US economy may be stalling out as viral outbreak worsens

[TexasTowelie]

WASHINGTON (AP) — The U.S. economy is stumbling as the viral outbreak intensifies, threatening to slow hiring and deepening the uncertainty for employees, consumers and companies across the country.

Coronavirus case counts are rising in 38 states, and the nation as a whole has been shattering single-day records for new confirmed cases. In six states representing one-third of the economy — Arizona, California, Colorado, Florida, Michigan, and Texas — governors are reversing their reopening plans. Reopening efforts are on pause in 15 other states.

The reversals are keeping layoffs elevated and threatening to weaken hiring. More than 1.3 million people applied for unemployment benefits last week, the Labor Department said Thursday, down from 1.4 million the previous week but still roughly double the pre-pandemic weekly record. Applications had fallen steadily in April and May but have barely declined in the past month.

Jobless claims “are stalled out at a new normal of over a million new claims every week,” said Daniel Zhao, an economist at Glassdoor. “The virus is in the driver’s seat and we’re along for the ride until the current public health crisis is resolved.”

Read more: https://delawarestatenews.net/nation/us-economy-may-be-stalling-out-as-viral-outbreak-worsens/

[sprinkleeninow]

1. Every bit of this pandemic that has befallen us is so very disheartening. n/t

[Sherman A1]

2. Not yet

By 4th quarter we will be seeing a definitive trend.

[Moostache]

3. By 4th quarter we may well be seeing food riots and unrest that dwarfs ANYTHING seen before...

This economy - service-based, inequitable and rife with the vestiges of racism and echoes of slavery - is unraveling at a rate that no one dares to report on accurately for fear of starting the panic that is just over the horizon.

We have no effective government at the federal level, 50 different and wildly disparate state leaders ranging from competent and compassionate to stupid and insane. There literally is no plan. They are not having a momentary lapse of reason, they are devoid of ideas and action plans and even the will to act in any way.

Its bad now, but its about to get so much worse. How much? What the hell is going to happen when a hurricane hits Texas or Florida or the Gulf states later this year? How does this country react to children being used as pawns and pandemic super spreaders to salve the ego of a moron?

This is all so preventable and avoidable and now inevitable. I need to go, I'm about to start drinking alone at 3AM...and THAT won't be of any use to anyone...

[Sherman A1]

4. I see what you describe more as a 2021

Series of events. Certainly the issue with school children will arrive sooner, but the greater meltdown is still a bit further into the future.

[Auggie]

10. I think that's a very real possibility n/t

[DSandra]

5. At the very least, we should follow Europe

Yes it was damn painful but they are at the other side now. There is hope for their economies, if we don't get our act together then this country will have economic devastation worse than the Great Depression.

[Bernardo de La Paz]

6. Forcing employees to work will not force consumers into businesses. . . . nt

[progree]

7. There's much more evidence of this given in the rest of the article -- well worth the read

Just a couple of examples:

Credit card data from both Bank of America and J.P.Morgan Chase show that spending has slipped in the past two weeks, even in states that don’t have sharp outbreaks.

“This suggests that renewed fears about the virus, rather than government restrictions, are driving the pullback in activity,” said Andrew Hunter, senior U.S. economist at Capital Economics, a forecasting firm.

Among retailers, the number of shifts worked changed little last week after steady increases in previous weeks, according to data from Kronos, which makes scheduling software. David Gilbertson, a vice president at Kronos, said this indicates that consumer demand in many cases hasn’t picked up enough to justify more employees.

“Everything that’s going to be open is open,” Gilbertson said. “Now, we just need more people to come in and start spending money before things can pick up again.”

[TexasTowelie]

8. It's a good but difficult read.

It doesn't help that the paragraphs aren't indented.

[progree]

9. They say hardship builds character 😂😂😂 n/t

[marmar]

11. Michigan isn't really reversing its reopening plans. Just freezing them at the current phase.