While President Donald Trump is busy pretending that the economy is still going strong despite massive stock market losses, St. Louis Federal Reserve Bank president James Bullard is predicting an unemployment rate worse than what occurred during the Great Depression.
Trump has already begged states to bury their employment data for this month, clearly fearing that a very bad number is on the horizon.
And if Bullard is correct, that number could be an employment rate of 30 percent and a 50 percent drop in gross domestic product (GDP) that may require an injection of trillions into the economy to help the American people and businesses.
According to Bloomberg:
Bullard predicted the U.S. unemployment rate may hit 30% in the second quarter because of shutdowns to combat the coronavirus, with an unprecedented 50% drop in gross domestic product.
Bullard called for a powerful fiscal response to replace the $2.5 trillion in lost income that quarter to ensure a strong eventual U.S. recovery, adding the Fed would be poised to do more to ensure markets function during a period of high volatility.
“Everything is on the table” for the Fed as far as additional lending programs, Bullard said in a telephone interview Sunday from St. Louis. “There is more that we can do if necessary” with existing emergency authority. “There is probably much more in the months ahead depending on where Congress wants to go.”
Senate Republicans have certainly not been any help as they oppose paid sick leave and a stimulus for most Americans, preferring to give money to the wealthy and corporations instead even though they don’t need near as much help and just got massive tax cuts two years ago. Some Republicans even sold their stocks based on inside information instead of focusing on the economic calamity they knew was coming.
Bullard’s prediction shocked NBC analyst Maya Wiley, who noted that if 30 percent unemployment comes to pass, it would surpass joblessness during the Great Depression. Wiley also called for a response similar to what former President Franklin Roosevelt did.
If this 30% unemployment projection becomes reality, #coronavirus will surpass the Great Depression in joblessness in the US – 24% at its height. We should be as bold as FDR and more inclusive than the New Deal. #coronavirus https://t.co/S2XK3GNVAU
— Maya Wiley (@mayawiley) March 22, 2020
This crisis has not only devastated the public health, but it’s also devastating the economy. Americans are going to suffer. Our government must pass a massive stimulus package that gets financial help to the people. The rich and corporations already have enough to survive in the long-term if necessary. Most Americans do not. This is why we need liberals in charge instead of conservatives. Because while conservatives are busy causing these economic downturns and only helping those who don’t need it, liberals know how to fix and have a proven track record of doing so all while actually giving a damn about the masses.
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