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In the midst of this economic collapse, many Americans have been feeling the strain of unemployment, whether through temporary or permanent job loss. Budgets for big-ticket items like appliances or automobiles have dried up entirely, and even paying for basics like rent and groceries has become difficult for many households. Throughout the pandemic, all of these challenges have been mitigated at least in part by extensive government aid in the form of stimulus checks, unemployment benefits, and the like. However, this lifeblood keeping countless citizens afloat is about to dry up.
Right now, we are experiencing the worst economic downturn since the Great Depression rocked the globe in the 1930s. Economic activity has plummeted as, this year alone, over 100,000 businesses closed their doors for good, and more than 44 million Americans experienced unemployment as a result of rapidly disappearing job opportunities. Over 50 percent of all low-income households and a quarter of adults in the United States have experienced a loss of income, numbers that do not bode well.
The relief offered by the federal government has been superficial at best, and as states begin to reopen, economies begin to restart, and the aid expires, people who are unable to get back on their feet quickly will finally understand the deeper effects of the economic collapse. What we have experienced so far is nothing compared to what’s coming.
In this video, we are going to discuss what will come next for Americans across the country, and how experts anticipate consumers will respond to total economic collapse. We’ll cover the data on unemployment rates, consumer spending, and the national debt to help you understand what is coming next.
A BuzzFeed News article recently compared the United States economy to a failing aircraft, just entering a glide after the engines have already stopped working. While things may feel smooth for the moment, the worst is yet to come, and it’s only a matter of time before the crash hits.
A better metaphor would actually swap out the US economy for US citizens. The economy has already crashed. Now, we are the plane, and we’re on an inevitable collision course that has only been temporarily stalled through the government’s emergency spending and relief measures.
First, evictions were disallowed to prevent many lower income families from losing their places of residence and being pushed out onto the streets. Landlords were told not to shut off utilities such as water and power even if tenants were unable to pay. They were
even told not to apply the typical fees for late rent checks, giving tenants extra leeway on their bills.
Many of these protections expired at the end of May, and the ones that are still in place are set to last only until August. At the end of the summer, a lot of families may see themselves forced out, and the homeless population will jump, particularly in areas where rent rates are typically high.
In major cities across the United States, mass gatherings that quickly spiral out of control have depressed economic activity even further, causing devastating damage to businesses and property in the path of the protests.
The government was able to put the worst pain of the pandemic and the resulting economic collapse on hold for a while, but those emergency measures are winding
down. That means that we only have about six weeks before the entire population begins to feel the strain in a whole new way.
There was a glimpse of optimism when the US economy added 2.5 million jobs last month, and unemployment experienced a bit of relief, dipping to 13.3 percent. However, even as jobs start to come back, more Americans will continue to lose them as well. More stores and restaurants will open in the coming weeks, but that will be matched or outpaced by the many thousands of businesses that are declaring bankruptcy and shutting their doors. Of those, a significant portion will never recover.
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