The economic impact of covid19


Of this morning. Twenty two million Americans had filed for unemployment. And that's just a number that have filed so far the economic impact of the corona virus on the. Us economy is almost as big a topic as the consequences of the virus on his population. Unfortunately there is enough disinflation to make either topic confusing. Today's podcast. I'm going to lay out some numbers and made clear the difference between recession a depression to understand the immensity of each. We need to look at some numbers. The population of the United States is roughly three hundred twenty nine million the thirty point two million small businesses in the US comprised ninety eight percent of all businesses. Fifteen million are self employed and that number about nine million are unincorporated total employed in the US as of this podcast. Roughly a hundred and fifty eight million and keep in mind. There are millions that are Solo Entrepreneurs. A recession is a gradual decline of the economy. Did curse over at least six months in one thousand nine hundred seventy four. The Commissioner of the Bureau of Labor Statistics gave a more in-depth dictionary type definition. This included that there needed to be a one point. Five percent decline in Gross National Product or the total value of all goods and services produced in a given year plus foreign investment and unemployment needed to reach six percent or higher on the other hand. A depression is an extended recession or serious decline in the economy that lasts for years for depression to be in effect on employment rates. Need to rise about twenty percent and there needs to be a significant decline in gross domestic product among other factors in short a recession is simply short term economic trough but a depression is a recession on steroids since eighteen fifty four. The United States has experienced thirty-three recessions. And only one depression so depression is a long term recession with twenty percent or above unemployment politicians bat around the number of unemployed like a ping pong ball. Some people think that to get these figures on unemployment. The government uses the number of people collecting unemployment insurance referred to as you I- unemployment insurance benefits under state or federal government programs but some people are still jobless when their benefits run out and many more are not eligible at all or delay or never apply for benefits so those numbers that I announced the beginning of this podcast twenty two million on employed is woefully low. So quite clearly you. I- information cannot be used as a source. Complete information on the number of unemployed with the shelter in place mandate many states as well as the closing of all businesses except grocery stores and pharmacies to corona virus. You can be assured that the number of unemployed is going to soar no doubt above twenty percent recession or depression. It would seem that. With a high number of unemployed that the economy would be affected and consequently decline and that would leave the deciding factor recession or depression determined by the GDP which has gone up for the past three years and how long it takes for the unemploymed to become employed once again how our economy will rebound is us unpredictable as the final impact of the corona virus all the population recession or depression. Who knows but at least now? You have some facts to go

Coming up next