The Great Depression has been locked into history as the greatest economic hardship that America faced, at least in relatively recent times. It was similar across the world. The most recent economic hardship to compare was the recession from the financial malfeasance of 2009. It looks like we are are going to see something worse.
Most are aware the government imposed lockdown across the globe are going to hurt economies everywhere. Businesses are failing, people are unemployed, and the bills are past due for many. The IMF has issued an update to their world economic outlook which projects a recession that will be the worst since the Great Depression.
The last recession was the ‘Great Recession’ as it was dubbed, which came from the crooked financial practices of the financial sector and got bailed out by tax payers to “save” the bullshit economy. This Global Financial Crisis, as it’s called, is shown as having a 0.1% negative growth for GDP in 2009. The current Great Lockdown initiated by governemnts, it expected to have a -3% negative growth for GDP in 2020.
2021 is expected to only have a partial recovery, with economic activity remaining below previous pre-virus projections. Total losses to global GDP from 2020 and 2021 are expected to be around $9 trillion.
Advanced economies are projected to see a -6.1% negative growth, while emerging markets and developing economies at -1%.
The US middle class could have tens of millions plunge into poverty, according to independent UN human rights expert, Philip Alson, unless the government takes “urgent additional steps” with Congress needing to take “far-reaching” actions to prevent Americans from facing destitution.
The US government is currently focusing on helping businesses, especially the “well-off”, i.e. financial elite who yet again get bailed out when they fail. I’m pretty sure the financial sector was failing from news of the outbreak, before the Great Lockdown started. The US currently has 22 million people filing for unemployment in the pat month. Expected job losses are set to be 47 million throughout the summer.
Looking at the current and projected GDP for 2019, 2020 and 2021, you can see 2021 is expected to be negative growth for most of all countries, except China and India. As some have said, expect China to dominate in the world economy coming out of the government lockdowns. The longer other countries engage in a lockdown and refuse to let people go about their lives while letting something a little worse than the flu spread, the more their economies will be hurt.
