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    Shopping for Sofas, Hot Tubs or Coffee Makers? Have Patience.

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    As Americans with disposable income start shopping again, an odd assortment of products like coffee makers, sofas and natural deodorant have become sudden hot properties.The definition of a luxury problem, according to Olivia Kraus, a lawyer in Mount Vernon, N.Y., is the inability to buy something expensive that one can afford.As such, she has lots.In August 2020, Ms. Kraus ordered a generator through an electrician. It came in January 2021, she said.That month, she went to a Jacuzzi dealer, who told her that she was “in luck,” that they had a Jacuzzi unspoken for arriving in January and two similar models arriving in February.No other hot tub would be available until October 2021.She picked one that could be scheduled to arrive in February. It arrived two weeks ago.Apparently, Ms. Kraus said, “the factory in California was seriously slowed down for social distancing.”All over the United States — or at least, all over the parts of it where people have jobs, disposable income and time to spare — shoppers are encountering the same thing: products that are sold out or on back order. That they are “hard to find,” or HTF in online parlance, naturally increases their desirability, sort of like “hard to get” used to be in relationships.The reason some things are unavailable seems straightforward enough. Millions of people who before the pandemic weren’t at home much spent the last year testing the limits of their clothes dryers, dishwashers and stoves, and their living spaces groaned under the unreasonable demands.Top brands like Viking, Bosch and Miele are all in high demand right now.Dyson’s V8 Vacuum cleaner, lauded for its ability to erase pet hair, was nowhere to be found at the packed Home Depot in Chelsea on a recent Sunday (though it’s now back in stock).The Breville Espresso Descalers from Williams-Sonoma has been another elusive item.Marina Zenovich, a documentarian whose films include “Richard Pryor: Omit the Logic” and “Roman Polanski: Wanted and Desired,” picked one out in February.A few weeks later, she opened her computer to a message informing her it would not be coming until late May, citing “temporary delays from our suppliers, vendors and artisans.”At Restoration Hardware in the meatpacking district, a person at the front desk said last week that “most” sofas are still being delivered in 10 to 12 weeks, the normal time frame. But “most” doesn’t include the track arm sofa that Chris Peregrin, the global director of partnerships at the photography agency Magnum, ordered in April.It is due to arrive in early August, thanks to what the person at the front desk said are issues obtaining velvets and Belgian linens. And a salesman at Truemart Fabrics in Chelsea said that it’s just as hard to get silks and cotton prints because there isn’t as much production in the cutting rooms.Break out the tiny violins, right? If you can locate some.Restaurants that offer food to go have a shortage in ketchup packets, the result of both a boom in takeout and the decision by many restaurants not to use bottles of it because of sanitary issues. Never mind that most evidence suggests Covid-19 rarely spreads via contaminated surfaces. Long-battered Heinz stock is on the rise.According to Bloomberg, another toilet paper shortage may be on the way, thanks to drama in the Suez Canal. A global semiconductor shortage has caused spikes in the prices of electronics.Katie Sturino is the founder of Megababe, a four-year-old company that makes cruelty-free beauty products. She worried at the beginning of the pandemic that the stay-at-home economy could claim her business. The opposite happened. Freed from having to go to the office, perhaps, women began to experiment more with newer, more natural deodorants, just as they did with less structured bras. Sales of Rosy Pits, Megababe’s best-known product, soared, Ms. Sturino said.It’s currently still available at Target, but she’s unable to offer sales through her own website.Dr. Lara Devgan, a plastic surgeon on the Upper East Side, has had a similar experience with her line of skin care products — believing at first that they would be unnecessary, and finding instead that they were sold out.“It’s not only that we’ve been looking at unflattering Zoom angles, watching our Botox wear off and our gray hairs grow in,” she said. “It’s that people are wearing much less makeup than they’ve ever worn before, so they’re taking things into their own hands.”And putting ever fancier timepieces on their wrists.Tim RobinsonCondominiums in the recently developed Hudson Yards cleared out in the spring and summer of 2020, but traffic at Watches of Switzerland, at 20 Hudson Yards, skyrocketed, according to the company’s C.E.O., Brian Duffy.By the winter, it was nearly impossible to find Rolex sports models there in stainless steel or solid gold.Some of this, Mr. Duffy said, was the result of production delays. Switzerland was shut down for much of the spring. Areas of Rolex’s factories had to be evacuated during Covid outbreaks over the summer and fall. All the while, the stock market soared, leaving high-earning investors with huge amounts of disposable income.Still, Paul Boutros, the head of Phillips Auction House’s U.S. watches division, doesn’t see the possible end of the pandemic as being likely to change things. “I’ll put it this way,” he said. “If you are a regular person trying to buy your first good watch and you choose a Rolex sport watch, a Patek Phillipe Nautilus or a Royal Oak from Audemars Piguet and want to buy it on the spot — I think those days are over.”Currently, Mr. Boutros is waiting on something else: a $4,329 Bull barbecue grill that he ordered from an online dealer in early April and won’t be arriving until July, at the earliest.And Neal Bascomb, the author of biographies on Henry Ford and Walter Chrysler, has seen the renovation of his Philadelphia home grind to a halt because of a spray foam shortage that’s hobbled scores of construction projects in the area.“It seems like a rather odd thing to stop construction, but there you have it,” he said, going on to note similarities between consumption today and consumption during the Roaring Twenties.Both then and now, he said, there was “a crazy stock market,” “easy access to credit,” “scores of new products,” a growing wealth gap and a charismatic and temperamental industrialist, who not only transformed the car business but also became, as a result, arguably the defining technologist of the era.The position of Henry Ford and the Model A, which arrived in 1927 in a multitude of colors and styles is now held by Elon Musk and the Tesla Model 3, which first arrived in 2013 and comes in a multitude of colors and styles.As such, both economies have been defined by consumers buying lots of things, many of which they arguably cannot afford.Yet substantial shortages across a variety of industries didn’t occur during the 1920s, according to A. Scott Berg, the biographer of Woodrow Wilson and Katharine Hepburn, because there was much less dependence on imports than there is today. “During World War I, the United States became a gigantic machine, manufacturing exponentially more than it ever had and producing more food than it ever had, as we began feeding a starving and war-deprived world,” he wrote in an email.Mr. Bascomb pointed out that the United States back then did not rely heavily on products from other countries. “We didn’t have this global shipping system that required semiconductors from Taiwan,” he said.The problem is not likely to abate in the near future, according to John Pitzer, an analyst at Credit Suisse who specializes in semiconductors. “My best guess is that if the economy starts to reopen in the back half of the year and we start to see things really continue to pick up, the supply issues get worse, not better,” he said.How that ends up affecting the economy is “beyond my pay grade,” he said.But Mr. Bascomb had little doubt. “Inflation,” he said. 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    The Dream: International Travel. The Reality: Chaos and Confusion.

