Millions of Americans continue to slide into poverty

 The economic implosion of 2020: Job losses ramp up again as millions of Americans continue to slide into poverty

Economic Collapse Blog,

15 October, 2020

The mainstream media keeps trying to convince us that things are about to get a whole lot better for the U.S. economy, but instead they just keep getting worse.  On Thursday, we learned that another 898,000 Americans filed new claims for unemployment benefits last week.  That was the highest number that we have seen since August, and it is yet more evidence that a new wave of layoffs has begun.  But according to the experts that the mainstream media relies upon, this wasn’t supposed to happen.  According to them, the number of Americans filing for unemployment benefits was supposed to be steadily tapering off as the U.S. economy shifted into recovery mode.  Unfortunately for all of us, those experts have been dead wrong.

Yesterday, I wrote about the decline of the middle class in our country, and here in 2020 this pandemic has greatly accelerated that process.

In fact, one new study has found that almost 8 million more Americans have plunged into poverty just since May…

Nearly 8 million Americans have slid into poverty since May, according to a Columbia University study reported by the New York Times.

Why it matters:The researchers found that the monthly poverty rate for September was higher than rates during April or May, and it also topped pre-crisis levels, “[d]ue to the expiration of the CARES Act’s stimulus checks and $600 per week supplement to unemployment benefits.”

And another study discovered that 6 million more Americans fell into poverty in just the last three months…

A separate study by researchers at Notre Dame and the University of Chicago, found that 6 million people have slipped into poverty in the last three months, per the Times.

Our hearts should be breaking because of what is going on all over the country right now.

Millions upon millions of hard working people have lost their jobs and can’t find new ones.  As a result, they have lost the comfortable middle class lifestyles that they once enjoyed and have now joined the ranks of the poor.

But the official government numbers don’t look that bad because millions of those people are not even categorized as “unemployed”.  Instead, many of the workers that have lost their jobs during this pandemic have been thrown into a category that is called “not in the labor force”.

In order to have faith in the official government numbers, you have got to believe that more than 100 million working age Americans are “not in the labor force” because they don’t want to work.

It is such a sham.  Why don’t we just put every single American that is not working into the “not in the labor force” category so that we can have 0.0 percent unemployment?

Wouldn’t that be wonderful?

Of course the truth is that more Americans are being laid off with each passing day.  Over the past few weeks, some of the most iconic companies in the entire nation have been letting workers go…

Further, companies have begun initiating layoffs on a trajectory similar to traditional recessions, economists said, as slowdowns in consumer demand (rather than state-mandated shutdowns) lead them to cut jobs or close for good.

Companies such as Allstate, American Airlines, Disney, Royal Dutch Shell and United Airlines have each announced plans to cut thousands of workers in recent weeks.

Some parts of the country have been hit much harder than others by this economic downturn.

For instance, tourism has dried up almost completely in Las Vegas, and this week there have been more layoff announcements…

The Tropicana Las Vegas has given notice to 828 employees that they are being laid off beginning Thursday, Oct. 15.

And layoffs at two Paris Las Vegas restaurants are coming soon as notices have been filed with the state. Mon Ami Gabi intends to lay off 96 employees, and the Eiffel Tower Restaurant will lay off 53 employees. Both moves are scheduled to happen on Dec. 16, and the layoffs will be permanent.

In the end, most of the jobs that have been lost in Las Vegas will never come back until the tourists return, and that is simply not going to be happening for the foreseeable future.

Next door, the state of California has been absolutely devastated by this crisis as well.

If you can believe it, one out of every four Californians received unemployment benefits between March and July.  The state may have more billionaires than anywhere else in the country, but according to the U.S. Census Bureau it also has the highest poverty rate…

Home to 166 billionaires, who made over $235 billion since the beginning of the pandemic, the Golden State also has the highest poverty rate: 17.2% when adjusted for the cost of living, according to a recent Census Bureau analysis.

That means that almost one out of every five people in the entire state of California is living in poverty right now.

If this is what a “recovery” looks like, I would hate to see what the “bad times” are going to look like.

And without a doubt, economic conditions are definitely going to get worse than they are now.

So many families in California are just barely scraping by from month to month, and more of them are falling into poverty every day.  In fact, even USA Today is admitting that “California’s middle class isn’t done shrinking”…

To many, the streets of the Bay Area are renowned for the enduring homelessness crisis as much as for the renowned tech giants of Silicon Valley. In-between, California’s middle class isn’t done shrinking; teachers, artists, waiters and gig workers are awaiting their fate, often one government program away from having to take a minimum-wage job — or lose their homes.

