We Haven’t Seen This Much Suffering On Thanksgiving Since The Great Depression Of The 1930s

In my entire lifetime, there has never been a Thanksgiving like this.  39 million Americans don’t have enough to eat right now, more than 70 million claims for unemployment benefits have been filed so far during this calendar year, and people are waiting in line for hours at food banks all over the nation just for some Thanksgiving handouts.  If you and your family have plenty of turkey to eat, you should be very thankful, because many Americans can no longer even take Thanksgiving dinner for granted these days.  On Tuesday, vehicles were lined up for hours in New Jersey as people waited to receive prepackaged Thanksgiving meals at a local food bank…

Video obtained by CNN on Tuesday from the Meadowlands entertainment complex in New Jersey showed residents waiting for several hours to obtain prepackaged boxes of meals for the Thanksgiving holiday.

“If it wasn’t for this place, we wouldn’t know where we would get our food,” one distraught woman told CNN of the food bank in East Rutherford, N.J.

Of course we have been seeing similar wait times all over the nation.  At one food bank in Texas, demand for Thanksgiving meals was more than eight times higher than normal

Food bank officials in Dallas, Texas, have also noticed a staggering increase in demand for food assistance. North Texas Food Bank representatives told the Dallas Morning News that they handed out roughly 8,500 meals to local families during a giveaway on Saturday that in years past has seen fewer than 1,000 show up for donations.

You can see a stunning photograph of vehicles lined up for that food distribution event right here.

There are a lot of really nice vehicles in that picture.  Many of those individuals are probably accustomed to living comfortable middle class lifestyles, but just like I warned in my new book they are “suddenly” in need of food because this economic downturn has turned their worlds completely upside down.

Yes, there have always been hungry people in America, but what we are witnessing now is hard to fathom.  According to the U.S. Census Bureau, approximately 12 percent of all Americans did not have enough food to eat between October 28th and November 9th…

As the coronavirus pandemic continues to surge, more Americans are reporting going hungry, a Washington Post analysis found.

In data collected by the Census Bureau between Oct. 28 and Nov. 9, around 12 percent of all American adults reported not having enough food to eat, a figure higher than at any other point since the pandemic began earlier this year.

It is estimated that the current population of the United States is 328 million.

If you take 12 percent of 328 million, you get more than 39 million Americans that are going hungry right now.

And this is just the beginning.  Thanks to the new lockdowns that are being instituted all over the country, the number of Americans that are filing for unemployment benefits is starting to rise again

The number of Americans applying for unemployment benefits rose last week to 778,000, evidence that the U.S. economy and job market remain under strain as coronavirus cases surge and colder weather heighten the risks.

The Labor Department’s report Wednesday said jobless claims climbed from 748,000 the week before. Before the virus struck hard in mid-March, weekly claims typically amounted to roughly 225,000.

Overall, more than 70 million new claims for unemployment benefits have been filed in 2020.

As I discussed yesterday, we have never seen anything like this before in all of U.S. history.

At this point, even Hollywood is conducting mass layoffs.  More job loss announcements just keep rolling in with each passing day, and I expect that to continue all throughout the very dark winter ahead.

Other economic numbers also tell us that the U.S. economy is definitely heading in the wrong direction

The data firm Womply says that 21% of small businesses were shuttered at the start of this month, reflecting a steady increase from June’s 16% rate. Consumer spending at local businesses is down 27% this month from a year ago, marking a deterioration from a 20% year-over-year drop in October, Womply found.

If you think that anyone is going to be able to wave a magic wand and fix this mess, you are just being delusional.

There are millions upon millions of Americans that have already been pushed to the breaking point by this pandemic.  One of those individuals is a 38-year-old California resident named Andrew Lee

“I’ve exhausted all of my unemployment benefits. I’ve had to resort to food stamps and [California’s Medicaid program] for the first time in my life. I’m backdated on my rent and my credit has been ruined,” said 38-year-old Andrew Lee, who lives in a suburb of Los Angeles with his wife and two children.

Lee lost his job as a business development director several months before the pandemic. But once it hit, it became that much harder to find work. And he didn’t initially qualify for any pandemic-related unemployment benefits.