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    The world beckons, especially for those who have been vaccinated, but would-be travelers face a difficult moment when travel possibilities are at odds with the facts of a still reeling world.In recent days, a steady stream of promising news has painted a rosy picture of the return of international leisure travel.More than 105 million people in the United States are fully vaccinated. Greece, Iceland and Croatia, among a growing list of countries, are now open to American tourists. Airlines are resuming overseas flights. And perhaps the biggest development of all: Come summer, fully vaccinated Americans will once again be welcome across Europe.But the optimism may be premature. At the moment, the broader reality is more chaotic, and more sobering.A set of swirling crosscurrents — including a surge in global coronavirus cases, lagging vaccine rollouts in tourist hot spots and the lack of a reliable system to verify vaccinations — may be setting the stage for a slow and tortured return to high-volume international travel, despite ambitious pronouncements and the pressures of a tourism industry hoping to avoid another period of economic strain.Reopening areas to vaccinated tourists is a calculated risk, said Dr. Sarah Fortune, the chair of the Department of Immunology and Infectious Diseases at the Harvard T.H. Chan School of Public Health. “My doomsday scenario,” she said, “is a mixing of vaccinated and unvaccinated populations in a setting where there is high viral load and high viral transmission.”At the same time, countries dependent on tourism revenue are pressing to admit more visitors. Most Caribbean countries are open to Americans, pending negative coronavirus tests — and some European countries are not far behind. Travel restrictions in Greece, where tourism accounts for around 25 percent of the country’s work force, were eased in mid-April, allowing for fully vaccinated travelers from the United States, Britain, Israel and European Union member states, among other places, to visit without quarantining or providing negative coronavirus tests. (A broader reopening is planned for later this month.)For now, it’s hard to know whether the travel industry is in the throes of a temporary transition or staring at the long-term complexities of a clash involving wishful thinking, the hard truths of a relentless pandemic and the possibility of responsible tourism.Whatever the case, there’s a churning array of forces affecting the prospects for overseas travel.Checkpoint Charlie in Berlin, which is normally crowded with tourists, was empty during a coronavirus lockdown in November. Germany is now in another lockdown. Lena Mucha for The New York TimesA dire global realityWould-be international travelers, particularly vaccinated Americans, are entering an increasingly chaotic moment when dreams of travel — fueled by more than a year of confinement — are at odds with the facts of a largely shuttered and still reeling outside world.Globally, more new coronavirus cases were reported in recent weeks than at any point since the onset of the pandemic. The numbers are being driven by an uncontrolled outbreak in India, but they also account for troubling trends among European destinations popular with Americans, from France and Germany to Italy and Spain, some of which are now undergoing extended lockdowns and curfews.In Germany, for example, a new round of lockdowns, aimed at combating a third wave of infections, is expected to last until June.Such developments might be hard for Americans to fully appreciate from afar, given the promising trends at home. But government agencies have taken note.In April, the U.S. State Department vastly expanded the list of countries in its “Level 4: Do Not Travel” category, adding, among dozens of destinations, Mexico, Canada and Britain, three of the most popular destinations for Americans. Many Caribbean countries, including the Bahamas, the Dominican Republic and Jamaica, are also at Level 4.In India, which is facing a cataclysmic surge, the presence of a potentially more menacing variant — possibly more dangerous to children, and against which vaccines may be less effective — is complicating the crisis. For the prospective traveler, it hints at the threat that emerging variants could play in the months and years to come.Inequality and lagging vaccine rolloutsOutside the United States, vaccination numbers remain comparatively low — in some cases, alarmingly so.In Italy, around 11 percent of the population is fully vaccinated. The number in Mexico, historically the country most visited by American tourists, stands at around 6 percent. In Canada, it’s at 3 percent — though that number is partly explained by the long interval between first and second doses there. By comparison, the United States just passed the 32 percent mark.While many of these percentages have been rising more quickly in recent weeks, there is also reason to believe that progress in some countries may stall.Global vaccine supplies have been disrupted by the surge of coronavirus cases in India, which has curtailed exports in order to meet growing domestic demands. Like most countries, Canada, for example, is entirely dependent on foreign sources for its vaccine supply; as a measure of the share of its population that is fully vaccinated, Canada now lags behind more than 50 other nations.Meanwhile, the push for a return to leisure travel raises questions about the ethics of vaccinated travelers demanding services among largely unvaccinated hosts. Such questions are especially complicated within communities that are economically dependent on tourism revenue.Dr. Mami Taniuchi, an infectious disease researcher at the University of Virginia, said that while the risk of breakthrough infections among vaccinated travelers is low, there is nevertheless an increased risk among unvaccinated workers who would not otherwise be coming together in such large numbers, or in such close quarters, to accommodate tourists.“The risks among vaccinated travelers are significantly reduced, but I worry about the risk of transmission among the people who are working around them,” Dr. Taniuchi said. It would help, she added, if travel workers were part of priority vaccination plans.