Close To Half Of All Working Age Adults In The United States Do Not Have A Job Right Now

There is a lot of talk about the “unemployment rate” these days, but the way that it is calculated has become so convoluted that it is not really that meaningful anymore.  Even during the so-called “good times”, more than 100 million U.S. adults were not working, but we were told that the unemployment rate was the lowest that it had been in decades.  Of course now everything has changed.  Since this pandemic began, more than 47 million Americans have filed new claims for unemployment benefits, and the mainstream media is going to make sure that fear of COVID-19 continues to paralyze our society for the foreseeable future.

In this article, I would like to discuss the employment-population ratio.  According to Wikipedia, the employment-population ratio is “a statistical ratio that measures the proportion of the country’s working age population that is employed”.  I believe that it is a far more accurate measurement than the “unemployment rate” is, and we have seen this ratio move quite dramatically over the past couple of months.  According to CNBC, the employment-population ratio hit 52.8 percent in May, and that means that 47.2 percent of all working age Americans did not have a job…

Nearly half of the population is still out of a job showing just how far the U.S. labor market has to heal in the wake of the coronavirus.

The employment-population ratio — the number of employed people as a percentage of the U.S. adult population — plunged to 52.8% in May, meaning 47.2% of Americans are jobless, according to Bureau of Labor Statistics. As the coronavirus-induced shutdowns tore through the labor market, the share of population employed dropped sharply from a recent high of 61.2% in January, farther away from a post-war record of 64.7% in 2000.

As you can see on this chart, we are definitely in unchartered territory.

We have never seen a collapse of this magnitude in all of U.S. history, and it has been truly horrifying to watch so many people lose their jobs.

It would be difficult to overstate just how far we have fallen.  One analyst has pointed out that it would take 30 million new jobs for the employment-population ratio to return to the peak that we witnessed all the way back in 2000…

“To get the employment-to-population ratio back to where it was at its peak in 2000 we need to create 30 million jobs,” Torsten Slok, Deutsche Bank’s chief economist, said in an email.

Of course before we can start adding jobs we have got to stop the bleeding first, and at this point more than a million Americans continue to file new claims for unemployment benefits each and every week.

And more job losses are coming, because companies are shutting down at a staggering rate.  In fact, this week USA Today warned that “experts believe this is just the beginning of a bankruptcy tsunami that will wash over the country’s largest companies this summer”…

Twelve midsize to large corporations – all with more than $10 million in debt – filed for Chapter 11 bankruptcy protection during the third week of June, another consequence of the coronavirus pandemic and continued trouble in America’s oil industry.

The filings represent the highest weekly total of the year, and experts believe this is just the beginning of a bankruptcy tsunami that will wash over the country’s largest companies this summer and then drench both smaller businesses and individuals if government stimulus money dries up.

Those two paragraphs almost sound like something that I could have written.

But at this point it is very difficult for anyone to deny how bad things have become.  So many firms are suddenly going bankrupt that it is impossible to keep up with them all, and the energy industry is being hit particularly hard

At least 24 oil and gas companies filed from April through June – nearly twice as many as during the first three months of the year, according to Haynes and Boone LLP, an international law firm based in Texas. Four of those companies – Texas-based NorthEast Gas Generation, Colorado-based Extraction Oil & Gas, and Chisolm Oil and Gas and Chesapeake Energy, which are both from Oklahoma – filed in the last two weeks of June.

“This trend should continue through the remainder of 2020 and into 2021,” said Charles Beckham, a partner in Haynes and Boone’s restructuring practice.

Of course it isn’t just the U.S. that is experiencing severe economic pain.

COVID-19 has paralyzed economies all over the planet, and global trade has dropped precipitously

World trade in goods plunged by 12% in April from March, after having already dropped 2.4% in March from February. This plunge of the Merchandise World Trade Monitor, released by CPB Netherlands Bureau for Economic Policy Analysis, was by far the largest month-to-month drop in the history of the data going back to 2000.

For such a long time, many were warning that “the next global depression” was coming, and now it is here.

Many of the economic optimists had been hoping for a very short downturn followed by a “V-shaped recovery”, but now it has become clear that is simply not going to happen.

The primary factor dragging our economy down is fear of COVID-19, and the mainstream media continues to add to that fear day after day.

Over the past couple of weeks, we have seen a surge of new cases in some portions of the U.S., and this has caused quite a few states to put a hold on their reopening plans

At least 14 states have paused or rolled back their reopening plans as the United States sees a surge in coronavirus cases across the country.

With July 4 celebrations approaching, officials are trying not to repeat scenes from Memorial Day, when thousands flocked to beaches, bars and parties while experts cautioned that crowds could lead to spikes in cases down the road.

I wish that I could tell you that things will soon get much better for the U.S. economy, but I can’t.

Yes, there will be ups and downs during the months ahead, but a return to “normal” is certainly not in the cards.

