The United States economy deteriorates quicker than expected as Coronovirus concerns grow.
American businesses have taken a hit this week as Coronvirus concerns grow and a government-mandated shut down has been put in place. President Trump announced early this week that there should be no gatherings of more than 10 people while we try to limit the public exposure to Coronavirus and get in front of the curve. Schools, weddings, funerals, concerts and any social gathering of more than 10 people are to be canceled. Citizens are warned to stay indoors and only leave the house for necessary food and medicine. As a result, businesses big and small are taking a major financial hit as they are forced to close their doors for an unknown amount of time as health officials struggle to keep up with the growing number of cases.
Employees are being laid off as businesses cannot afford to pay through this unknown time period with no source of income. As a result, workers who are now out of work, are now left with no other option but to file for unemployment just to be able to keep up with their bills. Unfortunately, with so many Americans out of work, the government is unable to keep up and provide help for everyone. It is predicted that the economic decline will be much more extreme than what we saw with the financial crisis in 2008.
Economist Janet L. Yellen states that with the growing closures and continued loss of jobs this certainly will not be easy to pull out of and will be completely unrecoverable for some businesses. Merrill Lynch from the Bank of America states, “the Labor Department will likely report that roughly 3 million Americans have filed first-time claims within the next week for unemployment assistance, more than four times the record high set in the depths of the 1982 recession.” Unfortunately, experts believe this is just the beginning and we will see more businesses with no choice but to close their doors, leaving more and more Americans out of work completely.