The historic nature of this recession in 4 charts. COBRA benefits extended. Don’t stock up on diapers just yet.
Off the charts (The Big Picture)
Four charts that help to show how this recession has been the worst in several decades. I’m especially interested in seeing how long it will take to recover all the jobs that have been lost (last chart).
Because of it’s cost, COBRA has always been the insurance of last resort for those who have been laid-off. And since it’s retroactive, most wait to see if they need it before buying in.
In the past, people could wait up to 60 days after losing their job before signing up. Due to some new rules, they now can wait up to 4 months after the COVID-19 national emergency has been declared over. This could mean several more months of access to the program.
The conventional thinking is that maternity wards fill-up nine months after a blizzard or large-scale power outage. If that were true, then sometime around the end of December diapers will be as hard to find as toilet paper was in March.
However, evidence shows that the U.S. birth rate, already below the replacement rate, could drop even lower as a result of the pandemic. If the baby drought persists, as some experts think, it could have long term effects for the economy.