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IMF Warns of Worst Economic Situation Since Great Depression Due to Coronavirus Panic

The cure is worse than the disease.

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While the so-called experts call for a longer and longer societal lock down, financial analysts are warning that emergency measures to stop the coronavirus pandemic are likely to result in the worst economic damage in nearly a century.

The International Monetary Fund (IMF) predicted on Tuesday that the coronavirus pandemic will result in the worst recession since the Great Depression, even surpassing the economic turmoil of the late 2000s. They expect a contraction of the world economy by 3 percent whereas the economy only contracted 0.7 percent in 2009.

“The Great Lockdown, as one might call it, is projected to shrink global growth dramatically,” said IMF economic counselor Gita Gopinath in the fund’s 2020 World Economic Outlook. “Much worse growth outcomes are possible and maybe even likely.”

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If the virus subsides over the second half of the year, the IMF expects economic growth to pick back up. They anticipate 5.8 percent growth in 2021 as a projected recovery takes hold aided by stimulus funds and money printing. This is only speculation, as certain experts predict that the coronavirus shut down could last many months. The IMF notes the “extreme uncertainty” of the situation while making their predictions.

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“Many countries face a multi-layered crisis comprising a health shock, domestic economic disruptions, plummeting external demand, capital flow reversals, and a collapse in commodity prices,” the fund’s outlook states. “Risks of a worse outcome predominate.”

Big League Politics has reported on the economic carnage caused by the coronavirus pandemic:

The coronavirus pandemic and mass hysteria that has followed it will have a long-lasting negative impact on the food service industry, according to a recent study.

A survey from the National Restaurant Association (NRA) of over 4,000 restaurant owners has indicated that 11 percent of restaurant owners believe they will have to close up shop permanently with three percent saying they have already closed their doors for good. These calculations extrapolated across the entire industry mean that over 110,000 restaurants will be forced to close forever within a month.

In the first 22 days of March, restaurants lost an estimated $25 billion in sales and over three million jobs because of coronavirus-related economic peril. The consumption-based economy has evaporated immediately, and the ramifications could be dire.

Roger Lipton, a restaurant industry investor and commentator, is calling this the “restaurant apocalypse” and sees the business heading into uncharted territory where the damages could be unlike anything that has happened in the industry before.

Every economic sector is being negatively affected by coronavirus. President Trump said that the cure cannot be worse than the disease, but that will certainly be the case if a depression is on the way.

Big League Economics

As Biden Eyes “Transition Away” From Fossil Fuels, Pennsylvania is Second-Largest Natural Gas Producer in US

Destroying Pennsylvanian jobs.

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Joe Biden’s announcement that he plans on a “transition away” from the use of fossil fuels as an energy source may not go over smoothly with the people of Pennsylvania- a state that has scored as the second largest producer of natural gas anywhere in the country.

Joe Biden admitted at the Thursday debate that he plans to “transition away from the oil industry,” citing pollution.

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The United States Energy Information Administration identifies a considerable 20.0% of national natural gas production as coming from the state of Pennsylvania, making it the second biggest producer behind Texas. The state punches well above its weight in doing so, producing almost as much natural gas as Texas despite having less than half of its population.

Biden has sought to dismiss his track record of support for the banning of fracking oil extraction, employing a similar thinly veiled rhetorical trick by stating he’d only decline to allow any new fracking.

The energy industry continues to be a source of gainful, family-supporting employment for over ten million Americans. It’s not an option to “transition away” from the use of fossil fuels in the immediate future- a fact Biden tacitly admitted to after the debate suggestion, perhaps indicating that he realized the political folly of the statement.

A study from the American Petroleum Industry indicates that more than 322,000 Pennsylvanians are employed by the natural gas industry that Biden wants to transition away from.

Pennsylvania is shaping up as the most critical swing state in the election, and in nearly every plausible election night scenario the winner of the state’s 20 electoral votes secures the 270 needed to win the election.

Perhaps Joe Biden should transition away from national politics, and leave policy answers relating to carbon emissions, the environment and a strong energy industry to those more considerate of the role of the natural gas industry in Pennsylvania and around the country.

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