As the economy recovers from the pandemic, home sales are booming, stocks are setting record highs yet the US economy is nowhere close to what it was pre-pandemic with high unemployment, low consumer confidence and less consumer spending. The virus outbreak is still raging and the Congress is deadlocked over providing more relief to the US citizens.
According to the article, roughly 1 million new Americans are applying for unemployment benefits every week. Economists say that as many businesses have reopened and consumers have begun shopping and spending more, the picture is beginning to brighten, if only fitfully. Most say the economy is growing again. Yet scars are sure to remain from the catastrophic April-June quarter, when, according to the government, the economy collapsed at a 31.7% annual rate.
Some industries, notably those involving travel and hotels and restaurants, could struggle for years. And while the number of confirmed viral infections has been declining, the threat of a major resurgence remains, especially as students increasingly return to schools and colleges.
In a survey released last week by the National Association for Business Economics, two-thirds of the economists said that they thought the U.S. economy remains in recession. Nearly half said they didn’t expect it to return to pre-pandemic levels until mid-2022. Eighty percent put the likelihood that any recovery will give way to a “double-dip” recession at 25% or more.
Do you think we are still recession or recovering out of it? How long will it take for the US economy to recover?
https://www.nbcnews.com/business/economy/virus-rages-us-economy-struggles-sustain-recovery-n1238693
According to the article, roughly 1 million new Americans are applying for unemployment benefits every week. Economists say that as many businesses have reopened and consumers have begun shopping and spending more, the picture is beginning to brighten, if only fitfully. Most say the economy is growing again. Yet scars are sure to remain from the catastrophic April-June quarter, when, according to the government, the economy collapsed at a 31.7% annual rate.
Some industries, notably those involving travel and hotels and restaurants, could struggle for years. And while the number of confirmed viral infections has been declining, the threat of a major resurgence remains, especially as students increasingly return to schools and colleges.
In a survey released last week by the National Association for Business Economics, two-thirds of the economists said that they thought the U.S. economy remains in recession. Nearly half said they didn’t expect it to return to pre-pandemic levels until mid-2022. Eighty percent put the likelihood that any recovery will give way to a “double-dip” recession at 25% or more.
Do you think we are still recession or recovering out of it? How long will it take for the US economy to recover?
https://www.nbcnews.com/business/economy/virus-rages-us-economy-struggles-sustain-recovery-n1238693
3 comments:
If I had to make a judgement I would consider the US still in the midst of a nasty recession. Although we have managed to retain some normalcy, industries across the country remain devastated with no end in sight. As the virus continues to spread it is hard to imagine any real recovery until a treatment or vaccine has been found. This is especially evident in the hospitality industry as well as in travel. Only when people can feel safe from the virus will real recovery happen.
I agree with Jack, I think we are still in the middle of a recession and might be in it for a little while. Though things have definitely gotten better in some aspects I don't think we are out of the woods yet. In recent articles I've read however, experts say that the healthcare and retail industries, which have been hit hard during the pandemic, are projecting salary increases next year to the tune of 2.6% and 2.8%, respectively. So that's a positive and maybe a sign that we are in fact on the road to recovery and economic relief.
I think that we are still in the recession at the same time are getting out of it as well. A recession takes some time to get back on track to where it was, but since we have been seeing better numbers in the economy it may mean it will not be that hard.
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