The 19-COVID the recession would be much worse. Why were they not?

Nearly four months after the COVID-19 crisis we are experiencing continuous highlight not only the cost in lives lost, but the economic devastation, as well as the new cases increasing in countries previously doubts about everything, spared from the opening of the theme park melting and events for the interstate trip feasibility for the sport. Yet, as bad as things economically, it remains an open question why things are not worse. The answer is simple and ambitious: We can all be in this together as a people, a virus, but we’re not wearing the same extent in this together in economic toll. We are all abundant in this together, class or, as the recent protests highlight of the race, but we have a history in this country that says we are, and designed this story subtly, as we tell our economic history, we act as if the fact that many of us hit hard means that the system must be so. And make no mistake, a less bad economy in the era of COVID-19 is still a lousy. But it is not evenly distributed just as well, because it was not like one or fairly well distributed when times were better. The advantage of this disadvantage is that the system itself is not hit hard, the downside is that the weight of those less capable of withstanding strikes. The national unemployment rate is about 15%, to 20 million people receive unemployment benefits, and the number of those who are underemployed, is much higher. You would think that would translate into a catastrophe throughout the economy, but were devastated during some industries that economic activity overall has decreased, in sync with job losses. The sharp blow followed in April by a strong recovery in many industries. Retail sales were up 17% in May and only 6% from May 2019 what is bad, but not as extreme as the loss of jobs or travel gastronomy aircraft and film companies with tax, for example. Sales of new homes in May, not only recovered from its crater April, but were up from May 2019, which is really amazing given how difficult things are now and how the robust economy than a year ago had. And of course, there is the stock market, have from the lows of March, almost 40%, from the end of June is about 5% so far this year for the S & P 500 market that no one has an advantage the storage of the Federal Reserve, the almost endless supply of cash to be taken to ensure no repeat of the 2008-2009 financial collapse. And ‘no doubt a good thing that the financial system is not currently in danger, but it creates an even stronger contrast than 20 million Americans, unemployment benefits, and millions more are not even looking for work. Markets aside, because they are the tens of millions out of work have a direct negative impact? Because there is an echo of the Great Depression, when some of the numbers as the Great Depression? There are two reasons, one positive and one not quite. , The positive reason is that these large sums of money in the form of direct payments, small rescue companies created and extended unemployment benefits for all the awkwardness bulk of social safety nets in April by Congress, buoying ended heritage deprived of tens of millions of people. In fact, since the additional cost of $600 per week supplement emergency provided by the federal government it provided a lot of people at the lower end of the wage spectrum were COVid leads to more money at home that week if they were employees. earned 40 million the average amount of people who received unemployment at some point in March was less than $750 per week; the average amount between the various emergency programs received? $970 per week. This helps explain why the overall economic activity has not decreased in step with unemployment or with the contraction of many industries. This Juiced benefits are, however, eliminated the prospect of an increase unless those be extended further, the web has deteriorated in July. The other reason is not so harmless. In terms of statistics on unemployment and how we discuss job is a job is a job is a job. But in terms of wage and a living wage, all jobs are not equal. Not close. For many millions of jobs, the pay is not what the poverty line, and it is not enough alone, rented a family to cover food and shelter for one person. Hence the strong push in recent years to raise the minimum wage to at least $15, they made a now that many cities such as Seattle, but the federal government does not. In the current crisis the preponderance of the job losses of places of human services sector was, those who depend on face to face contact and can not be moved by pushing in the digital world. These industries – restaurants, catering, travel, tourism, shopping, events – even among the lowest paid. Overall, average income in the US is $28 per hour. But the result for the leisure and hospitality are $16 per hour for retail $20 per hour. These ten million workers were never Dollars or economic activity, such as tens of millions of people who work in construction or manufacturing or technology or high-end service industries such as finance and advisory and public accounting the same level of spending or selling the house or the service consumers as teachers and police trip. The result is that 15-20% unemployment with 40 million people out of work at one point or another in recent months may have and does not have a one-to-one shot for economic activity. An important lesson of the last few months is that the support of the massive government actually comes and can be tall and straight and not channeled through degrading tires evidence and to justify their vulnerability and need people who actually a reasonable amount human and conservation activities meet the needs of the people. Providing nearly $1,000 per week for people for a few months has been for many of them a raise that what we have just a basic level of provision has fallen by all the people a vision, put in a prosperous society. It ‘hard to see this mortal positive side in a crisis, but if we do not learn this, we’re all in this as well, but yes, we have the means to improve these injustices, then the crisis will not have all been the worst. It will wake up the long time that we have the basic economic security for all have power. All that is lacking is the will to do so.
Picture copyright by Angela Weiss-AFP via Getty Images