U.S. ECONOMY IN FREE FALL
Submitted by christian on Tue, 04/28/2020 - 10:55
- Real GDP Growth: -5.6% in 2020, 2.8% in 2021
- GDP to contract at 40% annual rate in the second quarter
- Federal Budget Deficit: $ 3.7 trillion
- Federal Debt: 101% of GDP by end of September
- Unemployment: 16% by end of third quarter, 10.1% at end of 2021
- Loss of 27 million in the number of people employed, exit of roughly 8 million people from the labor force.
- State and local governments budgets have been shattered by a plunge in tax revenues. New York City needs $ 7.4 billion in federal aid to offset economic losses.
- Sectors severely Impacted: Manufacturing, Travel & Transport, Retail
- Sectors suffering major impact: Energy& Resources, High Tech and Telecommunications, Healthcare & Life Sciences, Non Profits, Media & Entertainment, Universities & Colleges
- Sector suffering a significant impact: Banking, Financial Services and Insurance, Public Sector
- The U.S. government has now pledged almost $ 3 trillion to save the economy. Most of that is aimed at individual Americans in the form of additional unemployment insurance or the so-called economic impact checks. About $ 1.2 trillion and counting represent bailouts for American companies large and small. And more than 60% of that is in the form of grants or other financial assistance that will likely become grants – funds that will not be recovered by taxpayers. The Congressional Budget Office estimated on April 23 that the company-related coronavirus bailouts, will ultimately cost more than $ 400 billion over 10 years. Given that most of the latest bailout, worth $484 billion, will most likely end up becoming grants to small businesses as well, the price tag is bound to get a lot higher.
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