So I would definitely encourage everyone to use this window of opportunity to get prepared for rough times ahead, because we are about to see things happen that we have never seen before.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Any Hope For A “V-Shaped Recovery” Has Been Completely Crushed

We were supposed to be well into a “recovery” by now, but instead more bad economic news just keeps pouring in.  In fact, the numbers that I am going to share with you in this article are absolutely eye-popping.  Initially, many of the economic optimists had been trying to convince us that we would experience a “short, sharp recession” followed by a “V-shaped recovery”.  Well, at this point it has become quite clear that we can forget all about that scenario.  The mainstream media is increasingly starting to use the word “depression” to describe what is happening to the U.S. economy, and the raw numbers definitely support the use of that label.  For example, the Atlanta Fed’s GDPNow model is now projecting that U.S. GDP will decline by 46.6 percent on an annualized basis during the second quarter of 2020…

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the second quarter of 2020 is -46.6 percent on June 25, down from -45.5 percent on June 17. After this week’s data releases from the U.S. Census Bureau, the U.S. Bureau of Economic Analysis, and the National Association of Realtors, a decrease in the nowcast of second-quarter real residential investment growth from -25.9 percent to -35.9 percent was offset by an increase in the nowcast of real business fixed investment growth from -31.1 percent to -28.2 percent, while the nowcast of the contribution of the change in net exports to second-quarter real GDP growth decreased from 0.30 percentage points to -1.27 percentage points.

If that figure is anywhere close to accurate, this quarter will be remembered as the most disastrous economic quarter that we have ever seen in all of U.S. history up to the point.

Meanwhile, the number of Americans filing new claims for unemployment benefits each week continues to surprise most analysts

Jobless claims totaled 1.48 million last week as unemployment related to the coronavirus pandemic remained stubbornly high, though those receiving benefits fell below 20 million for the first time in two months, the government reported Thursday.

Economists surveyed by Dow Jones had been expecting 1.35 million claims.

As I keep reminding my readers, the all-time record for a single week prior to this year was just 695,000, and that record had stood since 1982.

But now we have more than doubled that old record for 14 weeks in a row.

Just think about that.  After laying off tens of millions of workers, you would think that companies would be running out of people to fire, but we continue to see vast hordes of Americans file new claims for unemployment benefits each week.

Overall, more than 47 million Americans have now filed a claim for unemployment benefits since this pandemic began.

If this isn’t an “economic depression”, then how bad would things have to get for us to be in one?

Of course Congress certainly didn’t help matters by giving out such generous unemployment bonuses.  Millions of unemployed workers are now bringing home more money than they did while they were actually working, and this is discouraging many from returning to work.

But that will change very abruptly in just a few weeks

Many out-of-work Americans counting on receiving an extra $600 a week through the end of July may be surprised to discover that benefit will disappear nearly a week earlier than they expected.

The additional $600 in weekly jobless benefits provided by the federal government is officially set to end July 31. But states will pay it only through the week ending July 25 or July 26, a significant blow to unemployed workers counting on that money to bolster state benefits that average just $370 a week.

Starting around the beginning of August, all of a sudden a whole lot of people will be very interested in finding new jobs, but there won’t be many jobs available.

Thousands upon thousands of businesses have already shut down permanently, and more are closing their doors with each passing day.

This new economic downturn has been particularly brutal for small businesses.  Just consider the following numbers from the Wall Street Journal

Roughly 140,000 Yelp-listed businesses that had closed since March 1 remained closed on June 15. A large minority of that set, 41%, has shut for good, according to Yelp.

The figures have improved by about 20% compared with April data, when 175,000 businesses were closed. But the large share of persistent closures, which were spread nationwide, showed the pandemic’s stubborn hindrance to life as normal even as all 50 states have taken steps to reopen.

This isn’t what a “recovery” looks like.

And it isn’t just the private sector that will be shedding jobs like crazy in the months ahead.  As tax revenues collapse, state and local governments all over the nation will be forced to let workers go.  In fact, it is being projected that more than 5 million of them will be laid off…

Right now, sales taxes, real-estate-transfer taxes, income taxes, fines and fees—they are all collapsing, leaving local governments with a budget gap expected to total $1 trillion next year. Without help from Washington, this will necessarily mean massive service cuts and job losses: namely, an estimated 5.3 million job losses.

Those are not jobs that have already been lost.

Those are future job losses that haven’t shown up in the numbers yet.

And those job losses will be particularly painful, because government jobs tend to pay higher than average wages and they tend to come with better than average benefits.

As the job loss tsunami continues to roll on, the number of Americans forced to move back home with their parents or grandparents will continue to soar.  Of course what we have been witnessing already is deeply alarming

A record 32 million American adults were living with their parents or grandparents in April, according to the latest American Community Survey from the U.S. Census Bureau, an increase of 9.7 percent over a year ago. The data, analyzed by Zillow researchers, showed that 2.7 million adults moved back home in March and April, and that about 2.2 million of them were aged 18 to 25 — also known as Generation Z.

One domino after another is tumbling, and obviously economic conditions are not going to return to the way they were previously.

But this wasn’t supposed to happen.

