There is no longer a question of whether we are headed for a recession, according to many on both Wall Street and Main Street.
Economists from Morgan Stanley and Goldman Sachs this week said a worldwide recession is now a “base case,” and that the U.S. economy will see a decline of 5 percent in GDP in the second quarter.
More than 60 percent of Americans also think a recession will come in the next year, according to a new study by YouGov.
The good news, however, is that both banks anticipate a bounce back. But most Americans say they don’t feel the country is ready to withstand a downturn.
Goldman Sachs predicts a 3 to 4 percent growth in the latter six months of the year. Morgan Stanley sees global growth at 0.9 percent for the full year — worse than the 2001 recession, but less severe than the 2008 financial crisis.
YouGov’s study found just 29 percent of the country was at least somewhat prepared to get through a downturn, while a majority (59 percent) said no.
The outbreak of the coronavirus worldwide is the kind of unforeseen factor that has seized markets and economies globally. But respondents said the way government leaders have responded also plays a role in their viewpoints.
According to an exclusive YouGov poll conducted for Cheddar, 72 percent of Americans believe that a U.S. president has an influence on a country’s economic standing. The remainder — 28 percent — said they believe a president has not very much or no influence.
Across age groups, the vast majority responded in a similar breakdown:
When viewed across party lines the answers reflect bipartisanship, but still skew majority:
In terms of how personally ready Americans feel they are for a recession, more people were likely to say they were not very or not at all prepared for a recession (46 percent) than somewhat or very prepared (42 percent).
Those with higher incomes reported feeling more prepared
Those who felt not very prepared or not at all prepared were more likely to make less than $80,000
Respondents who reported making less than $80,000 were also more likely to respond that they weren’t sure if they were prepared or not — around 10 percent versus 4 percent of those who reported making $80,000 or more.
There have been various proposals on how to ease the financial burden on Americans during this situation. On Wednesday President Donald Trump signed a broad relief bill that promises healthcare-related assurances, including paid emergency leave and free testing for Covid-19 to start.
A potential expansion of the relief being discussed includes direct checks that could mean $1,000 per adult and $500 per child.
Some believe this may not be enough -- the New York Times editorial board wants the federal government to send $2,000 to every American immediately.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
