US economy faces deepest crisis since Great Depression amid COVID-19

As the COVID-19 strengthens its grip with a fresh outbreak surge in parts of the US, the country’s economy has plunged into the deepest crisis since the Great Depression, a news agency reported. US citizens, pessimistic about the leadership, fear the worst turning point for the American economy that shrank further at an estimated 32.9 percent annual rate from April through June, according to the Bureau of Economic Analysis report. US broadcasters, citing a Pew Research report indicated that the US’ response to the pandemic and several other loopholes has driven the nation “officially” into economic recession. 

Business owners have abandoned their establishments, customers are near nil, and the federal government aid for small scale businesses and unemployed has expired, among many other challenges in the US’ COVID-19 crisis. To top it all, the Republicans have dramatically failed to reach a consensus on stimulus aids as Republicans and the GOP senators stand divided with a deepening rift created by democrats, according to reports. White House chief of staff Mark Meadows said at a live-streamed conference that President Donald Trump will address unemployment insurance and an eviction moratorium by executive action, it, however, remains unclear if it is in the President’s authority to take such a measure, piling to a load of uncertainties.  

Households and businesses are really fragile right now. This is not a recovery that we should be confident in, Wendy Edelberg, director of the Hamilton Project at the Brookings Institution and former head of the commission that investigated into the 2008 financial crisis was quoted as saying by a news agency.

Government policy is not making it better right now. The policy is exacerbating uncertainty, he added.

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20 million American jobs vanished 

A leading US broadcaster reported the annual business investments to have plunged to the lowest level in 68 years due to nearly stalled consumer spending. Despite in April, reports stated that over 20 million American jobs vanished with closure of businesses, the Trump administration claimed that the job creation skyrocketed. On August 7, the Republicans touted the return of 1.8 million jobs in July, however, US media reports stated otherwise. Nearly 60 percent of jobs that were lost amid the COVID-19 pandemic have not returned, a news agency reported. While the US recently accounted for 5.4 million job openings, it wasn’t enough for the more than 30 million on the unemployment benefits, as per the report.  

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(Image Credit: AP)

(With Agency Inputs)