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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMnuchin Warns Virus Could Yield 20% Jobless Rate Without Action
Treasury Secretary Steven Mnuchin raised the possibility with Republican senators that U.S. unemployment could rise to 20% without government intervention because of the impact of the coronavirus, according to people familiar with the matter.
Mnuchin discussed the scenario with the lawmakers on Tuesday as he proposed an economic stimulus of $1 trillion or more. He told the senators that he believes the economic fallout from the coronavirus is potentially worse than the 2008 financial crisis.
Extraordinarily high unemployment, he said, is a possibility if lawmakers dont swiftly provide financial assistance to wage workers and small- and medium-sized businesses.
For many lawmakers, plunging stock prices and an abrupt drop-off of consumer spending during a time of social distancing has crystallized the need for Congress to act quickly and boldly.
Read more: https://www.bloomberg.com/news/articles/2020-03-17/mnuchin-warns-virus-could-yield-20-jobless-rate-without-action-k7wheob8?srnd=premium
Generic Brad
(14,275 posts)Their partisanship will literally be the death of us all.
intrepidity
(7,307 posts)getagrip_already
(14,766 posts)I was laid off in feb, and including me 4 of 5 people in my house are out of work. 3 laid off this week.
We aren't unskilled or in an economically deprived area. 2 of the 4 of us have college degrees and extensive experience. The others are skilled workers with good job histories.
20% is optimistic.
Midnight Writer
(21,769 posts)If Mnuchin says 20%, probably gotta be 50%, don't you think?
It's got to be really bad if Republicans are even floating something like "financial assistance to wage workers".
On the other hand, maybe Trump has a scheme to buy the election, with Government funds? If you give everybody a few thousand bucks, your poll numbers are gonna go up.
lapfog_1
(29,205 posts)if not... 50% or more... 1930 all over again.
left-of-center2012
(34,195 posts)The highest rate of U.S. unemployment was 24.9% in 1933, during the Great Depression.
Unemployment remained above 14% from 1931 to 1940.
https://www.thebalance.com/unemployment-rate-by-year-3305506
AlexSFCA
(6,139 posts)if the pandemic goes on through August; entire communities will be unemployed. We may have to double our national debt to keep up.
Stallion
(6,476 posts)that's a good start for highly populated areas-AND THAT'S JUST ONE ASPECT of the economy. Its going to at least temporarily affect much more than 20%
KatyMan
(4,200 posts)/sarcasm