Posted on 04/24/2021 5:26:26 AM PDT by Kaslin
Even as millions of Americans are vaccinated, the COVID-19 pandemic has left the U.S. economy in shambles.
Mortgage rates are climbing above 3 percent, while gas prices are skyrocketing—increasing more than 50 cents per gallon, with no end in sight. There is a global shortage of computer chips, generators, and houses. America’s housing market is nearly 4 million homes short of buyer demand, undermining the career prospects of Millennials and other generations.
At the same time, businesses of all sizes continue to be crushed by COVID-related restrictions, especially in blue states. In February, nearly one-quarter of U.S. small and medium-sized businesses were closed—up from 14 percent in October. The worst may be yet to come: 13 percent of small business owners—millions of employers—are prepared to close their doors if economic conditions do not improve later this year.
Then there’s unemployment. Based on the U6 unemployment rate, which accounts for workers who have quit looking for a job and part-time employees looking for full-time work, joblessness is well above 10 percent of the labor market. Last year, over 8 million American families experienced job loss, and millions more remain impacted.
There’s a reason why economic optimism is still low. Even with COVID-19 vaccines widely available, two-thirds of Americans remain hesitant to regularly venture out of home. We are months and months—if not years—away from economic recovery.
In fact, America is closer to a Great Depression 2.0 than a full-scale recovery. Current economic conditions do not even take into account public policy, such as President Biden’s eagerness to raise taxes or impose regulations on employers and their employees. The Biden administration’s plan to increase the corporate tax rate to 28 percent (from 21 percent) would reduce wages by more than 1 percent and kill nearly 160,000 jobs. At the same time, long-run gross domestic product (GDP) would drop by 0.96 percent—about $1,650 per U.S. household.
Meanwhile, President Biden’s $15 federal minimum wage proposal—which is backed by congressional Democrats—would reduce employment by another 1.4 million jobs. All in all, the Biden administration’s economic agenda would threaten nearly 5 million career opportunities. Can working Americans afford it, in the middle of a pandemic?
>At the height of COVID-19, unemployment levels were already comparable to Great Depression-era struggle, before recognizing the long-term consequences of government-mandated business closure. And that was under a Republican president, who opposed sweeping lockdowns and believed in pro-business policies. Under a Democratic president whose proposals cost trillions of dollars, Americans should brace themselves for more sustained suffering—and taxes to boot.
I am not trying to be a doomsayer. It is simply the reality. Americans cannot expect a return to economic normalcy in 2021—not under this president, not given these conditions. In 2006, I predicted a housing crisis in the coming years. In 2019, I shorted the stock market because I expected a downturn by early 2020. Now, I am moving into long-term equity anticipation securities (LEAPS), with my research showing a potential recession or depression within the next 18 to 24 months. Americans need to hope for the best, but prepare for the worst.
Of course, mass vaccination is one reason to be optimistic, but those in power are not necessarily ready for a return to normality. Dr. Rochelle Walensky, the director of the Centers for Disease Control and Prevention, recently instructed Michigan Governor Gretchen Whitmer—all too eager to abuse her executive authority—to “close things down” again, no matter the economic consequences. Governor Whitmer has already urged people to voluntarily restrict certain activities, despite millions of vaccines being distributed in the state. Then you have Dr. Anthony Fauci, who supports mask-wearing and social distancing even after vaccination.
The logical endpoint of the COVID-19 pandemic is not clear. Because of big-government types like Fauci, we have a long, long way to go. The situation may get worse before it gets better.
The economy is booming in my area of Florida due to construction and real estate. I don’t see that changing for a couple years. Too much money floating around. Could and probably will get economically bumpy around 2024.
Yep. All by design of the one world government demons.
Rising interest rates will cause an overwhelming debt payment on the national debt.
https://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
Bad things happen when you have to borrow to make payments on debt. That’s why inflation is so useful.
I am a pragmatist and I see no good for us in this administration, none. That said though, we have had enough gloom and doom to last at least a couple of lifetimes.
Our state is a state of mind as much as anything and our state of mind stinks.
