Dr. Chhoda analyzes a report by CNBC’s Senior Economics Reporter – Steve Liesman reports on how the lack of funding for small businesses and the unemployed is about to worsen the recession.
Also watch this video for a more detailed report on the ‘unemployment paradox’:
RECESSION IS OVER FOR THE RICH, BUT THE POOR ARE GETTING CRUSHED | HERE’S WHAT YOU MUST DO RIGHT NOW
KEY COMMENTS FROM LIESMAN:
Uunemployment by education, it surged more than 15 points for Americans without a high school degree. It’s falling just 6 points and remains above 15% for Americans with a bachelor’s degree, though, or higher. It rose about 6.5 points in this decline to 6.7% from 8.4. So two very different experiences there, depending upon education level.
You can find the same differences by income level, high income for the high income earners. They’ve had few job losses. They can work at home and they have stock and home value gains. That’s not true for those with low incomes who have minimal savings, minimal equities, high unemployment.
You can see the one thing they had going for them, the federal unemployment assistance. Well, that’s gone.
Fed officials have urged additional aid in ways they normally don’t. They’re concerned the economy can’t prosper with such a massive split. Evictions, bankruptcies, higher unemployment and a more muted rebound could be the results.
It’s unclear how long Wall Street can prosper without additional aid to Main Street and the people who live and work.