As stock market hovers near record highs, American economy heads for jobs disaster
The SP500, an index of the 500 largest American companies, reached a record high this past week closing at nearly 3,390 points on Tuesday despite the ongoing fight with coronavirus.
The technology companies have seen the best gains during the pandemic. In the last six months, these are the stock returns of some of the largest American technology companies as of Friday afternoon.
Apple -> up 58.75 percent
Amazon -> up 59.69 percent
Microsoft -> up 19.54 percent
Netflix -> up 29.45 percent
Facebook -> up 27.26 percent
Google -> up 6.48 percent
For those that are wondering, a typical year in the stock market would earn about 10 percent in returns from the SP500. The numbers from the aforementioned technology companies are leaps and bounds above the typical return despite the unmitigated disaster the US economy is headed for.
The IRS expects that about 37 million fewer tax forms will be filed in 2021
Based upon a new report from the IRS via Business Insider, Americans will have a tough time finding a job at least until 2027.
The IRS report estimates that about 229.4 million W-2 forms — which show employee wages and withholding — will be filed in 2021 for the 2020 tax year, about 37 million fewer than in the year before.
Beyond 2021, the IRS sees lower W-2 filings persisting throughout at least 2027, with roughly 10 million fewer forms expected to be filed for that tax year compared with 2019, before the coronavirus pandemic hit. The IRS' estimates for each year from now through 2027 are millions below those it forecast in a 2019 report.
A 44 percent drop in consumer spending could be expected if more coronavirus relief isn't passed
The National Bureau of Economic Research released a paper that shows a 44 percent drop in consumer spending is estimated to occur if the additional $600 per week unemployment benefits stop.
This is bad for everyone.
If consumers aren't spending money, it is likely because they are scared about spending money now and not having enough money for the future. For corporations, if consumers aren't spending money, businesses will struggle to make profits and stock prices will go down.
42 percent of jobs lost during the pandemic will not come back
Jose Maria Barrero, Nick Bloom, and Steven Davis from the Becker Friedman Institute at the University of Chicago issued a worrisome message for the recovery of the United States economy in a paper published in May.
We find three new hires for every 10 layoffs caused by the shock and estimate that 42% of recent layoffs will result in permanent job loss
Former Presidential candidate Andrew Yang, who has an excellent understanding of the impact technology companies will have on American workers (good and bad), has been talking about the looming and permanent job losses for a while.
At the Democratic National Convention Andrew Yang too issued a stark warning about the direction of the country and why Biden is a great choice to make sure technology companies don't make American workers obsolete and jobs will come back to the American people.
America should build a country in which business profits go hand in hand with the success of the American people, not at the expense of the American people.
About Ryan Lipton:
Ryan is a student at the University of North Carolina at Chapel Hill majoring in Business Journalism. He has written in the past for SB Nation's Silver and Black Pride, USA Today Sports Media Group, North Carolina Business News Wire, the Daily Tar Heel, and has worked with Ice Cube's BIG3 basketball league.