Economic Recovery Could Take Years
MIA – Rapid Rebound for the Economy
Cristal M Clark
Regardless of what many think, reopening states is not going to provide the economic recovery many had hoped for and that is for a number of small reasons that once all added together point to some darker times ahead.
Consumers are reluctant to spend, many businesses are still unable to open, of those that are, they are learning rather painfully that they will not be able to employ the workforce they once had and of those that can, many of those employees will be working from home, some companies are choosing to shut down entire offices and move everyone to a work from home environment which hit’s a rental market no one has been talking about. Many bars are going to be forced to remain closed simply because they are unable to accommodate social distancing rules, of those that do open, they will lose the profit they need due to the rules and limits on overall capacity post Covid-19 will allow, the same goes for restaurants. And event’s, venues and sports well I think everyone is getting the picture on those.
The New York Times used the online research platform SurveyMonkey and found that roughly 60% of the participants said they expected the next 5 years to be characterized by “periods of widespread unemployment or depression.”
A survey from the University of Michigan last week found that consumers’ assessment of current economic conditions had improved modestly in early May, but that their view of the future was just as grim as those surveyed by the New York Times and if you look carefully you are seeing the same from across several media outlets and universities.
As far as consumer confidence goes, that speaks volumes. Even in the financial industry we are seeing news and reports that lean towards the same sentiments. While we can get money in, we are finding it difficult to turn it around and get it back out on the streets. One of the contributing factors is that right now even lenders are skittish about lending to anyone who is not employed or going back to work for the same employer and borrowers have money right now, they are reluctant to spend what they have and they do not need a loan.
In testimony before a Senate committee on Tuesday, Jerome H. Powell, the Federal Reserve chair, and Steven Mnuchin, the Treasury secretary, both warned that further job losses were likely and they both can’t seem to agree on policies that will foster growth and repair our damaged economy.
And to make matters even worse, economists, who once expected a swift, “V-shaped” recovery, now say unemployment is likely to remain elevated for years.
So while many clamor to reopen states and businesses they didn’t really win anything because this is going to be rolling along for quite a number of years. As construction continues, those footing the bill for said construction are going to be left holding a bag of absolute garbage they will be unable to lease, rent or sell for years to come. Commercial Real Estate is going to get hit hard and with little recourse available these guys stand to lose virtually everything.
It’s time to address the issues of wages not being in line with the cost of living because until that situation becomes resolved we are not going to get ahead of this mess, then we need to look to bring jobs back to America and to stop giving tax breaks to large corporations who move jobs overseas or who simply get a big tax break for employing so many workers in America and take a hard fucking look at what those workers are paid in comparison to those that own or who are on a board of said companies. Why the fuck we would give Amazon, WalMart and many others the tax breaks we do is beyond me, they don’t pay people shit. As for bailouts to any corporation or company, yes they must be held accountable to misusing any said bailout so as to line the pockets of executives and board members.
The point is that working American’s are sick of the abuse of corporations, the banking industry, the airline industry with each bail out they receive. It benefits no workers but does benefit the board and the executives. That is disgusting.
Every single little guy is taking a proverbial beating financially right now, it’s time the big players did their part and shared in that financial hit.
Most importantly, regardless of Trump’s pushing and promises, the economy is not coming back anytime soon.
Cristal M Clark