Once the coronavirus lockdowns ended, we were told that the U.S. economy was supposed to snap back very rapidly.

Unfortunately, the truth is that our economic pain is just beginning.  We have entered an extended economic downturn, and our society is not equipped to handle such a downturn at all.

As I have warned so many times, what we are facing is going to make the last recession look like a Sunday picnic, but most Americans continue to hold out hope that some sort of a “recovery” is still on the horizon.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Media-Induced Fear Of COVID-19 Is Starting To Cause A Second Wave Of Severe Economic Panic

Fear of COVID-19 absolutely crippled the U.S. economy during the first half of this year, and now it appears that there are some people that are pushing for that to happen again during the second half of 2020.  Earlier this evening, I came across a headline that boldly declared that there will be “180,000 U.S. deaths of COVID-19 by October”, and right now just about every mainstream news outlet is running stories about how the number of confirmed cases in the U.S. is surging.  And it is definitely true that we are seeing an alarming rise in the number of confirmed cases.  In fact, the number of new cases in the U.S. on Wednesday set a new record

The U.S. broke its record for the highest coronavirus cases recorded in a single day, with 36,358 new positives reported on Wednesday, according to a tally by NBC News.

Wednesday’s cases top the previous highest day count from April 26 — the first peak of the pandemic in the U.S. — by 73 cases, according to NBC News tracking data. The World Health Organization saw its single-day record on Sunday with more 183,000 cases worldwide.

The mainstream media is treating this as some sort of a big shock, but of course the truth is that this shouldn’t be a surprise to anyone.

For months, I have been telling my readers that the lockdowns would “flatten the curve” for a while and that the number of cases would start to spike again once the lockdowns ended.  That is exactly what has happened, but anyone with even a little bit of common sense could have anticipated this.

Earlier this year, states in the northeastern portion of the nation were the epicenter for the outbreak in this country, but now it is states in the southern and western sections of the nation that have become the most prominent hotspots…

Arizona, California, Texas, Florida, Oklahoma and South Carolina reported record-high new daily coronavirus cases during this week, as case counts continue to rise in more than half of U.S. states.

Texas Governor Greg Abbott said the state is facing a massive outbreak with another 5,000 cases reported Wednesday. California Gov. Gavin Newsom reported Wednesday 7,149 tested positive, a record number for the nation’s largest state. Both states this week surpassed the entire European Union on the average number of daily cases.

Things are particularly bad in California.  Over the past two days, we have seen a 69 percent increase in the number of newly confirmed cases…

The California Department of Public Health reported its second straight record jump in coronavirus cases on Wednesday as the state joins a handful of others with growing case numbers.

California reported an additional 7,149 Covid-19 cases since Tuesday, a 69% increase in two days, bringing the state’s total to 190,222 cases, according to the state’s health department. The previous highest day jump was reported on Tuesday when the state recorded 5,019 additional new cases.

Needless to say, the snowflake politicians in California are going to be even less eager to return to business as usual than they were before.  And since the state of California accounts for more economic activity than any other U.S. state does, this is going to be a major drag on the U.S. economy as a whole.

If this pandemic keeps dragging on for a couple more years, what are states like California going to do?  Many had anticipated that life would be getting back to normal by now, but instead we are starting to see things go in reverse.  In fact, we just learned that the reopening of Disneyland has been postponed indefinitely

Disney is delaying the phased reopening of Disneyland and Disney California Adventure, the company’s flagship theme parks in California, the company said on Wednesday.

The resort, located in Anaheim, California, was set to welcome back guests on July 17 after being closed for months because of the coronavirus pandemic.

Other very large corporations are making similar moves.  For example, Apple just shut down a whole bunch of their stores because of this new surge in coronavirus cases

On Friday, stocks slumped as second wave fears were reignited following a report that Apple would temporarily shutter 11 U.S. retail stores across Florida, Arizona, North Carolina and South Carolina.”Due to current COVID-19 conditions in some of the communities we serve, we are temporarily closing stores in these areas,” an Apple spokesman said in a statement.“We take this step with an abundance of caution as we closely monitor the situation and we look forward to having our teams and customers back as soon as possible.”

Fast forward to today, when with stocks already sliding on renewed virus of a second wave of virus infections, moments ago Apple reported that it would re-close another 7 stores in Houston and Texas due to the coronavirus spike.

According to the optimists, this wasn’t supposed to happen.  The worst part of this pandemic was supposed to be over, and it was supposed to be all downhill from here.

But instead it has become exceedingly clear that this virus will be with us for a long time to come.  New York, New Jersey and Connecticut have all announced that those traveling in from nine different states where COVID-19 is out of control will be forced into mandatory quarantine for 14 days, and police in New York will actually be actively searching for vehicles that have license plates from those particular states…

In New York, cops will stop cars with license plates from the affected states to ask the person why they are not quarantining and how long they have been in the state for.

The quarantine applies to any state with infection rate of 10 infections per 100,000 people on a seven day rolling average or 10 percent of the total population testing positive.

Speaking of New York, this pandemic has already had a much larger financial impact than most observers had anticipated.

