04.09.2020 0

After the Chinese coronavirus, we need to make in America to protect lives and national security

After Chinese coronavirus, we need to make essential items in America based on strategic need—and enough of them:

Weekly unemployment claims in the U.S. were up another 6.6 million, bringing the total jobs lost since the Chinese coronavirus pandemic anywhere from 16.6 million to 19.6 million as federal and state government closures continue to in order to stave off the virus and protect the elderly and those with underlying conditions, more than doubling the jobs lost during the Great Recession when 8.3 million were lost. That puts the effective unemployment rate 15 percent, pretty much the highest since the Great Depression, with an overall 22 million to 26 million out of work and rising as Americans continue to engage in social distancing. Recall, about 5.8 million were already jobless when the outbreak began when unemployment was just 3.5 percent, a 50-year low, with the worst likely yet to come. This is like a tidal wave washing over the global economy, and no one will be spared. Businesses large and small are being tested during this time, but already the data and the damage is simply catastrophic. Nothing has ever been seen like it. What’s worse, it could take years or a decade to recover, even with well-intentioned measures by Congress to help small and large businesses to shore up payroll. President Donald Trump has requested Congress increase funding for small businesses by another $250 billion bringing the total up to $600 billion and the Federal Reserve appears to be opening a secondary market for these small business loans that it will be purchasing as banks make the loans, freeing up more capital to keep the lending going. The next few weeks’ unemployment claims reports will bear out the extent of the damage that has already been caused and as can be seen, it is quite extensive. The key thing to understand is that the damage may not be reversible in the short-term as any notions about getting back to 3.5 percent unemployment anytime soon are dispelled. However, with the decisive action being taken today by President Trump and Congress, we can shorten the duration of the job losses and speed the recovery. Main Street will reopen soon, it’s only a matter of time. How long do you think the recession will go on? Can we come back quickly?

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