Trump’s Economic Advisor Makes Grim Prediction Regarding Q2 GDP and Unemployment Rate

Kevin Hassett, who is the White House economic advisor, is anticipating very grim GDP and employment levels in the second quarter of 2020.

Appearing on an ABC’s This Week interview, Kevin Hassett has a very gloomy outlook for the US economy as a result of implications stemming from the coronavirus pandemic. He is predicting GDP to decrease anywhere between 20% and 30%, thus echoing such negative numbers not seen since the Great Depression. Meanwhile regarding unemployment levels in the US, Hassett is anticipating a rate between 16% and 17%, given that the latest official unemployment data does not reflect the insurance claims that came in after the survey was conducted.

During the Great Depression, the US unemployment rate ended up sitting around 25%; however at the time, it took approximately 10 months to amass the same number of unemployment claims that have come in within the last month. Then, fast forward to the 2008 financial crisis, there was a loss of around 8.7 million jobs in total – however this time around, the US economy is losing that same amount of jobs every 10 days.

The US government has been propping up the US economy via stimulus checks and coronavirus aid, which have all been a significant contributor to the country’s rising national debt. According to a recent projection put forth by the Congressional Budget Office, by October US debt is predicted to increase to 101% of the country’s GDP. Although Donald Trump is anticipating a V-shaped economic recovery following the coronavirus pandemic, Hassett is not as optimistic: instead he is vouching for a second round of stimulus legislation to get the economy back on track.

Information for this briefing was found via ABC News and the Congressional Budget Office. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Altamira Gold Encounters Porphyritic Intrusive Rocks In Initial Scout Drilling At Regional Targets

Related News

Organigram Lays Off 400 Employees Due To COVID-19

Organigram Holdings (TSX: OGI) (NASDAQ: OGI) has laid off 45% of its workforce which represents...

Monday, April 6, 2020, 08:10:53 PM

Canada Mortgage and Housing Corp: House Prices To Decline 9 – 18%

The Canadian Mortgage and Housing Corporation (CMHC) has recently issued an update regarding its ongoing...

Wednesday, May 20, 2020, 06:00:00 PM

Hyperinflation: Remember, GDP = Money Supply x Velocity

When trying to wrap my head around economics, I like to simplify basic principles down...

Saturday, April 4, 2020, 01:45:58 PM

Yield Stars: The Banks Begin To Post Enticing Yields

The banking sector has largely been slow to join the post-covid recovery, and that’s understandable....

Sunday, October 25, 2020, 09:00:00 AM

Federal Tax Receipts Fall Three Times Greater Than Reported Unemployment Numbers, Suggestive of Employment Data Inaccuracy

Amid the unprecedented onset of the coronavirus pandemic, many Americans suddenly found themselves under mandatory...

Tuesday, June 16, 2020, 03:56:00 PM