By using this site, you agree to our Privacy Policy and our Terms of Use. Close
sethnintendo on 31 July 2020
Edit Thread
Bofferbrauer2 said:
Jumpin said:

If that's the case, then we're both right.

As another note, US GDP is down 32.9%. This is actually kind of shocking considering heavily locked down countries still only dropped 10%, how is the US doing so much worse even when they weren't nearly as locked down as other places?

The US economy is fueled by over 70% on consumption, a higher ratio than any other country. But any store closure makes consumption impossible for the duration. Also, the amount of people laid off or furloughed, not getting much money in anymore, heavily weights on the consumption rate. And then of course there's the lockdown in itself; can't spend much money if you're staying at home, can you?

The worst part is that it is likely to continue, with the US now firmly being in it's second wave. And knowing the power of executives over the US government, both state and federal, I'm pretty sure the lockdowns will end too early yet again and bring in yet another wave due to doing so.

Also, the incoming housing crisis will make it much worse yet again. The rents are put on hold, meaning you do not have to pay them yet - but debt for rent payments are still racking up and eviction notes and the like are just put on hold. Once that moratorium ends, there will be mass evictions in the US (up to 29 million households, 3 times what the 2008 housing crisis had) - and guess how much that will weight on the economy.

People will start being evicted in high numbers soon.  Also that moratorium was mainly on state level for renters and the national level just covers renters who live in federally backed loans which covered about 12 million.  Some states never implemented eviction moratoriums while other states such as Louisiana expired in June.  Florida just extended theirs for renters till Sept. 1st.  We are about to see mass evictions and huge increase in homelessness considering renters are the most affected group due to most of them unable to work from home.

Losing that plus 600 a week on top of unemployment will send people over the financial cliff.  Unemployment typically only cover about 60% of former wages so the extra money was a lifeline for many poor and even middle class people.  That is gone starting next week due to Congress unable to act quickly enough which is mainly Republicans' fault with their wait and see strategy.  Democrats passed their bill in the House months ago and while bloated it was a start for negotiations.  Republicans truly can't govern worth a shit and this crisis shows it.

Last edited by sethnintendo - on 31 July 2020