Covid was generated by democrats, it is they that have caused all of this and ruined people’s lives along with the country. Joe Biden. Fake president and the whole world knows it.
We have let them do this. We sit back, whine and watch it.
No. There will be state secession and perhaps a war. But very ORGANIZED. More deadly than the chaos you preach.
“A potable water plan too, in case “city water” goes down.”
Which it will. Learn about seep wells. They’ll do in a pinch if you know how to properly disinfect water.
“Transformers are easy targets.”
So are electrical substations. A well planned and coordinated attack on one happened in California, IIRC. Then there are the splice points for fiber optic lines. Drop a highway flare into one of those and watch the fun begin.
I could have made my list a lot longer, of course. But smarter people than me have already done it. A precious few have been listening and quietly preparing. I pray daily that we never need to use what we’ve put together.
But I’m afraid that whole lot of people are going to die because they wouldn’t believe their own eyes, Matt. The Left isn’t making any big secret of their goals. Hell, they’re screaming it into our faces.
We have chosen to take them at their word. More people should do the same.
L
Every time I buy a Chinese made good I feel like traitor. I hate globalism.
*** the COVID-19 pandemic has left the U.S. economy in shambles.***
I am SO sick of this nonsense. Anyone with half a brain knows that it wasn’t COVID-19 that destroyed businesses and millions of jobs—it was the over-the-top nonsensical restrictions and shutdowns imposed by the (mostly) Democrat Mayors and Governors.
“Mortgage rates are climbing above 3 percent, while gas prices are skyrocketing—increasing more than 50 cents per gallon, with no end in sight. There is a global shortage of computer chips, generators, and houses. America’s housing market is nearly 4 million homes short of buyer demand, undermining the career prospects of Millennials and other generations.”
This guy is totally clueless. Mortgage rates climbing above 3% is somehow a disaster? I bought a home in 1968 and took out a 20 yr mtg at 6% and I was an employee of the bank.
Rates are rising because demands for Homes (and mortgages) is way outstripping supply. The rule of supply/demand at work here.
Gasoline is selling for $2.59 here in SC. Adjusted for inflation from 1960 when Gasoline was selling for about $.30 per gallon gasoline would cost $2.71
Shortages caused by the lock down will end and we are already seeing this. As far as this guys call for a recession? We are always either going forward towards one or coming out of one.
It’s called the business cycle.
I read or heard somewhere that some type of company is buying up homes all over the country then not selling them. They’re holding on to them for some reason, thereby driving up demand. Has anyone else heard about this?
Lol. There’s millions of jobs available. But until the unemployment monies run out at the federal level, people won’t go after the jobs. Of course, they could try to offer a little more then the unemployment check to get people back to work. But no. McDonald’s is offering 50 dollars to apply. Lol. And 3 percent for a mortgage is practically free money for a house. The GDP will be historic this year.
Biden hasn’t even had a budget yet. We are still with trump budget until January.
The urban areas and surrounding suburbs will be a very bad place to be. Remember rule 6160!
You can say that again. Across the street they are building 5500 homes. On the other side the villages are building thousands of homes. Resturants are being built. Four in the last three months. It’s crazy!!!!! Lake county in Florida.
I’m thinking about taking a part time job in retirement. I can pass any drug test, and I can show up on time for every shift, but I won’t wear a mask. Until that stupidity is over, I guess I’m out of luck.
bfl
‘America, Here Comes the Great Depression 2.0”
America, Here Comes Civil War 2.0
There, fixed it
my husband runs a lumberyard near downtown Houston..it is crazy the shortages and pricing increases
People in the types of businesses that didn’t shut down are moving out of the riotous cities?
The population of FL is exploding right now as people move there from up North.
I’m in rural Missouri and people are snatching up land left and right out here and building. Most of them are from St Louis and come here for the weekends. It used to be the occasional weekend but now it’s every weekend because St Louis has a mask mandate which makes it a miserable place to live. I suspect a lot of them are building these places as their retreat in case the shtf.
I imagine a whole lot of apartment dwellers from cities are buying/building their first home in the suburbs due to the riots and lockdowns.
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