In particular, New York City is facing a nine billion dollar reduction in tax revenue, and Mayor Bill de Blasio says that the city may be forced to let 22,000 workers go

New York Mayor Bill de Blasio said the city is considering 22,000 layoffs and furloughs among its 326,000 employees to cut $1 billion of expenses after lockdown-related revenue losses.

De Blasio has projected a $9 billion loss in tax revenue over the next two years because of the pandemic.

Sadly, a whole lot more government workers will be fired across the country before this crisis is over.

Of course things are even worse for the private sector, and we continue to get more examples of this every single day.  On Tuesday, we learned that GNC has decided to declare bankruptcy

GNC Holdings Inc., which filed for Chapter 11 bankruptcy protection late Tuesday, has released an initial list of stores that will close.

The list posted at the Pittsburgh-based chain’s site, GNCevolution.com, includes 248 closing stores, including 219 U.S. locations and 29 in Canada.

And we have also just learned that the end may be near for Chuck E. Cheese

The coronavirus pandemic could spell the end of Chuck E. Cheese. The popular kid’s restaurant had to close its 610 locations nationwide during the outbreak. Now, $1 billion in debt has Chuck E. Cheese’s parent company, CEC Entertainment, approaching bankruptcy.

The Wall Street Journal reports that CEC is asking lenders for a $200 million to keep its business going.

I haven’t been to a Chuck E. Cheese in many years, but when I was a kid I absolutely loved to eat there.

As a youngster, it seemed like such a magical place, and now it deeply saddens me to hear that the company may not survive.

In the end, a lot more iconic companies will go under as America plunges even deeper into this new economic depression.

Fear of a virus has turned our economy completely upside down, and thanks to the mainstream media much of the population is going to remain deathly afraid of this virus for the foreseeable future.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

As The Stock Market Soars, The Numbers Say That The Real Economy Is In The Midst Of A Historic Crash

Have you been watching the madness that has been unfolding on Wall Street?  Even though we are in the middle of the worst global pandemic in 100 years, and even though rioters and looters have been turning our major cities into war zones, stock prices have been going up day after day.  In fact, the Nasdaq closed at an all-time record high on Monday.  Sometimes people ask me to explain this rationally, and I can’t, because the Federal Reserve has transformed our “financial markets” into a total mockery at this point.  The real economy is literally collapsing all around us, but thanks to Fed intervention stock investors are doing just fine.  It has been absolutely disgusting to watch, and if Adam Smith could see what was happening he would be rolling over in his grave.  Unfortunately, thanks to our rapidly declining system of education most Americans don’t even know who Adam Smith is anymore.

I can’t recall another time in modern U.S. history when stock prices skyrocketed as the U.S. economy plunged into a recession.  What we have been witnessing has truly been extremely bizarre, and it will be fascinating to see how long it can last.

Meanwhile, the real economy is a giant mess.  On Monday, the National Bureau of Economic Research finally got around to letting us know that a recession has officially begun

It’s official: The United States is in a recession.

The National Bureau of Economic Research said Monday the U.S. economy peaked in February, ending the longest expansion in U.S. history at 128 months, or about 10½ years.

In truth, the announcement codifies the painfully obvious. States began shutting down nonessential businesses in mid-March to contain the spread of the coronavirus, halting about 30% of economic activity and putting tens of millions of Americans out of work.

And in other news, the sky is blue and the moon is not made out of cheese.

Anyone with half a brain can see that the economy is falling apart.  For example, we just learned that U.S. factory orders were down 22.3 percent in April compared to a year earlier…

Having collapsed by a record 10.4% MoM in March, April factory orders were expected to accelerate even lower and it did. However, the 13.0% plunge in April was modestly better than the 13.4% MoM drop expected… but is still the worst in American history.

Year-over-year, factory orders collapsed 22.3% – the worst since the peak of the financial crisis.

Of course it is not that difficult to find a number that is even worse than that.

Just look at heavy truck sales.  Last month they were down a whopping 37 percent from the same month in 2019…

The last three months have been catastrophic for segments of the trucking business, after an already tough period that started in late 2018. In May, orders for Class 8 trucks – the heavy trucks that haul much of the goods-based economy across the US – plunged 37% from the  low levels in May a year earlier, and by 81% from May two years ago, to 6,600 orders, according to estimates by FTR Transportation Intelligence today.

Not to be outdone, the number of corporate bankruptcies shot up 48 percent last month compared to the same period a year ago…

Corporate bankruptcies spiked during May as the coronavirus pandemic slammed the U.S. economy, pushing the number of filings to levels recorded in the wake of the 2007-09 recession.

U.S. courts recorded 722 businesses nationwide filing for chapter 11 protection last month, a yearly increase of 48%, according to figures from legal-services firm Epiq Global.

But every time we get another horrific economic figure, the stock market goes even higher.

The worse the news gets, the more investors seem to like it.  Week after week, we have seen unprecedented numbers of Americans file for unemployment benefits, and at this point a grand total of more than 42 million Americans have lost a job since this pandemic began.

