How does the coronavirus and the stock market correction/dip/slide/plunge impact teachers and education?
The sudden outbreak of the coronavirus reverberated in the stock market. Over the past week the stock market, as measured by the Dow-Jones has taken a hit, meaning a drop of over three thousand points, more than 10%, a drop reminiscent of the beginning of the 2008 recession.
The economies of China, the European Union and the United States are irrevocably intertwined. Cell phones, computers, refrigerators, thousands upon thousands of products are made in China; lower wages mean lower prices for the end use consumer. The longer the Chinese economy is stalled the greater the shortages, the higher the prices, that old supply and demand thing.
In uncertain times corporations and individuals are wary, they stash dollars in interest-bear accounts, they decide not to buy the house or buy a car or expand a business. The entire economy stalls, jobs begin to dry up as expansion moves to contraction.
How does this crisis impact schools and teachers?
If the economy slows tax revenues slow, states, and localities collect fewer dollars and state and local budgets are reduced.
In a month New York State will agree on a budget for the 20-21 year, and, the governor and the legislature are bickering over how to address a 6.1 billion dollar increase in Medicaid funding. The State Department of Education asked for a $2 billion increase in state aid, the governor’s budget only included $800 million. CONTINUE READING: How does the coronavirus and the stock market correction/dip/slide/plunge impact teachers and education? | Ed In The Apple