Why America Is Experiencing Two Very Different Economic Recoveries

Nations across the world are still reeling from the COVID-19 pandemic, which triggered a global recession following economic lockdowns enforced by most developed nations around the world.

New estimates put the economic losses at more than $16 trillion, and the United States saw its GDP shrink 9.5 percent between April and June, its largest drop in modern times.

Image Credit: FEE

While macroeconomic data is useful, it doesn’t tell the full story. It’s important to understand these economic losses have resulted in severe pain for people around the world, especially the poor.

A new Columbia University study shows that 8 million Americans have slipped into poverty since May, the New York Times reports. Meanwhile, a recent World Bank study projects as many as 150 million people around the world are projected to slip into extreme poverty by 2021.

As the US seeks to rebound from the global recession, it’s worth noting that some states are having more success than others.

Just the News recently published a breakdown of state unemployment data for August (the latest data available). Based on US Bureau of Labor Statistics data, the figures showed that nationally the unemployment rate was 8.4 percent, but the economic pain was not distributed equally across blue, red and purple states.

“Fueled by broader, faster economic reopenings following the initial coronavirus crash, conservative-leaning red states are by and large far outpacing liberal-leaning blue states in terms of putting people back to work,” writes Carrie Sheffield.

Sheffield continued:

“In red states (those voting Republican for president in all four of the last four elections), the combined unemployment rate stood at 6.6%. Among blue states (those that voted Democrat in all four of the last four presidential elections) the figure was 10.5%. Among purple states (all of the others, either split 2 and 2 or 3 wins for one party and one win for the other), the unemployment figure was 7.8%.”

1 2 3
View single page >> |

Jonathan Miltimore is the Managing Editor of FEE.org. His writing/reporting has been the subject of articles in TIME magazine, The Wall Street Journal, CNN, Forbes, Fox News, and the Star ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.