His car has been repossessed and his wife’s car has also been repossessed.

So even if they could find jobs, how are they supposed to get to work?

Lee is just like so many other hurting Americans.  First he ran through all of his savings, and then he started relying on his credit cards.

Now that his unemployment benefits have been exhausted, he is out of options, and his family is a step or two from becoming homeless.

In the months ahead, tens of millions of others will find themselves facing similar scenarios.

This is what an economic collapse looks like.  The United States hasn’t had to face anything like this since the Great Depression of the 1930s, and what we have experienced so far is just the start.

In 2019, I received quite a bit of criticism because the economy was relatively stable and to many people it seemed like an “economic collapse” was not even remotely a possibility.

But now an economic collapse has officially arrived, and all of the things that I have been warning about are starting to happen one right after the other.

The “perfect storm” is upon us, and most Americans still do not understand the horrors that lie ahead.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  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.  I encourage you to follow me on social media on FacebookTwitter and Parler, 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.

Federal Reserve Chair Jerome Powell Admits The Truth: “We’re Not Going Back To The Same Economy”

Even Jerome Powell is admitting that the boom years are over.  For months, I have been trying to explain to my readers that the debt-fueled “prosperity” that we were enjoying prior to the COVID pandemic won’t be coming back, and initially I received quite a bit of criticism for saying that.  But that criticism has subsided, because at this point pretty much everyone can see the truth.  Despite stimulus package after stimulus package, and despite unprecedented intervention by the Federal Reserve, we continue to be mired in the worst economic downturn since the Great Depression of the 1930s.  Fear of the virus continues to drag down the overall level of economic activity, more businesses are going under with each passing day, and the layoff announcements never seem to end.

Normally, Federal Reserve officials try very hard to be relentlessly optimistic.  But during a European Central Bank panel discussion on Thursday, Federal Reserve Chair Jerome Powell openly admitted that “we’re not going back to the same economy”

“We’re not going back to the same economy,” Powell said. “We’re recovering, but to a different economy and it will be one that is more leveraged to technology, and I worry that it’s going to make it even more difficult than it was for many workers.”

The central bank leader said he was referring specifically to “relatively low-paid public-facing workers who are bearing this brunt,” many of whom are women and minorities.

His use of the phrase “a different economy” really got my attention.

When I am trying to break some really bad news to someone in a gentle way, I will often use the word “different” to describe what things will be like moving forward, and I think that Powell is doing the same thing here.  He knows that there is no way that things will “return to normal” any time soon, and he is quite correct to be particularly concerned about how this will affect low paid workers.

Low paid workers have been losing their jobs at a much higher rate than anyone else, and the job losses just keep rolling in.

On Thursday, we learned that another 709,000 Americans filed new claims for unemployment benefits last week, and that number is more than three times higher than what we witnessed during a typical week in 2019…

The Labor Department report showed an eleventh straight week that new jobless claims totaled below 1 million. But new claims have not yet broken back below 700,000 since the start of the pandemic and have held sharply above levels from before the outbreak. Throughout 2019, new initial unemployment claims were coming in at an average of just over 200,000 per week.

As of October 24th, a total of 21.16 million Americans were bringing home some type of unemployment assistance.

One year ago, that number was just 1.45 million.

In other words, we are in the midst of a national unemployment nightmare.

And many analysts are deeply concerned that the new wave of lockdowns that is now starting to happen around the nation will cause a renewed surge in layoffs

As colder weather sets in and fear of the virus escalates, consumers may turn more cautious about traveling, shopping, dining out and visiting gyms, barber shops and retailers. Companies in many sectors could cut jobs or workers’ hours. In recent days, the virus’ resurgence has triggered tighter restrictions on businesses, mostly restaurants and bars, in a range of states, including Texas, New York, Maryland, and Oregon.

“The risk may be for more layoffs as coronavirus cases surge and some states impose restrictions on activity,” said Nancy Vanden Houten, an economist at the forecasting firm Oxford Economics.

Yesterday, I discussed the fact that one of the experts on Joe Biden’s new COVID-19 advisory board wants a full national lockdown for at least a month once Biden is in the White House.

Needless to say, that would make the economic depression that we are currently suffering through a whole lot worse.