It is kind of ironic.  Many of those that live in California like to lecture the rest of us about “wealthy inequality”, but it is worse in their state than anywhere else.

Those at the very, very top of the pyramid are thriving (for now), but meanwhile countless others are falling out of the middle class.

It is like a really perverse game of musical chairs.  Every time the music stops, more people lose their seats and the middle class shrinks some more.

Sadly, I think that this process is going to accelerate even more in 2021, and that is really bad news for millions upon millions of middle class American families that are deeply struggling right now.

Australia: Jobkeeper assistance slashed in Victoria

Australia: COVID Jobkeeper - transition to joblessness

 

Coronavirus Australia: 

JobKeeper payment to be 

slashed for more than one 

million Victorians

Vital economic support for more than one million Victorians will be slashed this month, just as the harsh stage four lockdown is extended.

News.com.au,

28 September, 2020

More than a million Victorians will have their JobKeeper payments slashed by the Morrison Government by $300 a fortnight this month while they remain in lockdown and banned from attending the workplace.

The extended coronavirus lockdown has sparked havoc with plans to reduce the payments from $1500 to $1200 a fortnight from September 27, a move the Morrison Government has argued is an extension of the original deadline to end the payments.

Prime Minister Scott Morrison has repeatedly defended the plan on the grounds that Victoria would be out of lockdown by the date that JobKeeper will be reduced, but the extended restrictions mean that’s no longer the case.

There are currently more than one million workers on JobKeeper in Victoria – an army of workers that is expected to rise to 1.36 million people next year.

The roadmap outlined by the Victorian Premier Dan Andrews on Sunday involves millions of workers still being subject to tough restrictions where they are effectively banned from attending work just as the JobKeeper payments are reduced.

Restaurants and cafes remain banned from trading as normal with only takeaway and delivery allowed and retail outlets will remain restricted to essential or click and collect.

Thousands of Victorians are also expected to lose their jobs and be forced onto JobSeeker, which is also being cut by the Morrison Government this month.

Speaking in Canberra today, Mr Morrison defended the looming reduction in JobKeeper payments, as well as the government's record on economic support.

“We are extending the JobKeeper payment, we are extending that out till the end of March,” Mr Morrison said. “We are extending the JobSeeker payment out to the end of December.”

For those Victorians facing additional financial hardship from the extended lockdown, the Commonwealth will watch to see what supports the Andrews Government provides.

“Once I see what the Victorian Government is proposing to do … I expect (they) and many other states will announce further programs in these areas as, indeed, the Commonwealth will to support their economies.

“But when it comes to specific economic support – income support or other forms of support that they consider is appropriate to deal with the consequences of the decisions the Victorian government is taking – I’ll be looking to see what they’ll be doing first before the Commonwealth considers any responses that we’ll be making.”

Labor’s treasury spokesman Jim Chalmers told news.com.au that cutting JobKeeper for millions of workers makes no sense when the jobs crisis is getting worse, not better.

“It beggars belief that the Treasurer, as a Victorian, won’t reconsider his JobKeeper cuts even as the jobs crisis intensifies,’’ he said.

“Josh Frydenberg is leaving millions of Victorians behind in the worst recession in almost a century.”

The Treasury has predicted that around 400,000 Victorians will lose their jobs as a result of the COVID-19 pandemic.

On Sunday, the Prime Minister Scott Morrison described Victoria’s decision to extend the lockdown arrangements as “hard and crushing news for the people of Victoria”.

In a clear criticism of the Victorian Government’s handling of the pandemic, Mr Morrison said the extended lockdown was a reminder of the impact and costs that result from not being able to contain outbreaks of COVID-19, resulting in high rates of community transmission.

“It is vital to the national interest to restore Victoria to a COVIDSafe environment, where we can reopen our economy and reasonably restore the liberties of all Australians, whether in Victoria or anywhere else,’’ he said.

“The proposed roadmap will come at a further economic cost. While this needs to be weighed up against mitigating the risk of further community outbreak, it is also true that the continued restrictions will have further impact on the Victorian and national economy, in further job losses and loss of livelihoods, as well as impacting on mental health.”

Victorian Chamber Chief Executive Paul Guerra has expressed his shock that the road map being outlined was much longer than expected.

“The business community had high hopes that today’s announcement would signal the end of Stage 4 restrictions on 13 September and instead businesses are left frustrated and facing more weeks of lost revenue and mounting costs they can’t afford,’’ he said.

“Victoria’s economy is experiencing its biggest crisis in modern times with thousands of businesses unable to operate for most of this year, and the government needs to allow Victorians to get back to work while managing the health crisis.