“In a situation where there’s a mixing of people who are vaccinated and unvaccinated, most of the transmission events are going to be among those who are not vaccinated,” she said.The trouble with ‘vaccine passports’Health certificates that prove one’s immunization status — commonly referred to as “vaccine passports” — have been touted as keys to unlocking international travel. But so far the prospect of developing an easy-to-use and widely accepted digital certificate has been tripped up by a web of bureaucratic, logistical and technical snags.The Biden administration has ruled out the possibility of a centralized federal vaccination database. Instead, individual states (and some cities and territories) have been maintaining a patchwork of records. Any company or organization hoping to develop a digital vaccine certificate in the United States would therefore need to track down immunization data from a range of registries.At present, the most viable option for Americans to prove their immunization status while traveling internationally is to present the Covid-19 vaccination record cards they received when they got their shots. But the cards are easily forged. Several states have offered downloadable PDFs of the cards freely on their websites; fakes have even been offered for sale on TikTok, eBay and Craigslist.The development of digital health certificates is a multidimensional challenge, involving public policy, public health, customer experience and international cooperation, said Eric Piscini, who has overseen the development of IBM’s health passport app, Digital Health Pass.“I’m very optimistic about the long term,” Mr. Piscini said, “but the road is not easy.” He estimated that the European Commission’s Digital Green Certificate won’t be fully operational until late June or July. Integration with platforms beyond Europe will take time.Until then, he said, countries like Greece — which, for now, is verifying visitors’ immunization statuses with easily forged paper certificates — may face both a lack of trust from travelers and pushback from locals who fear that the policies are putting them at risk.Chairs were piled up in front of a restaurant that was closed because of lockdowns in Paris in March.Bertrand Guay/Agence France-Presse — Getty ImagesAltered destinationsEven if international tourists could travel safely and securely, and without risking the well-being of their hosts, visitors may face yet another impediment: Their destinations may lack many of their usual draws.Throughout the world, the pandemic has shuttered museums, forced restaurants to close and curtailed countless other cultural offerings. Many regions in Europe are subject to local curfews that come and go as case numbers fluctuate. Last month in Spain, confusion reigned over whether socially distanced beachgoers and sunbathers were required to wear masks, though the rule was eventually clarified. (They aren’t.)All of which suggests that, in the near future, there may be a gap between tourists’ expectations and their destinations’ restricted realities.In Paris, for example, bars and restaurants have been closed since the end of October. So, too, are museums — including the Louvre, normally one of the most visited museums in the world. Nighttime curfews, from 7 p.m. to 6 a.m., have emptied the city’s streets.In late April, President Emmanuel Macron of France announced plans to relax certain restrictions beginning on May 19, but he left open the possibility of regional delays. The country, he said, will be able to pull an “emergency brake” in certain places, if need be.“I really don’t know what’s going to be attractive to tourists in Paris, now or in the near future,” said Yumi Kayayan, a travel writer who lives near the Louvre, citing a dearth of cultural offerings. The rules governing curfews and regional restrictions, she added, would be difficult for foreigners to make sense of. “To be honest, the rules are very confusing right now even for Parisians,” she said.The big picture, and the costsIn 2019, the number of international tourist arrivals reached 1.5 billion globally — a staggering figure. But grasping the scale of international travel, and the industries that have grown to support and encourage it, is central to understanding the forces pressing now for its return.Governments, tourism boards, airlines, hotel companies, travel agencies and cruise operators, along with tour bus drivers, housekeepers, local guides, pilots, restaurateurs, museum operators, bed-and-breakfast hosts, entertainers, caterers, fishermen, shopkeepers and bar owners — in short, all the people standing to profit from tourism dollars — are facing extreme economic pressure not to lose out on another tourism season. The past year without travel, when international arrivals dropped from 1.5 billion to 381 million, was devastating. For many, another similar year would be unthinkable.And so an already stressed system has been forced to confront an existential quandary: Do countries opt for continuing international lockdowns, or do they increase the risk of disease and court much-needed tourism revenue? New Zealand, which, through a combination of stringent lockdowns, border closures and strict quarantines, has all but eliminated the coronavirus from its shores, has staked its claim at one end of the spectrum. Greece appears to be claiming the other.There are no easy answers, no universal solutions. In many cases, the onus will fall on individual tourists — the fortunate and vaccinated few, plied with incentives and feverish for travel — to thoughtfully navigate the ethical considerations.Of all the variables, only one thing seems inevitable: The choices we make, whether to venture out or huddle close to home, are unlikely to bode well for the individual workers — the unfortunate and unvaccinated many — who, by dint of circumstance, are vulnerable to both the virus and the teetering fortunes of a hard-hit industry.“I do think we’ve learned important lessons over the course of the year about how to engage more safely in public spaces,” said Dr. Fortune, who emphasized that it’s important for vaccinated travelers to continue testing, wearing masks and practicing social distancing.“I think the real danger,” she added, “is that the most vulnerable people are the ones who have the least ability to mitigate risk.”Follow New York Times Travel on Instagram, Twitter and Facebook. And sign up for our weekly Travel Dispatch newsletter to receive expert tips on traveling smarter and inspiration for your next vacation. More

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    Jerome Powell strikes a hopeful tone but emphasizes the pandemic’s uneven costs.

