Why we’re seeing mass layoffs in the US but not the UK

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Tens of millions of Americans are out of work because of the coronavirus. But it didn’t have to be that way — and it’s not too late for the US to change course.

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Few Americans alive today have ever seen unemployment numbers as bad as they are right now. At the end of April 2020, economists estimated that between 13 and 18 percent of US workers were unemployed. It’s the highest rate since the Great Depression.

That figure can seem somewhat inevitable; the unfortunate but unavoidable cost of economic lockdown. It’s why, in response, Congress has prioritized shoring up unemployment insurance benefits.

But a handful of European countries have shown that mass unemployment isn’t a given in a situation like this. It’s a policy choice.

In this video, we explain how and why the UK, Denmark, and the Netherlands chose a different path. With the help of economist Heidi Shierholz of the Economic Policy Institute, we explore whether the US can still avoid millions more job losses.

Sources/further reading:

The Nordic Way to Economic Rescue (NYT): https://www.nytimes.com/2020/03/28/business/nordic-way-economic-rescue-virus.html

Keeping Business Alive: The Government as Buyer of Last Resort (Emmanuel Saez and Gabriel Zucman, UC Berkeley): http://gabriel-zucman.eu/files/coronavirus.pdf

A ‘phase four’ relief and recovery package should provide economic assistance to state and local governments, extended unemployment benefits, and better protections for workers and jobs (Josh Bivens, Celine McNicholas, and Heidi Shierholz, Economic Policy Institute): https://www.epi.org/blog/a-phase-four-stimulus-package-should-provide-economic-assistance-to-state-and-local-governments-extended-unemployment-benefits-and-better-protections-for-workers-and-jobs/

Why Is America Choosing Mass Unemployment? (NYT): https://www.nytimes.com/2020/03/26/opinion/covid-economy-unemployment-europe.html?action=click&module=RelatedLinks&pgtype=Article

Coronavirus: Government to pay up to 80% of workers’ wages (BBC): https://www.bbc.com/news/business-51982005

Social Security: Unemployment Insurance (VCU Social Welfare History Project): https://socialwelfare.library.vcu.edu/social-security/social-security-unemployment-insurance/

The Unemployment Rate Is Probably Around 13 Percent (NYT): https://www.nytimes.com/2020/04/03/upshot/coronavirus-jobless-rate-great-depression.html

Jobless claims top 30 million as coronavirus continues to devastate economy (NBC News): https://www.nbcnews.com/business/economy/jobless-claims-top-30-million-coronavirus-continues-devastate-economy-n1196276

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21 COMMENTS

  1. Because our left government says it is time for America as we know it to fall and the new socialist society to rise. Just try and stay afloat people. Keep Walking doing the best you can…

  2. Looks like the claim in this video was wrong as the Us had the strongest growth among peers after the pandemic, unemployment is low, the US dollar is strong, wages have risen, and inflation isn't as bad as other counties.

  3. 3:56 That one person who doesn't want to take any more governmental aid even though they're starving because they think that someone else who's worse off needs it.

    Referring to the marble that got stuck on the rod

  4. should have made it clear that most of this issue of government control is as a result of democrat policies in democrat states. not saying republicans are saints, but this issue would not have been the case if government stayed out of the way.

  5. Exactly who is pushing to keep us locked in basement and giving out handouts? The democrats, the solution is no government control not more government control, businesses wouldn’t close if they weren’t forced to. But yeah we should totally trust the government to fix this because it’s not like they totally caused all of these problems in the first place.

  6. But no matter what stimulus is implemented. That money will be used to feed tbe trading stock addiction. It's like Instead of paying the bills your drunk dad buys beer.

    Where is the working-class homes to buy.?

  7. I know people in the UK moan alot about how we have dealt with this Pandemic and to be honest their right we have the highest Death rate in Europe. But we countries are in a much worse state than the UK. For that I am greatful.

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