The new coronavirus is not only a danger to health,
it is also devastating to the US economy.
The number of jobs lost in the US hit twenty point five million in April.
Its not going to get better in the near future says White House National Economic Council director Larry Kudlow.
I think the numbers for May are gonna be also very difficult numbers,
going to take a while for the reopening have an impact.
Kudlow says even with devastating job losses he sees a glimmer of hope
because a number of the unemployed are due to furloughs and temporary layoffs.
That by the way doesnt assure that youll go back to a job
but it suggests strongly that the cord between the worker and the business is still intact.
The US stock market has seen gains even at a time of soaring unemployment rates.
Analyst Liz Ann Sonders says among the reasons one of them is the government stimulus.
And too I think is on the assumption that the market is looking through sort of the valley
and that maybe April will be the worst month,the inflection point.
I think theres some risks associated with that youve got the potential second wave of the virus.
Even with the continued health risks,theyre having protests to end the stay at home mandates.
Many states are gradually reopening
and Kudlow says the signs point to the US economy ending the year on a positive note.
Were gonna see very strong second half of the year,probably twenty percent economic growth.
Next year 2021 could be a tremendous snap back in the US economy.
But that may be too optimistic, cautious Neel Kashkari president of the Federal Reserve Bank of Minneapolis.
This is more likely to be a slow more gradual recovery,
unfortunately the virus continues to spread
people continue to get it.
Unfortunately people are tragically dying and when we look around the world theres evidence that
when countries relaxed their economic controls, the virus tends to flare back up again.
If this goes on for a long period of time,
I think its going to go on in some phases for a year or two.
I think Congress is going to need to continue to give assistance to workers whove lost their jobs.
So far the government has provided close to three trillion dollars in financial assistance during the coronavirus crises.
Democrat lawmakers are pushing for another stimulus package including aid to state
and local governments plus money for testing and the unemployed.
Kudlow says there have been informal discussions
but many Republicans are taking a more cautious approach to another stimulus package.
Many people would like to just pause for a moment
and take a look at the economic impact of this massive assistance program.
As businesses reopen,people will have to balance work with the potential risk of getting sick from the coronavirus.
Many economists say how quickly the economy rebounds may depend on when a vaccine becomes available.
Elizabeth Li VOA news