“We will continue to do whatever we can and work with both the Federal and State Government to not only deliver hope, but to deliver jobs, by keeping your business alive.”

Victoria’s chief health officer Brett Sutton defended the toad map this morning arguing the alternative would involve a third wave and a third lockdown.

“The risk that’s been mapped out by the modelling suggests that if we open too early, and if we don’t follow these kind of thresholds for the next stage and the following steps, then we’ll be back in a situation that we’ve already been through in Victoria and we don’t want to be there again,’’ he told ABC TV.

“We don’t want to be at a point where there is an epidemic curve where restrictions need to be put back in place. I understand how difficult it must be for businesses to see that it is not opening as early as they would have liked. But the risk, and it’s apparent in the modelling, is that going too early with too many cases on a daily basis, just puts it at serious risk of shutting down again in coming months.”

Around 2 BILLION people may lose their jobs

Around 2 BILLION people 

may lose their jobs in the 

next couple of months due to 

pandemic

RT,

28 May, 2020

More than half of the world’s workforce (nearly two billion people) risk losing their 
jobs or moving to part-time work in 2020 as a result of the economic fallout from 
coronavirus outbreak.

That’s according to a study by the Boston Consulting Group (BCG), seen by RIA 
Novosti.

“It’s hard to overestimate the radical changes in the global workforce due to the 
crisis caused by the outbreak of COVID-19,” said the report, citing estimates by 
the International Labor Organization that global labor income losses will reach 
$3.4 trillion this year.

In the next two to three months, one out of six people in the world will lose their 
jobs, with the unemployment rate to exceed 17 percent, said the authors of the 
research.

The impact of the crisis on the labor market will vary greatly across industries, 
with those most directly affected by quarantine measures to be hit the hardest. 
According to BCG analysis, more than 80 percent of all the layoffs in the world are 
likely to occur in the non-food retail sector, manufacturing, hotel and restaurant 
business, tourism and construction.

“We expect that the world’s unemployment rate will start returning to balance by 
the end of 2020. However, [the] pandemic has already launched the process of 
long-term structural changes – from flexible and remote work schemes to 
accelerated automation – and these changes will affect up to 1.5 billion jobs over 
the next decade.”

BCG estimates that by 2030, automation will put 12 percent of existing jobs at risk,
and about 30 percent of jobs will require completely new skills.

The study also indicated that more than 10 percent of the global workforce is 
highly likely to work remotely on a permanent basis, while for office workers, the 
figure could reach 30 percent.

BCG said that in order to prevent the collapse of supply on the labor market, 
support measures should be provided by governments – from subsidizing salaries 
and expanding social protection to financial and tax exemptions and temporary 
redistribution of employment.

“In addition, now it is time to prepare for the after COVID-19 future, introducing in 
the next one to three years a common strategy for professional skills, in which retraining will be central,” said the BCG.

https://www.rt.com/business/489352-un-global-human-development-fall/

Of course this is politics and National are trying to pretend 

they could do better. I can tell you that if they were in 

government I would be holding their feet to the fire.

However, the truth is the truth, is the truth

NZ facing largest decline in 

GDP in 180 years

Paul Goldsmith MP

National,org.nz

27 May, 2020

Estimates from the Reserve Bank today show New Zealand will this year 

experience the largest decline in annual GDP in at least 160 years, highlighting the seriousness of the economic crisis we are facing, National’s Finance Spokesperson Paul Goldsmith says.

“The Reserve Bank released its outlook for the economy today in the Financial 

Stability Report which shows that New Zealand is set to face the largest economic 

shock in 160 years.

“Crucially, it illustrates why New Zealand desperately needs sound and responsible

 economic management to save jobs and restore the country’s finances.

“A clear economic plan, a track record of delivery and a competent team is the 

only recipe for providing confidence to households and businesses.

“First and foremost, we need to open up the economy again quickly. That’s hard 

when the Prime Minister and her deputy can’t agree on when to move to Level 1.

“We also need to get cash to small businesses most affected, to save jobs. 

National has already proposed positive policies like a $100,000 GST cash refund 

scheme for businesses and a $150,000 instant asset write-off scheme. 

“This Government has a track record of wasting money on low value for money 

projects - like KiwiBuild, Fees Free or the Provincial Growth Fund - but no record 

of delivering a positive plan for rebuilding the economy.

“Today in the House, Finance Minister Grant Robertson admitted that the 

Government wasn’t using CBAx, a Treasury tool to assess the effectiveness of 

proposals, on any of the billions of dollars currently being spent. 

