Perspectives of Policy

      The onset of a worldwide pandemic sparked the increase of online business and e-commerce. As we witnessed businesses be shut down when the nation was put on lockdown, a new economic opportunity arose. With this wave of online business came the new concept of microbusinesses.  Online microbusinesses are defined as businesses with a discrete domain name and an active website. About 90% of these online businesses employ fewer than 10 employees. Founding a microbusiness is easy and simply takes a passion of some form. The pandemic started a new trend of these so called microbusinesses. In fact, Americans created 2.8 million more online microbusinesses in 2020 than in 2019, which was following the hit of the pandemic. This increase in online businesses aligns with the recent overall increase in entrepreneurial activity. Founders of microbusinesses generally have a separate profession, are following interests, and do not associate with a larger industry. This en...

      One of the most major shifts in the economy over the last decade was the steady decrease in interest rates. At the start of the last decade The  Congressional Budget Office projected that the yield on 10-year Treasury bonds would gravitate around an average of 5%. Yet, it is currently sitting at a little more than 3%. There was a point in 2019 where it even dropped below 2%. This figure is the best testament to the trending decline of interest rates in America. This steady decline in the natural interest rate allows for the U.S. government to take on a greater federal debt, and reduces borrowing costs. On the other hand, it puts the Federal Reserve in a tough spot, especially if we find ourselves amidst another eminent recession. While these low interest rates can evidently boost the economy, there can also be many adverse affects. Inflation is a precise example and a major issue that the U.S. is enduring. Inflation tends to have an inverse relationship with th...