CODIFYING FINANCE
-----------------THE SECOND ISSUE
Jeffrey Zhou Co-Founder
Sophie Wang Writer
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@CodifyingFinance
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ALL THINGS FINANCE TABLE OF CONTENTS
The Effects of COVID-19 on our Economy
How the Stimulus Package Affects you! The Road to Becoming a Finance Major
The secret to becoming a millionaire
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THE EFFECT OF COVID-19 ON OUR ECONOMY If you open your laptop and search “COVID 19” in
One thing’s for sure– business owners are making
this day and age, you can expect to find a
significantly less profit. Social distancing is the best
massive amount of daily news articles reporting
combat against the virus itself, but it is also damaging
on this battle against the health crisis. As if
companies by preventing customers and employees
thousands of cases and deaths aren’t enough,
from showing up– especially in restaurants.
America’s economy seems to be facing a crisis of its own. Amongst all the institutions and individuals juggling their financial matters in 2020, small businesses are dealing with quite unusual circumstances.
Not only did workers stop going to work, but customers are staying home and relying less on the public. As for the employees, a lot of them are at risk of losing their jobs. Aside from losing the ability to earn income, people might have to alter plans for the
According to McKinsey’s report on the future after becoming unemployed. For example, most
pandemic’s impact on small businesses, a
will look for benefits to aid their unemployment and
major change within these companies is the
support them until they find a new job (Fool.com). The
availability of employees. Companies with
unemployed will most likely have to hold off on
fewer than 100 workers are experiencing the
spending and making big purchases they desired
worst impact; 50% of their overall stability is
before they went jobless. Not only does this do damage to the individual’s financial stability, but it
damaged (McKinsey). This is because as the also decreases the overall economy and the amount
fear of catching the virus gets more serious,
consumers are purchasing.
workers begin to take work breaks, or even quit their jobs for the time being. People are
Although things may seem hectic for many aspects of
leaning away from interactive jobs like food
our society at the moment, a lot of resources and
and customer services, which make up a large
services are also being offered to those in need. In terms of financial stability, the government has
portion of our small businesses. But how are provided stimulus checks, temporary mortgage relief,
people affected by this sudden change of events?
and low interest loans for businesses. This is undoubtedly an unprecedented time period that will cling to our memories of the world’s history.
How the Stimulus Package Affects You! Covid-19 has had a major toll on
Thus, Congress has made a stimulus package that has been
everyone's mental, physical, and financial
signed by President Trump to provide money to those unemployed
wellbeing. For many, it is possible to
during this period. But in what ways will this affect the economy?
remedy this stress and avoid getting sick
Will this cause an increase in jobs or an upend in employment?
by social distancing or by wearing a mask
And finally will this lead to the V-shaped recovery that all of us
when going outside. For millions of
are hoping for?
Americans it is nearly impossible to remedy the financial burden that Covid-19 has had
Before we review the effects that the stimulus package may have
on their families, jobs, and financial
on the economy, we must first go over what is a part of the
safety.
stimulus package. Both the Republican and Democratic parties proposed different ideas.
This is especially true for the 10% that have had to deal with unemployment. The
Republicans have proposed the HEALS Act and the Democrats
financial problems that the average
have proposed the HEROES Act. The HEALS act focuses more on
American has had to endure due to Covid-
HEALing the economy while the HEROES act focuses on being
19 has even caught the attention of
one of the HEROES for the people. Both propositions have
Congress. Though there has been an
positive and negative aspects, but what are the stimulus
attempt at reopening the economy, many
packages going to be exactly?
have still not returned to work.
1 2 3
The Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES) comes at a staggering price of 3.5 trillion dollars. Where 175 billion dollars goes to people struggling with their
rent, mortgage, and / or utility bills, 200
billion dollars goes towards essential workers, a part goes to an initial stimulus package for everyone and local governments, and the rest is for the 600$ weekly addition to unemployment benefits.
The Republicans’ Health, Economic Assistance, Liability protection, and Schools act (HEALS) spends a bit more money on getting things back to normal and keeping businesses afloat. The HEALS act has a much lower price than the HEROES act, at a price of only 1 trillion dollars. In the act,105 billion dollars goes towards parcels for colleges and universities. It also puts aside part of the budget to add 200$ to unemployment benefits. After a 60 day period, state benefits will cover about 70% of workers’ wage. Seniors and workers also receive another round of stimulus checks. The HEALS act also sets aside money for the Paycheck Protection Plan (PPP).
