The American economy has entered a deep recession, similar to the Great Depression, against the backdrop of measures to combat the Coronavirus pandemic. This was stated in a front-page article on Friday by The Washington Post.
The publication compares the current situation in the U.S. with the crisis of the last century due to the fact that many businesses in the country have stopped working, provoking massive layoffs and threatening to cause a chain reaction of bankruptcies and financial losses to large and small companies. The current measures are taken by the U.S. administration, according to the article, “will not stop the deep economic downturn and will not be sufficient to support workers” if the crisis caused by coronavirus will last more than a month or two.
“We all believe that the recession has an economic basis, but it has nothing to do with the economy. It’s literally about trying to stay away from each other,” says Aparna Matura, an expert at the American Enterprise Institute. The Washington Post stresses that the American authorities “had to stop about half of the economy and convince most of the working population to stay home in an effort to save as many lives as possible.
Many businesses are firing their employees, which has already led to a record increase in unemployment in the country. Meanwhile, other employers have decided to cut their employees’ salaries by an average of one-third. According to the newspaper, at the moment the question remains whether we are talking about a prolonged recession, or if the crisis will stop in the near future. U.S. President Donald Trump wants the country’s private sector partially reopened by April 12, but economists and health experts fear that this could lead to an increase in the number of deaths and an increase in the recession.