Jesse Rothstein, a public policy professor, warns that the U.S. may be on the brink of a significant recession due to government job cuts initiated by Elon Musk. Rothstein predicts unprecedented job losses in upcoming employment reports, linking increasing unemployment to reduced consumer spending and a spiraling recession. He highlights uncertainty regarding the exact number of layoffs, noting that the US Office of Personnel Management may lack accurate figures, complicating the economic outlook. The potential for hiring freezes across various sectors raises concerns about broader economic impacts.
It seems almost unavoidable at this point, that we are headed for a deep, deep recession.
The March employment report seems certain to show bigger job losses than any month ever outside of a few in 2008-9 and 2020.
I worry that the US Office of Personnel Management itself doesn't yet know how many workers were fired.
The ripple effects of major hiring freezes could be very large.
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