Tag Archives: Unemployment

COVID-19: Seven facts that tell us Illinoisans can and must get back to work, by Ted Dabrowski and John Klingner

Illinoisans (and everybody else) should never have been involuntarily idled. From Ted Dabrowski and John Klingner at wirepoints.org:

On March 20, Illinois Gov. J.B. Pritzker signed an executive order requiring residents to stay at home in response to COVID-19. With sparse and inconsistent data to go on, the state acted in an abundance of caution. And facing fear and uncertainty, the general public accepted shutdown orders that have resulted in an economic collapse.

But today, the situation is far different. We now have far more data about the crisis and yet the state’s overall shutdown strategy hasn’t materially changed.

For one, the data tells us who’s most at risk from COVID-19, and it’s not the general public. It’s overwhelmingly those with preexisting conditions, especially the elderly. They’re the ones that need to be far better protected, and if necessary, quarantined.

We’ve also learned that Illinois had more than enough health care resources to meet our peak needs. Overall beds, ICU beds and ventilators are all in excess capacity.

And that means the general public should phase back into work immediately, while there’s still work to be had. The economic data shows how quickly the current lockdown is killing jobs and livelihoods. Economic recession and depressions cause deaths of their own.

Gov. Pritzker has seemingly ignored all the above. In fact, he recently extended Illinois’ shutdown by another month – through May 30.

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Who Profits From the Pandemic? by Pepe Escobar

The money paragraph: “That’s so quaint. Public trust is dead across the spectrum. The liberal world “order” is now social Darwinist chaos. Just wait for the fire to rage.” From Pepe Escobar at strategic-culture.org:

You don’t need to read Michel Foucault’s work on biopolitics to understand that neoliberalism – in deep crisis since at least 2008 – is a control/governing technique in which surveillance capitalism is deeply embedded.

But now, with the world-system collapsing at breathtaking speed, neoliberalism is at a loss to deal with the next stage of dystopia, ever present in our hyper-connected angst: global mass unemployment.

Henry Kissinger, anointed oracle/gatekeeper of the ruling class, is predictably scared. He claims that, “sustaining the public trust is crucial to social solidarity.” He’s convinced the Hegemon should “safeguard the principles of the liberal world order.” Otherwise, “failure could set the world on fire.”

That’s so quaint. Public trust is dead across the spectrum. The liberal world “order” is now social Darwinist chaos. Just wait for the fire to rage.

The numbers are staggering. The Japan-based Asian Development Bank (ADB), in its annual economic report, may not have been exactly original. But it did note that the impact of the “worst pandemic in a century” will be as high as $4.1 trillion, or 4.8 percent of global GDP.

This an underestimation, as “supply disruptions, interrupted remittances, possible social and financial crises, and long-term effects on health care and education are excluded from the analysis.”

We cannot even start to imagine the cataclysmic social consequences of the crash. Entire sub-sectors of the global economy may not be recomposed at all.

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America’s Economic Experiment Won’t End Well, by Bill Bonner

There’s more to life than staying alive. From Bill Bonner at bonnerandpartners.com:

SAN MARTIN, ARGENTINA – That does it for us. Now we’re convinced. America’s war against the COVID-19 virus is being run by morons.

People have been shaking hands for about 3,000 years.

It is a sign of good intentions, as in friendship or sealing a deal. It is just one of the many vernacular customs and manners that mark civilized life.

But Dr. Fauci seems to think that the only thing that matters in life is not getting sick.

If all we cared about was staying alive…

…we would give up sex. God knows what kind of STDs you might get… or have a heart attack from the exertion, like Nelson Rockefeller, in 1979.

…if Pearl Harbor is bombed again, we would immediately surrender. Fighting wars is dangerous.

…we wouldn’t play football… or go skiing…

…we wouldn’t have any farmers (one of the most dangerous occupations) or lumberjacks, or firefighters, or deep sea divers… or dozens of other hazardous occupations…

…and we would lower the speed limit to 20 mph.

And if staying alive were the only goal in life, we would all stay home… all the time.

Like business magnate Howard Hughes, we would shuffle around our houses with Kleenex boxes for shoes… and use Kleenex tissues to pick up things for fear they might have germs on them.

Did that prolong Hughes’ life?

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How Long Will The Lockdown Last? by Tucker Carlson

Food Banks Overwhelmed As America’s “Working Poor” Starve During Lockdown, by Tyler Durden

Food banks, just like the unemployment offices, are seeing skyrocketing numbers. From Tyler Durden at zerohedge.com:

America is crashing into a depression. In just two weeks, 10 million people have claimed unemployment benefits. This has put unprecedented stress on food bank networks across the country, a new investigation via The Guardian shows.

The US labor market is in free fall – the increasing lockdowns across major US metropolitan areas have forced millions of people out of work and into a hunger crisis.

The Guardian shows demand for food aid in some regions of the country has surged eightfold in recent weeks as RealInvestmentAdvice.com’s Lance Roberts warns the unemployment rates in the US could spike to levels not seen since the “Great Depression,” or about 15-20% in the second quarter.

