Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Coronavirus shines light on our unfair economy as millions join the ranks of the jobless and hungry

Coronavirus shines light on our unfair economy as millions join the ranks of the jobless and hungry

The scale of the destruction of people’s livelihoods, from China and India to the US, shows that for too many, job and income security was only a mirage. Policymakers, who already have a tough job balancing lives with livelihoods, must ensure that once the crisis is over, a fairer economy can be built

It seems a bit rich coming from a man who earned US$31.5 million last year – up a miserable 1.6 per cent from the year before – to say that the pandemic is “wake-up call” to build a fairer economy for millions of people “who have been left behind for too long”. Step forward, Jamie Dimon, chief executive of JPMorgan Chase who – if we discard our cynicism for a moment – makes a lot of sense.

There is not that much gossip coming out of China because of the travel restrictions but Bloomberg reports that the unemployment rate is thought to have hit 12 per cent in March, with over 50 million out of work and another 80 million on furlough. The official unemployment rate is 5.9 per cent, or 26 million people.

The Centre for Monitoring Indian Economy reports that unemployment in India reached 27.1 per cent in the week ending on May 3 – a record high. Some 18 million entrepreneurs were out of work in April. In total, 122 million jobs were lost.

Most Indian jobs are in the informal sector, with many of the workers under 30 years of age and among the poorest. When I asked an Indian journalist what unemployed people do, the answer was just three words, “dying of starvation”.



In the land of the free and the home of data, the United States, the unemployment rate is now around 14.7 per cent, whereas in February it was a mere 3.5 per cent. Since the outbreak, jobless claims have risen to 36.6 million. Optimists are saying that when the lockdown lifts, at least half of those will be employed straight away. Maybe – but at what wages?

Europe and Britain have largely furloughed employees, with the British government paying 80 per cent of salaries, but companies are still shedding jobs. The latest figures show the number of jobless claims in Britain went up by 69 per cent between March and April, to around 7 per cent of the working population. About 2 million are now receiving state aid, with the young and those just short of retirement being worst-hit.

In Hong Kong, unemployment jumped from 3.3 per cent at the beginning of the year to 5.2 per cent for the three months to April, leaving many on short time, short wages, or without a job.

One of the most striking scenes has been long lines for food banks in rich Western countries. Complaints about the slow pace of state support are also heard across China, Europe and the US, which add to the uncertainty.

In Hong Kong, residents ask themselves why it will take the government five months to pay out the HK$10,000 (US$1,290) grant offered in February. Even in the US, residents have already begun to receive special payments offered under the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed in March.



With this picture in mind, Dimon’s comments ring loud and clear. The devil makes work for idle hands and policymakers from Beijing, Brussels and Washington know that millions of discontented, unemployed people are a fundamental threat to social stability. What if they demanded a fairer system?

Religion may have been “the opium of the people” in Marx’s time but in our Instagrammed, tweeting world, it is now jobs, security and income potential. This is why policymakers have pledged a massive US$10 trillion and counting of support to economies, which is providing confidence to the stock markets.

China is notably not included in that number, preferring to support the economy through state aid to corporations and the sluggish welfare system. It has resisted using Western tools of zero interest rates and quantitative easing, but direct injections of cash means printing money nevertheless.



While this is happening, other important financial narratives are being swamped. US President Donald Trump’s aggressive tone on China trade would be very serious at another time. China’s imposition of tariffs on Australian barley (for supporting an inquiry into the origins of the coronavirus, some believe) would have been met with a more severe reaction but, important though these narratives are, they pale into insignificance against the coronavirus story.

Politicians around the world took fright at the prospect of intensive care units filling up with patients struggling to breathe. For many in the West, air travel restrictions, quarantines and other measures could have come sooner. Hong Kong, with memories of the deadliness of the severe acute respiratory syndrome still fresh, showed that strict early measures are better than a late total lockdown.

It is not easy balancing lives against livelihoods, but we are getting to the stage where people will have to get back to work, albeit in a restricted fashion.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×