July 12, 2020 01:58 AM RSS

United States Economy Will Not Bounce Back On Its Own!

  • Wall Street Rebel | Michael London
  • 05/25/2020 6:15 PM
United States Economy Will Not Bounce Back On Its Own!

Governor Cuomo expressed worries on Sunday during his daily press conference that 'too many' small businesses have shuttered and way too many large companies won't rehire enough laid-off workers because of lack of demand.

 

New York Governor Andrew Cuomo said the U.S. economy wouldn't bounce back to pre-pandemic levels on its own because corporations won't rehire workers they laid off. Small businesses have been hit too hard…

"I don't believe this economy just bounces back…Too many small businesses have closed, you'll see many of these corporations are going to use this as an opportunity to lay off workers."

Technology and automation and the financial fallout from the coronavirus pandemic that companies won't rehire all of the employees they fired or furloughed....

"Many businesses will have gone through this period where workers were at home. They had fewer workers and used more technology, and they're going to decide: 'Well, we don't need as many workers,'"

Live 42% longer and still eat loads of cheese, breads, and rich desserts? The economic fallout from the coronavirus has been swift, devastating businesses across virtually every sector of the economy, and companies have been forced to lay off a record number of employees.

Cuomo pointed out that jobless claims in the U.S. for the week that ended May 16 reached 2.4 million, bringing the total since the beginning of the pandemic to 39 million. Economists and labor experts have opined that not only have more unemployment claims have been filed in the past nine weeks than were filed during the entire Great Recession, but that the number of those unemployed may be understated by more than 10 million at this point by the U.S. Labor Department and Federal Reserve Economic Data;  because of inefficient and archaic computer systems being used by so many states. 

Cuomo went on to warn on Saturday that…

 “The economy will look different moving forward than it did pre-pandemic due to technology automating some jobs away and people continuing to work remotely, and that government will need to "play a role" in reviving it.”

"It's going to be about government working with the private sector, working with businesses to jumpstart the economy to stimulate it, to get some big projects going that gets the business sector engaged and confident and believing once again."

Cuomo is advocating for spending $2 to $3 Trillion improving or building new airports, mass transit systems, and roads and bridges as well as investing in education technology and telemedicine services. If the Federal Government led by President Trump and Senate majority leader Mitch McConnell continue to insist on not reimbursing the state and local government’s COVID-19 expenses, and refuse to help make up for their lost tax revenues the chances for a recovery in a few years will vanish into a decade of economic malaise.

Governor Cuomo discussed his tasking several billionaires in recent weeks with advising him on how to make the investments needed moving forward if the federal government refuses to budge. Among those Cuomo tapped last month included former Google CEO and Chairman Eric Schmidt to chair a commission aimed at "reimagining" the state's relationship with technology.

Cuomo has also recruited philanthropist and Microsoft co-founder Bill Gates to help design a plan to reopen the state's public schools this fall and convinced former presidential candidate Michael Bloomberg to spend $10 million of his own monies to work with Johns Hopkins University on developing a contact tracing program for the tri-state area.

Cuomo said New York is "decidedly in the reopening phase" for now, but that the next phase, "which we're going to begin preparing for soon, is rebuilding and recreating the economy."

He has, however, stated that if the reopening phase is shut down because of a second wave, all bets are off. We’ll cross that bridge if it comes to that.

Democrats in the House of Representatives have approved an additional $3 trillion bailout, though it is unlikely to be backed by Senate Republicans, who have expressed disapproval of the bill. It also doesn’t provide the estimated $3 Trillion needed to renovate or build new airports, mass transit systems, and roads and bridges as well as investing in education technology and telemedicine services. So is not likely to get the needed support from Democrats in the senate.

Cuomo is walking a fine line in hopes of not setting President Trump off with criticism was not at all happy with the March stimulus bill, saying not enough funding would go to New York, which has been hit hardest by the virus.

 The New York Times reported last month…

“An analysis by the Center for Budget and Policy Priorities found that New York could receive as little as $23,000 per COVID-19 case, while smaller states like Alaska could get as much as $3.4 million per case.”


  N.Y. Governor Cuomo: I Don't Believe This Economy Just Bounces Back



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