But of course there are a lot of Americans out there that simply are not going to put up with any more lockdowns.  In fact, one new survey has found that only 49 percent of all Americans “would be very likely to stay home for a month if health officials recommend it”

Fewer than half of Americans say are very likely to comply with another lockdown, despite growing concerns over the coronavirus pandemic, the latest Gallup polling shows.

About 49% of Americans polled between October 19 and November 1 said they would be very likely to stay home for a month if health officials recommend it following a coronavirus outbreak in their community, down from 67% in the spring.

Millions upon millions of lives were turned upside down by the lockdowns that were previously instituted, and the economic damage caused by another round of lockdowns would be incalculable.

But it appears that more lockdowns are coming anyway, and that means a lot more economic suffering is ahead.

Prior to the pandemic, 38-year-old Victoria Perez was working two jobs, but she quickly lost both of them once COVID came along.  Now she and her children are living in city housing in Oakland, California, and they are just one step away from being homeless

Among them is Victoria Perez, who was working two delivery jobs before the pandemic struck. Having lost both jobs in the spring, she is now living with her children in city-subsidized housing near Oakland, California, and hoping to avoid homelessness.

The city housing, provided to people at heightened risk of the coronavirus, lasts only through December. Perez, 38, is a cancer survivor.

After the holiday season, what is she supposed to do if she can’t find a new job?

Being homeless is bad enough.  When you add children to the equation, we are talking about the sort of nightmare scenario that nobody should ever have to go through.

Unfortunately, the ranks of the homeless are absolutely exploding all over the country as the U.S. economy crumbles right in front of our eyes.

In 2021, I am anticipating the biggest wave of traffic in the history of The Economic Collapse Blog as our ongoing economic implosion accelerates even more.  I have been hearing from so many people out there that are deeply hurting right now, and I wish that I had better news for everyone.

Sadly, the consequences for decades of exceedingly foolish decisions are catching up with us, and saying that we are heading into a “different economy” is definitely a major understatement.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  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.  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.

The economic implosion of 2020: Job losses ramp up again as millions of Americans continue to slide into poverty

The mainstream media keeps trying to convince us that things are about to get a whole lot better for the U.S. economy, but instead they just keep getting worse.  On Thursday, we learned that another 898,000 Americans filed new claims for unemployment benefits last week.  That was the highest number that we have seen since August, and it is yet more evidence that a new wave of layoffs has begun.  But according to the experts that the mainstream media relies upon, this wasn’t supposed to happen.  According to them, the number of Americans filing for unemployment benefits was supposed to be steadily tapering off as the U.S. economy shifted into recovery mode.  Unfortunately for all of us, those experts have been dead wrong.

Yesterday, I wrote about the decline of the middle class in our country, and here in 2020 this pandemic has greatly accelerated that process.

In fact, one new study has found that almost 8 million more Americans have plunged into poverty just since May

Nearly 8 million Americans have slid into poverty since May, according to a Columbia University study reported by the New York Times.

Why it matters:The researchers found that the monthly poverty rate for September was higher than rates during April or May, and it also topped pre-crisis levels, “[d]ue to the expiration of the CARES Act’s stimulus checks and $600 per week supplement to unemployment benefits.”

And another study discovered that 6 million more Americans fell into poverty in just the last three months

A separate study by researchers at Notre Dame and the University of Chicago, found that 6 million people have slipped into poverty in the last three months, per the Times.

Our hearts should be breaking because of what is going on all over the country right now.

Millions upon millions of hard working people have lost their jobs and can’t find new ones.  As a result, they have lost the comfortable middle class lifestyles that they once enjoyed and have now joined the ranks of the poor.

But the official government numbers don’t look that bad because millions of those people are not even categorized as “unemployed”.  Instead, many of the workers that have lost their jobs during this pandemic have been thrown into a category that is called “not in the labor force”.

In order to have faith in the official government numbers, you have got to believe that more than 100 million working age Americans are “not in the labor force” because they don’t want to work.

It is such a sham.  Why don’t we just put every single American that is not working into the “not in the labor force” category so that we can have 0.0 percent unemployment?

Wouldn’t that be wonderful?

