Morgan Creek Digital Co-Founder and CEO of Morgan Creek Media, also known as Pomp, jumped into a YouTube Livestream to talk about the economy and the job market in the United States today. Back in 1929, at the beginning of the Great Depression, there was an unemployment rate of 1.2% in the first three months, and unemployment rose to 3.1% by the end of the year, “Pomp said. We eventually experienced the first time in history that we accelerated faster than unemployment, even during the Great Depression.
According to a firm, the unemployment rate will be 4.5% in April 2020, compared with 4% at the end of the Great Depression.
The Great Effects of the Pandemic Over a Nation
The COVID-19 governments took preventive measures after the terrorist attacks in Paris, temporarily closing shops and urging citizens to stay at home. He said that before such worrying actions, the US had been home to a booming economy with a population of more than 1.5 million people and a GDP of $1 trillion. Countless companies closed in the wake of the recession. The flow of money stalled as workers went home, and jobs evaporated. In the days and months that followed, US government forces brought in various injections of capital to prop up a faltering economy.
Although this had a significant impact on asset price inflation by pumping liquidity into the markets, “Pompliano said. While the stock market has made a dramatic comeback since COVID – the market’s fall – the economy remains in a state of struggle, as the 11.1% unemployment rate recorded in June shows. And while some industry insiders claim crypto lives outside the mainstream system, digital assets are still feeling the effects of the economy. If people are paid less due to unemployment, they can see that fewer people are investing in digital assets, and thus have less money in their pockets.
Still Amidst All This Crypto Still Performs Well
But crypto has performed well over the past year, outpacing the mainstream market in terms of price growth and market capitalization, according to the US Securities and Exchange Commission. Some assets have followed traditional markets, while on other occasions, they have gone their ways, such as Bitcoin and Ethereum.
Given the rise in the stock market, which has risen, and the cryptocurrency market has been increased from its lows in 2020, the unemployment figures make a logic that may hold, at least for the time being.