Nowhere to go but down

Recession

As usual, the headline unemployment figure is bullshit:

As horrific as the April unemployment figure, economists say the official government rate almost certainly underestimates the extent of the job losses. The Labor Department collected the data in mid-April. Layoffs have continued to mount since then, and the unemployment rate only measures people actively searching for a job, which is difficult during an era when Americans are being encouraged to stay at home.[1]

For a whole bunch of reasons, it will likely be a long, slow road to recovery.[2] In real terms, this translates to many people being unable to pay rent, pay mortgages, pay credit card bills, pay utility bills over a long haul. They’re not going to be able to catch up on those bills when the bans on evictions and utility shutoffs expire. And they won’t be buying much so producers face curtailed markets. This, in turn, means more homeless people and more layoffs as businesses continue to go under. That means more desperation.

Unless serious action is taken to relieve these folks, we face a downward spiral, and it’s hard to see how the recent white supremacist gun nuttery in support of reopening the economy and letting the old and weak die[3] won’t intensify.

Allegedly, Nancy Pelosi and Chuck Schumer will propose a major relief package.[4] But this is like the impeachment of Donald Trump. It’s really a sham, meant to placate the Left, but dead on arrival in the Senate, thus no threat to neoliberal principle. Pelosi can return to her ice cream unperturbed.

Alexander Bolton, “Schumer, Pelosi set to unveil ‘Rooseveltian’ relief package,” Hill, May 7, 2020, https://thehill.com/homenews/senate/496565-schumer-pelosi-set-to-unveil-rooseveltian-relief-package

Heather Long, “Jobless rate soared to 14.7% in April as U.S. shed 20.5 million jobs amid coronavirus pandemic,” Washington Post, May 8, 2020, https://www.washingtonpost.com/business/2020/05/08/april-2020-jobs-report/


  1. [1]Heather Long, “Jobless rate soared to 14.7% in April as U.S. shed 20.5 million jobs amid coronavirus pandemic,” Washington Post, May 8, 2020, https://www.washingtonpost.com/business/2020/05/08/april-2020-jobs-report/
  2. [2]Heather Long, “Jobless rate soared to 14.7% in April as U.S. shed 20.5 million jobs amid coronavirus pandemic,” Washington Post, May 8, 2020, https://www.washingtonpost.com/business/2020/05/08/april-2020-jobs-report/
  3. [3]Ryan Deto, “Photos: About 120 protest in Downtown Pittsburgh, calling for Pennsylvania to reopen during coronavirus pandemic,” Pittsburgh City Paper, April 20, 2020, https://www.pghcitypaper.com/pittsburgh/photos-about-120-protest-in-downtown-pittsburgh-calling-for-pennsylvania-to-reopen-during-coronavirus-pandemic/Content?oid=17167012; Bryan Armen Graham, “‘Swastikas and nooses’: governor slams ‘racism’ of Michigan lockdown protest,” Guardian, May 3, 2020, https://www.theguardian.com/us-news/2020/may/03/michigan-gretchen-whitmer-lockdown-protest-racism; John F. Harris, “Admit It: You Are Willing to Let People Die to End the Shutdown,” Politico, April 30, 2020, https://www.politico.com/news/magazine/2020/04/30/coronavirus-shutdown-altitude-ethics-223569; Gloria Jackson, as told to Eli Saslow, “‘I apologize to God for feeling this way,’” Washington Post, May 2, 2020, https://www.washingtonpost.com/nation/2020/05/02/elderly-woman-coronavirus-lonely-expendable/; Joe Lowndes, “The Morbid Ideology Behind the Drive to Reopen America,” New Republic, April 30, 2020, https://newrepublic.com/article/157505/morbid-ideology-behind-drive-reopen-america; Jamie Martines And Tom Davidson, “Protesters in Pittsburgh demand Gov. Wolf to reopen businesses amid coronavirus pandemic,” TribLive, April 20, 2020, https://triblive.com/local/pittsburgh-allegheny/protesters-gather-in-pittsburgh-demanding-gov-wolf-reopen-businesses-amid-coronavirus-pandemic/; Laura Newberry, “The pandemic has amplified ageism. ‘It’s open season for discrimination’ against older adults,” Los Angeles Times, May 1, 2020, https://www.latimes.com/california/story/2020-05-01/coronavirus-pandemic-has-amplified-ageism; William Wan, Carolyn Y. Johnson, and Joel Achenbach, “States rushing to reopen are likely making a deadly error, coronavirus models and experts warn,” Washington Post, April 22, 2020, https://www.washingtonpost.com/health/2020/04/22/reopening-america-states-coronavirus/
  4. [4]Alexander Bolton, “Schumer, Pelosi set to unveil ‘Rooseveltian’ relief package,” Hill, May 7, 2020, https://thehill.com/homenews/senate/496565-schumer-pelosi-set-to-unveil-rooseveltian-relief-package