The US economy is disrupting with peeking unemployment and economic fallout amid COVID-19 lockdown
Highlights! The outbreak of COVID-19 and rising unemployment shows the cracks in the US’ developed economy.
- Disrupted Economic State of America
- America A Developed Nation?
- A Ray of Hope
The coronavirus pandemic is breaking the world into fragments. The effects of lockdown are finally showing on global economic health. While it’s understandable that the developing nations are bound to suffer but why the US, most ‘developed economy’ is having such a crisis?
Disrupted Economic State of America
10 million Americans have lost their jobs during this time at a pace that exceeds job losses in the worst weeks of the Great Recession.
The breaking down of supply chains, the drop in equity prices has lowered household wealth that caused a sizable slowdown in the U.S. economy.
The problem is not the fiscal liquidity but the halt of activities due to the COVID-19 lockdown. In these conditions US Federal Reserve is the front line of defence however, lowered rate and purchasing assets won’t be much of a shield for the US economy.
While US President Donald Trump wants to reopen the economy as soon as possible WHO and economists feel otherwise. And with the widespread of the virus experts believe that there won’t be a ‘fully functioning economy anytime soon.’ Economist Betsey Stevenson told NY Times, “Our ability to reopen the economy ultimately depends on our ability to better understand the spread and risk of the virus.”
America A Developed Nation?
We’ve all heard this before from the President, from the United Nations that America is a ‘developed economy.’ But is it?
When compared to other ‘developing’ nations yes it looks like the US is a developed economy. But the pandemic has shown us the preparedness of an economically developed nation – people are dying by the minute, the front line workers have the scarcity of basic medical supplies.
According to data in the US, there are 2.9 hospital beds for every 1,000 people, 2.6 doctors per 1,000 people. The shortage of ventilator and medical supplies will soon kill more people than the coronavirus.
Simply put for America pursuit of private money in systems built for the public good has not worked ethically or practically.
And the response of US President Donald Trump to the crumbling economy is of toddlers. He turns tone-deaf when it comes to answering the most pertinent questions. Whining, blaming and just creating distractions by his showmanship.
Watch: Donald Trump’s Response to Unemployment Amid Coronavirus
The Nation recently exposed how the military knew that a coronavirus related pandemic can take over the country. They reported a document titled, “USNORTHCOM Branch Plan 3560: Pandemic Influenza and Infectious Disease Response.”
The documents also predicted the shortage of facemasks, ventilator and hospital beds. Trump Administration was aware of it but did nothing!
The report stated “Competition for, and scarcity of resources will include…non-pharmaceutical MCM [Medical Countermeasures] (e.g., ventilators, devices, personal protective equipment such as face masks and gloves), medical equipment, and logistical support. This will have a significant impact on the availability of the global workforce.”
A Ray of Hope
While many have lost their jobs and are on a hunt now, certain sectors in the US has seen a spike in jobs to provide lockdown services. Grocery stores, food delivery services, package delivery drivers, freight trucking, cleaning services, call centres, e-commerce warehouses and logistics, nursing homes, manufacturers of popular shelf-stable food products, pharmacies and security services – have job openings for the unemployed.
Watch: Amazon Hiring 100,000 People
30 major companies are hiring in the US like 7 Eleven, Amazon, CVS Health, Domino’s Pizza, Pizza Hut, Papa John’s, Hungry Howie’s, FedEx and United Parcel Service are among the top employers.
So while the country is strangled by unemployment and the COVID-19 lockdown, the US neither looks like a developed economy nor great!