A Look At That Great Economy

Trump keeps telling the people of the US that this economy is great and that we all will be on easy street soon enough……(well that part was me being sarcastic…..

I would like to know where it is so great.

Jobless rates are still not good……even the last numbers were not so great….

New unemployment data came out Thursday morning, and the numbers are not sitting well with Wall Street investors. The Labor Department says 898,000 people applied for jobless benefits last week, exceeding estimates by about 70,000, reports CNBC. The figure is up more than 50,000 from the previous week and is the highest since August. The stock market opened an hour after the report came out, with the Dow down about 300 points in the early going, or roughly 1%. The S&P 500 and the Nasdaq were down similar percentages.

“Given that we’re seven months into the pandemic now, these are still incredibly high numbers for initial claims,” AnnElizabeth Konkel of the job site Indeed tells the Wall Street Journal. Also contributing to the sour mood on Wall Street is the increase in COVID cases and continuing uncertainty about whether lawmakers in DC will be able to settle on a coronavirus relief package, per the Journal.

What part of unemployment is great for us mere mortals?

The threat of a massive new round of layoffs looms. Officials in Cook County, Illinois, which includes Chicago, announced a new operating budget this week that includes the elimination of 659 jobs, including 130 health workers in the midst of a pandemic. Rutgers University is planning additional layoffs after the 900 layoffs and 6,400 furloughs it has already implemented. The Tropicana casino and resort in Las Vegas announced 828 layoffs while Rochester, New York schools are cutting 200 non-teaching personnel.

The predictable result of this has been hardship and poverty for millions of unemployed or partially employed workers. Several new studies have shown a significant growth in poverty, particularly in the period after the expiration of the $600 weekly unemployment supplement at the end of July.

https://www.wsws.org/en/articles/2020/10/16/jobs-o16.html

Then there are those markets…..the game that only the wealthy get to play…..seems they are in a bit of a funk as well….

After last week’s strong performance, the stock market now can’t find any forward momentum. On Thursday, the Dow fell 19 points to 28,494, the S&P fell 5 points to 3,483, and the Nasdaq fell 54 points to 11,713. Worse-than-expected unemployment data, rising pessimism about a coronavirus deal in DC, and a continued rise in cases in the US and around the world were blamed for the market malaise, report the Wall Street Journal and the AP.

“The stimulus talk continues to be a little negative, and the virus outbreak in Europe that’s going to probably cause more shutdowns in various cities and countries, that’s a little bit of a negative, too,” said Scott Wren of the Wells Fargo Investment Institute. The day started out even worse, with the Dow falling about 300 points, though the selloff eased considerably in afternoon trading.

What do you think 8 million people think of this “great economy”?

The world’s poor have been hit the hardest by the pandemic—and in the US, that group includes 6 million to 8 million more people than it did a few months ago, according to two studies released this week. Columbia University researchers found that the number of poor people in the US actually fell in the early months of the crisis, when the $2 trillion Cares Act provided $1,200 stimulus checks and an extra $600 a week in unemployment benefits, but the gains were reversed as aid dried up, causing 8 million people to fall into poverty since May, reports the New York Times. Researchers from Notre Dame and the University of Chicago, who measured income by year instead of by month, put the number at 6 million, including 2.5 million children.

“These numbers are very concerning,” University of Chicago economist Bruce D. Meyer tells the Times. “They tell us people are having a lot more trouble paying their bills, paying their rent, putting food on the table.” The studies found that Black and Latino Americans are around twice as likely to be in poverty as white Americans. Authors of both studies found that the Cares Act had been extremely successful in keeping people out of poverty and urged Congress to consider their research when crafting future stimulus programs, the Guardian reports. “The Cares Act was very successful,” says Columbia researcher Christopher Wimer. “But one of its shortcomings was its temporary nature.”

What part of this with less than 3 weeks until the election talks of a better day to come?

My question is do the voters truly give a shit about their fellow Americans?

Learn Stuff!

I Read, I Write, You Know

“lego ergo scribo”

6 thoughts on “A Look At That Great Economy

  1. Funnily enough, the BBC also reported that the US economy was ‘strong, despite the pandemic’. I am now wondering if Trump is paying them to give him good coverage!
    Best wishes, Pete.

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