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Steve Mnuchin: Record of 3.3 million unemployment claims “are not relevant”



Almost 3.3. Millions of Americans applied for unemployment benefits last week when coronavirus companies started firing workers.

The number is breathtaking. It is more than four times the previous record of 1982.

But the finance minister doesn’t think there is much to see here. Once the laws are passed, people will be fine and the pain is temporary.

“I just think these numbers are not relevant at the moment and you know whether they are bigger or smaller in the short term,”

; said Steve Mnuchin in a CNBC interview Thursday morning. “I mean, obviously there are people who are unemployed. And again, the good thing about this bill is that the President is protecting these people. “

“With these plans, small businesses will hopefully be able to recruit many of these people,” he added. “Last week they didn’t know if they had protection. They had no cash. They had no choice. Now that this law has been passed by Congress, protective measures are in place.”

This is wishful thinking, to say the least. Despite the high price, economists believe that the laws passed by the Senate on Wednesday are far too modest to cover the scale of the impending economic crash.

The $ 349 billion small business legislation will quickly run out, but experts also believe that it will take months for aid to reach most small businesses. During this time, many of them will simply fail and you won’t be able to hire people if you don’t have a company.

The primary purpose of the bailout plan is a $ 454 billion program overseen by Mnuchin, which the Federal Reserve can use ten times to do essentially everything Mnuchin and the Fed want to do with it. However, companies receiving this money are allowed to lay off up to 10% of their workforce in the next six months – and that number would be calculated based on the week’s employment. The 3.3 million people released last week would not count.

Treasury Secretary Steven Mnuchin said people shouldn't really pay too much attention to the 3.3 million people who submitted us


Alex Brandon / Associated Press

Treasury Secretary Steven Mnuchin said people shouldn’t pay too much attention to the 3.3 million people who applied for unemployment benefits last week.

The corona virus crash is not a simple shortage of cash. It is a crisis on various economic fronts that requires months, if not years, of aggressive government measures to combat them.

Global supply chains are breaking down as companies manufacturing goods in other countries have no access to factories and materials that they have relied on for years. The slump in US consumer spending will not just normalize.

Protecting legislation for people who are being laid off or have difficulty paying the bills is simply too poor to restore the loss of purchasing power due to unprecedented layoffs, not to mention the fear most families are currently experiencing. Every household in America will pinch their cents for the foreseeable future, and this loss of spending will result in lost earnings for businesses and lower wages. The loss of American purchasing power will be felt both domestically and abroad. This could well lead to a shock to the financial system that resembles the 2008 collapse.

The unemployment rate on Thursday is likely to fall short of how many people are also out of work. Some people who have tried to apply for unemployment benefits have reported phone lines and websites frozen and jammed through the enthusiasm of the applicants. And people who are Self-employedStudents and gig workers without papers cannot apply and are therefore not counted.

A HuffPost guide to coronavirus




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