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    Jerome H. Powell, the Federal Reserve chair, struck a hopeful tone about the United States economy in a speech on Monday — but he emphasized that the economic fallout from the coronavirus pandemic has disproportionately harmed vulnerable communities.“While some countries are still suffering terribly in the grip of Covid-19, the economic outlook here in the United States has clearly brightened,” Mr. Powell said. And in the United States, “lives and livelihoods have been affected in ways that vary from person to person, family to family, and community to community.”Mr. Powell used the remarks to preview an upcoming Fed report that will show how Black and Hispanic workers lost jobs at a greater rate in pandemic lockdowns and how the pandemic pushed mothers out of the labor force and made it harder for people without college degrees to hang onto work.Among the statistics he highlighted from the Survey of Household Economics and Decisionmaking, which he said will be released later this month:About 20 percent of adults in their prime working years without a bachelor’s degree were laid off last year, compared to 12 percent of college-educated workers.More than 20 percent of Black and Hispanic prime-age workers were laid off in 2020, versus 14 percent of white workers.Roughly 22 percent of parents were not working or were working less thanks to child-care and school disruptions.About 36 percent of Black mothers, and 30 percent of and Hispanic mothers, were not working or were working less.“The Fed is focused on these longstanding disparities because they weigh on the productive capacity of our economy,” Mr. Powell said. “We will only reach our full potential when everyone can contribute to, and share in, the benefits of prosperity.”Mr. Powell said that while achieving an equitable economy is the job of many parts of government, the Fed has a role to play with both its economic tools and in its bank supervision and community development work.“Those who have historically been left behind stand the best chance of prospering in a strong economy with plentiful job opportunities,” Mr. Powell said. “We see our robust supervisory approach as critical to addressing racial discrimination, which can limit consumers’ ability to improve their economic circumstances.” More

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    The Economy Is (Almost) Back. It Is Looking Different Than It Used To.

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    The recovery is profoundly unequal across sectors, unbalanced in ways that have big implications for businesses and workers.There have been a lot of strange economic numbers over the last 14 months, as the world has been whipsawed by the pandemic. But one particular line of the first-quarter G.D.P. numbers released Thursday stands out even so.Americans’ spending on durable goods — cars and furniture and other goods meant to last a long time — rose at a stunning 41.4 percent annual rate in the first three months of the year. Enjoy your Pelotons and Big Green Eggs, everybody.The central reality of the economy in 2021 is that it’s profoundly unequal across sectors, unbalanced in ways that have enormous long-term implications for businesses and workers.The economy is recovering rapidly, and is on track to reach the levels of overall G.D.P. that would have been expected before anyone had heard of Covid-19. But that masks some extreme shifts in composition of what the United States is producing. That matters both for the businesses on the losing end of those shifts and for their workers, who may need to find their way into the growing sectors.In such a tumultuous time, it helps to look at the G.D.P. numbers not in terms of how they changed compared with last quarter or last year, but with the prepandemic economy. How does the actual number in the first quarter compare with what that number would have been if it had grown at a steady 2 percent annual rate since the end of 2019, the last quarter unaffected by the pandemic.This approach confirms the basic idea that the economy is not far from that prepandemic trend line. In the first quarter, overall G.D.P. was only 3.3 percent below where it would have been in that hypothetical pandemic-free world. The United States is on track to surge above that 2019 trend in the second quarter currently underway.But as the extreme spike in first-quarter numbers reflects, there has been a huge reallocation of economic activity toward durable goods. Spending on cars and trucks is 15.1 percent higher than it would have been on the 2019 trajectory; spending on furnishings and durable household equipment is 16.6 percent higher; and spending on recreational goods is a whopping 26 percent higher.Altogether, durable goods spending is running $348.5 billion higher annually than it would have been in that alternate universe, as Americans have spent their stimulus checks and unused travel money on physical items.The housing sector is experiencing nearly as big a surge. Residential investment was 14.4 percent above its prepandemic trend, representing $90 billion a year in extra activity. And that was surely constrained by shortages of homes to sell, and lumber and other materials used to make them. It is poised to soar further in coming months, based on forward-looking data like housing starts.Another bright spot is business investment in information technology. The tech industry has been comparatively unscathed by the crisis. Spending on information processing equipment in the first quarter was 23 percent higher than its prepandemic trend, and investment in software 7.4 percent higher.Then there are the losers.The troubles of service industries, especially related to travel, are well documented. While spending on restaurants, airline tickets, concerts and other recreational activities grew in the first quarter, it was a considerably smaller surge than the one that went to physical items, and not nearly big enough to fill in the deep hole those sectors face. Spending on transportation services remains 23 percent below its prepandemic trend, recreation services 31 percent, and restaurants and hotels 19 percent.Those three sectors alone represent $430 billion in “missing” economic activity — largely equivalent, it’s worth noting, to the combined shift of economic activity toward durable goods and residential real estate.A corollary shows up in trade data. Services exports are down 26 percent compared with the prepandemic trend, which reflects in significant part the freeze-up in global travel.Less widely