How long can the economy last with everyone home?

amother

Tue, Mar 24 2020, 9:29 am

I was watching a depressing interview with an economist yesterday. The man was saying that while the devastating health impact of the coronavirus is pretty clear to see, what people aren't realizing is the completely catastrophic consequences that a complete economic shutdown will bring in terms of people losing their savings, jobs, businesses, and homes. He says the results of of this shutdown will likely be similar to the great depression of 1929. I'm not an economist but at face value this seems reasonable as we've never had a situation where businesses lost their ENTIRE revenue for possibly several months. They will have no choice but to lay off employees who will have no money to buy goods or services which will worsen the problem.

His suggestion (and don't think the Trump administration is not considering this right now) is that when things get a little better, those that are younger and healthy go back to work. Let's say under 50 years old. We still try to be careful, still try to practice social distancing, don't shake hands, avoid physical contact, don't allow for large crowds, but back to work nonetheless. This would at least reopen let's say 50% of the economy and will prevent the catastrophic consequences of a 1929 style global depression.

He finishes by saying that poverty and despair kills people. Look at the data from the late 1920's and early 1930's and while we might be saving lives today and next week by keeping everyone home, in the long run it may even out if the country and world go into despair. Thoughts?

Please repost this in the Politics forum. Do not use the Coronavirus forum to post a political topic anonymously. — Rubber Ducky as Mod

SixOfWands

Tue, Mar 24 2020, 10:01 am

amother [ Bisque ] wrote:

This is exactly what Trump has suggested he may do. He has said multiple times that he hopes that his 15 day "shelter in place" like suggestion will slow the rate of the spread enough and that the healthcare system will be better prepared by then to handle the influx of patients.
His exact words were "WE CANNOT LET THE CURE BE WORSE THAN THE PROBLEM ITSELF. AT THE END OF THE 15 DAY PERIOD, WE WILL MAKE A DECISION AS TO WHICH WAY WE WANT TO GO!”
(and which the liberals are having a heyday with suggesting he cares more about money than lives)

You’re making political comments while hiding behind amother. Because you know darned well that’s exactly what it means. Like the Lt. Governor of Texas said, older people are willing to sacrifice their lives for the economy. I suggest that he go first. Because 15 days will do nothing to slow the spread of this. And I hope and pray that it’s the people who care more about the economy than people are the ones who die.

In any case, older people represent 45 percent of Covid-19 hospitalizations, 53 percent of intensive care unit admissions and 80 percent of deaths. Meaning that more than half of hospitalizations are young people, and almost half of ICU admissions. Not so benign for young folks, now, is it.

How about Trump use his authority to require production of masks and protective equipment for our healthcare people. And pass legislation helping the small businesses and poor people, instead of the rich. Have centralized policies so people aren’t going from state to state, which is what doomed Italy.