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A Record 3.28 Million Americans Filed for Unemployment Last Week. Are We in a Recession?

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  • Last week, a staggering 3.28 million people applied for unemployment in the United States.
  • The number beats the previous 1982 record and weekly claims during the 2008 Recession by millions.
  • However, economists say the new wildly high unemployment numbers are more akin to what is seen in times of natural disaster rather than “typical recessions.”
  • In an extremely rare televised interview, Federal Reserve Chair said the economy may already be in a recession, but he appeared optimistic that the country could possibly bounce back quickly once the virus is under control and businesses reopen.

Unemployment Claims All-Time High

More than 3.28 million people filed unemployment claims last week, according to the Labor Department. 

The number is a stunning indication of just how rapidly and how extensively businesses like restaurants, hotels, gyms, movie theaters, etc. have shut down as the COVID-19 pandemic batters the United States.

By contrast, this new number shattered the previous record (695,000 claims in 1982) for the highest number of unemployment claims filed in a single week. It also greatly surpassed any week of the 2008 Recession, which capped at 665,000 during a single week.

However, comparing the coronavirus’ economic impacts to “typical” recessions isn’t quite accurate. This is because those recessions generally play out over a series of months or years. 

For instance, while the 2008 Recession never saw weekly unemployment hit the millions, unemployment was higher than average for five years. In fact, if you added together all of the weeks of above-average unemployment, you’d get a total of about 26 million claims filed.

With the coronavirus, however, while the U.S. might see extremely high unemployment rates, many economists only expect it to last for a matter of weeks. Since the two circumstances are so wildly different, that can also make it difficult to use “typical” recessions to predict what will happen in the U.S. economy even a month or two from now. 

Still, many economists predict that unemployment could climb as high as 40 million people by April, so while it may not be like “typical” recessions, this already is and will likely continue to affect millions of people.

On top of that, many trying to file for unemployment have recounted horror stories of websites crashing and being on hold for hours, many only to be told once they finally reach someone that they don’t qualify.

Treating the Coronavirus Like a Natural Disaster

Many economists are telling people to view the coronavirus pandemic less like the 2008 financial crisis and more like a natural disaster, which can cause the immediate shutdown of an entire economic region.

One big example is Louisiana and Hurricane Katrina. On average, about 4,000 unemployment claims are filed each week in Louisiana. When Katrina hit in 2005, there was a massive, yet momentary spike in unemployment claims. 

That spike is similar to the nearly 73,000 people who filed unemployment claims in Louisiana last week. Of course, now, it’s not just Louisiana that’s experiencing a rapid surge in unemployment.

Just about every state in the country has seen a significant rise, with states like California, Massachusetts, Michigan, New Jersey, Ohio, and Texas all boasting some of the largest numbers. It should be noted, however, that these are all highly populated states and the average unemployment rate for each state varies.

  • California
    • Weekly Average: 52,200
    • Claims Filed Last Week: 186,809
  • Massachusetts
    • Weekly Average: 8,000
    • Claims Filed Last Week: 147,995
  • Michigan
    • Weekly Average: 15,000
    • Claims Filed Last Week: 129,298
  • New Jersey
    • Weekly Average: 11,000
    • Claims Filed Last Week: 155,454
  • Ohio
    • Weekly Average: 187,784
    • Claims Filed Last Week: 13,000
  • Texas
    • Weekly Average: 16,900
    • Claims Filed Last Week: 155,657

By far, the biggest spike in unemployment claims was in Pennsylvania, where nearly 380,000 people filed for unemployment. That’s up from an average weekly filing of 21,000 claims.

Are We In A Recession?

Thursday morning, in an extremely rare televised interview, Jerome Powell, Chair of the Federal Reserve, spoke with Savannah Guthrie on The TODAY Show. Prompted by a question from Guthrie, Powell said the country “may well be in a recession.”

But I would point to the difference between this and a normal recession,” he added. “There is nothing fundamentally wrong with our economy. Quite the contrary. The economy performed very well, right, through February. We’ve got a fifty year low in unemployment in the last couple of years, so we start in a very strong position.”