understood is a steep pullback in the energy sector.There are two sides of the same coin: Consumer spending on gasoline and other energy goods is down 11 percent from its prepandemic trend line. And business spending on structures is down 19 percent, which reflects a pullback in investment by both the oil extraction industry and the commercial real estate sector.Separately, the pullback in state and local governments, many of which have faced funding crunches, is real. Their spending is 4.3 percent below the prepandemic trend, another $89 billion in lost activity, though that is likely to return as federal stimulus dollars flow to their coffers and schools reopen.In every recession, shifts take place in the composition of economic activity; the economy rarely looks the same after a wrenching event as it did before. But what is striking about this crisis is the scale and speed of the economy’s rewiring.We don’t yet know how fully service industries will recover as vaccinations take place, or whether durable goods spending will return to more normal levels as stimulus checks are spent and people reallocate their budgets toward travel. We also don’t know whether the surge in information technology spending and the pullback in oil drilling are part of a longer-term shift in the economy (all the more so given the Biden administration’s emphasis on clean energy investment).Moreover, to the degree these shifts in the composition of the economy may be semi-permanent, we don’t know how seamlessly the economy will adjust. Many former waiters or hotel clerks may be ill-suited to becoming construction workers or software engineers.That’s what makes the economy of 2021 so promising but also worrying. The boom is here. We just don’t know yet how bumpy the ride will be in trying to return to something that feels like full-fledged prosperity. More

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    ‘A Perfect Positive Storm’: Bonkers Dollars for Big Tech

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    The dictionary doesn’t have enough superlatives to describe what’s happening to the five biggest technology companies, raising uncomfortable questions for their C.E.O.s.In the Great Recession more than a decade ago, big tech companies hit a rough patch just like everyone else. Now they have become unquestioned winners of the pandemic economy.The combined yearly revenue of Amazon, Apple, Alphabet, Microsoft and Facebook is about $1.2 trillion, according to earnings reported this week, more than 25 percent higher than the figure just as the pandemic started to bite in 2020. In less than a week, those five giants make more in sales than McDonald’s does in a year.The U.S. economy is cranking back from 2020, when it contracted for the first time since the financial crisis. But for the tech giants, the pandemic hit was barely a blip. It’s a fantastic time to be a titan of U.S. technology — as long as you ignore the screaming politicians, the daily headlines about killing free speech or dodging taxes, the gripes from competitors and workers, and the too-many-to-count legal investigations and lawsuits.America’s technology superpowers aren’t making bonkers dollars in spite of the deadly coronavirus and its ripple effects through the global economy. They have grown even stronger because of the pandemic. It’s both logical and slightly nuts.The wildly successful last year also raises uncomfortable questions for tech company bosses, the public and elected officials already peeved about the industry: Is what’s good for Big Tech good for America? Or are the tech superstars winning while the rest of us are losing?Americans have more money in their pockets thanks to government stimulus checks and pandemic savings, and the tech giants are getting a significant share. Their combined revenue is equivalent to roughly 5 percent of the gross domestic product of the United States.Big Tech’s pandemic big bucks have an understandable root cause: We needed its services.People gravitated to Facebook’s apps to stay in touch and entertained, and businesses wanted to pay Facebook and Google, which Alphabet owns, to help them find customers who were stuck at home. People preferred to buy diapers and deck chairs from Amazon rather than risk their health shopping in stores. Companies loaded up on software from Microsoft as their businesses and work forces went virtual. Apple’s laptops and iPads become lifelines for office workers and schoolchildren.Before the pandemic, America’s technology superpowers were already influential in how we communicated, worked, stayed entertained and shopped. Now they are practically unavoidable. Investors have scooped up Big Tech shares in a bet that these companies are nearly invincible.“They were already on the way up and had been for the best part of a decade, and the pandemic was unique,” said Thomas Philippon, a professor of finance at New York University. “For them it was a perfect positive storm.”Times weren’t so good for these companies in the last economic rough patch. In the downturn from 2007 to 2009, Microsoft’s sales dropped slightly, and its stock price fell 60 percent from the fall of 2008 to March 2009, a low point for U.S. stocks. Google and Amazon each lost as much as two-thirds of their market value.One sign of how this time is different: Amazon’s revenue is growing much faster in 2021 than it did in 2009, when the company was one-fifteenth its current size. Sales in the first quarter rose 44 percent from a year earlier, and Amazon’s profits before taxes — which have never been exactly robust — more than doubled to $8.9 billion. Businesses are addicted to Amazon’s cloud computer services, where sales rose 32 percent, and shoppers can’t live without Amazon’s delivery. Investors love Amazon, too. The company’s stock market value has nearly doubled since the beginning of 2020 to $1.8 trillion.For the other tech giants, it’s as if their brief pandemic nosedive never happened. Advertising sales typically rise and fall with the economy. But as other types of ad spending shrank when the U.S. economy contracted last year, ad sales rose for Google and Facebook. The growth was even better for them in the first three months of this year.A year ago, analysts worried that Apple would be crippled as the pandemic gripped China, which is the hub of the company’s manufacturing operations and its most important consumer market. The fears didn’t last long. In the first three months of 2021, Apple’s revenue from selling iPhones increased at the fastest rate since 2012. Sales in mainland China, Taiwan and Hong Kong