This article was originally published by Michael Snyder at The Economic Collapse Blog.
If the U.S. economy remains in shutdown mode for the next several months, we are going to witness layoffs like we have never seen before in U.S. history. Of course, what we have already witnessed is difficult to believe.
Last week more than 3.2 million Americans filed initial claims for unemployment benefits, and that was more than four times higher than the previous all-time record. This week another massive surge is expected, and we will continue to see lots more layoffs for as long as this pandemic persists. It is going to be a very challenging time for the country as a whole because we haven’t seen anything like this since the Great Depression of the 1930s.
Yes, shutting down most of the nation is saving lives, but it is also absolutely crippling our economy. According to a survey that was conducted from March 20th to March 26th by Challenger, Gray & Christmas, almost half of all U.S. companies say that it is likely that they will be conducting layoffs at some point “in the next three months”…
Forty-nine percent of companies told Challenger, Gray & Christmas they are very or somewhat likely to conduct layoffs in the next three months, while 11% reported they have conducted permanent layoffs; another 7% have conducted temporary layoffs.
If that actually happens, can you imagine what that will do to our unemployment rate?
I know that this may sound really crazy, but at this point, the St. Louis Fed is projecting that we will soon see a 32 percent unemployment rate…
Millions of Americans already have lost their jobs due to the coronavirus crisis and the worst of the damage is yet to come, according to a Federal Reserve estimate.
Economists at the Fed’s St. Louis district project total employment reductions of 47 million, which would translate to a 32.1% unemployment rate, according to a recent analysis of how bad things could get.
Could things really get that bad so quickly?
If we do see a number that high, it would surpass even the highest unemployment rates that we witnessed during the Great Depression of the 1930s.
The only way to avoid this sort of a nightmare scenario would be to put America back to work as quickly as possible, but that is simply not going to happen. President Trump just extended the federal coronavirus guidelines until at least April 30th, and that means that it is exceedingly unlikely that any state will end their lockdowns before then.
And actually more states continue to join the “shelter-in-place” party. For example, check out what just happened in Arizona…
Gov. Doug Ducey is ordering all Arizona residents to remain in their homes for the next month except for essential needs to limit the spread of the coronavirus, which has infected more than 1,000 people in the state.
The “Stay Home, Stay Healthy, Stay Connected” executive order is set to take effect Tuesday at 5 p.m. and remain in place at least until April 30.
It would be wonderful if the pandemic had subsided so much by April 30th that most Americans would be able to get back to work, but many states are already anticipating that this crisis will run much longer than that.
Officials in New York City are warning that the city may stay closed down for the next two months, and in Virginia, the current “shelter-in-place” order doesn’t expire until June 10th…
Virginia Gov. Ralph Northam issued a statewide stay-at-home order that’s effective immediately and will remain in place until June 10, unless the governor amends or rescinds it.
In the end, officials will be watching the raw numbers in order to determine when it is finally safe to resume normal activity.
Right now, the number of confirmed cases and the number of deaths is still increasing, but at least the rate at which they are rising is starting to slow down.
Hopefully, that means that the “shelter-in-place” orders are having a positive effect.
But if everyone is allowed to resume normal activity a couple of months from now, we could see a “second wave” erupt as the number of cases starts to explode once again.
The only way to truly defeat this virus would be to conduct a complete and total nationwide lockdown for at least 28 days at the same time that the rest of the world is also conducting simultaneous lockdowns, and there is no way that is going to happen.
So it looks like we will be dealing with this virus for a long, long time to come.
As Americans brace for the economic collapse that is now unfolding all around us, they are hoarding cash “at the fastest pace since Y2K”, and retailers are boarding up their stores all over the country…
High-end stores across the country have been boarding up their stores in anticipation of civil unrest due to the Chinese coronavirus pandemic.
In Beverly Hills, the Pottery Barn and West Elm stores near Rodeo Drive were spotted with boards across the windows according to TMZ.
Meanwhile, stores in New York, San Francisco, Seattle, Chicago, Paris, Vancouver and elsewhere were similarly boarded up.
— Zingales (@zingales) March 29, 2020
If I was in their shoes, I would probably be doing the same thing. As unemployment soars and people get sick and tired of being confined to their own homes, it is probably only a matter of time before we see civil unrest, rioting, looting, and an unprecedented spike in the crime rate.
Of course, there are still a lot of people out there that are hoping for a “V-shaped recovery” once this pandemic begins to fade, but I wouldn’t count on that happening.
Scientists are warning that there could be multiple “waves” during this pandemic, and fear of this coronavirus is going to persist for a very long time to come. And now that all of the economic bubbles are starting to burst, experts such as Egon von Greyerz are convinced that “there will be no recovery at all”…
No one should believe for one moment that once CV is gone we will experience a V shaped recovery. There will be no V, there will be no U and nor will we see a hockey stick recovery. What few people understand, including the so called experts, is that there will be no recovery at all. An extremely rapid decline of the world economy has just started and will be devastating in the next 6-12 months, whether CV ends soon or not.
Personally, I do believe that there will be ups and downs throughout this process, but overall we are facing a “great unraveling” that will be more painful than most Americans would dare to imagine.
This coronavirus is not going to be the only challenge that we will have to face. We have entered a time when there will be one crisis after another, and there will be no way to reinflate the bubbles this time.
Sadly, so many Americans today have come to take such great pride in our debt-fueled “national prosperity”, and now that prosperity is going to be smashed into a thousand pieces.
Our day of reckoning has finally arrived, and it is going to be really, really painful for the American people.
About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations, I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and anyway that you can share these articles with others is a great help. During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.