Increasing Global Economic Collapse; U.S. Unemployment claims rise for second week in a row
By Tami Luhby, CNN Business Updated 12:39 PM ET, Thu July 30, 2020
New York (CNN Business)In yet another sign that the economic recovery is teetering in a resurgence of coronavirus cases, the number of Americans filing first-time unemployment claims rose for the second week in a row.
The news came on the same day as a separate report showed that the US economy contracted at a 32.9% annual rate from April through June, its worst drop on record. These both added to concerns that the economy is faltering.
They also come as Congress debates whether to provide more stimulus to the nation, including extending enhanced unemployment benefits and another round of direct payments to Americans.
“The fact that initial jobless claims have risen for a second week is worrying and underscores that the nascent consumption recovery is at risk,” said Moody’s Investors Service’s Vice President Madhavi Bokil. “The economic recovery is also at risk from the prospect of reduced fiscal support to households and businesses experiencing income and revenue losses.”
On an unadjusted basis, 1.2 million people filed first-time claims, down 171,000 from the week before. The seasonal adjustments are traditionally used to smooth out the data, but that has tended to have the opposite effect during the pandemic.
Continued claims, which count workers who have filed for at least two weeks in a row, stood at 17 million for the week ending July 18, up 867,000 from the prior week’s revised level. This was the first weekly increase since late May. These seasonally adjusted claims peaked in May at nearly 25 million.
In addition to those filing traditional unemployment claims, nearly 830,000 people in all 50 states filed for first-time pandemic unemployment assistance last week, down more than 106,000 from the week before. More than 12.4 million claimed continued pandemic benefits across 46 states for the week ending July 11, down nearly 767,000 from the prior week.
Pandemic unemployment claims data, however, is very volatile from week to week because it may include backlogged filings.
The pandemic program was created by Congress in March to respond to the coronavirus outbreak. It provides temporary benefits to workers who typically aren’t eligible for payments, including freelancers, independent contractors, the self-employed and certain people affected by coronavirus. It expires at the end of the year.
In total, 30.2 million Americans claimed jobless benefits in an array of programs for the week ending July 11, down 1.6 million from the prior week.
Congress debate over extending the $600 weekly enhancement
The weakening economic outlook comes as Congress bickers over whether to extend the $600 weekly enhancement that lawmakers passed in March to cushion Americans forced to give up their jobs because of pandemic-fueled lockdowns. The boost officially expires this Friday, but most unemployed people have already received their last payments.
House Democrats want to continue the $600 supplement into early next year, saying the economy remains too weak and jobs are still scarce.
But Senate Republicans and the White House are concerned that such a generous enhancement will deter people from returning to work and hinder the economy recovery. When combined with state benefits, the extra $600 meant that two-thirds of workers were making more on unemployment than their did in wages, according to an estimate by University of Chicago researchers.
Instead, GOP lawmakers are looking to cut the benefit to $200 a week for two months and then shift to having state and federal payments replace 70% of lost wages through the rest of the year.
Economists, however, say the federal supplement has helped prop up the economy as the virus rages across the nation, and withdrawing it too soon could stymie the recovery.
“The looming expiration of federal unemployment benefits without a clear-cut replacement threatens a chunk of consumer spending power that has sustained households and made its way back into the economy,” said Greg McBride, Bankrate.com’s chief financial analyst.
Although the federal government was footing the bill for the $600 supplement, states are still exhausting their unemployment trust funds. Some 10 states have borrowed nearly $17.2 billion from the federal government to pay their share of jobless benefits, which typically lasts 26 weeks.
The jobless are guaranteed to get their weekly payment, regardless of whether the state has to take a loan from the federal government. It’s not unusual for states to borrow during tough economic times.
In His Service,
Night Watchman Ministries
Make Your Decision for Christ NOW!!!!!!! Time is Up!!!!!!!
Jesus Christ’s Offer of Salvation:
The ABCs of Salvation through Jesus Christ (the Lamb)
A. Admit/Acknowledge/Accept that you are sinner. Ask God’s forgiveness and repent of your sins.
. . . “For all have sinned, and come short of the glory of God.” (Romans 3:23).
. . . “As it is written, There is none righteous, no, not one.” (Romans 3:10).