nearly doubled from a year earlier.Apple’s revenue from iPhone sales in the first three months of the year rose at the fastest pace since 2012.Agence France-Presse — Getty ImagesThe tech giants are not the only companies rallying in dark times. America’s big banks have also been on a tear. So have some younger technology companies, such as Snap and Zoom, the maker of the pandemic-favorite videoconferencing app. The crisis forced all sorts of businesses to go digital fast in ways that could help them thrive. Restaurants invested in online sales and delivery, and doctors went full bore into telemedicine.But the dictionary doesn’t have enough superlatives to describe what’s happening to the five biggest technology companies. It’s all a bit awkward, really. It’s rocket fuel for critics, including some regulators and lawmakers in Europe and the United States, who say the tech giants crowd out newcomers and leave everyone worse off.Big Tech companies say they face stiff competition that leads to better products and lower prices, but their bank statements might suggest otherwise. Facebook’s profit margins are higher now than they were before the pandemic.Some of their success is explained by the peculiarities of the pandemic economy. Some people and sectors are doing awesome, while other families are lining up at food banks and while companies like airlines are begging for cash. Unlike the stock market clobbering in the Great Recession, stock indexes in the United States have reached new highs.The tech superstars have also capitalized on this moment. Alphabet and Facebook have used the pandemic to cut back in places that matter less, such as promotional costs and travel and entertainment budgets. And the tech giants have generally increased spending in areas that extend their advantages.Alphabet is now spending more on big-ticket projects, like building computer complexes, than Exxon Mobil spends to dig oil and gas out of the ground. Amazon’s work force has expanded by more than 470,000 people since the end of 2019. That deepens the moat separating the tech superstars from everyone else.Big Tech is emerging from the pandemic lean, mean and ready for a U.S. economy expected to roar back to life in 2021. Meanwhile, there are still long lines at food banks. Some American workers who lost their jobs last year may never get them back. Housing advocates are worried that millions of people will be evicted from their homes. And being Big Tech is an invitation for everyone to hate you — but you do have towering piles of money. More

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    Fed Leaves Interest Rates Unchanged as Economy Begins to Heal

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    The Federal Reserve said the economy had “strengthened” but opted to continue providing support while playing down a rise in inflation.Jerome H. Powell, the Federal Reserve chair, said on Wednesday that the nation would need to show greater progress toward substantial recovery before policies designed to bolster the economy would be lifted.Stefani Reynolds for The New York TimesJerome H. Powell, the Federal Reserve chair, made it clear on Wednesday that his central bank wants to see further healing in the American economy before officials will consider pulling back their support by slowing government-backed bond purchases and lifting interest rates.Mr. Powell spoke at a news conference after the Fed announced that it would leave rates near zero and continue buying bonds at a steady clip, as expected. He painted a picture of an economy bouncing back — helped by vaccines, government spending and the central bank’s own efforts.The Fed’s post-meeting statement also portrayed a sunnier image of the American economy, which is climbing back from a sudden and severe recession caused by state and local lockdowns meant to contain the coronavirus.“Amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened,” the policy-setting Federal Open Market Committee said in its release. “The ongoing public health crisis continues to weigh on the economy, and risks to the economic outlook remain.”Yet Fed officials signaled that they were looking for more progress toward their goals of full employment and stable inflation before reconsidering their cheap-money stance. Officials made it clear that they see a recent increase in inflation, which is expected to intensify in the months to come, as likely to be short-lived rather than worrying.And Mr. Powell was careful to avoid sounding as though he and his colleagues knew precisely what the future held. He pointed out, repeatedly, that reopening America’s giant economy from pandemic-era shutdowns was an uncharted project.“It’s going to be a different economy,” Mr. Powell said at one point, noting that some jobs may have disappeared as employers automated. At another, he said that when it came to inflation, “we’re making our way through an unprecedented series of events.”For now, things are looking up. After reaching a low point a year ago, employment is rebounding, consumers are spending and the outlook is increasingly optimistic as vaccines become widespread. Data that will be released on Thursday is expected to show gradual healing in the first three months of the year, which economists think will give way to rapid gains in the second quarter.Mr. Powell pointed out that even the areas hardest hit by the virus have shown improvement, but also that risks remain.“While the level of new cases remains concerning,” he said, “continued vaccinations should allow for a return to more normal economic conditions later this year.”Fed officials have signaled that they will keep interest rates low and bond purchases going at the current $120 billion-per-month pace until the recovery is more complete. The Fed has said it would like to see “substantial” further progress before dialing back government-backed bond buying, a policy meant to make many kinds of borrowing cheap. The hurdle for raising rates is even higher: Officials want the economy to return to full employment and achieve 2 percent inflation, with expectations that inflation will remain higher for some time.