And yet investors keep taking these job losses as signs that they should buy even more stocks.

Perhaps someone should spread a rumor that a planet-killing asteroid is about to hit us, because that would probably really get investors salivating.

Of course most ordinary Americans don’t get to live in a Fed-fueled fantasy world, and this new economic downturn is hitting most of them extremely hard.

In fact, it is being reported that approximately a third of all Americans “are now showing signs of clinical anxiety and depression”…

In the wake of the COVID-19 pandemic and resulting economic crash, which triggered depression-like unemployment with 40 million initial claims filed in ten weeks, a third of Americans are now showing signs of clinical anxiety and depression, according to new data collected by the Census Bureau. This, by far, is the most comprehensive and troubling sign yet of the psychological toll inflicted on Americans due to months of lockdowns.

The Census Bureau contacted one million households between May 7 and 12, and about 42,000 responded, said The Washington Post. The survey was about 20 minutes long and buried deep within, several questions asked respondents about depression and anxiety. Those who answered provided a laggard but clearest snapshot into people’s mental state at the tail end of the lockdown, where many folks were subjected to isolationism, virus fears, and widespread unemployment.

That is the most alarming number that I have shared with you so far in this article, but I am about to share with you some numbers that are even more alarming.

In recent days, we have watched rioters destroy large sections of our major cities all across America.  But when asked about “violent protests”, a surprising percentage of Americans actually support them…

A broad majority of Americans say the peaceful protests happening all across the country after police violence against African Americans are justified (84% say so), and roughly a quarter (27%) say violent protests in response to police harming or killing African Americans are justified. Both figures are higher than they were when similar protests rose in the fall of 2016. Then, 67% saw peaceful protests as justified while 14% felt violent protests were.

There isn’t much of a racial or partisan difference over whether peaceful protests are justified now, but the gaps are larger over violent protests. Among Democrats, 42% consider violent protests justified in response to police violence against African Americans, while just 9% of Republicans agree.

Yes, you read that last sentence correctly.

42 percent.

Unfortunately, a lot more economic pain is on the way, and that is just going to fuel even more rioting, looting and violence.

These are definitely not “the best of times” no matter what stock market investors seem to think.

We have entered a deeply disturbing new chapter in American history, and life in this country will never be the same again.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

They Shut Down America To Slow Down The Coronavirus, But In The Process They Killed The Economy

Will our economy ever be the same again?  At this moment, we are still in the midst of the most comprehensive nationwide shutdown in American history, and nobody knows when it will finally end.  The primary reason why governors all over the country issued “shelter-in-place” orders was because they wanted to “flatten the curve”, and this was done to keep millions of people from getting the virus all at once so that our hospitals would not be completely overwhelmed.  But these “shelter-in-place” orders are not going to completely end this pandemic.  In order to do that, a complete and total national “lockdown” would be needed, and that is not going to happen.  So the coronavirus is going to keep cycling through our population for an extended period of time until we get to the point where the vast majority of the population has built up immunity and the pandemic naturally burns itself out.  So in the end, the total number of people that will catch this virus will be about the same whether the “shelter-in-place” orders were issued or not.  But if the number of cases at any one time isn’t enough to overwhelm our medical resources, the overall death toll could potentially be less than it otherwise would have been.

In other words, these “shelter-in-place orders” are likely saving lives, but they are also killing the economy.

On April 3rd, it was announced that more than 6 million Americans had filed new claims for unemployment benefits the previous week, and I told my readers that we would probably never see a week like that ever again.

I was wrong.

This Thursday, it was announced that another 6.6 million Americans filed new claims for unemployment benefits during the previous week…

Another 6.6 million people filed for unemployment benefits last week, according to the US Department of Labor, as American workers continue to suffer from devastating job losses, furloughs and reduced hours during the coronavirus pandemic.

It was the second largest number of initial unemployment claims in history, since the Department of Labor started tracking the data in 1967.

Prior to this year, the all-time record for a single week was just 695,000.

So what we are witnessing right now is completely nuts.

Overall, a total of approximately 16.8 million Americans have filed new claims for unemployment benefits over the last 3 weeks

Altogether, about 16.8 million American workers, making up about 11% of the US labor force, have filed initial claims for jobless benefits in just the prior three weeks alone. About 7.5 million workers filed for their second week of benefits or more last week.

We already have more unemployed workers than we did at any point during the last recession, and it is only going to get worse with each passing week.

Meanwhile, other economic numbers have been absolutely abysmal as well.  National demand for gasoline has declined to the lowest level since 1968, and U.S. vehicle sales have plunged to levels that are absolutely catastrophic

For the whole month of March, total new vehicle sales plunged 37.9% year-over-year, with fleet sales (rental, commercial, and government) down 27.6% and retail sales down 40.5%. In terms of daily retail sales volume, according to estimates by Cox Automotive, early March sales had been well above the sales on the same day of the week, same week last year.

But by March 13, they were below the year-ago-level and then plunged. By April 1, they were down 71% from a year ago.

