#2
Politics aside, the US is dealing with not just a public health crisis but also with an economic one: more than 26.4 million Americans have filed jobless claims since the middle of March. That’s 15 percent of the workforce!
"If we estimate an average of 3 million Americans file for unemployment a week for the duration of the lockdown, if the lockdown lasts until July 3, we will have close to 60 million Americans unemployed by then. 60 million would be roughly a 38% unemployment rate as there were about 160 million working Americans before the pandemic began. Luckily, all states provide very generous unemployment benefits now, with some unemployment benefits exceeding 5,000 dollars a month per person!" Sam explained what we could expect if the lockdown continues for several more months.
"We currently face a difficult balance between saving the economy or saving our lives. It's survival of the richest as the politicians who decide our fate all still get paid during the crisis. Many are also very wealthy," Sam said. "If a total lockdown lasts past June 15, I think the S&P 500 hits all-time lows and it will take years to recover, not months."
He continued: "If the lockdown starts easing before June 15, with parts of the economy opening up due to better testing and a significant flattening of the curve, I think the economy and the stock market can recover 70%-80% of its losses within six months. I'm personally betting on a gradual opening up of the economy before June 15 and am looking for any real estate bargains to be had before then."
Economists are warning that the world is facing the biggest economic slowdown since the Great Depression and the International Monetary Fund expects the US economy to contract nearly 6 percent this year. While the Pew Research Center estimates that coronavirus-related job losses and pay cuts have hit roughly 43 percent of American households.
The government sent out 1,200 dollar stimulus checks to citizens as part of a 2 trillion dollar relief plan. But some Americans believe this is a stop-gap measure that will only temporarily keep people afloat.
Meanwhile, some people participated in protests around the country and demanded that politicians reopen the economy. President Donald Trump showed his support for these protesters, but other politicians are divided about what to do. Some have signaled their support for the President and the protesters; others warn that it’s too soon to reopen. New York Governor Andrew Cuomo recently announced that his state would extend the quarantine until May 15.
"We still have to make sure we keep that beast under control as we all get very eager to get on with life and move on. This is only halftime in this entire situation," Cuomo said.
#15
#19
