There are two distinctly different crises in this country right now: a health crisis that has forced everyone to the safety of their homes and a financial crisis caused by our inability to work as we normally would. Over 20 million people in the U.S. became instantly laid off, furloughed or unemployed when it was determined that the only way to defeat this horrific virus was to shut down businesses across the nation. One second a person was gainfully employed, a switch was turned, and then the room went dark on their livelihood. It’s been stressful for everyone.
The financial pain so many families are facing right now is frighteningly deep.
How deep will the pain cut?
Major institutions are forecasting unemployment rates last seen during the Great Depression. Here are a few projections:
- Goldman Sachs – 15%
- Merrill Lynch – 10.6%
- Wells Fargo – 7.3%
How long will the pain last?
As horrific as those numbers are, there is some good news. The pain will be deep, but it is projected not to last as long as it did after previous crises. Taking the direst projection from Goldman Sachs, we can see that 15% unemployment quickly drops to 6-8% as we head into next year, continues to drop, and then returns to about 4% in 2023.
When we compare that to the length of time it took to get back to work during both the Great Recession (9 years long) and the Great Depression (12 years long), we can see how the current timetable is much more optomistic.
It’s devastating to think about how the financial heartache that our families and friends are going through right now is adding to the uncertainty surrounding their health as well. We are hopeful, that our sacrifices and experts researching solutions will soon have the virus contained and then we will, slowly and safely, return to work and get back to living. Together we can make it through these difficult times. God Bless The USA!