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Not Your Grandfather’s Recession, by David Stockman

Never before has the US government caused a recession, or depression, simply by shutting down the economy. From David Stockman at davidstockmanscontracorner.com via lewrockwell.com:

Based on the shocking 6.6 million of new unemployment claims, we’d bet they’ll be some explosive political fireworks soon in this country about Covid-containment versus keeping the main street economy alive. There have now been an unprecedented, off-the charts 9.96 million new unemployment claims in the last two weeks.

For point of reference, it took fully 28 weeks to generate the same level of cumulative new claims after the beginning of the Great Recession. During that interval, the largest weekly number was 387,000 during the week of March 29, 2008.

Even when you scroll forward (not shown) to the worst week after the Lehman Bankruptcy meltdown commenced on September 15, the peak number was only 665,000 during the week of March 28, 2009. So today’s new claims number was 10X higher!

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Surrendered Without A Shot, by Robert Gore

The Global War on Germs will put the Global War on Terror to shame.

Their “cure” for the coronavirus will be far deadlier than the disease. The quarantines and lockdowns will bring the world to a standstill—that’s the point….

The Last Gasp,” Straight Line Logic, March 24, 2020

Here is a predictive strategy that will, guaranteed, improve your prognostication batting average. Whenever you make a prediction about a government, predict the worst outcome you can think of. The only surprise will be that you’re probably not pessimistic enough.

Back in 1913, if you had predicted the brand new Federal Reserve would steadily debase the currency and exacerbate rather than dampen the business cycle, you were dead right. You would have gotten more points if you predicted its creation was the first step towards abandoning the gold standard and that it would eventually finance government deficits.

Similarly, back in that unlucky year if you predicted the new Constitutional amendment allowing the government to levy an income tax would lead to massive confiscation of incomes and fund gargantuan welfare and warfare states—the blob—you hit it on the screws.

Later, if you predicted that the New Deal wouldn’t reverse the economic contraction that the government had already transformed from a garden variety financial crash and recession into a Great Depression, you were right again. More points for those who foresaw both the abandonment of any effective Constitutional constraints on the federal government, and the fiscal consequence of welfare state collectivism—a spiraling and uncontrollable national debt.

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Mandate Holiday, by Eric Peters

If we can’ t work, do we have to pay our bills? How about our taxes? From Eric Peters at ericpetersautos.com:

ince we’re being forced to not drive, surely we’re entitled to a discount on the car insurance we’re forced to buy?

In fact, why should our “obligation” – as it’s euphemized – to send the mafia (which is what insurance-at-gunpoint is) a cent hold any water at all, given the government is forcing us not to work?

I’ve decided not to – and we’ll see what happens.

The mafia wants another couple hundred bucks from me to “renew” the  “coverage” on a truck I am now told – ordered – by the government to only drive to and from the grocery store and for other “essential” reasons.

The mileage I’m driving is thus much less than it was pre-Corona and so, presumably, is my “risk” of incurring a loss. Especially in view of the fact that everyone else is driving less – or not at all – having also been so ordered.

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Tucker Carlson On Fauci’s Quarantine Call: Pushing “National Suicide” While He Has Job Security, by Tyler Durden

It’s easier to push measures that would put millions out of work if you know you’ll be holding on to your job. From Tyler Durden at zerohedge.com:

“We’ve interviewed Dr. Fauci respectfully on this program, and we’d gladly do that again if he came back, and he will come back. He’s an impressive person. But that does not mean that he’s never wrong,” Carlson said. “On the question of this pandemic, Fauci has been wrong repeatedly.”

Carlson expressed he’s particularly bothered by Fauci’s recommendation of a national quarantine given that economic devastation would be pretty much assured. The night prior Dr. Fauci told CNN’s Anderson Cooper during a coronavirus town hall: “I don’t understand why that’s not happening.” He said further, “You know, the tension between federally mandated versus states’ rights to do what they want is something I don’t want to get into,” and added, “But if you look at what’s going on in this country, I just don’t understand why we’re not doing that.”

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“US Labor Market Is In Free-Fall” – 10 Million Americans Have Filed For Unemployment In Past 2 Weeks, by Tyler Durden

New unemployment claims went from 3.3 million last week to 6.6 million this week. Unemployment is growing a lot faster than coronavirus cases or deaths, so the 46 unemployed per confirmed coronavirus cases mentioned in the article will go up. It’s 1700 unemployed per coronavirus death and that too will go up. Massive unemployment will go hand-in-hand with economic and psychological depression, deteriorating health, increased morbidity, and before too long, looting and deadly violence in the streets. So when we start tallying the costs of coronavirus, make sure to add all that in, not to mention the destruction of what remains of our civil liberties. SLL stands by “The Last Gasp.” From Tyler Durden at zerohedge.com:

After last week’s unprecedented 3.3 million surge in initial jobless claims, this week’s is even more unprecedented-er, adding a stunning 6.648 million (just 100k away from our estimate of 6.5million) for a two-week sum of 10 million new Americans claiming unemployment benefits…

Source: Bloomberg

As @GreekFire noted, “We’ve lost 46 jobs for every confirmed case of COVID-19 in the US…

The 6.648mm print is worse than the worst of 50 estimating analysts’ expectations. Breaking down by state (which is one week lagged and so represents the prior week’s 3.3mm print detail), California, Pennsylvania, and New York dominate…

Source: Bloomberg

And of course, last week’s “initial” claims and this week’s “continuing” claims…

Source: Bloomberg

This is simply stunning.

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