"a depression is a sustained, long-term downturn in economic activity in one or more economies"
So when the pandemic passes the aftermath is our future, for every one.
Straight to the point. I've read a research paper on the opinions of English economists relating to the future global outlook. Without decent all thought that a European aftermath will probably have a +30% unemployment rate. Very dark days to come as Europe passes into year end winter.
The US looks a little better at around 25% having started a little ahead of the curve. The obvious is our unemployment will be a depression and no amount of political name fiddling will change the fact. By the end of the pandemic the roll on effect of the stimulus rolled out by all Central Banks and governments worldwide will peter out plunging the global economy into probably the darkest days in human history.
Governments will have extended their deficits to a point where "the straw that breaks the camel's back" and Central Banks will enter central stage desperate and intent on preventing a financial crisis which would take us all to economic hell.
I've read estimates of the government deficit, with government stimulus at this point, at $200 billion or 13% of GDP so just how much leeway does that give us and the government? To attempt to claw back such a figure there needs to be cuts in government expenditure and an increase in taxation while taxation receipts fall
Sort of like 1930 where governments fired public servants, axed government expenditure and maintained the taxation rate. All the recipe for pressure on employment.