Of course the truth is that more Americans are being laid off with each passing day.  Over the past few weeks, some of the most iconic companies in the entire nation have been letting workers go

Further, companies have begun initiating layoffs on a trajectory similar to traditional recessions, economists said, as slowdowns in consumer demand (rather than state-mandated shutdowns) lead them to cut jobs or close for good.

Companies such as AllstateAmerican AirlinesDisneyRoyal Dutch Shell and United Airlines have each announced plans to cut thousands of workers in recent weeks.

Some parts of the country have been hit much harder than others by this economic downturn.

For instance, tourism has dried up almost completely in Las Vegas, and this week there have been more layoff announcements

The Tropicana Las Vegas has given notice to 828 employees that they are being laid off beginning Thursday, Oct. 15.

And layoffs at two Paris Las Vegas restaurants are coming soon as notices have been filed with the state. Mon Ami Gabi intends to lay off 96 employees, and the Eiffel Tower Restaurant will lay off 53 employees. Both moves are scheduled to happen on Dec. 16, and the layoffs will be permanent.

In the end, most of the jobs that have been lost in Las Vegas will never come back until the tourists return, and that is simply not going to be happening for the foreseeable future.

Next door, the state of California has been absolutely devastated by this crisis as well.

If you can believe it, one out of every four Californians received unemployment benefits between March and July.  The state may have more billionaires than anywhere else in the country, but according to the U.S. Census Bureau it also has the highest poverty rate

Home to 166 billionaires, who made over $235 billion since the beginning of the pandemic, the Golden State also has the highest poverty rate: 17.2% when adjusted for the cost of living, according to a recent Census Bureau analysis.

That means that almost one out of every five people in the entire state of California is living in poverty right now.

If this is what a “recovery” looks like, I would hate to see what the “bad times” are going to look like.

And without a doubt, economic conditions are definitely going to get worse than they are now.

So many families in California are just barely scraping by from month to month, and more of them are falling into poverty every day.  In fact, even USA Today is admitting that “California’s middle class isn’t done shrinking”…

To many, the streets of the Bay Area are renowned for the enduring homelessness crisis as much as for the renowned tech giants of Silicon Valley. In-between, California’s middle class isn’t done shrinking; teachers, artists, waiters and gig workers are awaiting their fate, often one government program away from having to take a minimum-wage job — or lose their homes.

It is kind of ironic.  Many of those that live in California like to lecture the rest of us about “wealthy inequality”, but it is worse in their state than anywhere else.

Those at the very, very top of the pyramid are thriving (for now), but meanwhile countless others are falling out of the middle class.

It is like a really perverse game of musical chairs.  Every time the music stops, more people lose their seats and the middle class shrinks some more.

Sadly, I think that this process is going to accelerate even more in 2021, and that is really bad news for millions upon millions of middle class American families that are deeply struggling right now.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  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.  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.

Goodbye Middle Class: Half Of All American Workers Made Less Than $34,248.45 Last Year

If you are making less than $3,000 a month, you have plenty of company, because about half of the country is in the exact same boat.  The Social Security Administration just released new wage statistics for 2019, and they are pretty startling.  To me, the most alarming thing in the entire report is the fact that the median yearly wage was just $34,248.45 last year.  In other words, half of all American workers made less than $34,248.45 in 2019, and half of all American workers made more than $34,248.45.  That isn’t a whole lot of money.  In fact, when you divide $34,248.45 by 12 you get just $2,854.05.  Needless to say, it is not easy to survive in America today on just $2,854.05 a month, and this may help to explain why we have been seeing so many people fall out of the middle class in recent years.

And of course all of the figures that I am sharing with you in this article are just for 2019.  This year, we have seen more than 63 million Americans file new claims for unemployment benefits as the U.S. economy has imploded during this pandemic, and so the final wage numbers for 2020 could be quite a bit worse than the numbers for 2019 were.  Please keep that in mind as you go through the rest of this article.

Once upon a time in America, a single income could easily support a middle class household in most cases, but those days are long gone.

The cost of living has been rising far faster than our paychecks have, and as a result many Americans have been working themselves to the bone just to survive financially from month to month.

