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
U.S. and Hungarian Officials Talk About Economic Collaboration and Sanctions Strategy
Technology Giants Activate Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation on Succession
Zelensky Calls on World Leaders to Back Peace as Tensions Rise with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advancement.
Rubio Touches Down in Riyadh Before Key U.S.-Russia Discussions
Students in Serbian universities Unite to Hold Coordinated Protests for Accountability.
US State Department Removes Taiwan Independence Statement from Website
Abolishing opposition won't protect Germany from Nazism—this is precisely what led Germany to become Nazi!
Transatlantic Gold Rush: Traders Shift Bullion in Response to Tariff Anxieties and Market Instability
Bill Ackman Backs Uber as the Company Shifts Towards Profitability
AI Titans Challenge Nvidia's Supremacy in Light of New Chip Innovations
US and Russian Officials to Meet in Saudi Arabia Over Ending Ukraine Conflict. Ukraine and European leaders – who profit from this war – excluded from the negotiations.
Macron Calls for Urgent Summit as Ukraine Conflict Business Model is Threatened
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Bolster Its Military in Light of Uncertain US Backing
Chinese Zoo Confesses to Dyeing Donkeys to Look Like Zebras
Elon Musk is Sherlock Holmes - Movie Trailer Parody featuring Donald Trump's Detective
Trump's Greenland Suggestion Sparks Sovereignty Discussions Amid Historical Grievances
OpenAI Board Dismisses Elon Musk's Offer to Acquire the Company.
USAID Uncovered: American Taxpayer Funds Leveraged to Erode Democracy in Europe Until Trump Put a Stop to It.
JD Vance and Scholz Did Not Come Together at the Munich Security Conference.
EU Official Participates in Discussions in Washington Amid Trade Strains
Qatar Contemplates Reducing French Investments Due to PSG Chief Investigation
Germany's Green Agenda Encounters Ambiguity Before Elections
Trump Did Not Notify Germany's Scholz About His Ukraine Peace Proposal.
Munich Car Attack Escalates Migration Discourse Before German Elections
NATO Allies Split on Trump's Proposal for 5% Defense Spending Increase
European Parliament Advocates for Encrypted Messaging to Ensure Secure Communications
Trump's Defense Spending Goal Creates Division Among NATO Partners
French Prime Minister Bayrou Navigates a Challenging Path Amid Budget Preservation and Immigration Discourse
Steering Through the Updated Hierarchy at the European Commission
Parliamentarian Calls for Preservation of AI Liability Directive
Mark Rutte Calls on NATO Allies to Increase Defence Expenditures
Dresden Marks the 80th Anniversary of the World War II Bombing.
Global Community Pledges to Aid Syria's Political Transition
EU Allocates €200 Billion for AI Investments, Introduces €20 Billion Fund for Gigafactories
EU Recognizes Its Inability to Close the USAID Funding Shortfall Due to Stalled US Aid
Commission President von der Leyen Missing from Notre Dame Reopening Due to Last-Minute Cancellation
EU Officializes Disinformation Code for Online Platforms, Omitting X
EU Fails to Fully Implement Key Cybersecurity Directives
EU Under Fire for Simplification Discussions Regarding Corporate Sustainability Reporting
Shein Encountering Further Information Request from the EU During Ongoing Investigation
European Commission Initiates Investigation into Shein as It Aims at Chinese E-Commerce Regulations
German Officials Respond to U.S. Proposal for Peace Talks with Russia
Senate Approves Robert F. Kennedy Jr. as Secretary of Health and Human Services.
Trump and Putin Engage in Discussions on Ukraine Peace Negotiations Amid Worldwide Responses
Honda and Nissan End Merger Talks
×