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Unemployment rates skyrocket: A second Great Depression looms

Updated: Apr 6, 2020

The level of unemployed Australians could reach a level not seen since 1932, with predictions of more than 2 million out of work and requiring government assistance. This jobless rate of around 15 percent would be up from the last reported rate of 5.1 percent, which will do irreparable damage to both the economy and the everyday lives of Australians. Unprecedented demand for social security has seen queues around the block for the hundreds of thousands of Australians suddenly out of work as a response to coronavirus safety measures implemented recently.

The closure of non-essential indoor venues is likely to only be the beginning of the economic impact of coronavirus, as the Australian government is considering the shutdown of all non-essential businesses, which will drive the unemployment rate up higher than it was during the Great Depression. Our global economy, which is built on the premise of infinite growth and constant consumer spending, will likely take many years to recover from even the current downturn, let alone unemployment rates of around 10 percent globally. For most Australians, this will be the worst economic conditions they will have faced in their lifetimes. Stories of the day-to-day struggles suffered during the Great Depression will become reality for a substantial portion of the population.

A senior official from the US Federal Reserve has warned that unemployment in America could reach 30 percent, which could lead to a staggering 50 percent drop in US Gross Domestic Product. This would be a massive 2.5 trillion dollar blow to the world’s largest economy. There are tough times ahead for all of us, but effectively shutting down the economy is what is needed to stem the growth of the coronavirus.

Health officials warn that while queues for welfare can be upsetting, queues for the ventilators used to treat coronavirus would be far worse. The government response in shutting down non-essential business is both necessary and appropriate, and some health officials would argue that even stricter measures are required in order to properly halt the spread of the coronavirus. The call-to-action broadcast recently by the Australian armed forces to all army reserves in the nation suggests the possibility that we will see sterner measures implemented by the government in order to keep as many people home as possible.

The team at Tower technology hopes that you all stay safe in these unprecedented times.

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