Whether it’s by increased unemployment benefits or by more paychecks for essential workers, both the HEROES and HEALS act focus on the economic challenges that people have had to face due to the shutdown. Though it may be a while before any of the stimulus packages are approved, especially since the Senate is at recess until early September, it is still important to discuss the changes it will occur in the economy. Will the stimulus be for the economy or for the people? If it is meant to help the economy, which parts will it be helping? Or will the stimulus bill increase inflation to a point a no return?
HEALS VS HEROES The HEROES Act has a much larger price tag than the
Though the HEALS act does not do much to help
HEALS Act, with its astounding price of 3.5 trillion dollars.
civilians, it does help with an issue that has been
The HEROES Act allocates most of its money towards
arising for the past few months --it allocates
paying citizens, and helping civilians with their mortgage,
money to both schools, and small businesses. This
rent, utility bills, etc. However, this may cause an even
will help with the protection of children during
more devastating economic blow. If the HEROES Act is
hybrid learning. The money can be used for more
passed, it may cause an even higher economic burden
sanitizers, masks, etc. The HEALS act also will help
then there already is. The loan will go to people that
the economy. Ever since the pandemic, it has
don’t actually need these stimulus checks. This will cause
seemed that only large corporations, and the
those people to buy non-essential goods and services
toughest of small businesses will survive. But the
such as luxury apparel, luxury items, eating out, just to
HEALS act has a solution to that. By restricting
name a few. Not only is there a chance of people
business with more than 300 employees from taking
spending the stimulus money in such a fashion, but there
funds, it will level the playing field against large
may also be a rise in inflation. During the start of the
corporations and mom and-pop shops. If civilians
coronavirus pandemic there was an inflation rate of
are financially stable enough to live with the 200$
around 2.3. It then fell close to zero. If the inflation rate
added unemployment benefits, the HEALS Act
may go back to it’s rate during the start of the Covid-19
would be the better choice.
pandemic. The may cause a V-shaped recovery to be even harder to achieve, if it is even possible.
But many say that the financial burden that the HEROES act may cause is worth it, that many people need the economic relief, and that the livelihood of people should be put before the wellbeing of the economy. The HEROES act helps bring some sort of financial stability that are going through these hard times. Overall if the economy can provide the funding for either of these Acts, the HEROES act would be a better alternative than to the HEALS act.
While both the HEROES and HEALS Act differentiate in many categories, they both have the same goal relieving the economic burden for American families during the coronavirus pandemic. Both stimulus packages even give an initial stimulus check of up to 1,200$. They have similar intentions, but try to solve it in different ways. Either of these Acts will be chosen based on what the Senate values more,
O M A Dmust I C be | 2made 4 the economy or the civilians. Regardless, a N decision because of the fact that a stimulus package is needed urgently.
THE ROAD TO BECOMING A FINANCE MAJOR Majoring in finance allows you to study financial growth and management. Finance is a significant aspect of everyone’s life and understanding the concepts leads to numerous financial gains. The very first thing you can do while still in high school is to develop your interests. Seek enrichment programs, summer camps, and connections with business professionals on LinkedIn. Since finance is a highly intensive and competitive field it is important to research as much as possible. Having that mentorship or program on your resume will not only set you aside from other applicants, but also help you discover whether finance is the right fit for you. In college, it is normal for people to change majors, but knowing what you like from the start can save lots of time & money.
Once you’ve applied to your desired institution’s business program, you will be exposed to a variety of business career paths. For instance, at my university, I’m required to take classes of various disciplines such as finance, supply chain, marketing, and accounting. As a freshman, it’s important to attend career fairs and network with recruiters, despite most internships requiring you to be a college junior/senior. However, some companies do offer leadership programs aimed exclusively towards college freshmen and sophomores. Deloitte’s Pioneer Internship Program is only for college freshmen and it grants you exposure to different career fields, along with assigning you a mentor. Internship deadlines are typically in Sept/October for Summer Analyst positions for the following year, so make sure to research internships earlier in advance.
