RMIT Professor Joe Siracusa says while the United States is experiencing a “terrible situation” amid the COVI-19 pandemic, “it is not as bad as the Great Depression in terms of the economy is not broken, what is broken is the public health system”.
Nearly 17 million Americans have applied for unemployment benefits since the outbreak of the coronavirus with one in 10 workers having lost their jobs and trillions of dollars in cash and loans released by the Federal Reserve to try and counter the crisis.
Mr Siracusa told Sky News “the economy is frozen because of the health crisis”.
“Once we get past the public health crisis the economy will resume”.
He said the volatility seen on Wall Street over the past weeks “means all the smart money is staying in near the markets because they know the fundamentals of the American economy, like the economy of Australia is in good shape”.
“Once the public health crisis has blown through town, and it will blow through, it will take tens of thousands of lives and all the rest of it, but all the essentials are in place, so I wouldn’t get too panicky about what is going to happen to the economy,” he said.