Japan's Economy Fell Into Recession in First Quarter of 2020

The Nihombashi Takashimaya Shopping Center in Tokyo partially reopened to customers on Monday

Japan's economy has fallen into a recession in the first quarter of 2020 and is expected to worsen in the current quarter. Japan has the world's third-largest economy after the U.S and China. They shrank 3.4% in the January-March period as they pushed down the initial coronavirus pandemic effects. The Economy Minister Yasutoshi Nishimura said "the situation has become even more severe in April and May after a state of emergency was issued."

He added, "the economy is expected to shrink substantially for the time being." Prime Minister Shinzo Abe declared a national state of emergency in April to contain the spread of the virus but last week he lifted it in 39 of 47 prefectures. 

The reality of the third largest economy being in a recession and not expecting the United States not to follow closely is something many Americans are now starting to realize, with the unemployment rate so high and the pandemic still taking toll of the lives of everyone across the globe. 

Source: https://www.wsj.com/articles/japans-economy-falls-into-recession-in-first-quarter-of-2020-11589760760?mod=hp_lead_pos6

First Named Tropical Storm Forms in Atlantic Ahead of Hurricane Season

A satellite image shows Tropical Storm Arthur off the coasts of Florida, Georgia and the Carolina's on Sunday.

Hurricane season in the Atlantic is quickly approaching and one Tropical Storm has already started forming off the southeast U.S coast and is headed towards North Carolina. The National Hurricane Center already issued a tropical-storm warning for a portion of the North Carolina coast. The models show that the storm has strong winds and heavy rains which should start affecting the area soon. 

North Carolina has started their reopening phase like many states in the U.S have already after weeks of corona virus related lock down measures. Many of their beaches have already opened up as well. The hurricane center has forecast dangerous coastal surf conditions and rip currents from northward Florida to the mid Atlantic in the next couple of days. 

Because of the corona virus, getting hit with a tropical storm in the most vulnerable the country has been in a while would be disastrous. Many of the coastal states should start preparing as much as possible because you never know when things might just get worse. I believe companies could certainly use this hurricane season to their advantage with different marketing tactics to customers as the corona virus pandemic already has the world on alert. 

Source:  https://www.wsj.com/articles/first-named-tropical-storm-forms-in-atlantic-ahead-of-hurricane-season-11589733433?mod=hp_listb_pos2

Incoming College Students Could Take a Gap Year Over Covid-19 Uncertainty

George Ma in Tanzania near Mount Kilimanjaro. If his gap year is accepted, and restrictions are lifted, he plans on using the time to travel more.

Many newly accepted college students are considering taking a gap year because of covid-19. Parents and their kids are looking at the different options in consideration of college campuses not being able to open for Fall 2020 because of the pandemic. A gap year is typically a year where a student takes time to grow and explore before they start college, it can usually include international travel, internships or participation in various programs. This year, it seems like an option many students are willing to take. 

Many college counselors and gap-year consultants are getting phone calls from parents who are worried about how college courses are going online and worried about the quality of education their children might not fully get because of online classes. Mostly everyone is waiting to see how the summer goes to make any final decisions. They are also worried about the price of tuition, and wondering if colleges will lower tuition if they do decide to take the online route. 

Most students who decide to take a gap year have to resubmit financial aid-applications to colleges for the following year and some colleges don't usually give credit for courses taken at other schools, so the student would have to apply as a transfer. The external market environment for most colleges is definitely being affected by the pandemic and how students make decisions for the upcoming fall semester. 

Source: https://www.wsj.com/articles/incoming-college-students-could-take-gap-year-over-covid-19-uncertainty-11588687598 

Saving More for Retirement vs. Work Longer

We spend most of our lives working, so we want to have enough money to enjoy when we can retire. But this article shows that work longer can get more funds than saving more for retirement. The most critical issue is social security. When people retire, social security accounts for 80 percent of their income. So if you can save money in advance, you can increase the amount of money you can enjoy in retirement to some extent. But, “if a 62-year-old postpones retirement and Social Security benefits for four years, their retirement income or standard of living would increase by about 33%. Similarly, if a 66-year-old postpones retiring until 70, the increase in standard of living is about 32%. In either case, most of that boost comes from delaying Social Security.”

