Above the Fold

Can Street Vendors Turn China’s Economy Around?

When Chairman Mao Zedong died in 1976, China’s then fragile economy, already reeling from an earthquake earlier in the year, went into a tailspin that took several years and major reforms to get back on track. While data from the 1970s’ mostly agricultural China isn’t extremely accurate, some experts are comparing the surprise GDP contraction of 6.8% in Q1 to the effects felt nearly 45 years ago. 

Communist leaders are taking somewhat extreme measures to not only get GDP back on track, but keep the Chinese people working. To that end, Premier Li Keqiang is employing a tactic that has many analysts talking — the promotion of micro businesses. After much of China pushed them out, Mr. Li is encouraging the return of street stalls, food trucks, vendors and other small retailers. With no rent to pay and tiny startup costs, Li and his supporters believe the return of street vendors can help the nation and its citizens return to more prosperous times.

Three Things 

1. The Fed Speaks… – The Federal Reserve (Fed) on Wednesday announced its continued aggressive accommodative plan to help get the economy back into the black and return employment to pre-pandemic levels. The central bank said it will increase its holdings of Treasury and mortgage bonds “at least at the current pace to sustain smooth market functioning,” and projects near-zero interest rates until at least 2022. 
2. Check Your Receipts for This New Fee – In an effort to recoup revenues lost during the shutdown, and to defray costs of sanitizing and limited service, many companies across the U.S. are turning to fees. While some of these “COVID-19 fees” are upwards of 25% of your bill (most have been in the teens), owners who charge them say they are necessary to keep their doors open. And though a source of contention for some, many consumers are OK with some sort of fee so long as it’s disclosed and not too steep. 
3. Yes, AI Can Swim Too – Well, not exactly, but a form of artificial intelligence, called computer vision, is now being used at public and private pools to help prevent drowning. One company, Coral Detection Systems, makes a triangular device that sits in the corner of a pool with a camera suspended just below the surface. The software has recorded and studied thousands of swimmers’ behavior and can detect whether a potential drowning is happening in real time and alert the owner, lifeguard or parent immediately.

Did You Know?

The Latest (Fact-Checked) COVID-19 Positives

• Despite images of thousands of beachgoers in Florida and an increasing rate of new coronavirus cases in the state, the percentage of test results that are positive is only 4% (less than 5% for 14 days is the World Health Organization’s guideline for continued reopening). Hospitalizations in the state have remained relatively flat, but experts do warn it could take days or weeks for new cases to turn worse.
• Scientists at Tulane University are studying whether the MMR vaccine, used to prevent measles and rubella, could prevent sepsis in COVID-19 patients. It may also explain why children tend to be less affected by the novel coronavirus.