The latest economic devastation has lead to jobless claims. The virus has spread across all continents, threatening to cause an economic crisis. As of now, the US has confirmed over a million corona cases. The impact of the virus has led to the US government imposing stringent measures. Hence most of the economic activities in the country have come to a standstill.
As the situation is out of hand, there is no certainty when businesses will resume. As everyone cares about their safety against coronavirus. With increased joblessness in the country, about 26 million people are unemployed. The dependency level has therefore increased. Economists think the unemployment rate in the world will surpass 15%.
Here are the ideologies some experts expressed
For a program to work, there is a need for a business
Jason Furman, retired head of Council of Economic Advisers, says for a program to function effectively there is the need for a business. He means there is a need for consumer demand for a business to thrive. Therefore, to help people, businesses should be functional. Although tricky since most businesses are not functioning. Since everyone is taking shelter from the roaming virus.
Key factors to the jobless Claims
Alex Brill, an entrepreneur based at American Enterprise Institute, says claimed numbers and insured rates will in future appear in reports addressing job issues.
“We want the program to work and I think sadly what we’re seeing is that the program works well. And I say sadly because we are seeing tens of millions of people process though that system and we will continue to see that I think for the next few weeks as the backlogs in certain states get worked through… and the other key statistic to watch in this data set is the continuing claims number and the insured rate,” he said.
He further says that the percentage of workers claiming benefits was 8% which he predicts will surge in future to around 10%.
Staying positive is key to good marketing
Jeff Mortrimer, the chief instructor at BNY Mellon Wealth Management stated it is good to stay positive about the future in marketing industry. He emphasizes the significance of the present and future to achieve results. For instance, the US job markets are positive despite the 26 million unemployed persons. It is like they already expected the impacts of the corona pandemic. And it’s through such challenges that markets discover a turning point.
Shutdown could cause more harm.
Leon Cooperman, Chief Executive Officer of Omega Family Office, believes shutdown isn’t effective. Rather resulting in more harm. He says the pandemic has resulted in an economic bazaar, with the government providing massive stimulus despite the weak economy. He says this is something likely to cripple the economy since there are no profits in return. Leon endorses for people returning to their jobs and end the total isolation.
Stay defensive
Dan Suzuki at Richard Bernstein Advisors endorses for being more defensive before getting more bullish. He emphasizes the need to hold on to something until the situation improves. He states as of now the market cares less about the magnitude of prints one is getting but cares about indications on durations. As much as there is much positivity on the attempts to slow the spread and search for vaccines, everything seems to be crashing to the downside.
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