Above the Fold

Will $300 in Additional Weekly Benefits Move the Economic Needle for America?

Even though the president is now pushing for greater monetary benefits for Americans eligible under the latest stimulus plan, it looks as though qualified individuals will receive a lump sum payment of $600 each, along with $600 for each dependent under age 18. The federal government will also offer an additional $300 per week for millions of unemployed workers, with some (mainly those who are partially self-employed) netting an additional $100 per week on top of that. There’s also a provision for an 11-week extension of a CARES Act program that allows independent contractors (gig workers) to qualify for the same additional $300 in unemployment benefits as regular workers.

These new benefits are set to last until March 2021 and though seemingly miniscule, could be absolute lifelines for consumers and the economy at large. With roughly $1,400 to $1,600 in supplemental monthly income, consumers in many areas will likely direct those funds immediately toward food, shelter and basic staples. And while high-dollar purchases and autos might not see a boost, that money will immediately flow to landlords, lenders (banks), grocers and other producers that could be on the brink themselves. Ironically, the lower amount is more likely to be spent than saved, and it still keeps recipients motivated to keep looking for work as that safety cushion is quite a bit smaller. 

Three Things 

1. Chipotle’s New Secret Weapon: Cauliflower – The fast-casual chain Chipotle has been on a roll, but some analysts believe that its national rollout of cauliflower rice on Jan. 4 could be the ingredient that propels the stock to the next level. After months of testing, Chipotle found consumers loved the low-carb, healthier rice option and see it as a means of attracting more customers, more often since there’s less of a guilt factor. Oh, and the cauliflower rice option offers better margin and is $2 more than white or brown rice.
2. 5G Falling Flat for Verizon – According to The Verge, testing has shown that some areas of Verizon’s nationwide 5G can be slower than legacy LTE networks. The issue has to do with the fact that Verizon (and others) are still integrating ultrafast 5G technologies, and just because a system operates on 5G bands, doesn’t mean it is utilizing the fastest, most powerful formats. Tests show that some of Verizon’s solutions, like its mmWave technology, are blazingly quick, but signals tend to get blocked easily. For now, consumers will just have to wait for the complete rollout to realize the true benefits and maybe turning off 5G until systems are ready. 
3. Next Up: COVID-Hacking – The Wall Street Journal recently reported a growing threat of cyber attacks as it relates to the global vaccine rollout. Hackers and organized crime networks are targeting producers, logistics companies, storage facilities and others in an effort to gain control (or at least perceived control) of the critical inoculations for ransom or simply to create mayhem. 

Did You Know?

Merry Christmas!

We at Westwood wish you and yours a very happy and healthy Christmas! And while you’re sitting around the table with loved ones or on a Zoom call sharing a virtual turkey, you can remind everyone that Rudolph the Red-Nosed Reindeer was actually a marketing ploy started by department store Montgomery Ward back in 1939. Instead of giving away coloring books it purchased from others, the company decided to create its own and save a few bucks — Rudolph was the feature of their first, self-published coloring book.