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If there's one thing Covid related shutdowns have shown, it's that vast numbers of people, in not very productive jobs, could be unemployed with minimal economi
by umeshunni 6y ago
If there's one thing Covid related shutdowns have shown, it's that vast numbers of people, in not very productive jobs, could be unemployed with minimal economic impact. Unemployment and labor (non-)participation rates have risen drastically, sometimes by 10s of percentage points, but overall GDP has dropped by only 5-8% in the most impacted countries, including the US and EU.
- megous 6y agoUnemployed people have economic impact, obviously. They consume their savings, increase debt, or are a tax burden on others (or all of the above). If they consume savings mainly, they may even show up as a positive influence on GDP. But it's not very sustainable, because for most people's savings are quite limited, and consuming them because they're forced to by circumstances is not really good for them.