Investing in the stock market and your Roth IRA are two ways you can build wealth.While in college, you can invest in the Roth IRA if you have personal income but the maximum to contribute is $6000 annually. Once you reach a salary of $139,000, you can no longer invest. Contribute in your Roth IRA as early as possible in order to maximize compound interest. The Roth IRA is a tax-free retirement account that can allow you to retire as a millionaire. Also, it’s important to have a side hustle such as investing in stocks. Researching and keeping up with market trends can increase your personal income. Let the power of compound interest do it’s work by starting ASAP! Happy Investing!
LET THE POWER OF COMPOUND INTEREST DO ITS WORK BY STARTING ASAP! HAPPY INVESTING!
THE
Millionaires are the wealthy elite of society. The opinions towards millionaires are
SECRET TO
drastically different from person to person. Millionaires are seen as lazy or hardworking, greedy or philanthropic, and other labels that are given to them based on how they use their wealth. We often hear about how
BECOMING A
millionaires use their wealth. But how do millionaires really gain their wealth? Do they get it from working in an organization or owning property? Are most of them selfmade millionaires, or do they just get an
MILLIONAIRE
inheritance? It’s possible to use these tips and make millions of dollars on your own. And who doesn’t want to be a millionaire?
I would understand if you didn't believe me right away, since millionaires are part of the 1 percent. But there is a pattern of habits that many millionaires have in common. Most of these habits are picked up during their childhoods. They include reading, public speaking, networking, etc. Reading is a habit that many millionaires use to increase creativity, memorization, and other skills that would be useful in accumulating wealth. Since many millionaires are entrepreneurs and lawyers, it's a no brainer that public speaking and networking are useful skills. It would help you become more important in the field that you choose, which would lead to higher salaries. Just picking up a few habits and learning a few skills can make it more likely that you would be a part of the 1%.
Maybe it's too late to pick up these habits, or you simply don't want to learn these skills; luckily, there are still different ways to make money. There are many college degrees and sources of income, such as stocks and capital, that could greatly increase your chances of being a millionaire.
There are many jobs that could lead to becoming a millionaire with a few years of saving. These positions include physicians, engineers, computer scientists, etc. It should come at no surprise that physicians are on the list. Doctors make around $300,000 and even more after they become specialized doctors. Saving
⅔ of their income would be enough to make them a millionaire in 5 years while still having more than enough money to live comfortably. There are also engineers, though they usually make much less than doctors at a salary of around $110,000. An engineering degree creates a much easier pathway into becoming a successful entrepreneur. The engineering degree even forces students to think creatively and quickly. And finally, computer scientists are on the list due to how easy it is to become a computer scientist and move up in the field. Once someone reaches seniority in the field (which is much less competitive than other fields), it would be a breeze to become a millionaire.
But maybe you don’t want to work; maybe you just want to get your money from owning stocks. The stock market is known for being unpredictable. Making a living off of it would be nearly impossible. But if you follow some rules, you may be able to live off of stocks. When investing in stocks, remember to set longterm goals, understand the risks involved, invest in different areas, make logical decisions, and play it safe. These rules are followed by successful stock investors everywhere.
There are many ways that a million dollars can be gained. The most popular ways to get a million dollars are from inheritance and working. About 20% of millionaires have inherited their fortune from their parents. This means about 80% of millionaires are self-made: 67.7% of millionaires are fully self-made, while 23.7% gain their wealth through a combination of self-created wealth and inherited wealth. Only 8.5% of millionaires gain their wealth completely from inheritance.
There are multiple ways and opportunities to make a million dollars. It’s too bad that it’s extremely difficult to become a millionaire. Positions like entrepreneurs and stock investors are terrifyingly hard to become successful at. However, there are easy ways to become a millionaire:you can become a physician or engineer, have rich parents, or even work your way up at a company. Hopefully you can utilize the information in this article to make millions of your own.
ALL THINGS TECH TABLE OF CONTENTS
Rise of Machines
Artificial Intelligence and Current Events
THE RISE OF MACHINES They can optimize speed, strength, endurance, etc. They will not only outperform humans; humans will become useless. In layman's terms, we’re doomed.
In the past, it was thought that Evangelions, robotic personalities, and self-driving cars would be common technology in the future. Although Giant Mechs and flying cars are still technology found only in science fiction, self-driving cars are real and are even used as a status symbol. But robotic personalities are still not common.
