SPSM - This Isn't Your Usual Demand-Shock Recession

By Michael J. Hoffman

In the last month, the coronavirus pandemic, known officially as COVID-19, has caused social and economic havoc in the US and the rest of the world. Last month, the US economy lost a total of 701,000 jobs while the unemployment rate shot up to 4.4 percent from 3.5 percent. The decade-long trend of job gains has come to an end, but one question remains: are these signs of a typical recession? The answer is complicated, unfortunately.

Austrian economists have long warned that a recession has been inevitable ever since the Federal

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