The sharpest decline of the US economy recorded by 32.9% between April and June. The worst experienced by the world’s largest economy since at least 1947. With 1.43m unemployment benefit filed last week, the situation is going to worse with the Unemployment benefit is going to end this Friday.
The news from Europe and Germany also recorded a decline in economic growth by 10.1% between April and June, Biggest since 1970.
The benefit of $600 a week which was passed by Congress by March to aid the affected people in the pandemic, will expire on Friday. That means over 17 million unemployed Americans will stop getting money from Friday. Republican is pushing to slash down the stimulus benefit to $200 a week, claiming this $600 a week benefit is discouraging a larger people not to go to work during the pandemic. Whereas the Democrats want the full amount extended through January 2021.
Nearly 70% of the US economy is consumer Spending. Since lockdown to restrict the spread of the virus started at the end of March, the annual rate of spending decreased by 25%. The Americans restricted their spendings on recreational goods and services like Motor vehicles, clothing, transport services, gas, food services. furthermore, the drop in Investment, Inventories, and export also played an important role in collapsing of the GDP.