IB Economists

The confederation of All India Traders (CAIT) said in a statement that nearly 20% of Indian traders could run out of business in the upcoming months, According to CAIT nearly $72 Billion has been lost in revenue in the period between 25th March to 30th April. Out of the 70 million traders who have suffered, 15 million traders will have to close down permanently. The traders are mainly made up of small and medium sized retailers. CAIT claims that there is no synchronization between the central and state governments and the home ministry have not helped the situation on the ground. They are looking for intervention from the government in order to minimize the impact. Earlier, Nobel Prize winner - Abhijit Banerjee suggested that India needs a big stimulus package in order to recover from this economic crisis. The Indian government has failed to introduce any stimulus package in order to help the economy. A lack of any help from the government can lead to a rise in unemployment and push ma...

The United States Bureau for Labour Statistics recorded an unemployment rate of 20.6%, which is the highest ever recorded since 1934.  Due to the Covid-19 pandemic, the aggregate demand in countries all around the world are falling. The world's largest economy and the country which has the highest number of cases of Coronavirus has seen a surge in the unemployment rate.  The United States is the world's largest exporter of goods after China and the fall of demand for goods all around and the world and slowdown in international trade has led to most industries in the United States coming to a halt or reducing the production to meet demand. Since reducing supply requires labourers to be made redundant and hence increasing unemployment. Services such as restaurants, movie theatres and public transport are not in demand and hence workers from these sectors are also being made redundant. A rise in unemployment levels is a bad indicator and comes along with a slowdown in the economy...