I am having difficulty finding the words to describe how bad those numbers are.

If things are this horrific already, what will happen if the U.S. stays shut down for another month or two?

With millions upon millions of Americans out of work and businesses all over the nation currently shuttered, rent payments are not being made on a scale that is unlike anything we have ever seen before.  The following comes from Zero Hedge

Previously we described that over 30% of US renters didn’t pay their April apartment rent as the fallout of coronavirus-induced mass unemployment claims continues to ripple across various key sectors. Despite that some tenants will receive temporary protection from evictions “by a patchwork of federal and local laws” the reality is that as unpaid rents pile up, so will mortgage defaults as landlords struggle to satisfy their obligations – which will in turn affect fixed-income investments backed by said mortgages.

On the commercial side, Bloomberg estimates that about $81 billion in commercial rent comes due on average each month, but of course this is anything but a typical month, resulting in “The delay of a sizable portion of that will put an enormous strain on the complex systems for financing real estate and highlight how quickly the pain caused by social distancing has spread,” as Bloomberg observes.

Domino after domino is going to fall, and the economic pain is going to be off the charts.

And with each passing week, the economic forecasts by the big banks just continue to get even worse.

At this point, JPMorgan is projecting that U.S. GDP will plunge at a 40 percent annualized rate during the second quarter

JPMorgan economists issued an even more dire forecast, now foreseeing a 40% decline in the nation’s gross domestic product for the second quarter and a surge in April’s unemployment rate to 20% with 25 million jobs lost.

In an earlier forecast, they said second-quarter GDP would be down 25%.

The only period in all of U.S. history when we witnessed anything that even comes close to resembling this was during the Great Depression of the 1930s.

Of course Congress has tried to help by passing several relief bills, but in many instances they aren’t working quite as anticipated.

For example, a loan program for small businesses was originally supposed to provide up to 2 million dollars in emergency help for each business, but there has been so much demand that loans are now being capped at $15,000

A federal disaster loan program offering up to $2 million in relief is now capping out at $15,000 — and is leaving some borrowers wondering if they’ll even get that.

The Economic Injury Disaster Loan program, an offshoot of the Small Business Administration’s emergency funds system, has faced an unprecedented number of requests amid the COVID-19 pandemic, and is having trouble keeping up and following through with promised loan amounts, The New York Times reports.

As this pandemic stretches on, it is probably inevitable that Congress will pass even more emergency measures, and needless to say the Federal Reserve is going completely bonkers when it comes to flooding the system with money.

Ultimately, what they are doing will create inflation like we have never seen before, but most Americans aren’t worrying about that right now.

What most Americans really want is to get back to work, but Dr. Anthony Fauci and other medical “experts” are warning that may not happen for some time.

The longer the economy is shut down, the deeper this economic downturn is going to become.  And we certainly don’t want it to get too much deeper, because the IMF is already warning that it looks like this economic downturn will be the worst since the Great Depression

The International Monetary Fund sees the world economy suffering its worst recession since the Great Depression this year, with emerging markets and low-income nations in Africa, Latin America and Asia at particularly high risk.

With half of the IMF’s 189 member countries seeking aid, the executive board has agreed to double access to its emergency financing to meet expected demand of about $100 billion, Managing Director Kristalina Georgieva said in a speech on Thursday.

Needless to say, I have been warning of an economic crisis of this magnitude for a very long time.

Let us hope that the “shelter-in-place” orders will be lifted as soon as possible, because that would certainly give the economy some relief.

But things will not be going back to “normal”.  COVID-19 will start spreading faster once again once the restrictions are lifted, and a large percentage of the population will remain huddled in their homes because they will be extremely afraid of catching the virus.

So economic activity will remain depressed for an extended period of time no matter what else happens, and meanwhile Congress and the Federal Reserve are absolutely flooding the system with fresh money.

That is a recipe for an inflationary disaster, and our standard of living will experience a very painful adjustment as a result.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

These Very Alarming Numbers Show How People Are “Coping” With The Coronavirus Pandemic

It is during times of great crisis that we find out who we really are.  Now that strict “shelter-in-place” orders have been instituted all over the world, most people have a lot more free time than usual.  Of course some are using all of this extra free time for constructive purposes, but many others have decided that “self-medicating” is the best way to “cope” with this coronavirus pandemic.  When under great pressure, people tend to gravitate to whatever is most important to them, and that is why what we are witnessing during this pandemic is so alarming.  Just check out these new numbers

The virtual-sex trade has got a lift: Pornhub, the leading adult entertainment website, saw a near-12% increase in global traffic from Feb. 24 to March 17. British lingerie chain Ann Summers said sex toy sales were up 27% in the last week of March compared to the same period a year ago, with its quietest vibrator fast becoming its best seller.

Self-medicating is all the rage. U.S. states including California, Colorado, Oregon and Alaska where cannabis is legal have reported 50% sales increases from March 16 and March 22, according to Flowhub. Online booze sales in the United States rose 243% in the week ending March 21, according to market research firm Nielsen. Binge buying drove British alcohol sales up 22% in March, according to Kantar.

