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The economic cost of closed schools

When schools close down, the whole economy suffers.

Why it matters: Beyond the stress of overwhelmed parents or the cabin fever of restless kids, closing schools for COVID-19 could cost about $700 billion in lost revenue and productivity, according to a Barron's analysis — a whopping 3.5% of GDP.


How it works: Schools exist to educate children — but they also serve a vitally important child care function, looking after kids so that their parents can go to work.

  • Parents are losing work hours — or even quitting their jobs — as schools and day-care centers remain closed due to the COVID-19 pandemic. That hinders economic growth.

By the numbers: Working parents make up around a third of the U.S. workforce.

  • 13% of them lost their jobs or cut back hours due to child care challenges during the pandemic, according to a June survey conducted by Northeastern University. And even if parents can work and care for their kids at the same time, it's impossible to be as productive.
  • On average, a working parent loses around eight hours a week — or a full workday — due to pandemic-era childcare responsibilities, per research by Alicia Modestino, an economist at Northeastern University.

That goes up to 10 hours per week when considering lower-income Americans or people of color. Both groups are disproportionately represented in essential, in-person jobs and can't make up for lost time with early mornings or late nights.

What they're saying: "This is a big drag on the economy," Modestino tells Axios. "Working parents are in every state, in every industry, and in every occupation. The macro implications are really, really big."

  • "Even if you’re lucky enough to have a teleworking situation, it’s really hard to work at full capacity when you’re essentially acting as a teaching assistant," adds Misty Heggeness, a visiting scholar at the Minneapolis Fed.

The bottom line: Schools are a key part of the engine driving the American economy. When they close, everybody suffers.

Trump pushes to expand ban against anti-racism training to federal contractors

President Trump announced late Tuesday that the White House attempt to halt federal agencies' anti-racism training would be expanded to block federal contractors from "promoting radical ideologies that divide Americans by race or sex."

Why it matters: The executive order appears to give the government the ability to cancel contracts if anti-racist or diversity trainings focused on sexual identity or gender are organized. The memo applies to executive departments and agencies, the U.S. military, federal contractors and federal grant recipients.

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GoodRx prices IPO at $33 per share, valued at $12.7 billion

GoodRx, a price comparison app for prescription drugs at local pharmacies, on Tuesday raised $1.14 billion in its IPO, Axios has learned.

By the numbers: GoodRx priced its shares at $33 a piece, above its $24-$28 per share offering range, which will give it an initial market cap of around $12.7 billion.

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White House chief of staff Mark Meadows told administration officials Monday to expect senior aides to be replaced at many government agencies, according to an internal email obtained by Axios.

Behind the scenes: Meadows asked the director of the White House Presidential Personnel Office John McEntee "to look at replacing the White House Liaisons (WHLs) at many of your agencies," according to the email. "John will be working with outgoing liaisons to explore other opportunities."

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White House ricin package suspect allegedly urged Trump to "give up for this election"

A Canadian woman allegedly mailed a letter addressed to President Trump containing the poison ricin and the threat "give up and remove your application for this election," court papers filed Tuesday show.

Driving the news: Pascale Cecile Veronique Ferrier, 53, was arrested trying to enter New York from Canada on Sunday. She appeared briefly in a Buffalo, N.Y., courtroom where a judge entered a not guilty plea on her behalf to the charge of threatening the president, per CBC.

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House Democrats, Trump administration strike deal to avert government shutdown

House Democrats have reached a deal with the Trump administration on legislation to fund the government through Dec. 11, Speaker Nancy Pelosi (D-Calif.) announced Tuesday.

Why it matters: The deal will avert a government shutdown when funding expires in eight days. Pelosi and House Majority Leader Steny Hoyer (D-Md.) said earlier that they hoped to hold a vote on the legislation on Tuesday evening.

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Remote work won't kill your office

We can officially declare the 9-to-5, five-days-a-week, in-office way of working dead. But offices themselves aren't dead. And neither are cities.

The big picture: Since the onset of pandemic-induced telework, companies have oscillated between can't-wait-to-go-back and work-from-home-forever. Now, it's becoming increasingly clear that the future of work will land somewhere in the middle — a remote/in-person hybrid.

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FBI: Foreign actors likely to sow disinformation about delays in election results

The FBI and Cybersecurity and Infrastructure Security Agency released a public service announcement on Tuesday warning that mail-in ballots "could leave officials with incomplete results on election night," and that foreign actors are likely to spread disinformation about the delays.

The bottom line: The agencies called on the public to "critically evaluate the sources of the information they consume and to seek out reliable and verified information from trusted sources," including state and local election officials.

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The big business of immigrant detention

Around 70% of all immigration detention centers are run by private companies, including the one at the heart of a new whistleblower complaint that alleges systemic medical neglect and malpractice.

Axios Re:Cap digs into the business of immigrant detention, including oversight and profit incentives, with Jonathan Blitzer, a staff writer for the New Yorker who’s covered the subject for years.

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