With economists declaring that a recession has already begun, New York City possibly on the verge of issuing a "shelter in place" order, and the White House saying that it wants to issue checks directly to all Americans, the coronavirus crisis is breaking new ground by the day. The vast U.S.
This time last week, Eichengreen feared that, once again, the federal government was failing to rise to the challenge at a critical juncture. But then the Federal Reserve cut interest rates and rolled out a series of emergency-lending programs. By Tuesday, when the White House proposed a trillion-dollar rescue package—which would provide cash payments to all American households and financial assistance to businesses devastated by the shutdowns—Eichengreen was a bit more encouraged.
While you're here, how about this:
Are We Headed for an Economic Depression in 2020 Because of Coronavirus?
In a possibly worse scenario, could the economy slow even further—beyond a recession and into a depression?
That might seem to be extremely unlikely, just by looking at history. There have been 33 recessions since 1854, according to the National Bureau of Economic Research, but only one depression—the Great Depression that lasted from 1929 to 1938.
Time span is the key differentiation between a recession and a depression. While a recession is typically declared when economic activities decline for two consecutive quarters , a depression means the downturn has lasted a much longer time—usually years—with much deeper impact.
The Economic Impact Of COVID-19 Will Hit Minorities The Hardest
Additionally, there have been a slew of event cancellations or postponements that would have employed hourly workers, leaving them with one less paycheck to depend on. "At a time like this, we should be figuring out the best collection of ways to provide access to events that fulfill an event's duty to provide value through its content. In theory, if you have more access points to the content, the more revenue available to mitigate economic impact," said Gary J.
If history were to repeat itself, minorities will struggle the most and be hardest hit during a recession, thanks to its impact on housing and the job market. Despite the gains made in the economy over the last decade, Blacks and Latinos have not made the same strides during this period of economic recovery. Basically, minorities haven't made enough gains to weather a new impending storm.
Coronavirus checks? Federal officials discussing economic relief | KELOLAND.com
The Treasury Department has said in memorandum Wednesday that it wants to issue two $250 billion cash infusions to individuals/households. A first set of checks would be issued starting April 6, with a second wave in mid-May. The amounts would depend on income and family size, a report from the Associated Press said.
President Donald Trump has proposed an economic package that would provide financial assistance to individuals and to industries such as airlines and to small business. Trump had a proposed a payroll tax cut but it doesn’t appear to be part of the most recent stimulus discussion.
Other things to check out:
Trump Signs Relief Package; China Reports Zero New Local Infections - The New York Times
Officials said 34 new coronavirus cases had been confirmed, all involving people who had come to China from elsewhere.
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"It's very clear that the actions taken in China have almost brought to an end their first wave of infections," said Ben Cowling, a professor and head of the division of epidemiology and biostatistics at Hong Kong University's School of Public Health. "The question is what will happen if there's a second wave, because the kind of measures that China has implemented are not necessarily sustainable in the long term."
The post-virus economic recovery could be green – Finance & Commerce
The novel coronavirus has caused unprecedented social disruption and wreaked havoc in the markets. With the world coming apart at the seams, Helen Mountford, vice president for climate and economics at the World Resources Institute, thinks investment in clean technology and infrastructure could help put it back together again.
"We have a great opportunity now to transition more quickly," says Mountford, a former official at the Organisation for Economic Co-operation and Development and an expert in how economic measures can be used to reduce climate risks. "This is a moment when we can implement measures to help boost the economy, create jobs, and build climate resilience."
A recession is likely, say economists and even President Trump. What does it mean?
President Donald Trump on Monday said the U.S. "may be" headed for a recession for the first time in almost 11 years, so what exactly does that mean?
The classic definition of a recession is two or more quarters during which the economy shrinks. Typically a contraction is accompanied by rising layoffs, falling incomes, declining consumer spending and less production of goods and services ranging from dry cleaning to the manufacture of new autos.
Yet the research group entrusted with declaring the beginning and end of economic downturns says a recession can be defined as any steep drop in activity.
The Coronavirus Economic Crash Is Worse Than the 2008 Financial Crisis
In May 2018, President Donald Trump restructured and downsized the pandemic preparedness unit. Of course, it seems ill-judged in retrospect. But he was not the first president to do so. The National Security Council's (NSC) global health security unit was set up under Bill Clinton in 1998. Years later, first George W. Bush and then Barack Obama would shut it down, only to reestablish it shortly afterward.
It is too early to confidently predict the course of the economic downturn facing us due to the coronavirus. But a recession is inevitable. The global manufacturing industry was already shaky in 2019. Now we are deliberately shutting down the world's major economies for at least several months. Factories are closing, shops, gyms, bars, schools, colleges, and restaurants shuttering. Early indicators suggest job losses in the United States could top 1 million per month between now and June.
Happening on Twitter
Some of you have never gone through a global pandemic during an economic crash with a reality show host president w… https://t.co/y5YiHA3awf jessecase (from Nashville/Los Angeles) Wed Mar 18 05:49:25 +0000 2020
I'm introducing an immediate economic relief plan for every American. —$4k to every adult who makes under 100k per… https://t.co/7kMTxddiQJ RepJoeKennedy Tue Mar 17 14:25:11 +0000 2020
We are going into extreme social isolation for an indeterminate period of time with massive economic consequences i… https://t.co/SbQL9B1zmf brhodes (from Washington, DC) Wed Mar 18 15:26:48 +0000 2020
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