Another 4.4 million people filed unemployment claims last week, bringing the total unemployed in the US to 26 million and the unemployment rate to around 20%. This is the fifth straight week of record weekly unemployment filings, but the third straight week of declining filings, which is about the only silver lining in economic data today.
For comparison, according to the National Bureau of Economic Research (NBER), it took three years for unemployment to go from 4.7% to over 20% in the Great Depression. (It peaked in 1933 at around 25%.)
It would help if the Trump Administration and the Republicans in Congress would work towards a sensible response to the pandemic, but alas, they can't get past their ideologies or basic stupidity. Political appointees at the Dept of Health and Human Services sidelined Biomedical Advanced Research and Development Authority director Dr Rick Bright, a physician who has studied immunology and molecular pathogenesis for most of his career, because he refused to endorse President Trump's quackery. Bright joins a number of other scientists and experts canned for not following the party line over the past two months, including the head of the director of the National Center for Immunization and Respiratory Diseases. The Centers for Disease Control hasn't had a press conference since March 9th "in part out of a desire not to provoke the president," according to the Washington Post.
Senate Majority Leader Mitch McConnell has taken the opportunity to push his ideology of small government (i.e., everyone for himself) one step further by suggesting states like Illinois could simply go bankrupt rather than get Federal aid to help their governments through the crisis. Note that the reason states like Illinois have a crisis right now looks a lot like the reason the whole world has a crisis right now, but McConnell, who hates government as much as Trump hates women, thinks screwing millions of retirees out of their pension benefits sounds like a great thing to do in a pandemic.
One should note that Illinois ranks 43rd on the list of how much Federal aid goes to the states. Kentucky ranks 8th. In fact, there seems to be a correlation between the percentage of votes for Republican candidates and a reliance on Federal aid. This makes perfect sense, of course: these states vote against their own taxes but they still have to keep their poorest citizens from dying, so they go hat-in-hand to the Federal government. Also, the New Jersey plan makes sure that small, rural states have disproportionate power in Congress, further guaranteeing that these places will suck money from larger, urban states even while crying about the size and scope of national programs.
My fervent hope in the next 194 days is that people understand how much we need effective government, and how the disastrous response of our current government comes directly from the administration's and the Republican Party's twin desires to increase wealth inequality through decreasing government effectiveness in general.