Is the United States risking a second coronavirus wave and an economic depression by reopening the country too soon?
More states are beginning to allow businesses to reopen their stores, while other jurisdictions still have stringent guidelines and rules in place. That said, the nation is in the beginning phase of reopening.
Moody’s Analytics chief economist Mark Zandi Warns that if this ignites a second wave, “it will be a depression.”
Speaking in an interview with CNBC, Zandi stated that he does not think the economy will shut down again, but it could “scare people and spook people and weigh on the economy.”
Overall, Zandi anticipates that jobs will begin to rebound by Memorial Day. And, if there is no second wave, the labor market could begin to normalize throughout the summer and into autumn.
“After that, I think we’re going to be in quicksand because of the uncertainty around the virus and the impact that it’s going to have on consumers and businesses,” he said.
Last week, the U.S. government announced that the labor market lost 20.5 million jobs in April, falling short of the median estimate of 22 million. The unemployment rate shot up to 14.4 percent.
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