London Daily

Focus on the big picture.
Saturday, Aug 02, 2025

Coronavirus shines light on our unfair economy as millions join the ranks of the jobless and hungry

Coronavirus shines light on our unfair economy as millions join the ranks of the jobless and hungry

The scale of the destruction of people’s livelihoods, from China and India to the US, shows that for too many, job and income security was only a mirage. Policymakers, who already have a tough job balancing lives with livelihoods, must ensure that once the crisis is over, a fairer economy can be built

It seems a bit rich coming from a man who earned US$31.5 million last year – up a miserable 1.6 per cent from the year before – to say that the pandemic is “wake-up call” to build a fairer economy for millions of people “who have been left behind for too long”. Step forward, Jamie Dimon, chief executive of JPMorgan Chase who – if we discard our cynicism for a moment – makes a lot of sense.

There is not that much gossip coming out of China because of the travel restrictions but Bloomberg reports that the unemployment rate is thought to have hit 12 per cent in March, with over 50 million out of work and another 80 million on furlough. The official unemployment rate is 5.9 per cent, or 26 million people.

The Centre for Monitoring Indian Economy reports that unemployment in India reached 27.1 per cent in the week ending on May 3 – a record high. Some 18 million entrepreneurs were out of work in April. In total, 122 million jobs were lost.

Most Indian jobs are in the informal sector, with many of the workers under 30 years of age and among the poorest. When I asked an Indian journalist what unemployed people do, the answer was just three words, “dying of starvation”.



In the land of the free and the home of data, the United States, the unemployment rate is now around 14.7 per cent, whereas in February it was a mere 3.5 per cent. Since the outbreak, jobless claims have risen to 36.6 million. Optimists are saying that when the lockdown lifts, at least half of those will be employed straight away. Maybe – but at what wages?

Europe and Britain have largely furloughed employees, with the British government paying 80 per cent of salaries, but companies are still shedding jobs. The latest figures show the number of jobless claims in Britain went up by 69 per cent between March and April, to around 7 per cent of the working population. About 2 million are now receiving state aid, with the young and those just short of retirement being worst-hit.

In Hong Kong, unemployment jumped from 3.3 per cent at the beginning of the year to 5.2 per cent for the three months to April, leaving many on short time, short wages, or without a job.

One of the most striking scenes has been long lines for food banks in rich Western countries. Complaints about the slow pace of state support are also heard across China, Europe and the US, which add to the uncertainty.

In Hong Kong, residents ask themselves why it will take the government five months to pay out the HK$10,000 (US$1,290) grant offered in February. Even in the US, residents have already begun to receive special payments offered under the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed in March.



With this picture in mind, Dimon’s comments ring loud and clear. The devil makes work for idle hands and policymakers from Beijing, Brussels and Washington know that millions of discontented, unemployed people are a fundamental threat to social stability. What if they demanded a fairer system?

Religion may have been “the opium of the people” in Marx’s time but in our Instagrammed, tweeting world, it is now jobs, security and income potential. This is why policymakers have pledged a massive US$10 trillion and counting of support to economies, which is providing confidence to the stock markets.

China is notably not included in that number, preferring to support the economy through state aid to corporations and the sluggish welfare system. It has resisted using Western tools of zero interest rates and quantitative easing, but direct injections of cash means printing money nevertheless.



While this is happening, other important financial narratives are being swamped. US President Donald Trump’s aggressive tone on China trade would be very serious at another time. China’s imposition of tariffs on Australian barley (for supporting an inquiry into the origins of the coronavirus, some believe) would have been met with a more severe reaction but, important though these narratives are, they pale into insignificance against the coronavirus story.

Politicians around the world took fright at the prospect of intensive care units filling up with patients struggling to breathe. For many in the West, air travel restrictions, quarantines and other measures could have come sooner. Hong Kong, with memories of the deadliness of the severe acute respiratory syndrome still fresh, showed that strict early measures are better than a late total lockdown.

It is not easy balancing lives against livelihoods, but we are getting to the stage where people will have to get back to work, albeit in a restricted fashion.

Newsletter

Related Articles

0:00
0:00
Close
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
×