Economic Devastation Is Driving Push To Reopen, But Some Experts Warn Second Wave Will Be Worse For It
Those who fear the country is reopening too quickly warn that a new spike in cases could possibly overwhelm hospitals once again, triggering a sell-off in markets and forcing new lockdown orders that could tip the economy from a short but deep recession into a depression. Meanwhile, the Federal Reserve says that businesses need more help to weather the current storm.
Politico:
A Short Recession Or A Deep Depression? America’s Reopening Presents Extreme Scenarios
President Donald Trump along with his most fervent backers, Wall Street investors and some conservative economists are making a big bet: Swiftly reopening the U.S. economy will go relatively smoothly with little resurgence of the coronavirus, delivering a quick snap back from the current horrifying plunge and rescuing Trump’s reelection prospects along the way. Many health experts and other economists, meanwhile, worry the U.S. is rushing to reopen while Covid-19 case counts climb, testing remains limited and Americans maintain their fear of re-engaging in normal life. To them, a swift reopening risks fresh, widespread outbreaks and even more severe blows to the economy with bankruptcy filings spiking and deeper rounds of layoffs ahead. (White, 5/13)
Reuters:
The U.S. Needs More Fiscal Help To Fight Coronavirus, Fed Officials Say
U.S. businesses and households are going to need more fiscal support to get through what will likely be a longer period of recovery from the coronavirus shutdown than initially expected, Federal Reserve policymakers said on Tuesday. (Saphir, 5/12)
The Washington Post:
Over 100,000 Small Businesses Have Closed Forever As America’s Pandemic Toll Escalates
The coronavirus pandemic is emerging as an existential threat to the nation’s small businesses — despite Congress approving a historic $700 billion to support them — with the potential to further diminish the place of small companies in the American economy. The White House and Congress have made saving small businesses a linchpin of the financial rescue, even passing a second stimulus for them late last month. (Long, 5/12)
Politico:
Trump Nominee For Pandemic Relief Watchdog Advanced By Banking Panel
The Senate Banking Committee on Tuesday approved the nomination of Brian Miller, the White House lawyer whom President Donald Trump named to police his administration’s handling of the massive relief effort for the economic crisis. The nomination was advanced on a 14-11 vote, with almost all Democrats opposed. (O'Donnell, 5/12)
GMA:
Shopping Post-Pandemic: Macy's, Ulta Beauty, Gap And More Prep To Reopen With New Safety Measures
As retailers plan to reopen after being closed due to the coronavirus pandemic, many are reemerging with updated shopping experiences that include staff wellness checks, plexiglass shields and suspended beauty services. On Monday, Ulta Beauty opened 180 stores with new safety measures in place. Stores from the massive cosmetics company reopened in Texas, Arkansas, Oklahoma and several other states along with in-store hair salon services. (Yates, 5/12)
Stateline:
Scratch-Off Lottery Sales Soar
At a time when cooped-up Americans are looking for entertainment and hoping for a windfall more than ever, scratch-off lottery ticket sales have skyrocketed. It’s a rare bright spot for state budgets, since most states’ tax revenue has dropped and spending is up because of the coronavirus. (Povich, 5/13)