Of course some of the sales increases can be explained by the fact that people have been stocking up on just about everything in recent days.

At this point, most Americans have suddenly become “preppers”, and online grocery delivery services have been absolutely overwhelmed

As the crisis hit, delivery orders surged as millions of Americans stayed home. During the week of March 2, even before some cities and states imposed “stay at home” orders, Instacart, Amazon, and Walmart grocery delivery sales all jumped by at least two-thirds from the year before, according to Earnest Research. Instacart, a platform that partners with more than 25,000 stores in North America, says orders in more recent weeks have surged 150%.

As a result, customers in hard-hit New York City are waiting days to schedule deliveries that usually take just hours.

Needless to say, the law of supply and demand tells us that as demand for basic essentials goes up it is inevitable that prices will rise as well.

And we are already starting to see this.  In fact, it is being reported that the wholesale price of eggs has shot up 180 percent…

If you’re used to starting your day with coffee, orange juice, bacon, toast and some eggs, brace yourself – the price of wholesale eggs in the U.S. has skyrocketed to a shocking 180 percent from its regular price. And reports reveal that increased buying due to the coronavirus (COVID-19) pandemic is to blame.

As long as fear of the coronavirus persists there will continue to be more “panic buying”, and shortages will begin to emerge.

In fact, Johnson & Johnson is publicly admitting that there is already a serious shortage of Tylenol

A spokesperson for Johnson & Johnson, the makers of Tylenol, acknowledged the shortage and said the company is working to overcome it.

“We are experiencing record high demand for Tylenol, and despite our producing and shipping product at historic highs, we are experiencing a temporary shortage in some regions in the US,” said Kim Montagnino, Global Corporate Media Relations Senior Director. “We are committed to maintaining our increased production, including running lines up to 24/7 to maximize supply.”

And this may come as a surprise to many of you, but according to USA Today we are also facing a very serious shortage of webcams as well…

Logitech, the company that dominates webcam sales, is sold out of every one it makes. Amazon and Best Buy are out of stock. And price gougers on eBay are selling used models for as high as $420, or more than twice as much as the most expensive Logitech model, the $199 Brio.

“Global demand for webcams is needed from all remote workers, students and in the health care space,” notes analyst Jeremiah Owyang, who himself was able to snag a unit in early March, before they sold out.

With so many people working from home now, demand for webcams has spiked like never before, and it is unclear when they will be widely available again.

Now that most of the country has been locked down, economic activity has come to a standstill, and many Americans are starting to become very desperate for things to return to “normal”.

But even though most Americans are staying home, this virus continues to spread.

In New York City, nearly 20 percent of the entire police force was out sick on Monday…

On Monday, April 6, 2020, 6,974 uniformed members of the NYPD were on the department’s sick report which accounts for 19.3% of the uniformed workforce.

1,935 uniformed members and 293 civilian members of the NYPD have tested positive for the coronavirus.

And on Tuesday the death toll in New York City surged to the highest level yet even though a “shelter-in-place” order has been in place for quite some time now.

That is not good at all.

What makes this even more frightening is that the number of deaths in New York is actually being substantially undercounted because the only coronavirus victims that are included in the official death toll are those that were tested before they died

Only those tested before they die are counted as COVID-19 victims, a New York City councilman said Monday, sparking fears the actual death toll could be far higher than the 3,400 already recorded.

Mark Levine tweeted: ‘Now only those few who had a test confirmation *before* dying are marked as victims of coronavirus on their death certificate. This almost certainly means we are undercounting the total number of victims of this pandemic.’

So what is the true death toll?

We don’t really know, but what we do know is that the number of people “dying at home” in New York City is now close to 10 times higher than normal

But another 200 city residents are now dying at home each day, compared to 20 to 25 such deaths before the pandemic, said Aja Worthy-Davis, a spokeswoman for the medical examiner’s office. And an untold number of them are unconfirmed.

Overall, the number of confirmed deaths continues to rise all over the country at a very disturbing pace.

The very first confirmed death from the coronavirus in the United States was announced at the very end of February, and now just over a month later the numbers are really getting crazy

The number of Americans who have died from coronavirus has nearly doubled in the first week of April alone compared to last month’s entire death toll.

The death toll from the pandemic now stands at 11,000 with more than 368,000 confirmed infections across the United States.

Figures show the number of fatalities has increased drastically by 7,000 in the first six days of April.

Of course most people are assuming that this pandemic will eventually fade (true) and that life in America will soon return to normal (definitely not true at all).

We have entered a time when everything that can be shaken will be shaken, and our world will never be the same again.

Some will respond to adversity by becoming the best people that they can possibly become, while others will “cope” by wallowing in depression, despair and very self-destructive addictions.

You can’t control global events as they spin out of control, but you can control how you respond to them.