There are legal questions that would also arise: would they be considered humans, would they get rights, or would they just be subservient slaves? However, for the acceptance of the technology, both the government and the public should understand how it works. A.G.I, Artificial General Intelligence, can make artificial intelligence just as smart as humans. This could even lead to strong A.G.I devices such as Cortana, Terran Advisor, etc. But how does A.G.I even work?
Before we discuss Artificial General Intelligence, we should have a rundown on what the precursor to it is. A.I, or Narrow Artificial Intelligence has 2 subgroups that are widely used. Machine learning is one of them; it uses past experiences and data to make decisions and serve its purpose. There is also deep learning, which is a subgroup inside a subgroup. Deep-learning is a type of multi-layered machine learning used for advanced algorithms and to create neural networks. This allows computers to make smarter decisions, but only to an extent. Unfortunately, this is the closest thing humanity has to Artificial General Intelligence.
AA common question asked about
he only A.I that is better than A.G.I is
But would it be moral to even use
A.G.I is: “If Narrow A.I is terrible
A.S.I : Artificial Superior Intelligence. If
AI? AI would be just like humans,
compared to A.G.I despite its ability
ASI is reached, humans will officially
harboring emotions, beliefs, etc. It
to do calculations faster than any
become both physically and mentally
would obviously be wrong if a
human, what exactly is A.G.I?” A.G.I
obsolete. A.I will no longer be used for
human was forced to work all their
is not only able to do advanced
today's Roombas. The Roomba will have
lives. But would AI have the same
calculations and be an intellectual
a personality and enough power to
rights as humans? It would be
counterpart to humanity, but it can
destroy your entire house (with the dust
unethical if they weren’t given the
also think like a human, feel like a
of course), if it chooses to. A.S.I will be
same rights, because they still have
human, and be just as smart -if not
better than humans and will have the
the same amount of suffering. These
smarter- than the brightest minds in
power to become overlords to humanity
questions are often pondered on by
the world. A.I may be able to do
by either protecting humans as the ASI’s
science fiction enthusiasts, but
many things today, but it needs to
creator or discarding them as if they
soon, the whole world will be doing
be created by humans. This means
were just a stepping stone in their
the same thinking as Isaac Asimov.
that humans will never become
galactic ambitions..
obsolete to AI, though A.G.I is a
AGI and ASI will be able to
different matter. AGI can write
Although many do not want these
accomplish amazing feats. They will
itself, and armies of AGI robots can
systems developed, it is likely that
be more intelligent than the
surpass the people found in the
Artificial General Intelligence is
average human being and will be
Chinese army. Not only are they
possible. It is likely that A.I will eventually
able to choose what bodies they
able to choose their mental
reach intelligence that is comparable to
will harbor. They can optimize
capacities, but they are also able to
a human. This is likely to be achieved
speed, strength, endurance, etc.
choose their physical capacities
with advancements in quantum
They will not only outperform
(unlike humans). A.G.I robots can
computing. Quantum computers which
humans; humans will become
reach their peak in strength, speed,
will allow for better neural networks,
useless. In layman's terms, we’re
endurance, and every other good
which will lead to the virtual version of
doomed.
physical characteristic. The only
the human brain, and eventually lead to
thing more terrifying than A.G.I’s
ASI. Instead of using AGI and ASI as
intelligence is its successor: A.S.I.
tools, it would be better to integrate them into society.
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Artificial Intelligence and Current Events Humans have always differed with AI, artificial intelligence, as they have the ability to reason. But now machines are learning that too. Machines have been taught words and images, different objects and animals, and various actions.
In a new study, researchers developed a robot model that can compare videos and sort them into categories based on the content in the video. The machine was given a series of videos and ordered to choose the one that doesn’t fit. For example, in a group of videos of a man and his dog, the machine was able to detect the one out of place: the video of a baby crying. This model has the ability to recognize abstract events and has the potential to make accurate predictions and decisions.
Another task the model can do is determining which concepts fit well with each other. When given the concept of sculpting, the machine was able to determine that carving and cutting were similar concepts. To compare the machine’s ability to that of a human’s, researchers conducted a study. To their surprise, the results showed that the machine performed as well as the humans.
Some limits the machine has is that it tends to overanalyze scenarios. For example, when given a series of sports videos, the machine associated a video of a baby and a ball with the series because a ball symbolizes exercise, even though the baby did not.
Machines are moving towards becoming more human-like and gaining human reasoning. With this discovery, it won’t be long before machines function as well as we do.
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Thank you for reading Issue II!