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Most businesses have said they will rehire the moment they are allowed to operate again. Why do you think people will be out of work?
by tathougies 7y ago
Most businesses have said they will rehire the moment they are allowed to operate again. Why do you think people will be out of work?
- jeremyjh 7y agoA lot of small businesses will no longer exist after this is over. That is one reason. But it seems unlikely we'll be able to exit this without deep structural damage that takes a significant amount of time to repair; there are negative feedback mechanisms that are difficult to overcome even with well-targeted stimulus. The most basic is that unemployment reduces consumer demand which reduces employment demand. It doesn't just go away some sunny day in June either, the slack demand directly due to the virus is likely to be with us for many, many more months to come.