6.6 million newly unemployed. 10 million unemployed now since lockdowns began. Some thoughts: (1/ )
- During the Great Recession, unemployment reached 15 million. We aren't there yet but we'll get there. Note: With just 1/3 the stimulus compared w now, the US survived the Great Recession and boomed for 11 years until this virus.
Note: the unemployment rate before the Great Recession was 3 percent higher at 6.5%. That's 3.6 million less jobs in 2008 than last month. We had some buffer this time compared with the Great Recession.
- Unemployment benefits have been increased. The average person will get $1000 a week for TEN MONTHS. Many people will make more money unemployed than employed. This is not a permanent solution but will buffer as employment slowly comes back while the stimulus takes effect.
$350 BILLION in small business loans. You can get a loan to hit payroll for 2.5x months. There is incentive to not lay anyone off because the loan is forgiven. If you were a bar paying $100k a month but breaking even, you're going to get a loan THIS WEEK for $250k.
Trillions of dollars in taxes and student loans are being deferred during this crisis. Not to mention you can't get evicted if you don't pay rent or mortgage. This is a buffer that never existed before for unemployed.
As opposed to the Great Recession, many of the newly unemployed (we don't know how many) are furloughed, meaning there is a good chance they will go back to work (if they want) when economy reopens.
Not trying to be "positive". Just looking at all sides. It's horrible this has happened. Stimulus package is just a band-aid. But compared w Great Recession, we r in much better shape if economy reopens soon.
New stimulus rules also mean many self-employed or even part-time can file for unemployment. Never happened before. Means these numbers are juiced slightly compared with numbers in Great Recession.
