Much of the bounce has been fueled by consumer spending from those lucky enough to have been able to ride out the pandemic working from home and by the huge government stimulus package agreed in the early days of the pandemic.
That recovery came as states opened up for business again. But now Covid infections are hitting new daily highs, it is uncertain how long that can last. El Paso has already brought in new lockdowns, Chicago is moving in that direction, Wisconsin is in crisis.
On top of that in congressional talks about a new round of stimulus have stalled. For most people the $1,200 stimulus cheques handed out in March have long gone. Most of the $1.6tn in the so-called Cares Act, which paid for expanded unemployment benefits, forgivable business loans and cash payments for households, hospitals, cities and states, had gone by June, according to an analysis by the Wall Street Journal.
The $600 extra in unemployment benefits ran out in July, leaving unemployed people around the country struggling to pay rent, food and bills. According to the Census Bureau four in 10 American children live in households that are struggling to afford basic expenses such as food and medical bills….
