economy

Even though the unemployment numbers have decreased over the last 11 weeks to today’s number of 1.3 million new filings, the drop isn’t sufficient to sustain an economy which is reopening. Layoffs are across the manufacturing, retail, Information Technology and energy sectors. In addition, the Paycheck Protection Program runs out at the end of July and it may result in many company bankruptcies. That fact will further add to unemployment numbers. That all tends to imply that economic recovery will not be a rubber band snap back situation but a gradual come back. What I fear the most is that we may face a period of economic stagnation before the real come back actually begins. That fear is probably shared by many of my fellow citizens!

There is a substantial difference in opinion of the public and State Governors on the issue of maintaining some form of stay at home program versus loosening it to speed up economic recovery. Obviously it is a serious decision since it has a bearing on the continued spread of the virus or a the move to get people back to work. Right now the nation is in a severe health and economic crisis. Both of them need to be addressed but not in a knee jerk fashion but a well thought out plan. Given is that the health crisis unchecked leads to a higher death count in every state while unemployment creates hardship for millions. So what do we do? My view is that a balanced solution to both problems must be found. One way is to keep the self distancing policy in place and ask employers to maintain home at work programs while slowly opening small businesses with a limited customer floor presence. Better minds than mine should be able to find solutions to make this work. The country and the public need it!

All citizens must realize by now that the corona virus has plunged us into a full scale national crisis. We see the disastrous impact the virus has done to Italy. Its health care system is at a breaking point and economy almost at a standstill. We should not take the position that it can’t happen to us. Viruses don’t stop at borders or bypass any group of people. The mission at hand to do everything to mitigate its impact on our country. That will force us to obey inconvenient rules thus changing our normal routines. But that is a small price to pay if it saves lifes. We must also recognize the there will be a huge negative hit on the economy. Many working people will be furloughed or lose their jobs outright. They will require government assistance to a much greater degree than large companies. Those have already benefited by the generous tax cut passed by this administration. But smaller firms are in peril of bankruptcy and their needs are important. We, as a nation, have faced adversity before and successfully tackled those challenges. We will do so again with all of us being united against this common invisible foe. However, the administration has to provide clear and concise leadership for us to follow!