President Trump says the economy will come "roaring back" once coronavirus is corralled. History suggests it won't.
The coronavirus outbreak has almost certainly triggered a recession. Probably a deep one, with massive business closures and millions of lost jobs. With luck, it will be short, with a gusher of fiscal stimulus limiting the damage. “Our economy is going to come roaring back,” President Trump said on March 17.
But recoveries were taking longer even before the Great Recession. The recession that ended in 1991 was relatively mild, yet it took 32 months for the labor market to recover, longer than more severe recessions in 1975 and 1982. The recession ending in 2001 was also mild, yet it took 46 months for the labor market to recover, the longest to date, until the Great Recession hit.
Skill requirements also change faster than they did 40 and 50 years ago. Companies obviously want people with technical skills able to operate complex machinery or do some programming, and the pool of available talent gets a lot bigger when layoffs mount. So companies get pickier, hiring people for part-time or temporary work, that lowers their benefit costs, if they can get away with it. This happens as shareholders are pressuring companies to cut costs—i.e.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Danny Meyer Has Now Laid Off 80 Percent of His StaffDanny Meyer announced that Union Square Hospitality Group will lay off 80 percent of its workforce — approximately 2,000 people
Read more »
Opinion | We can’t escape another recession. Keep these three questions in mind.It's now a matter of how long and damaging the recession will be.
Read more »
The White House wants to give you $1,000. Here's how it could workThe Trump administration proposed mailing out checks of up to $1,000 to American adults to quickly pump hundreds of billions of dollars into the economy, which is being negatively impacted by coronavirus. Here’s how they could do it:
Read more »
Coronavirus has plunged the world into a recession, according to S&PThe coronavirus outbreak has plunged the world's economy into a global recession, according to S&P Global. The credit-rating agency says the virus has severely disrupted economic activity and the damage is about to get worse in the US and Europe.
Read more »
How coronavirus survivors' symptoms presented and the road to recovery from the diseaseSome Americans on the mend speak to ABC News about the serious care and what it took to get healthy.
Read more »
Hannah Brown’s Brother Reveals He Overdosed and Is Now Recovering'I have been very hesitant to post this because of my pride and ego but God has been weighing on my heart lately to share...'
Read more »