This article was originally published by Michael Snyder at The Economic Collapse Blog.
Even Jerome Powell is admitting that the boom years are over. For months, I have been trying to explain to my readers that the debt-fueled “prosperity” that we were enjoying prior to the COVID pandemic won’t be coming back, and initially, I received quite a bit of criticism for saying that. But that criticism has subsided, because at this point pretty much everyone can see the truth.
Despite stimulus package after stimulus package, and despite unprecedented intervention by the Federal Reserve, we continue to be mired in the worst economic downturn since the Great Depression of the 1930s. Fear of the virus continues to drag down the overall level of economic activity, more businesses are going under with each passing day, and the layoff announcements never seem to end.
Normally, Federal Reserve officials try very hard to be relentlessly optimistic. But during a European Central Bank panel discussion on Thursday, Federal Reserve Chair Jerome Powell openly admitted that “we’re not going back to the same economy”…
“We’re not going back to the same economy,” Powell said. “We’re recovering, but to a different economy and it will be one that is more leveraged to technology, and I worry that it’s going to make it even more difficult than it was for many workers.”
The central bank leader said he was referring specifically to “relatively low-paid public-facing workers who are bearing this brunt,” many of whom are women and minorities.
His use of the phrase “a different economy” really got my attention.
When I am trying to break some really bad news to someone in a gentle way, I will often use the word “different” to describe what things will be like moving forward, and I think that Powell is doing the same thing here. He knows that there is no way that things will “return to normal” any time soon, and he is quite correct to be particularly concerned about how this will affect low paid workers.
Low paid workers have been losing their jobs at a much higher rate than anyone else, and the job losses just keep rolling in.
On Thursday, we learned that another 709,000 Americans filed new claims for unemployment benefits last week, and that number is more than three times higher than what we witnessed during a typical week in 2019…
The Labor Department report showed an eleventh straight week that new jobless claims totaled below 1 million. But new claims have not yet broken back below 700,000 since the start of the pandemic and have held sharply above levels from before the outbreak. Throughout 2019, new initial unemployment claims were coming in at an average of just over 200,000 per week.
As of October 24th, a total of 21.16 million Americans were bringing home some type of unemployment assistance.
One year ago, that number was just 1.45 million.
In other words, we are in the midst of a national unemployment nightmare.
And many analysts are deeply concerned that the new wave of lockdowns that is now starting to happen around the nation will cause a renewed surge in layoffs…
As colder weather sets in and fear of the virus escalates, consumers may turn more cautious about traveling, shopping, dining out and visiting gyms, barber shops and retailers. Companies in many sectors could cut jobs or workers’ hours. In recent days, the virus’ resurgence has triggered tighter restrictions on businesses, mostly restaurants and bars, in a range of states, including Texas, New York, Maryland, and Oregon.
“The risk may be for more layoffs as coronavirus cases surge and some states impose restrictions on activity,” said Nancy Vanden Houten, an economist at the forecasting firm Oxford Economics.
Yesterday, I discussed the fact that one of the experts on Joe Biden’s new COVID-19 advisory board wants a full national lockdown for at least a month once Biden is in the White House.
Needless to say, that would make the economic depression that we are currently suffering through a whole lot worse.
But of course, there are a lot of Americans out there that simply are not going to put up with any more lockdowns. In fact, one new survey has found that only 49 percent of all Americans “would be very likely to stay home for a month if health officials recommend it”…
Fewer than half of Americans say are very likely to comply with another lockdown, despite growing concerns over the coronavirus pandemic, the latest Gallup polling shows.
About 49% of Americans polled between October 19 and November 1 said they would be very likely to stay home for a month if health officials recommend it following a coronavirus outbreak in their community, down from 67% in the spring.
Millions upon millions of lives were turned upside down by the lockdowns that were previously instituted, and the economic damage caused by another round of lockdowns would be incalculable.
But it appears that more lockdowns are coming anyway, and that means a lot more economic suffering is ahead.
Prior to the pandemic, 38-year-old Victoria Perez was working two jobs, but she quickly lost both of them once COVID came along. Now she and her children are living in city housing in Oakland, California, and they are just one step away from being homeless…
Among them is Victoria Perez, who was working two delivery jobs before the pandemic struck. Having lost both jobs in the spring, she is now living with her children in city-subsidized housing near Oakland, California, and hoping to avoid homelessness.
The city housing, provided to people at heightened risk of the coronavirus, lasts only through December. Perez, 38, is a cancer survivor.
