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The post-pandemic economy has already arrived
With the recession officially ending in April 2020, we're now 16 months into the recovery and the contours of the post-pandemic economy have taken shape.
Why it matters: While the coronavirus continues to infect 100,000 new Americans every week, it's no longer driving the course of the economy.
- The Delta variant shows no signs of slowing growth in GDP or consumer spending, both of which are already above their pre-pandemic levels.
- Corporate earnings and the stock market are at record highs, while Americans collectively are wealthier than ever.
- Jobs, however, are a different matter.
The big picture: Fiscal policy in the United States has moved on. Emergency pandemic relief is coming to an end; long-term infrastructure investment is now Treasury's top priority.
- The Federal Reserve's carefully-considered official language now says that "the path of the economy continues to depend on the course of the virus" — a downgrade from the prior statement, which said that "the path of the economy will depend significantly on the course of the virus."
Yes, but: The pandemic's lasting impact on the jobs picture is clear: A lot of industries have lost hundreds of thousands of jobs, many of them permanently, while very few have gained.
- Total employment will eventually recover to its pre-pandemic level — Wells Fargo senior economist Sarah House sees that happening in late 2022 or early 2023. But the headline unemployment rate might never get back down to the 3.5% we saw pre-pandemic.
What they're saying: "The pandemic has been transformational in the world of work," ADP chief economist Nela Richardson tells Axios's Sam Ro. "There are parts of the labor market that will not come back in the same way."
- "Like a tornado," she adds, the virus has skipped certain areas and flattened others. "It's really picked and chosen how it devastated people."
Entire industries, like movie theaters, are permanently changed. Studios took advantage of the pandemic to pivot to a subscription-based streaming model — a model that Wall Street has endorsed.
- Being able to stream movies at home on the same day that they're released in theaters — as Disney recently did with Black Widow — is going to be the new normal.
- Lower-paid industries like food service saw an exodus of jobs over the course of the pandemic, and many of those jobs will never come back. Instead, they will be replaced by technology such as ordering from phones instead of servers.
The bottom line: Recovery does not mean reverting to how things were before the pandemic.
QAnon conspiracy theory explodes ahead of the election
The QAnon conspiracy theory is growing — and being weaponized to boost President Trump ahead of the election.
Why it matters: What began as a single conspiracy theory linking Hillary Clinton to child trafficking four years ago is now part of a convoluted web of falsehoods being spread to undermine Joe Biden.
The big picture: In a year of unrest and expected election turmoil, experts are concerned that belief in QAnon could be another instigator of violence in some communities if Trump loses in November.
- "That's the question that keeps me up at night," said Bryce Webster-Jacobsen of the cyber threat intelligence firm GroupSense, which specializes in disinformation.
- Tracking these kind of local, potentially militant groups is difficult, he said, because recruitment is often both online — where most of the QAnon community lives — and offline.
By the numbers: New polling provided exclusively to Axios by HOPE not hate, a U.K.-basedanti-extremism nonprofit, found more than a third of Americans saying that they believe it's at least probably true that elites "are secretly engaging in large scale child trafficking and abuse."
- 10% said they are at least “soft” supporters of QAnon, specifically.
- The QAnon theory is based on a sprawling online network that analyzes cryptic messages in remote online forums by an anonymous figure “Q," who claims, without evidence, to be a Trump administration official with high-level clearance.
Driving the news: Recent reports about what was purported to be Hunter Biden's computer hard drive have sparked renewed activity from Q, with more concrete ideas to latch onto.
- On the day the New York Post reported on the alleged hard drive, Q posted 16 times, per GroupSense.
The backstory: In 2016, the Pizzagate conspiracy theory claimed that elites and Hillary Clinton's campaign manager were involved in a child sex trafficking ring being operated out of a popular pizza place. It was a niche conspiracy theory, but it led someone to show up to a pizzeria in Washington DC with guns.
- But Pizzagate was just the beginning. The idea of an elite child trafficking system has formed the central tenet of the QAnon universe.
Trump has winked at QAnon followers on multiple occasions — most notably with his refusal to condemn the conspiracy theory when asked directly.
- Earlier this year, Donald Trump Jr. jokingly insinuated that Biden was a pedophile, a nod to QAnon lore that many Democrats use their political power to hide widespread pedophilia.
- Some Republicans politicians' adoption of aspects of the theory has helped bring it more mainstream, Webster-Jacobsen said.
What we're watching: Nearly a dozen QAnon supporters are running for Congress. And of Republicans who know about QAnon, 41% said it is a somewhat or very good thing for the country, according to Pew Research Center.
What's next: Tech companies are desperately trying to ban QAnon from their platforms before the conspiracy can spread any further.
- On Monday, Spotify removed QAnon podcasts and TikTok officially banned all QAnon content. YouTube and Peloton announced QAnon crackdowns last week.
- Facebook and Triller both banned QAnon earlier this month. Etsy banned QAnon products two weeks ago. And Twitter shut down QAnon accounts in July.
Yes, but: Despite these bans, QAnon followers still find other places online to congregate, like Parler, a far-right social media app.
The Trump jobs record
The final glimpse of the labor market before election day comes this morning, and it’s expected to show job growth continuing at a slower pace.
Why it matters: President Trump, who is using his record on the economy as a key message on the campaign trail, heads into election with a labor market that has been ravaged by the pandemic and is still millions of jobs in the hole.
Flashback: Before the pandemic hit, the labor market was flourishing for large swaths of America, with the unemployment rate near a 50-year low.
Yes, but: The job gains under Trump continued the upward trend that began under Barack Obama.
- And check out the chart above: without annotations or dates, it would be impossible to see where Obama ends and Trump begins.
By the numbers: The economy would need to add over 11 million jobs to return to where it was in February.
- That almost certainly didn't happen in September — and it’s far above Wall Street’s most optimistic estimate of roughly 1 million jobs added last month.
What to watch: Prospects for the labor market are dimming, as businesses feel the weight of the coronavirus.
- This week was among the worst for the labor market in recent history, with tens of thousands of workers laid off at America’s biggest businesses — including 28,000 workers at Disney theme parks.
- Airlines are beginning to let go of 32,000 employees, in the absence of additional stimulus from Washington.
- None of these losses will appear in the jobs report, since the survey period ended in mid-September.
The bottom line: Economists warn it will be years before the labor market recovers — if the jobs come back at all.
- “This is not an environment for creating new jobs. The pandemic is still going. The economy is still in a very severe downturn,” Brian Rose, an economist at UBS — who expects that 5 million Americans who lost work because of the pandemic will become permanent job losers — tells Axios.



