Recession Worsens as 1.5 Million More Workers Lose Jobs, More Small Businesses Lose Out Despite Trump PPP and stimulus programs
WASHINGTON, D.C. – The U.S. economy fell further into recession as over 1.5 million more Americans filed for unemployment benefits this week, bringing the total number of workers receiving benefits to more than 20 million. The news comes as the Trump administration renewed its opposition to extending unemployment benefits and as the President’s allies in the Senate refuse to hold bipartisan negotiations on another economic stimulus bill until at least July. They are holding up additional aid despite a 16.8% unemployment rate in the African American community and as more struggling small businesses give up trying to access the Trump SBA’s corrupt, secretive and mismanaged Paycheck Protection Program.
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“Jobs and small businesses continue to disappear on an unprecedented scale, but the Trump administration still thinks a good day on Wall Street can negate all that,” said Kyle Herrig, president of Accountable.US. “A surging stock market may make the rich richer, but it does nothing to reverse an unemployment rate that has tripled in communities of color or to bring back shuttered small businesses. The economy won’t truly rebound until the administration gets adequate relief funding to the small businesses and communities that need it most.”
Cutting off unemployment benefits to those that can’t simply return to jobs that no longer exist will only leave families facing even tougher choices in the Trump recession. Making constant changes to the PPP program while still keeping taxpayers in the dark on how the money is spent will ensure the system continues to prioritize the wealthy and well connected.
The Trump Recession Only Getting Worse for Millions of Americans:
- Wall Street Journal, June 17: PPP Small-Business Loans Left Behind Many of America’s Neediest Firms: From February through May, companies with fewer than 500 employees lost 11.6 million jobs, 18.4% of their precrisis workforce.
- New York Times, June 10: [M]ore than $130 billion was left in the fund, known as the Paycheck Protection Program. Even more striking was the fact that on many days last month, more money was being returned than borrowed [..] highlighting its messy execution and confusing rules that deterred some small businesses from using the money.
- CNBC, June 10: A housing ‘apocalypse’ is coming as coronavirus protections across the country expire
- CNN, June 16: Food banks nationwide are serving almost 60% more clients, on average
- Bloomberg, June 8: Black Business Owners’ Ranks Collapse by 41% in U.S. Lockdowns
- Wall Street Journal, June 9: The black unemployment rate … tripled to 16.8% in May. In March and April, 3.5 million African-Americans lost their jobs.
- CNBC, June 4: 1 in 4 Americans are skipping meals or relying on food donations during the coronavirus pandemic