Coronavirus: Trump's former economic adviser says US facing 'Great Depression scenario'

Markets fell on Friday after a shocking March jobs report that showed 701,000 jobs were lost last month

Dave Maclean
New York
Sunday 05 April 2020 15:16
Comments
Trump's former economic adviser says US facing 'Great Depression scenario'

An economist who previously advised Donald Trump says the US is hurtling towards a Great Depression if the economy isn’t revived by next month.

Stephen Moore said "real decisions" need to be made because of the "calamity" caused by strict social distancing measures across the US.

He said: “At some point soon, we’re going to have to make some real decisions about what kind of a calamity we are causing through the lock-down of our economy.

“I’m not saying we should be inattentive to the public health concern … but at some point, we have to worry about what we’re doing to our society, and what kind of economy we’re going to have after this is all over.”

Mr Moore, who has previously advised Mr Trump on the economy, told radio host John Catsimatidis: “If we go much past May 1, we are facing a potential Great Depression scenario.”

Markets fell on Friday after a shocking March jobs report that showed 701,000 jobs were lost last month.

Mr Moore predicted that the unemployment rate could hit 23 per cent as the crisis grows.

The rate hit almost 25 per cent in 1933 during the Great Depression.

The message dovetails with Mr Trump’s urgency during a briefing on Saturday to get the economy moving again.

Referring to the stay-at-home orders issued by governors across the US, he said: “You know, at a certain point, you’ll lose more people this way through all of the problems caused, than you will with what we’re doing right now.

“What we’re doing right now, I think is going to be very successful, but you know what? I don’t know. We have a big decision to make at a certain point. OK? We have a big decision to make. We went this extra period of time, but I said it from the beginning, the cure cannot be worse than the problem itself.

“We have to open our country again. We don’t want to be doing this for months and months and months.”

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in