U.S. Job Claims Spike To 6.6 Million As Fed Rolls Out New $2T Bailout

Written by Ann Brown
U.S. job claims have spiked to 6.6 million just as the Federal Reserve rolled out a new $2 trillion bailout, amid the COVID-19 pandemic. credit mmg

The coronavirus pandemic and shutdown have cost millions of Americans their employment with job claims spiking to 6.6 million.

U.S. workers applied for job benefits in massive numbers for a third straight week, bringing the total to about 16.8 million during the economic shutdown, Bloomberg reported. 

The U.S. is reporting 454,952 coronavirus cases and 16,086 deaths as of this writing, according to Worldometer. Government officials predict COVID-19 could kill an estimated 100,000 to 240,000 Americans.

Some economists predict a recession or depression. Others say we are already there.

Treasury Secretary Steven Mnuchin would not confirm whether the U.S. is in a recession when asked recently by Fox News. Instead, he said, “Are we going to have reduced economic activity this quarter? Absolutely, I think next quarter, a lot depends on how quickly the curve of the medical situation works.”

But the director of the National Economic Council, Larry Kudlow, told ABC News, “It could be four weeks, it could be eight weeks” before economic activity resumes. “I say that hopefully,” he said, “and I say that prayerfully.”

In the week ending April 4, 6.61 million people filed job claims, according to Labor Department figures. During that week, California reported the most initial claims, at an unadjusted 925,000. Georgia had the second-highest number of unadjusted claims (about 388,000), while Michigan came in third with about 385,000. Next, was New York with 345,000, Texas with 314,000, and Florida with 170,000 new claims. 

Unemployment claims have gone up as more and more businesses shut their doors so employees can stay home. Not only are workers feeling the economic pinch but so are the businesses, especially small businesses.

The federal reserve has revealed the details of the $2.3 trillion bailout aimed at helping support the economy for workers and small and large businesses.  

Businesses with up to 10,000 employees and less than $2.5 billion in revenues for 2019 qualify for loans. Principal and interest payments will be deferred for a year, CNBC reported.

Listen to GHOGH with Jamarlin Martin | Episode 70: Jamarlin Martin Jamarlin goes solo to discuss the COVID-19 crisis. He talks about the failed leadership of Trump, Andrew Cuomo, CDC Director Robert Redfield, Surgeon General Jerome Adams, and New York Mayor de Blasio.

In all, the programs would total up to $2.3 trillion and include the Payroll Protection Program. The Fed plans to purchase up to $600 billion in loans.

Businesses seeking Main Street loans can apply for a minimum of $1 million and a maximum of $25 million or an amount that “when added to the Eligible Borrower’s existing outstanding and committed but undrawn debt, does not exceed four times the Eligible Borrower’s 2019 earnings before interest, taxes, depreciation, and amortization,” CNBC reported.

This move by the Fed is an effort to ensure there will be businesses still around when employees are allowed to go back to work.