Thursday, April 16, 2020

The Normal Economy Is Never Coming Back

As always, David Wallace-Wells offers insightful (if somewhat frightening) analysis.  There is a lot to digest in this one. A few zingers below:

The self-reported false-negative rate of the tests used in China is 30 percent, and many of the test kits being used now elsewhere in the world were manufactured there.

Public officials in China are “cracking down” on those academics trying to study the origin of the disease, vetting and deleting academic work and imposing new restrictions on research on the subject.

No one, at this point, is looking to the United States, indeed to any nation in the West, as a model for how to respond to COVID-19, or any pandemic.

America’s economy is now widely expected to shrink by a quarter. That is as much as during the Great Depression. But whereas the contraction after 1929 stretched over a four-year period, the coronavirus implosion will happen over the next three months. It is no longer unimaginable that the overall unemployment rate could reach 30 percent by the summer.

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