Article 50Q7C Coronavirus could expose the hollowness of America’s boom

Coronavirus could expose the hollowness of America’s boom

by
Dominic Rushe in New York
from on (#50Q7C)

A recession caused by illness might not be as bad as the crash of 2008. But the US is still highly vulnerable

Chaos on the stock markets, Europe in crisis, emergency interest-rate cuts from central banks - those with clear memories of the 2008 financial crisis and the crushing recession that followed could be forgiven a shudder of deja vu. But this time it is different - if not necessarily better.

Since the US economy crawled from the wreckage of the last meltdown, it has enjoyed its longest period of expansion in history. US unemployment has hit record lows and stock markets have hit record highs even as Europe has continued to suffer and growth has slowed in China. Plenty of problems remain but, if you squint, the US economy has looked rosy.

The coming recession - if it happens - is likely to expose the fact that many of the jobs added since the last downturn have been low-wage

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