After the holiday season, what is she supposed to do if she can’t find a new job?
Being homeless is bad enough. When you add children to the equation, we are talking about the sort of nightmare scenario that nobody should ever have to go through.
Unfortunately, the ranks of the homeless are absolutely exploding all over the country as the U.S. economy crumbles right in front of our eyes.
In 2021, I am anticipating the biggest wave of traffic in the history of The Economic Collapse Blog as our ongoing economic implosion accelerates even more. I have been hearing from so many people out there that are deeply hurting right now, and I wish that I had better news for everyone.
Sadly, the consequences for decades of exceedingly foolish decisions are catching up with us, and saying that we are heading into a “different economy” is definitely a major understatement.
***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***
About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com. In addition to my new book, I have written four others 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 the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe. I have published thousands of articles on 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article. 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. I encourage you to follow me on social media on Facebook and Twitter, and any way 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 as many people as we possibly can.
I donot believe that most people are afraid of the virus at all. I believe that victims are afraid of corrupt psychopaths in society and corrupt psychopaths are afraid of being exposed for conspiracy to commit multiple acts of fraud and spend their lives where they belong, in prison where they are no longer free to excercise their free will of sadistic destruction and fraud. Don’t expect anything to improve as long as Jay Clayton or his ilk is at the helm of the SEC, after Wells Fargo deliberate repeated acts of fraud on their customers they have not been sent to prison. This sends a green light to psychopaths! Hey go ahead! On the upside you can make tens of millions of dollars, and on the down side you might pay a minor fine and be prevented from working after you have made tens of millions of dol,ars and really don’t need to work another day of your life! The system rewards corruption! As long as the system rewards corruption and does not impose the most severe punishments for it, we sadly have to anticipate that corruption and predatory practices will not only continue, but flourish and mushroom!
The problem is the corruption! The corona virus did not destroy the economy. Only a lying jack ass that is totally full of shit would claim that it did! Shame on you Michael Snyder! How long will you continue to bull shit people for?! How can you face anyone knowing that you are so full of shit? How can you attach your name to something that is so patently false?! Don’t you care about your reputation, if not for yourself, then for the sake of your family?! Stop lying!
Andrea Iravani
I do not believe that most people are afraid of the virus at all. I believe that victims are afraid of corrupt psychopaths in society and corrupt psychopaths are afraid of being exposed for conspiracy to commit multiple acts of fraud and spend their lives where they belong, in prison where they are no longer free to excercise their free will of sadistic destruction and fraud. Don’t expect anything to improve as long as Jay Clayton or his ilk is at the helm of the SEC, after Wells Fargo deliberate repeated acts of fraud on their customers they have not been sent to prison. This sends a green light to psychopaths! Hey go ahead! On the upside you can make tens of millions of dollars, and on the down side you might pay a minor fine and be prevented from working after you have made tens of millions of dollars and really don’t need to work another day of your life! The system rewards corruption! As long as the system rewards corruption and does not impose the most severe punishments for it, we sadly have to anticipate that corruption and predatory practices will not only continue, but flourish and mushroom!
The problem is the corruption! The corona virus did not destroy the economy. Only a lying jack ass that is totally full of shit would claim that it did! Shame on you Michael Snyder! How long will you continue to bull shit people for?! How can you face anyone knowing that you are so full of shit? How can you attach your name to something that is so patently false?! Don’t you care about your reputation, if not for yourself, then for the sake of your family?! Stop lying!
Andrea Iravani
I couldn’t care less about the impact on BLM supporting minorities. They were specifically told they were more likely to get and spread the virus and they didn’t care and rioted anyway. Now they have ruined the Western economies so, yeah, the Afro dude ain’t going to get to be a pilot or a big chief executive, despite all the affirmative action initiatives.
I have been in manufacturing for 25 years. After the deals the Clintons made I have watched business lost to mainly mexico, china and other foreign countries. After Trump began changing these trade deals I have watched jobs come back. Specifically my field of industrial tooling has seen a big comeback. Since the election, with the media portraying Biden the winner companies have slashed their orders bigtime as the uncertainty looms throwing the company I work for back in to layoffs. We do business with thousands of companies so this isn’t a specific sector that is worried it seems to be across the lines. This time of year orders slow, they always do but what is different this time is the massive drop in orders, we have never had this big of drop before.
Gee, who would have thought $5 trillion in funny money, and more trillioins on the way, would ever effect the economy? (sarc)
dream, Hang on to your short hairs. its comeing to hometown USA.