. . . “If we say that we have no sin, we deceive ourselves, and the truth is not in us.” (1 John 1:8).
B. Believe Jesus is Lord. Believe that Jesus Christ is who He claimed to be; that He was both fully God and fully man and that we are saved through His death, burial, and resurrection. Put your trust in Him as your only hope of salvation. Become a son or daughter of God by receiving Christ.
. . . “That whosoever believeth in him should not perish, but have eternal life. For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. For God sent not his son into the world to condemn the world; but that the world through him might be saved. (John 3:15-17). For whosoever shall call upon the name of the Lord shall be saved.” (Romans 10:13).
C. Call upon His name, Confess with your heart and with your lips that Jesus is your Lord and Savior.
. . . “That if thou shalt confess with thy mouth the Lord Jesus, and shalt believe in thine heart that God hath raised him from the dead, thou shalt be saved. For with the heart man believeth unto righteousness; and with the mouth confession is made unto salvation.” (Romans 10:9-10).
. . . “If we say that we have no sin, we deceive ourselves, and the truth is not in us. If we confess our sins, he is faithful and just to forgive us our sins, and to cleanse us from all unrighteousness. If we say that we have not sinned, we make him a liar, and his word is not in us.” (John 1:8-10).
. . . “And he is the propitiation for our sins: and not for ours only, but also for the sins of the whole world. (John 2:2).
. . . “In this was manifested the love of god toward us, because that God sent his only begotten Son into the world, that we might live through him. And we have seen and do testify that the Father sent the Son to be the Saviour of the world. Whosoever shall confess that Jesus is the Son of God, God dwelleth in him, and he in God.” (1 John 4:9, 14-15).
. . . “But God commendeth his love toward us, in that, while we were yet sinners, Christ died for us. Much more then, being now justified by his blood, we shall be saved from wrath through him. For if, when we were enemies, we were reconciled to God by the death of his Son, much more, being reconciled, we shall be saved by his life.” (Romans 5:8-10).
. . . “For the wages of sin is death; but the gift of God is eternal life through Jesus Christ our Lord.” (Romans 6:23).
. . . “Jesus saith unto them, I am the way, the truth, and the life, no man cometh unto the Father, but by me.” (John 14:6).
. . . “For I am not ashamed of the gospel of Christ: for it is the power of God unto salvation to everyone that believeth.” (Romans 1:16).
. . . “Neither is there salvation in any other: for there is none other name under heaven given among men, whereby we must be saved.” (Acts: 4:12).
. . . “Who will have all men to be saved, and to come unto the knowledge of the truth for there is one God, and one mediator between God and men, the man Christ Jesus.” (1 Timothy 2:4-6).
. . . “For God did not appoint us to suffer wrath but to receive salvation through our Lord Jesus Christ.” (1 Thessalonians 5:9).
. . . “But as many as received him, to them gave the power to become the sons of God, even to them that believe on his name.” (John 1:12).
True Church / Bride of Christ Spared from God’s Wrath:
Romans 5:8-10. “But God commendeth his love toward us, in that, while we were yet sinners, Christ died for us. Much more then, being now justified by his blood, we shall be saved from wrath through him. For if, when we were enemies, we were reconciled to God by the death of his Son, much more, being reconciled, we shall be saved by his life.”
Romans 12:19. Dearly beloved, avenge not yourselves, but rather give place unto wrath: for it is written, Vengeance is mine; I will repay, saith the Lord.
1 Thessalonians 1:10. And to wait for his Son from heaven, whom he raised from the dead, even Jesus, which delivered us from the wrath to come.
1 Thessalonians 5:9. For God hath not appointed us to wrath, but to obtain salvation by our Lord Jesus Christ,
Romans 8:35. Who shall separate us from the love of Christ? shall tribulation, or distress, or persecution, or famine, or nakedness, or peril, or sword?
Jeremiah 30:7. Alas! for that day is great, so that none is like it: it is even the time of Jacob’s trouble, but he shall be saved out of it.
Revelation 3:10 Because thou hast kept the word of my patience, I also will keep thee from the hour of temptation, which shall come upon all the world, to try them that dwell upon the earth.
Categories: Economic Collapse