Report: 10-Year Recovery Costing Nearly 8 Trillion Is Expected For U.S. Economy
The estimate from the Congressional Budget Office is likely to be key to the continuing debate in the Senate over another coronavirus relief package, although Sen. Mitch McConnell has given little indication that the Senate would soon enter negotiations on another relief package. Economic relief news comes from California, Pennsylvania, and Louisiana, as well.
The New York Times:
Coronavirus To Shave Trillions From The Economy Over 10 Years
The Congressional Budget Office projected on Monday that the coronavirus pandemic would inflict a serious long-term blow to the United States economy, taking 3 percent off the gross domestic product 10 years from now. Without adjusting for inflation, the budget agency said, the pandemic would cost nearly $16 trillion over the next 10 years. Adjusting for inflation, that number would still total $7.9 trillion. The estimates were an official tally of the damage the crisis has wrought, reflecting expectations of dampened consumer spending and business investment in the years ahead. (Cochrane, 6/1)
The Wall Street Journal:
U.S. Economy Faces Projected 10-Year Recovery From Coronavirus Effects
The Congressional Budget Office, a nonpartisan legislative agency, said the sharp contraction triggered by the coronavirus caused it to mark down its 2020-30 forecast for U.S. economic output by a cumulative $7.9 trillion, or 3% of gross domestic product, relative to its January projections. GDP isn’t expected to catch up to the previously forecast level until the fourth quarter of 2029, the CBO added. The roughly $3.3 trillion in stimulus programs enacted by Congress since March will only “partially mitigate the deterioration in economic conditions,” the CBO said. (Hannon and Kiernan, 6/1)
CNBC:
The Coronavirus Will Cost The Economy Nearly $8 Trillion, Congressional Budget Office Says
“Business closures and social distancing measures are expected to curtail consumer spending, while the recent drop in energy prices is projected to severely reduce U.S. investment in the energy sector,” CBO Director Phillip L. Swagel said in a written response to an inquiry from Sen. Chuck Schumer, D-N.Y. “Recent legislation will, in CBO’s assessment, partially mitigate the deterioration in economic conditions.” (Cox, 6/1)
The Hill:
COVID-19 Pandemic Will Shrink Economy By $8 Trillion In Next Decade: CBO
The report also noted that "recent legislation will, in CBO’s assessment, partially mitigate the deterioration in economic conditions." Congress passed some $3.6 trillion worth of emergency relief legislation through March, pumping cash into struggling small businesses, as well as providing more robust unemployment benefits and stimulus checks among other actions. (Elis, 6/1)
The Washington Post:
Coronavirus Will Cost U.S. Economy $8 Trillion Through 2030, CBO Says
The stark illustration of the pandemic’s potential economic impact comes one week after White House officials confirmed they would not release their own updated projections this summer in their annual “mid-session” budget review. The pandemic will hamper U.S. economic growth by reducing the amount of consumer spending and closing numerous businesses, the CBO said. Part of the impact will be mitigated by the more than $2 trillion the federal government has already approved in emergency spending for households and businesses. (Stein, 6/1)
KQED:
Stressed About Paying June Rent? Check Here First
California's businesses and activities are slowly starting to open, but many renters in the Bay Area — and across the state — are still having trouble paying rent for June after being financially impacted by the coronavirus and resulting regional shelter-in-place orders. In response, some cities and counties are extending eviction moratoriums. For renters in Alameda, Solano and Sonoma counties, eviction moratoriums remain in place up to 90 days after California's state of emergency ends. Gov. Gavin Newsom declared a state of emergency in early March and hasn't yet announced when it will end. (Wiley, Solomon and Baldassari, 6/1)
Sacramento Bee:
Millions Of Californians Could Lose Affordable Housing In Recession, Advocates Warn
More tenants — even ones who keep jobs and make rent — could lose their subsidized housing if enough of their neighbors fall behind and a complex goes out of business, allowing new landlords to hike rents to market prices. Affordable housing advocates say as much as 79 percent of California’s existing affordable housing is at risk. (Irby and Wiley, 6/1)
The Philadelphia Inquirer:
More Than 16,000 Philadelphia Households Missed Out On Food Monday Because Of Demonstrations
Since March 30, the City of Philadelphia has run 40 food distribution sites supplied by anti-hunger nonprofits every Monday and Thursday to feed people during the pandemic. Those spots were closed on Monday because of fears generated by the protests roiling the area. The result: Around 16,000 city households missed out on 250,000 pounds of food for the day, according to George Matysik, executive director of Share Food Program, one of the hunger-fighting agencies. Share typically provides food for the Monday distributions. (Lubrano, 6/1)
New Orleans Times-Picayune:
New Orleans Launches Program That Will Feed 30,000 Residents And Boost Restaurant Industry
New Orleans will feed thousands of residents this summer who have struggled amid the coronavirus lockdown under a program meant to relieve food insecurity and stimulate the city's restaurant industry. The city will by June 14 hire restaurants and kitchens who will prepare and deliver up to two meals a day to eligible residents, officials said Monday. After the city selects one or more food service providers, more than 30,000 people who aren't getting other forms of federal food assistance may receive the meals. (Williams, 6/1)
San Francisco Chronicle:
SF, Silicon Valley Rents Plunge Amid Downturn: 'Never Seen Anything Like It'
The cost of renting an apartment in the Bay Area plummeted in May, as layoffs and the increased flexibility of working from home drove a double-digit drop in some of the nation’s most expensive housing markets. Rents for a one-bedroom apartment dropped most in the cities richest in high-paying tech jobs, falling 9.2% in San Francisco compared with May of 2019. In Mountain View, home to Google, rents fell 15.9% year over year, while in Apple’s hometown of Cupertino rents dipped 14.3%, according to the rental search engine Zumper. In San Bruno, where YouTube has its offices, rents tumbled 14.9%. (Dineen, 6/1)