“Only National can be trusted to deliver on the economy.”

As NZ moves into depression GP's are laid off and we see shortages of flour

New Zealand economy at 

Great Depression Levels: 

GP's laid off

Just a few weeks ago this made headlines right across the NZ media

https://www.stuff.co.nz/national/health/coronavirus/120125349/coronavirus-retired-gps-and-nurses-could-be-called-on

Retired GPs and nurses could be called back to work in a possible coronavirus pandemic, the Ministry of Health says. 

This comes after 54 hospital staff in New Zealand were asked to go into self-isolation after treating a 'probable' case of Covid-19.

Ministry of Health director-general of health Dr Ashley Bloomfield Bloomfield said they had looked at bringing back recent retirees from hospitals to raise staffing numbers if the situation gets worse.

You are much less likely to see the following stories plastered across the NZ media.

***

Now you hear it Now you don't

Some of the most important news comes through on NZ radio in the wee hours and then disappears. This is from a 4 am bulletin.

Information is there IF YOU LOOK FOR IT and is often hard to find again

New Zealand would see an initial drop of almost 30 per cent in activity, the OECD said, compared to about 15 per cent in Ireland, 22 per cent in Australia and 25 per cent in the United States

New Zealand's economy is likely to suffer a bigger coronavirus blow than most in the OECD, new research says.

The OECD has put out a new report evaluating the impact of Covid-19 on economic activity. It does not take into account Government stimulus in those countries.

It said the initial direct effect of shutdowns could be a decline of between one fifth and one quarter in most economies as spending dropped by about a third.

"Changes of this magnitude would far outweigh anything experienced during the global financial crisis in 2008-09. This broad estimate only covers the initial direct impact in the sectors involved and does not take into account any additional indirect impacts that may arise."

New Zealand would see an initial drop of almost 30 per cent in activity, the OECD said, compared to about 15 per cent in Ireland, 22 per cent in Australia and 25 per cent in the United States.

https://www.stuff.co.nz/business/120786322/coronavirus-oecd-expects-big-impact-for-nz-economy

And this is how things look in America

Millions of Americans already have lost their jobs due to the coronavirus crisis and the worst of the damage is yet to come, according to a Federal Reserve estimate.

Economists at the Fed’s St. Louis district project total employment reductions of 47 million, which would translate to a 32.1% unemployment rate, according to a recent analysis of how bad things could get.

The projections are even worse than St. Louis Fed President James Bullard’s much-publicized estimate of 30%. They reflect the high nature of at-risk jobs that ultimately could be lost to a government-induced economic freeze aimed at halting the coronavirus spread. 

https://www.cnbc.com/2020/03/30/coronavirus-job-losses-could-total-47-million-unemployment-rate-of-32percent-fed-says.html

SHORTAGES OF FLOUR

I was delighted to have this exchange with Stacy Herbert of the Max Keiser Show.

The same is true here. You cannot buy flour for love or money in this country. Of course it is being put down to enthusiastic home bakers - EXCESS DEMAND again! 

First it was toilet paper, then bread, and now flour is the hottest commodity on supermarket shelves.

Home baking is making a comeback during the lockdown and the key ingredient is flour - if you can find any.

"I've heard from family all over the country that they've been looking for flour and that it's totally not available in any of the supermarkets," Lou Bentley says.

The shortage is countrywide - everyone, it seems, is making homemade bread.

https://www.newshub.co.nz/home/lifestyle/2020/04/nationwide-flour-shortage-as-home-baking-makes-a-comeback.html

But might there just be another explanation such as this?

Price of bread likely to rise after Australian wheat shortage

https://www.rnz.co.nz/news/national/389663/price-of-bread-likely-to-rise-after-australian-wheat-shortage?fbclid=IwAR0EDt-qA4z_PLp_PnEr13SNWW31WFmhpErvnU3pLdKCC5eKxs8bPVL45Lg

Bakers find little delight in rising costs of flour and butter

https://www.abc.net.au/news/rural/2018-01-08/bakers-find-little-delight-in-rising-costs-of-flour-and-butter/9306236

I made a video about this late last year.

Intelligently joining the dots is the very LAST thing the authorities want!

Of course, unlike toilet paper, where they just need to manufacture more, I suspect the situation is more complicated.  How long before we see shortages of bread?

TOILET PAPER IS BACK

More locally, my partner managed to buy one of FOUR bags of flour that came into her small store due to an earlier act of kindness towards the owner during a recent electricity outage.

Meanwhile, toilet paper is back!

And finally, for the Bigger Picture