Over the past several weeks, we have seen the economic shutdown of much of the United States due to the Covid–19 virus and associated panics, from things like the ridiculous toilet-paper shortages to the initial 6 million initial unemployment claims that have risen to more than 20 million now.
All of that does raise concern, given that the 22 million is in excess of 12% of the working population of the US, and would lead one to think that massive stock drop-offs would follow… instead they have risen. Why?
The reason is simple: greed and corruption.
The initial round of firings mean that companies are no longer paying their pay and other payroll-related expenses, furthermore the government’s stimulus means that instead of making money off of some product or service they’re making money of merely existing. Moreover, as we see more and more of the results of the expedited CARES Act being revealed it becomes more and more apparent that instead of these monies going to actual small businesses, the funds are being directed by the banks to larger businesses that are heavily indebted to the banks themselves — in other words, the banks are bailing out the people who owe them money so that they can get that selfsame money instead of those companies having to go through bankruptcy.
What does this mean for you? I’m not an economist, nor am I particularly experienced in the wide world of business… but I can tell you that this seems to me like it will be, in reality, the reduction of a vast majority of people to a meager existence, depleting savings and undercutting wages while those who are connected reap the profits. I anticipate ever more manipulation of things like stock values as they become more and more divorced from reality. And, atop all of this, I anticipate more pushes for H1B (and similar) labor despite the existence of more than 12% of the labor-force being unemployed means that ‘STEM shortage’ claims are beyond ridiculous.