“This isn’t something that’s wrong with the economy. This is a situation where people are being asked to step back from economic activity, close their businesses, stay home from work, so in principle, if we get the virus spread under control fairly quickly, then economic activity can resume. ” 

Powell went on to say that once the country is able to get this virus under control, it could see that rebound. Notably, Powell also stressed that it is still unknown how quickly that could happen.

One of the biggest ways the government is trying to hold up the economy is through a $2 trillion dollar stimulus package. Wednesday night, the Senate unanimously passed that 96-0. It now goes to the House, which is expected to vote on it tomorrow morning.

If it passes without any revisions, it would then head directly to President Trump, who’s said he would sign it immediately.

News of the bill’s passage through the Senate led to favorable reactions in the stock market. Between that news and the announcement that Senate Democrats and Republicans were working with the White House to make such a deal, both the Dow Jones and the S&P 500 posted their first back-to-back gains for the first time since February.

In February, the Dow was posting an all-time high of 29,000. By Monday, when Senate Democrats shot down a previous version of the stimulus package, the Dow Jones had sunk to 18,000 points. Notably, it hadn’t been that low since 2016.

By Thursday morning, the Dow was back up to 22,000 points.

See what others are saying: (The New York Times) (The Wall Street Journal) (CNN)

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Katie Couric Says She Edited Ruth Bader Ginsburg Quote About Athletes Kneeling During National Anthem

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Couric said she omitted part of a 2016 interview in order to “protect” the justice.


Kate Couric Edited Quote From Justice Ginsburg

In her upcoming book, journalist Katie Couric admitted to editing a quote from Supreme Court Justice Ruth Bader Ginsberg in 2016 in order to “protect” Ginsberg from potential criticism. 

Couric interviewed the late justice for an article in Yahoo News. During their discussion, she asked Ginsburg about her thoughts on athletes like Colin Kaepernick kneeling for the national anthem to protest racial inequality.

“I think it’s really dumb of them,” Ginsburg is quoted saying in the piece. “Would I arrest them for doing it? No. I think it’s dumb and disrespectful. I would have the same answer if you asked me about flag burning. I think it’s a terrible thing to do, but I wouldn’t lock a person up for doing it. I would point out how ridiculous it seems to me to do such an act.”

According to The Daily Mail and The New York Post, which obtained advance copies of Couric’s book “Going There,” there was more to Ginsburg’s response. Couric wrote that she omitted a portion where Ginsburg said the form of protest showed a “contempt for a government that has made it possible for their parents and grandparents to live a decent life…Which they probably could not have lived in the places they came from.

Couric Says She Lost Sleep Making Choice

“As they became older they realize that this was youthful folly,” Ginsberg reportedly continued. “And that’s why education is important.

According to The Daily Mail, Couric wrote that the Supreme Court’s head of public affairs sent an email asking to remove comments about kneeling because Ginsburg had misspoken. Couric reportedly added that she felt a need to “protect” the justice, thinking she may not have understood the question. Couric reached out to her friend, New York Times reporter David Brooks, regarding the matter and he allegedly likewise believed she may have been confused by the subject. 

Couric also wrote that she was a “big RBG fan” and felt her comments were “unworthy of a crusader for equality.” Because she knew the remarks could land Ginsburg in hot water, she said she “lost a lot of sleep” and felt “conflicted” about whether or not to edit them out. 

Couric was trending on Twitter Wednesday and Thursday as people questioned the ethics behind her choice to ultimately cut part of the quote. Some thought the move showed a lack of journalistic integrity while others thought revealing the story now harmed Ginsburg’s legacy.

See what others are saying: (New York Post) (The Daily Mail) (Insider)

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Biden Administration Orders ICE To Halt Workplace Raids

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The Department of Homeland Security will now focus on targeting employers who exploit undocumented workers, instead of carrying out raids that dissuade those workers from reporting labor violations.


DHS Reverses Worksite Raid Policy

The Biden administration announced Tuesday that it was ordering Immigration and Customs Enforcement (ICE) to stop workplace raids.

The move marks a reversal from Trump administration policies that have been strongly criticized by immigration activists who argue the efforts created fear in immigrant communities and dissuaded them from reporting labor violations or exploitative employment practices.

