Even If Coronavirus Was Contained Tomorrow, Economic Ramifications Would Likely Be Felt For Years
Lifting social distancing restrictions aren't going to fix the economy with a flip of a switch. There will be businesses that won't be able to rebound from the closures, shifting dynamics between workers and employers and a general weariness from American consumers to engage with services again. Meanwhile, White House advisers warn unemployment numbers are likely to get worse before they get better.
The New York Times:
Why Economic Pain Could Persist Even After The Pandemic Is Contained
The one great reason for economic optimism during this pandemic is that once public health concerns are addressed, the economy could quickly return to something like pre-crisis levels. After all, if there were a safe way to return to normal behavior, restaurants could fill up, planes could begin flying, and millions of workers could return to their posts. But even if that happens in the coming months, the United States will still be facing waves of second- and third-order economic effects that could last years. (Irwin, 5/11)
The Wall Street Journal:
Reopening The Restaurant Wasn’t The Quick Fix Its Owners Needed
For Allie Lyons, co-owner of Table 20 in Cartersville, Ga., reopening her farm-to-table restaurant has turned out to be more challenging than shutting her dining room because of the coronavirus pandemic. “This is more terrifying than it was before,” said Ms. Lyons, who switched to takeout in mid-March after Georgia Gov. Brian Kemp ordered the state’s restaurants to close temporarily. “You are walking on eggshells.” (Simon, 5/9)
The Associated Press:
Trump Advisers Cite Need To Stop 'Permanent' Economic Toll
Some of President Donald Trump’s top economic advisers emphasized on Sunday the importance of states getting more businesses and offices open even as the pandemic makes its way to the White House complex, forcing three members of the administration’s coronavirus task force into self-quarantine. The president and governors who will decide when to reopen their states are facing competing pressures. More economic activity and travel will likely lead to more people contracting COVID-19. (Freking, 5/11)
The Washington Post:
Top Trump Economic Advisers Say Unemployment Rate Could Surpass 20 Percent, Job Market Could Worsen
Two of President Trump’s top economic advisers projected Sunday that unemployment will climb as the coronavirus pandemic continues its sweep across the United States, with one official predicting that the unemployment rate will jump to 20 percent by next month. (Gregg, Sonmez, Bernstein and Johnson, 5/10)
The Hill:
Kudlow: 'Very Difficult' Unemployment Numbers Possible In May Too
White House economic adviser Larry Kudlow said Sunday that the unemployment statistics in May could “also be very difficult" after a record 20 million people lost their jobs in April amid the coronavirus pandemic. Kudlow told ABC’s “This Week” that it will “take a while” for the reopening efforts underway in a number of states to have a positive effect on the U.S. economy and unemployment. (Coleman, 5/10)
The Wall Street Journal:
Nearly A Third Of Kentucky Workers Seek Jobless Aid
Nearly a third of Kentucky’s labor force has filed for unemployment insurance, the largest share of any U.S. state, partly reflecting officials’ encouragement to do so and an early move to expand workers’ eligibility. Those factors, combined with a high concentration of factories and the postponement of the Kentucky Derby, caused about 671,000 state residents to seek jobless benefits in the seven weeks ended May 2, according to the U.S. Labor Department. That is equivalent to about 32% of the February workforce and well above the 20% for the U.S. overall. (Mackrael, 5/10)
The New York Times:
Repeat After Me: The Markets Are Not The Economy
The stock market looks increasingly divorced from economic reality. The United States is on the brink of the worst economic collapse since the Hoover administration. Corporate profits have crumpled. More than a million Americans have contracted the coronavirus, and hundreds are dying each day. There is no turnaround in sight. Yet stocks keep climbing. (Phillips, 5/10)
