A Million File for Unemployment In California Amid Economic Shutdown

Posted: Mar 25, 2020 6:00 PM
A Million File for Unemployment In California Amid Economic Shutdown

Source: AP Photo/Rich Pedroncelli

A million Californians have filed for unemployment this month, the governor announced on Wednesday. The staggering number comes less than a week after Gov. Newsom issued a mandatory stay at home order for individuals whose jobs he deemed to be noncritical. Californians can still go outside for recreation and make trips to the grocery store, but those activities don't pay the bills. 

Given the state's exorbitant cost of living, millions of Californians are feeling crushed by the unexpected loss of income. Workers in the service and hospitality industry have been particularly hard hit as most of California's residents have been ordered to remain inside their homes for an indefinite period of time. 

To help blunt the economic impact of his order, Gov. Newsom announced that four major banks – Wells Fargo, Citi Group, JPMorgan and U.S. Bank – have all agreed to a 90 day grace period on mortgage payments for those impacted by the Wuhan coronavirus. The governor called out Bank of America for only offering a 30-day forbearance to borrowers amid the economic shutdown. 

The governor announced that 2,535 people in the state have now tested positive for the Wuhan coronavirus, adding that 51 percent of those who have tested positive were between the ages of 18-49. The virus has now resulted in the deaths of at least 60 people in the state as of Wednesday. Newsom warned the stay at home order could remain in effect for an additional 12 weeks. 

President Trump has decided to balance the difficult tasks of slowing the spread of a deadly virus with preventing an economic catastrophe, which the president warns may be worse than the virus itself.

On Thursday, the president blamed the "Lamestream Media" for trying to keep the country closed in an effort to hurt the president's shot at winning reelection. Trump claimed the "real people" in the country would like to get back to work as soon as possible. 

On Tuesday, President Trump announced his goal of opening up the American economy by Easter Sunday, Apr. 12.