“A transitory rise in inflation above 2 percent this year would not meet this standard,” Mr. Powell said of the Fed’s criteria for achieving its average inflation target before raising interest rates. When it comes to bond buying, “the economy is a long way from our goals, and it is likely to take some time for substantial further progress to be achieved.”He later said that “it is not time yet” to talk about scaling back, or “tapering,” bond purchases.Unemployment, which peaked at 14.8 percent last April, has since declined to 6 percent. Retail spending is strong, supported by repeated government stimulus checks. Consumers have amassed a big savings stockpile over months of stay-at-home orders, so there is reason to expect that things could pick up further as the economy fully reopens.Yet there is room for improvement. The jobless rate remains well above its 3.5 percent reading coming into the pandemic, with Black workers and those in lower-paying jobs disproportionately out of work. Some businesses have closed forever, and it remains to be seen how post-pandemic changes in daily patterns will affect others, like corporate offices and the companies that service them.“There’s no playbook here,” said Michelle Meyer, the head of U.S. economics at Bank of America, adding that the Fed needed time to let inflation play out and the labor market heal, and that while the signs were encouraging, central bankers would only “react when they have enough evidence.”The Fed has repeatedly said it wants to see realized improvement in economic data — not just expected healing — before it reduces its support. Based on their March economic projections, most Fed officials are penciling in interest rates near zero through at least 2023.Still, some economists have warned that the government’s enormous spending to heal the economy from coronavirus may overdo it, sending inflation higher. If that happens, it might force the Fed to lift interest rates earlier than expected, and prominent academics have fretted that officials might prove too slow to act, hemmed in by their commitment to patience.Markets have at times shown jitters on signs of potential inflation, concerned that it would cause the Fed to lift rates, which tends to dent stock prices.Inflation Is Starting to Jump More

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    Federal Aid to Renters Moves Slowly, Leaving Many at Risk

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    Congress allocated $25 billion in December and another $21 billion in March to help people who fell behind on rent during the pandemic. Little has reached landlords or tenants.WASHINGTON — Four months after Congress approved tens of billions of dollars in emergency rental aid, only a small portion has reached landlords and tenants, and in many places it is impossible even to file an application.The program requires hundreds of state and local governments to devise and carry out their own plans, and some have been slow to begin. But the pace is hindered mostly by the sheer complexity of the task: starting a huge pop-up program that reaches millions of tenants, verifies their debts and wins over landlords whose interests are not always the same as their renters’.The money at stake is vast. Congress approved $25 billion in December and added more than $20 billion in March. The sum the federal government now has for emergency rental aid, $46.5 billion, rivals the annual budget of the Department of Housing and Urban Development.Experts say careful preparation may improve results; it takes time to find the neediest tenants and ensure payment accuracy. But with 1 in 7 renters reporting that they are behind on payments, the longer it takes to distribute the money, the more landlords suffer destabilizing losses, and tenants risk eviction.Millions of tenants are protected from eviction only by a tenuous federal moratorium that faces multiple court challenges, omits many households and is scheduled to expire in June.“I’m impressed with the amount of work that unsung public servants are doing to set up these programs, but it is problematic that more money isn’t getting out the door,” said Ingrid Gould Ellen, a professor at New York University who is studying the effort. “There are downstream effects if small landlords can’t keep up their buildings, and you want to reach families when they first hit a crisis so their problems don’t compound.”Estimates of unpaid rents vary greatly, from $8 billion to $53 billion, with the sums that Congress has approved at the high end of the range.The situation illustrates the patchwork nature of the American safety net. Food, cash, health care and other types of aid flow through separate programs. Each has its own mix of federal, state and local control, leading to great geographic variation.While some pandemic aid has flowed through established programs, the rental help is both decentralized and new, making the variation especially pronounced.While Charleston has started a local rent assistance program, South Carolina has $272 million to spend and has not begun taking applications.Cameron Pollack for The New York TimesAmong those seeking help is Saundra Broughton, 48, a logistics worker outside Charleston, S.C., who considered herself safely middle class in the fall, when she rented an apartment with a fitness center and saltwater pool. To her shock, she was soon laid off; after her jobless benefits were delayed, she received an eviction notice.“I’ve always worked and taken care of myself,” she said. “I’ve never been on public assistance.”A judge gave Ms. Broughton 10 days to leave her apartment. Only a last-minute call to legal aid brought word of the federal moratorium, which requires tenants to apply. She rushed to the library to print the form with 24 hours to spare. “But I still owe the money,” she said, about $4,600 and counting.If Ms. Broughton lived in nearby Berkeley County, she could have sought help as early as March 29. In Charleston County, a few miles away, she could have applied on April 12. But as a resident of Dorchester County, she must apply through the state, which has $272 million in federal money but is not yet taking applications.