Below is a selection of articles I have found interesting and or relevant this week. COVID-19 is a very strong theme apologies, please try and enjoy.
• Will the coronavirus make the digital divide worse?
This short piece by Tyler Cowen highlighting the issues of digital inequality in light of COVID-19
• This is the end of the office as we know it
By Rani Molla for Vox, This article explores offices in the age of social distancing. This article highlights the two obvious changes: more people working from home and greater separation inside of office buildings. One thing that came to mind whilst reading this was what if any impact this may have on smaller regional cities. With office space in New York, Tokyo, San Fransisco and London already in short supply (and commanding high rents) if office work is going to remain the norm will companies start to look at alternative cities where space is more available / affordable?
• Is Private Equity having its Minsky Moment?
Excellent essay by Matt Stoller, charts the murky history from which the modern day private equity firms have grown. It highlights possibly the biggest financial bomb COVID-19 could set off. If things were to come crumbling down the pieces presents relevant and balanced scenarios to considers.
“The Fed can’t ultimately can’t print a functional economy. And at the end of the day, no matter how many games you play with debt loads and capital structures, firms have to have customers, and people can only be customers if they have income.”
Extra spice is added by this being a US election year. Prominent Democrats have been criticising and calling for legislation, to curb some of the worst practises of PE firms, it was hard to see the big PE firms avoiding the spotlight. COVID-19 has just made things a lot more interesting.
• China’s Economy Shrinks, Ending a Nearly Half Century of Growth
Keith Bradsher writing in the New York Times. It used to be said “when the US sneezes the world catches a …”, perhaps not the best analogy here. Societally though it should not be underestimated how Xi Jinping (and previously Hu Jintao) success as a leader has been based on the loyalty and cooperation gained by delivering year on year rises in living standards, driven by superb economic growth.
• NHS staff told ‘wear aprons’ as protective gowns run out
Where are the good Burberry?
Beat Poetry by Frank O’Hara, the title seemed fitting for these times. A positive of social distancing and shelter in place is a new found love of poetry.
Bounded Rationality 