To give you an idea of just how bad things have gotten, I would like to share with you some key numbers from the report that the Social Security Administration just released

-32.26 percent of American workers made less than $20,000 last year.

-44.79 percent of American workers made less than $30,000 last year.

-56.46 percent of American workers made less than $40,000 last year.

-65.91 percent of American workers made less than $50,000 last year.

Today, the poverty level for a household of five in the United States is $30,680.

That means that close to half of all workers in this country do not even make enough to get a family of five above the poverty level.

Wow.

There are tens of millions of Americans that are referred to as “the working poor” because they are living in poverty even though they are employed and are working extremely hard.  Many of you that are reading this article know exactly what I am talking about.  Some of you are working way more than 40 hours a week, and yet there never seems to be enough money at the end of the month.

Sadly, the truth is that our system has evolved in a manner that makes it almost impossible for most Americans to ever build up much wealth.

If you are making the median monthly wage of just $2,854.05, there simply is not going to be much left over after all of the bills are paid.  First of all, you are going to need some place to live.  In the middle of the country you may be able to find something habitable for under $1,000 a month, but in most of our major metropolitan areas that simply is not going to be realistic.

Secondly, you are going to need to pay your utility bills.   If you can keep the combined cost of your power, water, phone, television and Internet bills to about $250 a month, you are doing quite well.

Thirdly, you will need a vehicle in order to get around, and these days it is hard to buy or lease a vehicle for less than $300 a month.  In addition, you will also need insurance, and that will set you back even more.

Fourthly, you will need health insurance.  If you are young and single, maybe you can find a plan for just a few hundred dollars a month, but most Americans pay far more.

Fifthly, you will probably want to eat, and that will cost you several hundred dollars a month as well.

At this point almost all of your money is already gone, and there are so many expenses that I haven’t even mentioned yet.

And of course you never even started with $2,854.05 in the first place, because all sorts of taxes were taken out of your paycheck before you even got it.

Are you starting to understand why so many families in America are deeply, deeply struggling today?

We have an economy that works for those at the very top of the food chain, but pretty much everyone else is desperately trying to stay afloat.

And now we have entered an economic downturn during which tens of millions of Americans have lost their jobs.  According to John Williams of shadowstats.com, if honest numbers were being used the real unemployment rate in the U.S. would be 26.9 percent right now, and that would rival the worst levels that we witnessed during the Great Depression of the 1930s.

Others have come up with similar numbers.  For example, Axios is reporting that the “true unemployment rate” in the United States is currently 26.1 percent

A person who is looking for a full-time job that pays a living wage — but who can’t find one — is unemployed. If you accept that definition, the true unemployment rate in the U.S. is a stunning 26.1%, according to an important new dataset shared exclusively with “Axios on HBO.”

No matter how you want to crunch the numbers, everyone should be able to agree that millions upon millions of Americans are really hurting financially and are deeply concerned about the future.

And they have good reason to be concerned about the future, because our economic system is in the process of imploding.

For decades, the greatest debt bubble in the history of the world allowed us to enjoy a level of debt-fueled prosperity that was far greater than we actually deserved.

Now the party is ending, and our society is going to experience an enormous amount of pain as everything changes.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  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.  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.

Economic Nightmare: Nearly 50 Percent Of All The Jobs Lost During The COVID-19 Pandemic “May Be Gone Permanently”

When millions of Americans were losing their jobs at the beginning of this pandemic, we were told not to worry because the lockdowns were just temporary and virtually all of those workers would be going back to their old jobs once the lockdowns ended.  Well, now we are finding out that was not even close to true.  Over the last 18 weeks, more than 52 million Americans have filed new claims for unemployment benefits, and a very large percentage of them are dealing with a permanent job loss.  In fact, one brand new survey discovered that 47 percent of all unemployed workers now believe that their “job loss is likely to be permanent”.  The following comes from a USA Today article entitled “Almost half of all jobs lost during pandemic may be gone permanently”

In April, 78% of those in households experiencing job loss felt that that situation would be temporarily. But now, 47% think that job loss is likely to be permanent, according to The Associated Press-NORC Center for Public Affairs Research.

What that number tells us is that we are facing the worst employment crisis since the Great Depression of the 1930s.

