Economy

Coronavirus Live Updates : NPR

Fed’s Powell Says Sharp Economic Downturn Won’t Last : Coronavirus Live Updates : NPR

Federal Reserve Chairman Jerome Powell warns it could be another year and a half before the U.S. recovers from the economic fallout of the coronavirus pandemic. But he says this will not be another Great Depression.

"It's going to be a very sharp downturn," Powell said in an interview with 60 Minutes that aired Sunday. "It should be a much shorter downturn than you would associate with the 1930s."

Powell, who is set to testify before the Senate Banking Committee on Tuesday, reiterated his view that Congress may need to authorize additional relief spending to keep families and businesses afloat until the virus is under control.

Coronavirus Live Updates : NPR

Fed’s Jerome Powell Says More Relief Spending May Be ‘Costly, But Worth It’ : Coronavirus Live Updates : NPR

Additional government spending may be necessary to avoid long-lasting fallout from the coronavirus pandemic, Federal Reserve Chairman Jerome Powell said Wednesday.

Powell said the economy should recover once the virus is under control. But he cautioned that without more help, many small businesses may not survive that long. And he warned that a wave of business and household bankruptcies could do lasting damage to the nation's economic output.

Coronavirus Live Updates : NPR

14.7% Unemployment, 20.5 Million Jobs Wiped Away : Coronavirus Live Updates : NPR

The Labor Department delivered a historically bad employment report Friday, showing 20.5 million jobs lost last month as the nation locked down against the coronavirus. The jobless rate soared to 14.7% — the highest level since the Great Depression.

The highest monthly job loss before this was 2 million in 1945, as the nation began to demobilize after World War II. The worst monthly job loss during the Great Recession was 800,000 in March 2009.

Americans are discovering frugality – Vox

Washing Ziplocs, eating bread crusts: Americans are discovering frugality – Vox

Frugality is a trait and a value as old as time, spiking in certain cultures and generations, living situations and individuals, out of both necessity and outlook. Behaving economically with money or resources has become both a rare virtue — on aspirational blogs like the Frugality or self-help tomes like Your Money or Your Life — and a cultural punchline, good for a joke about hoarders or one’s immigrant family, grandparents who lived through the Great Depression, or good old-fashioned tightwads. "What’s newer, in fact, is the idea that some items are immediately and obviously disposable"

What’s newer, in fact, is the past 70-ish years of American materialism, which birthed the idea that some items are immediately and obviously disposable, or that eating food that you bought and paid for, food made of food, is inherently strange. As a widespread attitude, it’s historically unusual and it may be, at least for now, fading.

Since quarantine started, following the spread of Covid-19, there has been a move away from this culture of waste. This new strain of frugality — call it the novel frugality — is defined by its attachment to this moment and its participants’ motivations. While it might mirror long-held practices (like not throwing away aluminum foil or consciously saving scraps of leftovers to make new meals), its impetus is slightly different.

Economy Shrank At 4.8% Pace In 1st Quarter. But Worst Is Yet To Come : Coronavirus Live Updates : NPR

GDP: Economy Shrank At 4.8% Pace In 1st Quarter. But Worst Is Yet To Come : Coronavirus Live Updates : NPR

The coronavirus pandemic is likely to trigger the sharpest recession in the United States since the Great Depression. An early signal of that came Wednesday, when the Commerce Department said the economy shrank at a 4.8% annual rate in the first three months of the year — the first quarterly contraction since 2014 and the largest since the Great Recession.

For the first 2 1/2 of those months, the economy was chugging along at a steady, if not spectacular pace. But the plug was suddenly pulled in mid-March — when bars, restaurants and retail shops were abruptly closed and tens of millions of Americans were ordered to stay home in an effort to slow the spread of the deadly disease. Deluge Continues: 26 Million Jobs Lost In Just 5 Weeks Coronavirus Live Updates Deluge Continues: 26 Million Jobs Lost In Just 5 Weeks

The first-quarter drop was the biggest since an 8.4% dive in the fourth quarter of 2008. It marked a reversal from the 2.1% growth rate at the end of 2019.

Coronavirus Live Updates : NPR

26 Million Jobs Lost In 5 Weeks As Unemployment Claims Rise Another 4.4 Million : Coronavirus Live Updates : NPR

The number of people forced out of work during the coronavirus lockdown continues to soar to historic highs. Another 4.4 million people claimed unemployment benefits last week around the country, the Labor Department said.

 

That brings the total of jobless claims in just five weeks to more than 26 million people. That's more than all the jobs added created in the past 10 years since the Great Recession.

Still the pace of job losses is slowing. About 5.2 million filed during the week that ended April 11 and last week was the third consecutive week of declines.