CBO says COVID-19 recovery for the U.S. economy will take about 10 years
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The Congressional Budget Office is out with some grim projections, saying the U.S. economy won’t recover from the coronavirus pandemic until 2029 — and the recovery won’t begin until next year.
The CBO projects the COVID-19 pandemic will cost the U.S. almost $8 trillion in lost economic output this decade, down 3% from pre-pandemic projections.
The agency says that consumer spending will decline amid high unemployment, and while many out-of-work Americans will get back to work starting this summer as states reopen, the CBO expects it will take a decade for employment to return to pre-pandemic levels.
The agency says until there’s a coronavirus vaccine, some amount of social distancing will likely be with us for the foreseeable future, and that will slow the recovery.
The projections incorporate the more than $2 trillion in financial assistance the federal government has doled out.
The CBO says a lot of uncertainty remains about the pandemic’s effect on the economy, as well as the effect of the financial rescue program. Its projections are likely to change, as those are better understood.
COVID-19 Economy FAQs
It’s still the question on everyone’s minds: What’s going on with extra COVID-19 unemployment benefits?
The $600-a-week payments have ended, officially, as of July 31. For now, there is no additional federal pandemic unemployment assistance. House Democrats want to renew the $600 payments. Senate Republicans have proposed giving the unemployed 70% of their most recent salary by this October, when state unemployment offices have had time to reconfigure their computer systems to do those calculations. Until then, jobless workers would just get another $200. But, nothing has been signed into law yet.
What’s the latest on evictions?
For millions of Americans, things are looking grim. Unemployment is high, and pandemic eviction moratoriums have expired in states across the country. And as many people already know, eviction is something that can haunt a person’s life for years. For instance, getting evicted can make it hard to rent again. And that can lead to spiraling poverty.
Which retailers are requiring that people wear masks when shopping? And how are they enforcing those rules?
Walmart, Target, Lowe’s, CVS, Home Depot, Costco — they all have policies that say shoppers are required to wear a mask. When an employee confronts a customer who refuses, the interaction can spin out of control, so many of these retailers are telling their workers to not enforce these mandates. But, just having them will actually get more people to wear masks.
You can find answers to more questions on unemployment benefits and COVID-19 here.
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