The whole world is going through very difficult economic times. Supply chains are being disrupted and the global economic collapse spreading all around the world. The United States has the largest economy in the world but also it has not been spared by this global economic meltdown. The US economy has also been shut down at this moment we are at the verge of a total economic collapse.
If the US economy remains shut for the next 2-3 months, we will witness a historic number of layoffs that has not been experienced for many decades. What has already happened so far is difficult to believe. It is just last week when the department of labor announced that more than 3.3 million Americans had already lost their jobs and they were filing for unemployment benefits across various states. This is more than four times compared to the last all time unemployment claims. Things are getting worse every passing day and this week experts are warning that the number of unemployed people will continue surging as more companies and businesses shut down their operations. This will be the most challenging time for the United States economically because this level of unemployment was lastly seen during the great depression back in the 1930s. We might wake up one day only to realize that 30-50 million Americans have already lost their jobs. This sounds crazy but the Federal Reserve has already warned that up to 32 percent of Americans might lose their jobs. If this happens the great depression will look like nothing. The economy of the United States is already at the tipping point and this is just the beginning of the economic collapse.
We have the worst economic meltdown and a lot is changing in the society and it might be a matter of days before most Americans find it almost impossible for them to place food on the table. More than 40 percent of the American populations do not have enough savings to support themselves for even 2 months if they lose their jobs today. Most people live pay check to paycheck and this will make it almost impossible for most people to survive the next 2-3 months if the economy does not open up. This time round everyone in America will have to be bailed out.
All across the country everyone is fearing that this economic crisis will spring up social unrest. Actually some of the high end stores across the country have been boarding up their stores as they fear social unrest. This has already begun happening in other countries like Italy where people are taking advantage of this crisis to steal whatever they can lay their hands on. In a few weeks a lot is coming to America and this will be a historic economic and social meltdown. The 2008 global financial crisis will look like nothing when compared to what is happening in our society.
People are panicking and everyone is buying as much as they can from the food stores. Food banks all over the nation are overwhelmed with an ever increasing demand and people have to wait for hours to pick up food. As people run out of money- food shortage will be a real thing in the US. Many household in America were unprepared for this level of social and economic disruption and the middle class workers are the ones who will be hit most.
In the middle of this economic turbulence, the banking sector in the US is also in a big trouble. Many banks were overleveraged by issuing credit beyond their limit. Because of this economic downturn, most of the creditors will default and this will leave most banks at the verge of collapsing. Very soon credit lines are going to freeze and the whole economy will be brought to an abrupt halt. The financial markets are also in a free fall and the stock market has already fallen by more than 30 percent and in the process Americans have lost a big chunk of their investment.
It is really painful for the American people but there is no way we can avoid this. Unless the health problem is solved, it will be difficult to open up the economy. The government should focus on solving this health problem that is crippling the economy. At the same time we have to acknowledge that we have a system that is unsustainable in the long run. This crisis is differentiating the fake from the real and this is the time when we should acknowledge that there is a need for a better system that will serve the American people even when there is an economic collapse.