The Coronavirus has the US firmly in its grip. Not only that, the country has now overtaken China in the total number of cases and the health care system in cities like New York, under the load of collapse is imminent. Also, the economy in the country of unlimited possibilities, suffers extremely. The rags are not millionaires, but a row will lose their Jobs. In the last week 6,65 million people reported as unemployed in the week before, there were 3.3 million – a total of nearly ten million.

The number of people trying to register with the state as unemployed, is so high that the provided websites and phone numbers, are hopelessly overloaded. “The States get in a lot of problems,” said Heidi Shierholz, an economist at the think-tank Economic Policy Institute, the US news website NBC News. The systems were exposed to the “incredible stress” test.

In New York, the Federal state has in the U.S., most of the Corona cases, must be the work of the Ministry with an unprecedented Run on its Website and telephone hotline ready. Between the 23. and 28. In March, the Ministry reported 8.2 million calls, an increase of 16,000 percent, compared to an average week. The Website on which you can register as unemployed, was called to 3.4 million, an increase of 900 percent.

The Figures show that the United States is in an economic state of emergency. The New York Times estimates that the number of unemployed is as high as recently during the “Great Depression”, the economic crisis, which lasted in the U.S. from the Bank crash in 1929 (Black Thursday) until the Second world war.

Almost every fifth unemployed

William Rodgers, former chief Economist of the U.S. Department of labor, has calculated that the unemployment rate in February was 3.5 percent, today it is probably around 17 percent (the New York Times 13 percent) estimates. “We are at the mercy of the Virus completely,” said Rodgers to the British newspaper The Guardian. In the case of African Americans, the unemployment rate could be even 19 percent – almost one in every five without a Job.

the unemployment numbers are going in the USA through the ceiling and in other countries, has its reason. Elsewhere, Jobs work are legally protected, even if the shops remain closed indefinitely. Governments grab for example, employers with direct payments under the arms, the German Instrument of short-time working is now an imitator. In the United States instead of restrictions when you Apply for unemployment benefit have been eased and direct payments to citizens to be adopted.

An example is the restaurant business. If American Restaurants now have to close in the Corona-crisis, lose employees their Jobs and have to register as unemployed. When the crisis is over and the Restaurants re-open, you must apply for a new. In the UK, however, keep waiters and cooks their Bodies and get from the government 80 percent of their salary continue to be paid. If the Virus is defeated and the Restaurants are open again, they return to their old jobs.

“stay home and not go broke not go”

A fast, simple way out of the current economic crisis there is. A premature return to “normal life”, to stimulate the economy again, would endanger the lives of millions of people. And so, the economy is in a recession to force.

“For us, it is important that people stay home and not go broke,” said Cecilia Rouse, an economist at the prestigious Princeton University and former economic adviser to Barack Obama, the news portal Vox. “The faster we get this pandemic under control, the faster the economy recovers.” And the faster the many millions of unemployed people in the U.S. have a Chance in the profession to return.

author: Carla Bleiker (Washington, D. C. )

*The post “Corona-crisis, record unemployment in the United States,” published by Deutsche Welle. Contact with the executives here.

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