“Why are they holding the money?” she said. “I have thousands of dollars of debt and could be kicked out at any moment. It’s a very frightening feeling.”The huge aid measures passed during the early stages of the pandemic did not include specific provisions to help renters, though they did give most households cash. But hundreds of state and local governments started programs with discretionary money from the CARES Act, passed in March 2020. These efforts disbursed $4.5 billion in what amounted to a practice run for the effort now underway with 10 times the money.Lessons cited include the need to reach out to the poorest tenants to let them know aid is available. Technology often posed barriers: Renters had to apply online, and many lacked computers or internet access.The demand for documentation also thwarted aid, as many people without proof of leases or lost income could not finish applications. Some landlords declined to participate, perhaps preferring to seek new tenants.Despite rising need, programs in Florida and New York, financed by the CARES Act, returned tens of millions of unspent dollars to the states. By the time Congress passed the new program in December, nearly 1 renter household in 5 reported being behind on payments.The national effort, the Emergency Rental Assistance Program, is run by the Treasury Department. It allocates money to states and also to cities and counties with populations of at least 200,000 that want to run their own programs. About 110 cities and 227 counties have chosen to do so.The program offers up to 12 months of rent and utilities to low-income tenants economically harmed by the pandemic, with priority on households with less than half the area’s median income — typically about $34,000 a year. Federal law does not deny the aid to undocumented immigrants, though a few states and counties do.Modern assistance seems to demand a mix of Jacob Riis and Bill Gates — outreach to the marginalized and help with software. Progress slowed for a month when the Biden administration canceled guidance issued under President Donald J. Trump and developed rules that require less documentation.Other reasons for slow starts vary. Progressive state legislators in New York spent months debating the best way to protect the neediest tenants. Conservatives legislators in South Carolina were less focused on the issue. But the result was largely the same: Neither legislature passed its program until April, and neither state is yet accepting applications.“I just don’t know why there hasn’t been more of a sense of urgency,” said Sue Berkowitz, the director of the South Carolina Appleseed Legal Justice Center. “We’ve been hearing nonstop from people worried about eviction.”There is no complete data on how many tenants have been helped. But of the $17.6 billion awarded to state governments, 20 percent is going to states not yet taking applications, though some local programs in those states are. Florida (which has $871 million), Illinois ($566 million) and North Carolina ($547 million) are among those that have yet to start.“The pace is slow,” said Greg Brown of the National Apartment Association, who emphasized that landlords have mortgages, taxes and maintenance to pay.In a recent talk at the Brookings Institution, Erika Poethig, a housing expert on the White House Domestic Policy Council, praised the “unprecedented amount of rental assistance” and said “the federal government only has so much ability” to encourage faster action.Accepting applications is only the beginning. With $1.5 billion to spend, California has attracted 150,000 requests for help. But of the $355 million requested, only $20 million has been approved and $1 million paid.Texas, with $1.3 billion to spend, started quickly, but the company it hired to run the program had software failures and staffing shortages. A committee in the state House of Representatives found that after 45 days, the program had paid just 250 households.By contrast, a program jointly run by the city of Houston and Harris County had spent about a quarter of its money and assisted nearly 10,000 households.Not everyone is troubled by the pace. “Getting the money out fast isn’t necessarily the goal here, especially when we focus on making sure the money reaches the most vulnerable people,” said Diane Yentel, the director of the National Low Income Housing Coalition.Given the challenge, she said, “I think it’s going OK.”She points toward a program in Santa Clara County, Calif., that won praise for its outreach last year. Many of the people it served spoke little English or lacked formal leases to submit. Now, with $36 million to spend under the new program, it opted for weeks of additional planning to train 50 nonprofit groups to find the poorest households“Giving away money is actually quite hard,” said Jen Loving, who runs Destination: Home, a housing group leading the campaign. “All the money in the world isn’t going matter if it doesn’t get to the people who need it.”In Charleston, S.C., housing became a subject of concern after a 2018 study found the area had the country’s highest eviction rate. Charleston County ran three rounds of rental relief with CARES Act money, and the state ran two.The second state program, started with $25 million in February, drew so many applications that it closed in six days. But South Carolina is still processing those requests as it decides how to distribute the new federal funds.Antonette Worke is among the applicants awaiting an answer. She moved to Charleston from Denver last year, drawn by cheaper rents, warmer weather and a job offer. But the job fell through, and her landlord filed for eviction.Ms. Worke, who has kidney and liver disease, is temporarily protected by the federal eviction moratorium. But it does not cover tenants whose leases expire, as hers will at the end of next month. Her landlord said he would force her to move, even if the state paid the $5,000 in overdue rent.Ms. Worke is temporarily protected by a federal moratorium on evictions, but her lease is set to expire at the end of the month.Nora Williams for The New York TimesStill, she said the help was important: A clean slate would make it easier to rent a new apartment and relieve her of an impossible debt. “I’m stressing over it to the point where I’ve made myself sicker,” she said.Moving faster than the state, Charleston County started its $12 million program two weeks ago, and workers have taken computers to farmers’ markets, community centers and a mall parking lot. Christine DuRant, a deputy county administrator, said the aid was needed to prevent foreclosures that could reduce the housing stock. But critics would pounce if the program sent payments to people who do not qualify, she said: “We will be audited,” possibly three times.Latoya Green is caught where the desire for speed and accounting collide. A clerk who lost hours in the pandemic, she owes $3,700 in rent and utilities and is protected by the eviction moratorium only until her lease expires next month.She applied for help on the day the county program started but has not completed the application. She said she is unsettled by the emails requesting her lease, which she lacks, and proof of lost income.Still, Ms. Green does not criticize Charleston County officials. “I think they’re trying their best,” she said. “A lot of people run scams.”With time running short, she added: “I just hope and pray to God they’ll be able to assist me.” More