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MAGA: Tens of millions of unemployed have their money running out
  • Vitaliy_KiselevVitaliy_Kiselev

    Unemployment benefits have played an unprecedented role in the U.S. economy as a result of record high job losses and the authorization of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. We present evidence that the increased unemployment benefits boosted both spending and savings among the unemployed. We also demonstrate that upon the expiration of the $600 benefit supplement in August, families receiving unemployment benefits sharply cut spending and dipped into savings. The spending of jobless workers in August had fallen back to pre-pandemic baseline but not yet plateaued. Eventually, without further government support or significant labor market improvements, jobless workers may exhaust their accumulated savings buffer, leaving them with a choice to further cut spending or fall behind on debt or rent payments.

    https://institute.jpmorganchase.com/institute/research/labor-markets/the-unemployment-benefit-boost

  • 5 Replies sorted by
  • hardimpacthardimpact

    great find! the fallout we probably won't fully see until 6 months from now when everyone files for bankruptcy. this may lead to banks needing a bailout.

  • RoadsidePicnicRoadsidePicnic

    Theres no bailout in this context, as money number comes to mean nothing. We already seen that in weimar, theres a thereshold to how much fake money can be convert to hard goods. After that your fiat currency is made of bombs. And US is fiating dollar with bombs for quite some time already.

  • Vitaliy_KiselevVitaliy_Kiselev

    @RoadsidePicnic

    It is not the case today in US.

    As US already is consuming goods from around the world and gives zero in return (debt and printed money).
    Until it is someone who want to exchange goods to freshly made debt - it will all run nice.

    The fall will happen as soon as word GDP will stop to rise and world trade will collapse.

  • RoadsidePicnicRoadsidePicnic

    Its not the case ongoing already? Big part of GDP rise has been IP and debt, so big bubbles. The rest was China manufacturing mostly. Manufacturing got big fall this year and bubbles will bust with crisis. Here tech things price inflated two to threefold. There's a way to sustain world GDP and status quo even in short term?

  • Vitaliy_KiselevVitaliy_Kiselev

    @RoadsidePicnic

    I think for now they want to fight to status quo.

    Hoping for COVID will cause medicine collapse and big population reduction with famine in some regions.

    So, they don't want to rise GDP, they want to decrease consumers.

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