All of those permanently unemployed workers are eventually going to need new jobs, but meanwhile the U.S. economy as a whole is in a free fall that is absolutely stunning.  On Thursday, we are scheduled to get the GDP number for the second quarter, and everyone is expecting that it will be really bad

Data due Thursday are forecast to show U.S. gross domestic product plummeted an annualized 34.8% in the second quarter, the most in records dating back to the 1940s, after the spread of Covid-19 prompted Americans to stay home and states to order widespread lockdowns.

This downturn has been particularly hard on small businesses.  Just check out these numbers

• Yelp reported 71,500 businesses that were listed on their site have closed for good since March 1.

• 80% of independent restaurants aren’t sure they’ll survive the COVID-19 pandemic.

• Nearly half of all small-business members of the San Francisco Chamber of Commerce lost 100% of their sales or closed down completely.

What a nightmare.

But the third quarter was when the U.S. economy was supposed to come roaring back to life.

We were told that it would be the greatest economic comeback in our history, but instead the numbers are telling us that the economy is actually starting to slow down once again.

In fact, U.S. consumer confidence in July is much lower than it was in June…

U.S. CONSUMER confidence fell in July to a reading of 92.6 as coronavirus cases surged around the country, shuttering some bars and other businesses and raising concerns about the future of the economy.

The Conference Board reported Tuesday that the index fell in July from a reading of 98.3 in June. The drop is more significant than economists predicted, and is due mainly to a decrease in consumers’ economic expectations for the short-term future.

In addition, we just witnessed the largest decline in wholesale inventories since the peak of the last financial crisis

June was supposed to be the month of second-derivative beats in economic data, reaffirming the manic bid in stocks. For Wholesale Inventories it was not.

Against expectations of a rebound from a 1.2% drop in May to a 0.5% drop in June, wholesale inventories actually tumbled 2.0% MoM, the worst since the peak of the great financial crisis…

So it doesn’t look like any sort of a “recovery” is happening.

Instead, it appears that we are sliding into the next chapter of this new economic depression.

In June, 19 percent of all U.S. small businesses were closed, but now that number is up to 24.5 percent.

That certainly isn’t progress.

With each passing day, more companies are announcing layoffs.  And every worker that gets laid off is another American that doesn’t have a paycheck to spend.  During the last recession, millions of Americans slid out of the middle class, and we are watching it happen again.

Our elected leaders in Washington are desperate to do something about this, and almost all of them seem to agree that more socialist programs are the answer.  A fifth “stimulus bill” is being put together, and the Urban Institute is warning that if Congress does not hurry we could see the poverty rate in this country rise substantially

Millions more Americans will be thrown into poverty if Congress fails to enact three policies meant to help families get through economic hardships related to the pandemic, according to a new study by the Urban Institute.

The report finds that the poverty rate for the last five months of 2020 will rise to 11.9% if expanded unemployment-insurance benefits, a second round of stimulus checks, and increased SNAP allotments are not approved, a significant increase over the projected annual rate of 8.9%.

If the Urban Institute thinks that an 11.9 percent poverty rate is bad, just wait until they see what things will be like in this country a few years from now.

Our entire system is in the process of melting down, but it will take some time for the drama that we are watching to fully play out.  Our leaders in Washington and the bureaucrats over at the Federal Reserve will keep flooding the system with money in a misguided attempt to fix things, and this will result in exceedingly painful inflation.

The cost of everything (including essentials such as food) will be going way up, and that means that your money will increasingly become less and less valuable.

If you could print your way to prosperity, Venezuela and Zimbabwe would be the wealthiest nations on the entire planet today.

At this point, almost everyone in Venezuela is a “millionaire”, but almost everyone is also living in extreme poverty.

History has shown that wildly printing money doesn’t work, but the U.S. is going down the exact same path, and it isn’t going to be pretty.

Even though things are quite crazy out there right now, this is our window of opportunity to get prepared for the troubled times that are ahead, because things are not going to be getting any easier from here on out.

*It is finally here! Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.com.*

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  By purchasing the book you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on 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 always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  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.  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.

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.

