US economic downturn will be more painful than during the 2008 crisis

US, WASHINGTON (ORDO NEWS) — The state of the US economy is deteriorating faster than expected, its “initial decline” will be sharper and more painful than during the global financial crisis of 2008. This is stated in an article published on Saturday in the front page of The Washington Post.

Emergency measures taken by the authorities to curb the spread of the new coronavirus have led to 84 million Americans remaining in their homes, as well as an almost complete cessation of activities of most enterprises in the country.

As a result of the economic downturn, millions of Americans are losing their jobs. According to Bank of America, next week the Department of Labor will announce that approximately 3 million people have submitted their first applications for unemployment benefits.

This is more than four times the historical maximum established in 1982 during the recession. Every day, the Washington Post emphasizes, the crisis is gaining momentum due to the fact that restaurants, cinemas, sports arenas and businesses are closing down to prevent the spread of infection.

American economists believe that because of the consequences of the fight against coronavirus, unemployment could soar from the current 3.5% to 20%. “We expect something really difficult,” said Janet Yellen, the former head of the US Federal Reserve System (FRS). “If enterprises suffer such serious losses and are forced to lay off workers and companies go bankrupt, it can be difficult to get them out of this.”

At the same time, according to the publication, the company of US President Donald Trump Trump Organization, whose revenues depend heavily on tourism and restaurants, was seriously affected by the closure of a number of facilities and the dismissal of employees in three hotels. In turn, the newspaper continues, the US intelligence community warned authorities in January and February that an outbreak could develop into a pandemic.

In the United States, according to Johns Hopkins University, which estimates based on country authorities, WHO, and other official sources, the number of coronavirus infections increased to 19624, at least 260 people died.

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The article is written and prepared by our foreign editors from different countries around the world – material edited and published by Ordo News staff in our US newsroom press.

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