President Donald Trumpon a presented a wrinkle in the history of the US economic recovery from the deep financial cracks in the US . His tweet a few hours later called on Congress to implement several of the stimulus measures that had been part of these very discussions. Neither political analysts nor many of the millions of Americans who have suffered economic hardship due to the pandemic seem to know what to do with the president’s contradictory messages.
The aid package under negotiation was expected to include oneand renewed . Federal Reserve Chairman Jerome Powell said the economy could experience “tragic” results without significant government support. Without direct support, many of those hardest hit by the recession may not receive any form of economic relief until at least 2021. How this may affect the already uncertain recovery of the United States remains to be seen.
So far, economic returns have been a mixed bag with strong divisions in socio-economic lines. Case in point: Although the stock market and the average household wealth in the US are both close to record highs, the US may soon face a shortage of food bank meals with potentially catastrophic consequences for the country’s record 22.3 million adults who do not have a reliable food source. More than 12% of these households include children, according to US census data.
Economists indicate that lock-in measures have created a K-shaped recovery where well-educated civil servants and industries that cater to them have recovered faster than people whose incomes are tied to public life, such as restaurant and hotel employees, who remain largely unemployed or underemployed.
What does the road to economic recovery look like from here? We have compiled the latest news about the coronavirus recession, where to find help, what makes a recession and the government’s response. This story is intended as an overview, not financial advice. It is updated as the situation develops.
Latest coronavirus recession news
- Trump unexpectedly and abruptly ended negotiations on a second stimulus bill Oct. 6 in a series of tweets that partially said “I have instructed my representatives to stop negotiating until after the election” and that he was not interested in saving democracy-governed states.
- Three hours later, Trump seemed to contradict himself by demanding that Congress approve several key provisions in the proposed stimulus package., including financial relief for the besieged aviation industry and $ 1,200 direct stimulus controls.
- Stimulus is needed, Fed President Powell stressed hours before Trump’s tweets. “Too little support would lead to a weak recovery and create unnecessary difficulties for households and businesses.”
- The number of people without work for more than 27 weeks increased to 2.4 million in September, a 32.5% jump from the previous month, according to data from the Ministry of Labor.
- Office rents are plummeting across the country, as companies have moved to a predominantly remote workforce, with San Francisco experiencing the steepest declines.
- Housing prices continue to soar in perhaps the most unexpected repercussion of the “COVID economy”, where experts predict another six to twelve months of rising prices before supply and demand rebalance.
- The coronavirus economy has disproportionately affected women, with four times as many women leaving the labor force compared to men. Black Americans are also disproportionately affected.
- United and US airlines have over 32,000 employees, while Southwest has proposed wage cuts to avoid similar furloughs, as declining profits due to reduced travel expenses have almost paralyzed the aviation industry.
Where can you find additional resources for personal finance
If you have experienced financial difficulties as a result of the coronavirus recession, here are some tools to help you regain your financial balance.
When will the COVID recession end?
From an economic point of view, a recession ends when certain market requirements are met, which according to some estimates can happen about halfway through 2021. From a personal perspective, you may wonder most about your ability to work, pay your bills and secure your financial future.
Economists and health experts agree that the economy will not fully recover until the coronavirus pandemic is contained – butwhen locking measures are facilitated. It happens either through , an effective treatment for , a or any combination of all three.
Several vaccine candidates have shown promise in human trials. Still, most people do not get one until sometime next year.
How the government has tried to support the economy
Theapproved as part of the CARES law in March represents the US government’s first attempt to counter a recession. The law on financial relief included for most U.S. taxpayers, as well as a loan program for companies to continue to pay their employees.
So far, attempts have been madehas stuck, with most analysts hoping for a deal decreases for the day.
However, the Federal Reserve has stated that it will continue to keep interest rates close to 0% until 2023, which often has the effect of encouraging more borrowing, leading to more spending – and more spending generally improves the economy.
How can I help others?
It is easy to feel helpless, but if you feel financially secure or have time to give, there are ways to make a difference. My CNET colleague Katie Conner has some excellent recommendations for, including free donations such as online volunteer work or blood donation, as well as ordering withdrawals or delivery and purchasing gift cards to the restaurant.
Other local businesses such as bookstores, garden centers, toy stores and stores may have a website where you can support them with an order.
The best advice I have heard so far on how you can individually help strengthen your finances is this: Spend to the best of your ability and within your resources.