US economy enters deep recession
US, WASHINGTON (ORDO NEWS) — The US economy has entered a deep recession, similar to the Great Depression, amid measures to combat the coronavirus pandemic. This is stated in an article published on the front page of The Washington Post on Friday.
The publication compares the current situation in the United States with the crisis of the last century due to the fact that many enterprises stopped working in the country, provoking massive layoffs and threatening to cause a chain reaction of bankruptcies and financial losses for large and small companies.
The measures currently being taken by the US administration, the article says, “will not stop a deep economic downturn and will not be sufficient to support workers” if the crisis caused by the coronavirus lasts more than a month or two.
“We all believe that the recession has an economic basis, but it has nothing to do with the economy. It is literally about trying to stay away from each other,” – quotes the publication of the words of the expert of the American Institute of Entrepreneurship Aparna Mathur.
The Washington Post emphasizes that the US authorities “had to stop about half of the economy and convince most of the working population to stay home in an effort to save as many lives as possible.”
Many enterprises dismiss their employees, which has already led to a record increase in unemployment in the country. At the same time, other employers decided to reduce the salaries of their employees by an average of one third.
According to the newspaper, at the moment the question remains open whether this is a long recession, or whether the crisis will stop in the near future. US President Donald Trump wants to partially resume the work of the country’s private sector by April 12, but economists and health experts fear that this could lead to an increase in the number of deaths and an increase in the recession.
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