The United States today has never experience something quite like the coronavirus. The almost overnight spiral it has sent our economy into is making history. Unemployment is slowly rising from previous record low numbers and smaller businesses won’t have the savings to weather this storm. Treasury Secretary Steven Mnuchin estimates 20% unemployment in the next few months if effective intervention does not happen. Assistant professor at American University Gabriel Mathy stated this is probably the world’s first recession that started in the service sector and not the goods sector. The severity of this down turn all depends on the seriousness and length of this virus. Consumer confidence is low, consumption is low, and people are increasing their savings for another raining day. Only time will tell where this pandemic takes our economy. How do you believe the virus will impact unemployment?
https://www.nytimes.com/2020/03/21/business/economy/coronavirus-recession.html?searchResultPosition=23
1 comment:
I think social distancing and people staying home from working at unessential jobs are going to affect unemployment significantly. So many more people are staying home, not making money, which can have a huge effect on our economy even when things go back to "normal." Even essential businesses don't need to hire as many people because there are fewer people out consuming, therefore less customers, lowering the demand for labor. I am wondering how this will play out when it is over and if people are going to go back to work as easily as they think.
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