So if you want to have more money after retirement, working all the time is the most important thing. It seems to me a paradox, because to want to retire means you don't want to work, and to want to work means you don't care about retirement. So more money and rest is everyone's different life choice, the important thing is to live happily.

Source:https://www.wsj.com/articles/saving-more-for-retirement-vs-work-longer-1522029780

Rent or Buy?

The new tax law caps state and local income-tax and property-tax deductions at a total of $10,000; previously there was no limit. That means the new tax law may encourage home rentals. “Let’s say you pay $1,000 a month in property tax ($12,000 a year) on a home. Under the new rule, if you live in the home all year, you’re only entitled to a $10,000 deduction. But say you rent it out for three months. You can deduct 25% of your property tax, or $3,000, on Schedule E for rental deductions and income. You can then deduct the other $9,000 you pay in property taxes on Schedule A for itemized deductions, allowing you to deduct the full amount of your property tax, Mr. Fishman says.” That means you don’t need to pay any property tax for the three-month rental. This is indeed good news for short-term renters.

But why do so many people choose to buy when there are so many benefits? Perhaps an immovable home of one's own is a security. We work hard to make money and having a house of our own can be a comfort. Although renting is a practical solution for me to live in a house, my final opinion is that the final form of living in a house is a house with property rights. Otherwise, I will try to buy a house even if I have all the rights to rent a house.

Source: https://www.wsj.com/articles/new-tax-law-may-encourage-home-rentals-1522029840

The Meaning of Education

This article focuses on the state government's financial aid to attract adult students to college. But not all adult students know they are eligible for aid. “Some 41% of students enrolled in higher education are 25 or older, according to the National Center for Education Statistics, but colleges often don’t meet older students’ needs. Adults frequently struggle to balance work and family responsibilities with studies.” It is obviously not easy for adults to go to school when they have a family and a job. What are they after? What can education finally bring to them? I think education can stimulate and guide people's self-development. Whether they go to school for a better job or just for fun, it's a sign of life's worth.

In my opinion, the purpose of education today is to make people become real people. People can't exist without the society and make their own value for the society after becoming real people. This is what we should do. As for the significance of education, I think it should be so that every life can feel their own growth, which is the real significance of education.

Source: https://www.wsj.com/articles/colleges-make-it-easier-for-older-students-1522029900

The Philosophy of Gift

Gift giving has never seemed easy, especially in the digital age. Many payment companies have developed one-click gifting. But these gifts are digital money. This is a very convenient thing to do. But not everyone is happy, even the recipients. “Don’t let it look like it was an afterthought. You don’t want a gift recipient to feel as if you used the peer-payment app because you showed up at a party and realized that everyone else brought a gift, Dr. Galak says.” But sometimes digital cash can be handy as a gift, such as a large donation or a $5 gift card for coffee.

I think gifts are always different from person to person and from environment to environment. There is no one type of gift that can replace all the others. What matters is the right gift, the right gift to the right person in the right circumstances. It would be a happy situation. This is the philosophy of gift-giving.

Source: https://www.wsj.com/articles/before-you-send-a-gift-on-a-payment-app-read-this-1522029720

TikTok Targeted by Advocacy Groups Over Children’s Privacy

Social-media powerhouse settled with FTC in 2019 over related concerns about users under 13

A group of consumer advocacy groups filed a complaint against TikTok with U.S. regulators Thursday, alleging that the social media giant is flouting child privacy laws and violating an earlier settlement by illegally collecting personal data from users under the age of 13.

They accused TikTok of violating the children's online privacy protection act, known as Coppa, by making it easy for children under 13 to join the app without their parents' permission. Also, according to the complaint, TikTok did not obtain parental consent to collect information about children, nor did it ask parents to review or delete the data it had collected. "We take privacy very seriously and are committed to helping ensure that TikTok continues to be a safe and entertaining community for our users," said a spokesman for TikTok, which is owned by Chinese parent company ByteDance Inc.

TikTok began asking users to enter their birth date when registering last year. Children under 13 will be directed to a restricted version of the app and will not be able to share their videos. For a child, however, it is easy to bypass the age-gate mechanism by simply entering a false birthday. TikTok will not seek parental consent at any time during the registration process.

Source: https://www.wsj.com/articles/tiktok-targeted-by-advocacy-groups-over-childrens-privacy-11589469011?mod=tech_lead_pos3