As Treasury Secretary Steve Mnuchin pitched his trillion-dollar-plus bailout for Americans (and their companies) struggling during the Covid-19 crisis, it appears he has ripped a page right out of the TARP playbook... scare the Senators to death about the consequences of not approving the funds.
Bloomberg reports, according to sources familiar with the matter, that Mnuchin warned the Senate GOP members that without action, the US unemployment rate could spike to a stunning 20%.
With a total labor force or around 160 million, that would mean a sudden spike to over 30 million unemployed Americans
Those are depression-era levels of job losses... which prompted the New Deal and the welfare state the last time it happened...
This time - MMT, UBI, and socialized losses for everyone.
He may well be right, with New York's unemployment claims website crashing and the chief economist of a multi-billion macro hedge fund advising us that they are now modeling approximately 10 million job losses over the next two to three months.
We leave it up to readers to decide if Mnuchin's projection too little, too much, or just right.
Time to start the presses...