After crossing the first waves of Govt-19 with the highest death toll in the world (687,000 in total), the United States is threatened by its delta diversion to its economic recovery. Experts insist on a recovery recession, but hope that this year’s gross domestic product (GDP) will remain positive – by 2020, it will have fallen to 3.56, the largest since 1946.
According to the New York Times, the US economy is facing a double blow: the delta variance has cut fiscal incentives. The Basek security program, which has disbursed hundreds of billions of dollars in subsidies and loans to thousands of small businesses, was halted by a Supreme Court ruling in March this year. President Joe Biden failed to extend assistance.
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The newspaper also estimates that 7.5 million unemployed people lost benefits at the end of the incentive.
The Federal Reserve announced last Wednesday (November 22) that it would stop paying incentives.
While Wall Street economists wait until the end of the month to consolidate expectations of anemic monthly economic growth, some argue that there is strength in the economy. Some believe the economy is heading for a new recession.
“There was a clear recession, but I would emphasize the recession rather than the recession,” Jay Bryson, chief economist at Wells Fargo, told the NYT.
Karen Dynan, a Harvard professor and treasury official in the Obama administration, argues, “We should be concerned that the recovery will be further weakened and the appetite will be reduced to enable more financial stimulus.
“Autumn will be slow for all of us as we withdraw support. There will be a recession in the labor market, and it is the black and brown workers who have to deal with it,” said William Sprix, a Harvard professor and chief economist at the Confederation of American Labor and Industrial Organizations.
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