Thursday, April 2, 2020

Ten Million New Unemployed People Spells Trouble

The news hit regarding new unemployment claims for last week:

Unemployment claims spiked to new record last week, with 6.6M Americans filing for aid

That is a huge number but to put it in perspective, the prior report showed 3.3 million new filings and that was an all-time record, a record that lasted for a week.

We are not even close to the peak of this thing and already the wheels are coming off of the economic system. I don't think we have any idea what this is going to look like with millions upon millions of people losing their jobs in a short time frame, and many businesses simply folding up and not re-opening.

As the economic collapse snowballs, it will lead to even more layoffs downstream as the suppliers of the closing businesses start to lay off their own employees. With a projected unemployment rate of over 30%, we are in for some stormy weather. Worse yet, the people who created this economic house of cards will be just fine and the normal American workers will be the ones suffering yet again. Makes you wonder how long it will be before the torches and pitchforks come out.

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