It’s Not Over: Jason Talks Economics
Half of Americans are now out of work.
Yes, you read that right. For the first time in history, half of all Americans are out of work.
But you wouldn’t even know it by looking at the stock market. And that’s because the stock market is now, more than ever, not an indicator of the economic health of the nation.
Here’s one example.
Earlier this week, Apple issued $8 billion in bonds. Why? They’re raising money for their own stock buybacks.
And sure enough, AAPL stock is up 5%.
When the government ordered the lockdowns, they signed the death warrant for many existing small businesses. They’ll never recover, because they weren’t prepared for weeks without income.
And in the case of restaurants, this whole partial reopening business won’t do them any good. Because running a restaurant at a fraction of normal capacity means losing more money than just not opening at all.
Adding to their troubles is the fact that lots of people are getting more in unemployment dollars than they would if they went back to work. So they’re simply refusing to work.
This is a recipe for disaster. But it’s also an opportunity.
As this recession deepens and more small businesses go under, even more capital is freed up for new small businesses. If there’s one thing that rich people love to do, it’s spend money on stuff that will improve their lives.
So it’s not all doom and gloom. You just need the right frame of mind.