In addition to stopping the raids, Department of Homeland Security (DHS) Secretary Alejandro Mayorkas said in a memo that the administration will refocus enforcement efforts to instead target “employers who exploit unauthorized workers, conduct illegal activities or impose unsafe working conditions.” 

Mayorkas added that the immigration agencies housed in DHS will have the next 60 days to identify harmful existing policies and come up with new ones that provide better deportation protections for workers who report their employers.

In the Tuesday memo, the secretary argued that shift of focus will “reduce the demand for illegal employment by delivering more severe consequences to exploitative employers” and “increase the willingness of workers to report violations of law by exploitative employers and cooperate in employment and labor standards investigation.”

Labor Market Implications

The new policy comes at a time when the U.S. is experiencing a critical labor shortage, including in many sectors that rely on immigrant labor.

Some companies that use undocumented workers pay them wages that are far below the market rate, which is not only exploitative but also undercuts competitors.

According to Mayorkas, the pivot to employer-based enforcement will help protect American businesses.

“By exploiting undocumented workers and paying them substandard wages, the unscrupulous employers create an unfair labor market,” he said in the memo. “They also unfairly drive down their costs and disadvantage their business competitors who abide by the law.”

It is currently unclear how effective the new efforts will be, but historical precedent does not paint an optimistic picture.

The Biden administration’s efforts closely mirror a similar move by the Obama administration, which attempted to reverse workplace raids authorized under President George W. Bush by targetting those who employ undocumented workers rather than the workers themselves.

That effort, however, still led to thousands of undocumented workers being fired.

See what others are saying: (The Washington Post) (The New York Times) (ABC News)

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Mom Charged for Hosting Secret Teen Parties, Pressuring Kids To Drink and Engage in Sex Acts

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Investigators said some of the sex acts between teens were non-consensual and at times took place while the mother stood by laughing.


Mother Hit With Dozens of Charges

A California mother is facing 39 criminal charges after hosting a series of illegal parties for her teenage son and his mostly 14- and 15-year-old friends that regularly led to dangerous accidents and sexual assaults.

The mother, 47-year-old Shannon O’Connor, also known as Shannon Bruga, is currently awaiting extradition to Santa Clara County. According to The Mercury News, she was arrested Saturday in Ada County, Idaho, where she has a home in addition to her property in Los Gatos that is currently on the market.

Her criminal charges include 12 felony counts and 10 misdemeanor counts of child endangerment, one count of misdemeanor sexual battery, three counts of misdemeanor child molestation, and 13 misdemeanor counts of providing alcohol to minors.

“It took a lot of brave children to come forward and to untangle this deeply disturbing case,” Santa Clara County District Attorney Jeff Rosen said in a press release regarding the case. “As a parent, I’m shocked. As the DA, I’m determined to hold those adults who endanger children fully accountable to the law and our community.”

What Happened During the Parties?

Investigators claim O’Connor organized the functions, attended by as many as 20 teens, via text message and Snapchat. She would then allegedly supply the teens with alcohol and push them to binge drink, often to the point of illness or unconsciousness.

The harm that resulted from their intoxication included one teen breaking a finger and another almost drowning in a hot tub, among other serious situations.

In another instance, O’Connor let an unlicensed drunk teen drive her car. Her son and another one of his friends then hung off the back while it was moving, which caused the friend to fall, hit his head, and become unconscious for 30 seconds. He was later diagnosed with a concussion after spending the night vomiting.

O’Connor is additionally accused of manipulating and encouraging drunk teens to participate in sex acts with one another, which were sometimes non-consensual or carried out while she watched. In some cases, she allegedly laughed while the sexual acts happened or when assault victims asked her why she didn’t step in to help.

Investigators added that O’Connor required teens who attended her parties to keep them a secret. She’s even accused of helping them sneak out of their homes so she could drive them to her events. Authorities said she was found to have bullied at least one teen who she suspected of breaking the secret.

“Everyone should feel relieved this woman’s not on the street,” the parents of one assault victim told The Mercury News. “She was grooming these kids, setting them up for sexual acts, and she’s a mother and doing this to her own child. … I’ve been racking my brain trying to think what was in it for her.

See what others are saying: (The Mercury News) (ABC 7) (CBS San Francisco)

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