Michael Strain, both of whom have written about the proposal, recently got together online to debate.

Noah Smith: With the Senate likely to remain in Republican hands, some are calling on President-elect Joe Biden to cancel student loans as a way of stimulating the Covid-stricken economy. In a recent column, I argued that this would not make an effective stimulus, since the type of people who have loans are not likely to spend more if their debt is canceled. …

Hindsight shows that the Cares Act saved the U.S. economy, and how badly the country needs another round of bipartisan statesmanship

By Michael R. Strain

There is widespread agreement that the $1.8-trillion economic recovery package that went into effect in March — the Cares Act — averted economic disaster after the coronavirus pandemic began. But even that conventional view understates its true success.

With each passing month, the evidence mounts that the Cares Act performed better than even its strongest advocates thought it would. Perversely, its success is undermining the perceived need for Congress to provide additional support. Households, workers and small businesses will bear the brunt of the lethargy among both Democratic and Republican congressional leaders.

One way to see how strikingly the Cares Act exceeded expectations is to look at evolving professional forecasts of future economic performance. On May 15, about six weeks after the Cares Act was signed, the Survey of Professional Forecasters’ median prediction for third-quarter gross domestic product growth was an annual rate of 10.6%, and forecasters expected a 12.9% unemployment rate. On Aug. 14, forecasters expected even faster improvement. The median prediction for third-quarter GDP growth was 19.1%, with a 10% unemployment rate. …