Hardly anyone expected things to get this bad in 2020. Once the pandemic hit and states across the country began to put in lockdowns, economic activity plummeted. .
U.S. GDP was down 31.4% in the second quarter of 2020, and it was a drop unparalleled in U.S. history.
In fact, this drop was more than three times greater than the previous record. But eventually, states have started to “reopen” their economies, and US GDP for the third quarter is expected to post a significant rebound when the numbers are finally released.
Of course, we’re not even close to where we were yet, but at least things weren’t as bad as they were in Q2.
But now that the fourth quarter begins, it looks like economic conditions are turning in the wrong direction.
Here are 15 signs that the U.S. economic depression is accelerating as we head into the holiday season …
# 1 All 546 Regal Cinema theaters in the United States are closed, and at this time, there is no schedule to reopen them.
# 2 It is reported that AMC Entertainment (the largest movie theater chain in the United States) “will run out of cash” in 6 months.
# 3 Over the weekend, someone who works in the industry told me that they expect most cinemas across the country to end up shutting down permanently due to this pandemic.
# 4 The average rent for a one-bedroom apartment in San Francisco is 20.3% lower than it was a year ago.
# 5 During the third quarter, the number of vehicles delivered by General Motors decreased by about 10% compared to a year ago.
# 6 Anheuser-Busch is reported to be laying off 400 employees in Loveland, Denver, Littleton and Colorado Springs.
# 7 Allstate has just announced that it will lay off 3,800 workers.
# 8 JCPenney says it will cut about 15,000 jobs as the holiday shopping season approaches.
# 9 At least a quarter of the 28,000 layoffs Disney will lead will occur in Florida.
#ten Collectively, American Airlines and United Airlines let 32,000 employees quit last week.
# 11 On Thursday, we learned that another 787,000 Americans had filed for new unemployment benefits in the previous week.
# 12 Overall, more than 60 million Americans have filed new claims for unemployment benefits so far in 2020. This number is far higher than anything we have ever seen before in all of state history. -United.
# 13 Retail store closures in the United States continue to advance at an absolutely unprecedented rate.
# 14 New York bankruptcy filings have increased 40% so far in 2020.
# 15 This figure is hard to believe, but it is reported that nearly 90% of New York City bar and restaurant owners could not pay their rent in full for the month of August.
None of this was supposed to happen.
Right now, we were supposed to be well into a “V-shaped recovery” that would soon make Americans forget about the dark days of mid-2020.
But instead, millions and millions of Americans have lost their jobs and face a deeply uncertain future. One of those Americans is an unemployed cook named Juan Jose Martinez Camacho…
Juan Jose Martinez Camacho, 59, has been a cook for 30 years, since he was asked to fill a day while working as a dishwasher in a restaurant.
He worked as a cook at Crowne Plaza in Redondo Beach, California for 22 years. When he was laid off on March 23, he thought it would only be two or three months before things returned to normal. But at the end of last month, he was told he had definitely lost his job, which was paying $ 22 an hour. He looked for other cooking jobs with no luck.
Can you imagine doing the same thing for 30 years and suddenly being out of a job?
Like most Americans, he assumed the pandemic would soon pass and return to his old routine.
But that didn’t happen and so he is one of the millions of restaurateurs who are not making any income at the moment.
With so many Americans out of work, food banks across the country have faced a tsunami of demand. In previous articles I have written about the absolutely massive lines that we have seen in parts of the country. In some cases, people started to queue at 2 a.m. and the lines reached up to 2 miles long.
And every week we see more gigantic queues at food banks all over America. Here’s how a local news source described the massive lines that have constantly formed in the state of Texas …
Thousands of cars now form tight lines across the state every week to receive food. From the border towns of the Chihuahuan Desert to the staked plains of the English Channel, through the pine grove of deep eastern Texas, to the Rio Grande and the backs of cars, becoming starving steel and fiberglass tracks.
These events have distributed tens of millions of pounds of food over the past six months.
If you still have your job and didn’t have to go to a food bank during this crisis, you should be grateful for your blessings.
Just like in the 1930s, we are seeing colossal food lines across the country, and this is just the beginning.
If you were waiting for a “recovery” you can stop waiting, because what we saw in the third quarter was all about the “recovery” that we are going to get.
We are now less than a month away from a presidential election that promises to be incredibly chaotic, and the extremely deep divisions that already exist in our country are likely to worsen. Many believe this election will lead to even more civil unrest, which will likely further depress economic activity.
I really wish that economic conditions were “back to normal” and that we could all go back to our old patterns.
But there won’t be a “return to normal” anytime soon.
Instead, very dark days are coming, and those very dark days will shake this nation deeply.
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