The recovery looked promising in June, but it has stalled in July. Many economists urge Congress to ‘go big’ on this next relief package.
The nation learned Thursday that the U.S. economy endured its worst slump on record this spring, but a larger problem now looms: The nascent recovery appears to be faltering in July, and lawmakers are more divided than ever over what to do about it.
The risk is growing that the economy is going to backslide, a painful scenario where workers who regained jobs in May and June lose them again, and businesses that had started to reopen are forced to shutter, possibly forever. It’s already happening in parts of the country that are seeing a spike in coronavirus cases.
Once the downward spiral starts — more job losses leading to less consumer spending leading to more business closures leading to more job losses — it can lead to an even deeper downturn that permanently damages the economy for years to come. Economists say the United States is not spiraling yet, but the nation is at an inflection point. Continue reading.