Since the US switched over from manufacturing-based economics to service and technology-based economics decades ago, we’ve never seen anything like the danger posed by the coronavirus.
There’s no playbook. How can the virus affect legal economics and legal jobs in the USA? We are searching for a different sort of job market recession which is going to be meaner, longer, and more devastating than anything else we’ve ever seen. The coronavirus recession is going to ruin legal careers and prevent tens of thousands of them from starting. This article can help you survive this recession.
It can be the most crucial article you ever read in your career. The last three recessions the legal job market experienced have been mild compared to what we have here.
In late 2000, we realized that lots of the dot com and other businesses that were being started and operate with other people’s money were never going to be rewarding.
There was also a serious crisis brought about by overspending on too many high-speed internet lines and other errors in the telecom sector. The market pulled funding from these businesses, and markets such as Silicon Valley became a virtual ghost town.
It became impossible for lawyers to get jobs all around the USA for some time and changed the legal sector. Nonetheless, the market recovered and did well for many years. What we’ve here, but, is much, much different.
While the dot com business closings had any adverse economic consequences, the situation here’s different. Back then, a sliver of businesses was borrowing money and remaining afloat with credit from private equity along with the markets. While I don’t have the exact statistics, today, these numbers are many, many greater. Zombie, businesses that run on low-cost to survive are a large proportion of the U.S.
Furthermore, the variety of the kinds of organizations that rely on this kind of credit is unprecedented. Whether it’s hospitality, transportation, or other service businesses, the number of organizations along with the breadth of them which will fail without access to money is enormous.
We’re about to see an economic downturn unlike anything else we’ve ever seen. There was also an economic downturn after Sept 11, 2001, which was a serious blow to the legal sector. But, the markets recovered fast. Markets were the ones that had been the most affected. Lawyers lost jobs, but it was nothing compared to what occurred in 2008.
The 2008 recession shook the financial markets at their core because of failing securities caused by reckless lending. Banks and businesses discovered that they were susceptible to bad loans. The legal market experienced acute issues from the corporate sphere. Implementing slowed down at the most crucial markets. The authorities pushed massive amounts of cash into banks and the monetary system to prevent all-out collapse and also working.