Well, the fix is in, the economy is not headed to a "V" shaped recovery, and despite anything we conjure up, the world is headed to a recession.
We have lost between 30-45 million American jobs have been lost, and service jobs make up a large amount of this figure. Our economy runs on the back of cheap labor, low wages and basal services that by and large do not produce anything that can be exported. Our major Achilles heel is that the 70% consumption number that defines our economy does not end up producing anything we can send overseas. We have seen the energy and basic material markets crater as the world has come to a standstill.
AI and robotics will take away many more jobs as companies focus on further cutting costs. As office workers work from hone, their jobs are in peril as well. If you can work from home, someone overseas could do your job for less.
Despite the Robinhood retail investor sentiment and the Federal Reserve cash flushing of the economy, things look dire.
As a service-based economy, we need people working. We do not have crates of inventory, as we rely on just in time supply lines to keep us running. What comes next looks like a massive drop in economic activity that will be a reality check, especially after the election.
The media is still projecting hope, but how much of this is simply to lend hope during the election season and to keep insiders with the option to sell their overbought stocks for precious cash before the fall? Misinformation at its finest.
Citations:
Image from Pixabay.
https://www.zerohedge.com/economics/curing-covid-19-wont-cure-economy