University of Michigan economics professor Justin Wolfers contends that the US economy is probably already in recession due to the coronavirus pandemic. He says that unless governments around the world take ‘drastic actions’ to contain the virus, the economic downturn could be as bad as the Great Depression, when the unemployment rate reached 25% in countries such as the US. Wolfers suggests that the US government should provide the unemployed and under-employed with cash payments and offer loans to small businesses. He adds that tax cuts would not stimulate economy activity quickly enough:
Major American cities such as New York, Los Angeles and Washington have essentially gone into lockdown by ordering schools, bars, gyms restaurants and cinemas to close their doors…
“There are reasons to think this could be as bad as the Great Depression if we don’t get the response right,” Wolfers, a member of the US Congressional Budget Office’s panel of economic advisers…
