According to the White House Council of Economic Advisers, Tomas J Philipson, the economic impact of the coronavirus has taken a heavier toll on low-wage earners.
Speaking during an interview with BBC, he said there is a sort of unique impact of this shock in that its very regressive, hitting the low wage part of the economy, low wage workers taking a harder hit than the higher wage.
However, the current situation has political implications for the upcoming November election as President Trump enjoys far higher support among non-college-educated voters. “I’m not saying we are going to have a v-shaped recovery, in fact, the data shows a sort of gradual response.”
Defending the United State’s response to the pandemic, Prof Philipson said the US was the first nation to introduce travel bans from China and were criticized for that. He disagreed that a rise in US economic nationalism has been harmful to the world economy.
Niall Ferguson, Professor of History at Stanford University says the virus has seen economic tensions between the world’s two biggest economies become more than a trade dispute. It seems to be pretty clear that we’re now in ‘Cold War Two’.
The International Labour Organization estimates that the equivalent of 305 million full-time jobs could be lost worldwide in the second three months of this year.
The organisation says 1.6 billion workers in the informal economy nearly half of the global workforce are in immediate danger of losing their livelihoods.