(PatriotWise.com)- The US recession set off by the sharp drop in economic activity in March of 2020 at the start of the coronavirus pandemic lasted a mere two months – hitting its low point in April 2020. This according to the US Business Cycle Dating Committee, a group of macroeconomists who track and assign the start and end dates of US business cycles.
The committee said on Monday that while the country has not yet returned to normal operating capacity, based on indicators of both jobs and production, April 2020 was “the month of the trough” and the recession rebound began in May 2020.
In fact, the rebound in growth was so rapid, that, the “unprecedented magnitude of the decline” due to COVID lockdowns is the only explanation for why the recession happened in the first place.
In other words, rather than the natural flux in economic cycles of which recession is one, US states deliberately pushed our economy into recession by locking everything down.
Approximately 22 million jobs disappeared in March and April of 2020 – leading to some concern about another Depression. The panic prompted Congress and the White House to pass the first of several massive COVID “relief” spending packages.
President Trump maintained in the spring of 2020 that the US economy was very strong and would bounce back quickly – often describing what would happen as a V-shaped recovery. And while the added trillions in government spending have hobbled economic growth and increased inflation, the fact that the recession ended in record time only affirms what Trump said last year.
And it was record time. The COVID recession is far and away the shortest recession on record – shorter even than the 6-month recession at the beginning of 1980, and the recession of 2001 that was prompted by the tech bubble collapse.
Of the 22 million jobs lost due to the reckless lockdowns, about 15 million have been recovered. More than seven million remain lost. So while President Biden likes to brag about all the jobs he’s created, the truth is, he’s created nothing. These aren’t new jobs, but jobs lost due to government lockdowns that have now been restored.
And while some may believe the lesson here is spending trillions of dollars in COVID “relief” worked, the real lesson is locking down the world’s largest economy for any reason is an economic disaster.
But for the strength of the economy Trump built, the picture would have been far worse than it was.
With all the demands that states once again lock down out of fear of the delta variant, such a quick V-shaped recover is far less likely this time around. Consumer prices are already through the roof, inflation is climbing. A disruption of the kind we saw in 2020 would be a death blow in 2021.