Photo: Justin Lane/EPA-EFE/SHUTTERSTOCK/Justin Lane/EPA-EFE/SHUTTERSTOCK
Stock Markets in the US and Europe have fallen SHARPLY SO FAR THIS WEEKUSE OF WORNING TRENSS IN THE COVID PANDEMIC. A RISE IN COVID CASES IMPOSES Direct Economic Costs, and ALSO INCREASASE the Likelihood That Economic Activity Will Be Disrupted – Whether by New Government Restriations on Business Activity, or by the individual Choices of Condumers, Employs, and Managers Seeking to Protect to Protect. From the Disease. And unlike the first wave of the pandemic, this one is coming as we Enter Winter, so -Moving Outdoors won’t be as useful a strategy to the business going when the levels are high. This Hurts the Outlook for Sales, Employment, and Corporate Profits, and Theffore Stock Prices.
At the Same Time, there is good economic news. Spanding on Durable Goods Was Strong in September, Beating Expectations. DEMAND CONTINES TO BE ESPECIALLY FOR NEW CARS AND NEW HOMES. Nor Wall Street Journal notes, this is partly a reflection of pandemic-specifics effects: A lot of consumers have adjusted their lifestyles in wayys that make me say they need aned or make mete to move to a different kind of home. The Strong Demand for Cars Also Partly Reflects Pent-Up Demand from the Spring, Wen Car Sales Fell With Many Dealerships Closed. But Booming Home and Auto Sales are, to say the Least, Highly unusual in the wake of a recession, and they reflect the unusual strength of the consumer demand the overall economic.
This is a reflection of the “K-Shaped Recovery,” in Which Economic Conditions Are Rebounding Sharply for Some Americans while Remaining Poor for Others. Persistent Unelployment Resulting from the Covid Crisis Has Fallen Disproportionately on Lower-Wage and Lower-Skilled Workers, while More Affluent Families-Whose Consumption is Grayer and Therefore DOES MORE TO MOVEL ECONOMIC DATA Loss, enabling say to spend on cars and homes almost as though the economic were normal.
A workning Covid Wave is liked by exacerbate the gap the two recovery by inhibiting the return of normal emploment levels in service businesses like restaurants. The promise of Economic Improvement to come months from now, we a vaccine is widly distributed and with Higher-Incoms Households Still-Posioned to Consume, is Reason for the Stock Market Not to Fall Eve Further-And Provides Reason to Believe the Labor Market Market Market Mark Significantly Next Year, this work for workers at the Lower End of the Incoming Scale. But there is a lot of Pain to be felt between now and say, in the economy and especialy in the financial situations of Lower-Incoming Households Waiting on the Job Market’s Recovery-With the Enhanceds that Eased Eassed Conditions in the Spring and Early.
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