The Second Great American Depression – Now
No matter who is president in 2021, they are going to have to deal with an economy that will be worse than the Great Depression. Since the nationwide lockdowns began in March 2020, the unemployment rate has skyrocketed into double digits to 11%, currently. Most small businesses that shutdown will not reopen because owners have lost their income and do not have the capital. Thus, the people employed by these businesses will have no jobs to which to return.
Over 100,000 small businesses have closed permanently here in the US, although the actual number of people unemployed varies because of numerous factors, however, the real number may be as high as 50,000,000.
Since the population has drastically increased in the US since the Great Depression where some 12,000,000 people were listed as unemployed, the current number still translates to a percentage that is higher today than it was then.
With millions staying home, the demand for manufacturing, oil production, etc. make it nearly impossible for a quick recovery, not to mention the overall revenue lost from trade such as sporting events, recreation, and vacations.
Since the gradual partial reopening of the economy, there have been setbacks with increases in COVID-19 cases where many states have virtually returned to a lockdown status. This not only drastically prolongs an economic recovery but makes it nearly impossible.
In addition to the bleak economic outlook, we have the government spending trillions of dollars they do not have in stimulus packages in an attempt to keep people from literally starving, getting evicted, and try to keep some form of economy for businesses going. The average working family desperately needs the help of such stimulus packages, but such drastic spending will ultimately be the trigger for a second Great Depression. No county can shut down its economy, spend trillions of dollars, and expect not to have an economic depression.
Whoever is in the Oval Office after the November election or whether the House and Senate are controlled by the Right or Left, the next 4 years will be an economic disaster. 2021 will be absolutely the worst year ever economically and recovery will be very slow at best for the next duration of the presidential term.
As we will soon find out, an economy isn’t something that can be turned off and on like a lightbulb, once it is deliberately shut down as it was, in this case, it will be very difficult at best to get started again, not to mention the long time involved in getting it back to a thriving level.