One of the most significant financial disasters of the world happened when the US stock market crashed in 1929. The event is known throughout history as 'The Great Depression.' As the coronavirus pandemic threatens America today, citizens are starting to live in that section of the past right now.

Analysts are now comparing between the 1930s and the current economy, and the results are uncanny. They say that coronavirus could lead to the same economic and political turmoil that plagued Americans nearly a century before.


Unemployment

The unemployment rate in the US is the highest its ever been since the Depression, where more than 20.5 million jobs were lost in April alone. The Bureau of Labor Statistics (BLS) reported that the official unemployment rate rose to 14.7% reaching its highest point since 1948 when the government's latest data was initially tracked.

The statistics are evidence of a similar effect The Great Depression had on the 1932 unemployment rate. Recent headlines may hide the actual truth of how many jobs people have lost as the BLS explains that a mistake in data-collection resulted in more than eight million US citizens being incorrectly categorized as employed but are actually unemployed or temporarily laid-off.

The error, once corrected, would lead to an approximate unemployment rate of 19.5% for April, which hits eerily close to 1932-1933 statistics.

The dark news comes along with millions of Americans filing unemployment claims since last month, which have not been calculated to the previous numbers. All this shows that right now is still relatively pleasant.

The jobs lost in April were scattered among different industries. Including leisure and hospitality where hotels and restaurants align that dropped by more than a third of their original and retail sectors that lost more than 2.1 million.

Within the decline, there have been some that saw partial increases, albeit minuscule. The only real winners, if there are any, are companies like Walmart and Target, which all saw massive gains. It's not just several industries that have taken hits; it's the entire economy that's started to crumble.


Dark Future

The results aren't surprising given the disastrous effects the virus has had on virtually every industry, causing most, if not all, facilities and establishments to shut down. The numbers are a sign that the government's reaction to the coronavirus pandemic has run short.

The CARES Act, which was passed by officials in March, aimed to keep workers in their jobs, wherever possible, and looking at the state of today's economy, it has failed to maintain its initial goal.

There is some mitigation with regards to unemployment with the Paycheck Protection Program and the efforts of rehiring by establishments that have received their aid from the government. Still, it is undeniable that things are looking worse as the days go on.

The primary factor in keeping the Depression from hitting its peak is the generous $600-weekly benefit that Congress has produced. This brought most Americans a steady financial aid, which is more than what their previous jobs offered.

The surge of applications for the benefit has risen as a challenge to most States as more and more citizens file their claims, where a lot of people had to wait several weeks to be accommodated. In contrast, some have been prevented from applying due to crashing websites.

Since April 18, however, almost 19 million applications have already been processed, and hopes are high that those in need are receiving their much needed financial aids.

The monetary benefits are set to last only until the end of July. If that time comes and there are still those that are incapable of returning to work or supplying their necessities themselves, they'll have an immensely rough time with coping as the economy mimics the previous disaster even further.

Discover life during the Great Depression in the video below:


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