The smouldering economic wreck that America has witnessed on the streets for months has finally shown up in official growth figures.
The economy shrank by 9.5 per cent between April and June, an eye-watering figure, more than three times the magnitude of any other contraction on record since 1947.
When extrapolated out to an annual figure, it’s 32.9 per cent.
For reference, the global financial crisis (between 2007 and 2009), America’s “great recession”, saw a decline of 4.3 per cent.
The figure amounts to $US1.8 trillion ($2.5 trillion) in lost economic output, in the space of three months.
In terms of shrinkage, this is like taking steroids before swimming in Antarctic waters without a wetsuit.
And remember, it’s happened despite multi-trillion-dollar emergency cash injections drawn up by Congress and approved by President Donald Trump.
Without that stimulus (a debt that America’s kids and grandkids will have to pay back), today’s numbers would have been even uglier.
But here’s the thing: Pundits and politicians are talking about Americans being on the edge of the cliff now — and in danger of falling off.
In other words, things could be about to get much worse.
Expect a partisan stalemate to exacerbate problems
Negotiations over a new coronavirus relief bill have hit a brick wall in Congress.
There’s an enormous gulf between the Democrats’ $US3 trillion wide-ranging proposal and the Republican’s $US1 trillion bill.
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