Millions of Americans are sliding into serious financial distress because of the Covid-19 pandemic’s mismanagement and the prolonged recession that now appears likely.
Millions of Americans are sliding into financial distress because of the Covid-19 pandemic’s mismanagement—and the prolonged recession that now appears likely. Now that infections and deaths are spiking again, financial markets have turned nervous as investors brace for another round of economic pain. U.S. stocks just turned in their worst week since March, when the pandemic first began. Anxiety is especially high because the lack of a second fiscal stimulus deal from Congress increases the prospect that consumption will suffer, with millions falling below the poverty line as government relief for households and businesses falters. “The U.S. economy remains deeply depressed, and a reentry into outright recession in coming months is highly possible,” wrote Josh Bivens of the Economic Policy Institute and others in a new blog.
