What would happen to our economy and the world’s economy if we were to remain shut down until the virus disappeared?
I want to do a follow up to my recent posts as people have asked if I realize that Covid-19 is different than heart disease, yes, I do. They have asked if I care about the people that may pass away from the virus if we reopen the economy, yes, I do. I would like to ask them if they can truly understand what would happen to our economy and the world’s economy if we were to remain shut down until the virus disappeared? Looking at food, prices would surge. This morning Tyson announced it will be closing another pork processing plant and now plants that produce 19% of pork production in the country will be shutdown. Not to mention many others will be operating at reduced capacity. Additionally, I have already discussed that chicken farmers are considering euthanizing chickens and other food (meat and non-meat) processing plants could also have to shut down. Our demand for food has not gone away, it has shifted from restaurants to grocery, but it still exists. Now you are faced with much lower supply and elevated demand, this would be a huge problem for prices. The retail, restaurant, and travel industries would face mass bankruptcies as they struggle to hold on without collecting any revenue. Now all the businesses that supply these companies which include tech companies and transportation companies would see massive layoffs because the demand for their products would also decline. Now you are feeding many more people into an already problematic unemployment situation where over the last 5 weeks 26.5 million people have filed for unemployment. We would have to continue to rack up massive amounts of debt that would make a $2.2 trillion stimulus package look like nothing. To financially recover from this would take decades! So, I ask people what is the plan? Stay at home for several more months? I don’t believe this will be the case and I apologize for being so extreme, but people need to wake up to the other side of the problem because if we remain on lockdown for several more months we have serious problems. I believe to save jobs, the economy, and this country we need to look at reopening. No not all at once, but implementing a plan to get things rolling once again. To once again bring up the mortality rate, a study done in New York and announced by Cuomo (not a republican) believes that approximately 2.7 million New Yorkers have been infected by Covid-19. This would present a mortality rate of approximately 0.7%.