We Just Got Some Good Economic News

When some good economic news comes along, we should be thankful for it, because such moments are becoming increasingly rare.  On Friday, the Labor Department announced that the U.S. economy added 128,000 jobs last month, and that definitely exceeded expectations.  Of course the truth is that the U.S. economy didn’t actually add 128,000 jobs last month.  That number is just a heavily manipulated estimate that is adjusted to smooth out “seasonal fluctuations”, and it will be revised multiple times in the future as more data becomes available.  In other words, the government is giving us an educated guess about what they think might have happened, and it is based on certain assumptions that may or may not be reasonable.  But considering all of the other horrible economic news that we have been getting lately, any number above zero is a reason to celebrate.  The employment situation in this country still appears to be relatively stable, and we should hope that continues to be the case for as long as possible.

Of course nobody should be using words like “boom” or “booming” to describe what is happening.  An increase of 128,000 jobs in one month is not nearly enough to keep up with population growth.

So if the U.S. economy actually did add 128,000 jobs last month, the truth is that we would actually be losing ground.

But at least the jobs number was significantly better that most analysts were projecting

Nonfarm payrolls rose by 128,000 in October as the U.S. economy overcame the weight of the GM autoworkers’ strike and created jobs at a pace well above expectations.

Even with a decline of 42,000 in the motor vehicles and parts industry, the pace of new jobs well exceeded the estimate of 75,000 from economists surveyed by Dow Jones. The loss of jobs came due to the General Motors strike that has since been settled. That 42,000 job loss itself was less than the 50,000 or more that many economists had been anticipating.

Hopefully we can have at least a couple more months like this one before the job losses really start becoming severe.

But this is definitely not an indication that the U.S. economy is heading in the right direction.  Because job gains did not keep up with population growth, it makes sense that the unemployment rate actually went up last month

The unemployment rate, which is calculated from a different survey, rose from a 50-year low of 3.5% to 3.6%, the Labor Department said Friday. That’s because a strong increase in employment was offset by an even bigger rise in the labor force, which includes Americans working and looking for jobs.

Also, it is very important that you do not let that “3.6 percent” figure fool you.

As John Williams has documented, if honest numbers were being used the unemployment rate in the United States would currently be 21 percent.  That is down a couple of percent from the peak of the last employment crisis, but it is still not good at all.

And even though the jobs number that we just got was good news, more bad economic news continues to pour in at an alarming rate.  According to the latest projection from the Federal Reserve Bank of Atlanta, the U.S. economy is on track to grow at a rate of just 1.1 percent in the fourth quarter…

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the fourth quarter of 2019 is 1.1 percent on November 1, down from 1.5 percent on October 31. After this morning’s release of the employment report by the U.S. Bureau of Labor Statistics, the Manufacturing ISM Report On Business from the Institute for Supply Management, and the construction spending report from the U.S. Census Bureau, the nowcasts of fourth-quarter real personal consumption expenditures growth and fourth-quarter real gross private domestic investment growth decreased from 2.3 percent and -0.7 percent, respectively, to 2.2 percent and -2.5 percent, respectively.

That is horrible, but at least it is still a number that is above zero.

Unfortunately, GDP growth for our neighbor to the south has already fallen below that line.  The following comes from Wolf Richter

In the third quarter of 2019, Mexico notched up its first year-over-year decline in GDP since the final quarter of 2009, when it was in the midst of a sharp recession brought on by the Financial Crisis. According to a preliminary estimate published by Mexico’s statistical institute INEGI, in the third quarter, the economy shrank 0.4% compared with the same quarter a year earlier.

So what should we make of all this?

Clearly, the U.S. economy is slowing down.  The temporary reprieve that we have been enjoying for the past few years appears to be ending, but the jobs number that we got today indicates that it is not done quite yet.

Ultimately, that is good news.

One of the most precious resources that any of us has is time.  If the U.S. economy can remain at least somewhat stable for a little while longer, that buys us some time, and all of us should be using that time wisely.

Because the truth is that the clock is ticking, and economic conditions in the United States are about to make a dramatic turn for the worse.

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 Blog, End 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 End, Get 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 can only allow this to happen if this “About the Author” section is included 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.  This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate.  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.

Do NOT follow this link or you will be banned from the site!