Long Term Economic Pain Ahead

by reddit_user456

www.nytimes.com./2020/06/06/upshot/coronavirus-economic-crisis.html

Interesting Article, a quick summary:

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Things most of us here are already aware of :

  • $500 billion PPP and temporary lay-off play big roles in the new employment numbers
  • Many layoffs happening in industries not affected by the pandemic, indicating rippling effect on demand

Other interesting economic events:

  • New orders for manufactured goods for May is 31.8 (contraction if <50)
  • Congressional Budget Office projects $15.7trillion economic activity will be lost over the next decade (CBO historically had pretty accurate forecast)
  • negative supply shock will lead to further demand shortage (supply shock can be alleviated when unemployment benefits continue beyond this summer and reopening starts happening)

 

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