You were born for such a time as this, and I encourage all of you to embrace the great challenges that have now been put in front of us.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

Worse Than 2008: We Are Being Warned That The Coronavirus Shutdown “Could Collapse The Mortgage Market”

The cascading failures that have been set into motion by this “coronavirus shutdown” are going to make the financial crisis of 2008 look like a Sunday picnic.  As you will see below, it is being estimated that unemployment in the U.S. is already higher than it was at any point during the last recession.  That means that millions of American workers no longer have paychecks coming in and won’t be able to pay their mortgages.  On top of that, the CARES Act actually requires all financial institutions to allow borrowers with government-backed mortgages to defer payments for an extended period of time.  Of course this is a recipe for disaster for mortgage lenders, and industry insiders are warning that we are literally on the verge of a “collapse” of the mortgage market.

Never before in our history have we seen a jump in unemployment like we just witnessed.  If you doubt this, just check out this incredible chart.

Millions upon millions of American workers are now facing a future with virtually no job prospects for the foreseeable future, and former Fed Chair Janet Yellen believes that the unemployment rate in the U.S. is already up to about 13 percent

Former Federal Reserve Chair Janet Yellen told CNBC on Monday the economy is in the throes of an “absolutely shocking” downturn that is not reflected yet in the current data.

If it were, she said, the unemployment rate probably would be as high as 13% while the overall economic contraction would be about 30%.

If Yellen’s estimate is accurate, that means that unemployment in this country is already significantly worse than it was at any point during the last recession.

And young adults are being hit particularly hard during this downturn…

As measures to slow the pandemic decimate jobs and threaten to plunge the economy into a deep recession, young adults such as Romero are disproportionately affected. An Axios-Harris survey conducted through March 30 showed that 31 percent of respondents ages 18 to 34 had either been laid off or put on temporary leave because of the outbreak, compared with 22 percent of those 35 to 49 and 15 percent of those 50 to 64.

As I have documented repeatedly over the past several years, most Americans were living paycheck to paycheck even during “the good times”, and so now that disaster has struck there will be millions upon millions of people that will not be able to pay their mortgages.

It is being projected that up to 30 percent of all mortgages could eventually default, and when you add the fact that millions upon millions of Americans will be deferring payments thanks to the CARES Act, it all adds up to big trouble for the mortgage industry

A broad coalition of mortgage and finance industry leaders on Saturday sent a plea to federal regulators, asking for desperately needed cash to keep the mortgage system running, as requests from borrowers for the federal mortgage forbearance program are pouring in at an alarming rate.

The Cares Act mandates that all borrowers with government-backed mortgages—about 62% of all first lien mortgages according to Urban Institute—be allowed to delay at least 90 days of monthly payments and possibly up to a year’s worth.

Needless to say, many in the mortgage industry are absolutely furious with the federal government for putting them into such a precarious position, and one industry insider is warning that we could soon see the “collapse” of the mortgage market

“Throwing this out there without showing evidence of hardship was an outrageous move, outrageous,” said David Stevens, who headed the Federal Housing Administration during the subprime mortgage crisis and is a former CEO of the Mortgage Bankers Association. “The administration made a huge mistake bringing moral hazard in and thrust extraordinary risk into the private sector that could collapse the mortgage market.”

Of course a lot of other industries are heading for immense pain as well.

At this point, even JPMorgan Chase CEO Jamie Dimon is admitting that the U.S. economy as a whole is plunging into a “bad recession”

Jamie Dimon said the U.S. economy is headed for a “bad recession” in the wake of the coronavirus pandemic, but this time around his company is not going to need a bailout. Instead, JPMorgan Chase is ready to lend a hand to struggling consumers and small businesses.

“At a minimum, we assume that it will include a bad recession combined with some kind of financial stress similar to the global financial crisis of 2008,” Dimon, the CEO of JPMorgan Chase, said Monday in his annual letter to shareholders.

And the longer this coronavirus shutdown persists, the worse things will get for our economy.

In fact, economist Stephen Moore is actually predicting that we will be “facing a potential Great Depression scenario” if normal economic activity does not resume in a few weeks…

Sunday on New York AM 970 radio’s “The Cats Roundtable,” economist Stephen Moore weighed in on the potential impact of the coronavirus to the United States economy.

Moore warned the nation could be “facing a potential Great Depression scenario” if the United States stays on lockdown much past the beginning of May, as well as an additional amount of deaths caused by the raised unemployment rate.

The good news is that the “shelter-in-place” orders all over the globe appear to be “flattening the curve” at least to a certain extent.

The bad news is that we could see another huge explosion of cases and deaths once all of the restrictions are lifted.

And the really bad news is that what we have experienced so far is nothing compared to what is coming.

But in the short-term we should be very thankful that the numbers around the world are starting to level off a bit.

Of course that is only happening because most people are staying home, but having people stay home is absolutely killing the economy.

And if people stay home long enough, a lot of them will no longer be able to pay the mortgages on those homes.

Our leaders are being forced to make choices between saving lives and saving the economy, and those choices are only going to become more painful the longer this crisis persists.

Let us pray that they will have wisdom to make the correct choices, because the stakes are exceedingly high.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.