Coronavirus Crash: Another Great Depression?
A top economist argues the coronavirus pandemic could cause a new Great Depression after seeing shocking job losses and shrinking global GDPs in recent weeks.
In the coming weeks governments around the world are expected to announce even more significant stimulus packages than seen during the 2008 financial crisis. With consumers being unable to spend at typical businesses like restaurants, movie theaters, amusement parks, casinos, and sports arenas, consumer spending is crashing and taking the US and global economy with it.
Airlines, cruise lines, and casinos have been particularly hard hit, as all three industries have seen their revenues fall dramatically in the past few weeks as closures due to coronavirus rise. As western economies have shifted to services and consumer spending in recent decades, these closures are impacting critical sectors of the economy.
With businesses all over the world closing due to coronavirus containment measures, stock markets are tumbling and core sectors of the global economy are shutting down.
