E US Economy And Job Market Experienced A Sugar High

That is, the latest strong jobs increase represents progress but it in no way foreshadows a V-shaped economic recovery because the Trump Administration has so mismanaged the pandemic and the economy during this period of almost unprecedented distress.  

Mishandling the containment of the virus (i.e. failing to develop sufficient testing, failing to effectively enforce social distancing and the failure to support the use of masks, etc.) has lengthened the recession and will retard the coming economic recovery.

The downside risks facing the coming economic recovery are significant. particularly because the pandemic will accelerate many structural changes in the job market and the economy. 

Assuming a slow economic recovery, it will be some time before the economy regains its pre-pandemic levels of production and employment. Consumer and corporate sentiment have been seriously damaged by the shock of the pandemic

Since 1950 it took on average two and a half years before jobs were fully restored after the recession was over. 

Nonetheless, as the following employment charts illustrate, the US economy is slowly and painfully clawing its way back into recovery.


 



 



 

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William K. 3 months ago Member's comment

Our USA government has been mishandling the economy since well before this virus plague ever began. Very low interest rates on any savings may have been intended to encourage spending but instead promoted debt accumulations.

And the HUGE failure once the virus was acknowledged was in not closing the borders IMMEDIATELY. Only a fool would let plague carriers back in with no restrictions, and that is exactly what was done.

So functionally we have leadership that has no understanding of how to do anything other than that which is intended to benefit the top 1%. The problem is not just a few failures, the problem is a failed set of priorities.

David J. Tanner 3 months ago Member's comment

It's easy to say, but did ANY country completely seal it's borders? I'm no fan of Trump and he handled COVID-19 probably worse than any other countries, but it's not an easy thing to close the borders. What about all the Americans who would have been stranded overseas?

William K. 3 months ago Member's comment

I never stated that others got it right. Closing borders is something that can be done in just a few hours, every country could have done it immediately. But it did not happen that way. So now thousands die.

Texan Hunter 3 months ago Member's comment

#Trump didn't want to close the borders since he knew that would devastate the economy. He couldn't do that, especially without knowing how bad COVID would be. He really wanted to believe it wouldn't his the US hard, or if it did we could contain it until it went away on its own. Sadly he was very wrong.

Angry Old Lady 3 months ago Member's comment

Trump would have known known of that would happen if he listened to his own medical experts. But the truth is he values the economy over lives as that is his best chance to get reelected.