I don't understand what people mean by saving the 'economy'?
- If you think there's a chance you might need to pay $30,000 or more to get treatment when you get sick, will you be spending on anything non-essential?
- If you think there's a chance that you might lose your job soon, will you be spending on anything non-essential?
- If you think there's a chance that the economy is going to crash (which it already has, globally), will you be spending on anything non-essential?
You force people back to work, shops open, etc. They won't get customers. 3.28 million jobs are already lost -- these people have disappeared from the system as consumers of the non-essential market, because they now have to be frugal. This has started a domino effect that will affect all non-essential businesses, and they will all have to close, leading to more job loss, leading to even more businesses closing, leading to more job loss. It's horrifying.
How do we fix this, though? If you can't make people spend (because of the three points above), you can't 'save' the economy.
The best way forward is:
- Freeze rent, debts, and make it temporarily illegal to evict people. (If you can afford to rent out your second home, you can afford to not have that income for a while)
- Get cash to the people
- Launch a massive health program to hire these jobless people to join the COVID fight -- you're going to need something here when you re-open. People who do contact-tracing, etc. Medical staff. Anything. People answering the phone.
- Pay everyone to stay home for 2-3 weeks. Force everything to close down. This will kill a lot of the infection chains and will get the numbers back under control.
- Accept that things are not going to 'go back to normal' for a very long time. There's a psychological effect from this. People have been forced to confront the prospect of death. People see death. The society is going to change. Social distancing will need to keep happening for at least a year, which means that a lot of these businesses (conference, travel, hotel, etc.) will not bounce back. You need to make sure these workers have other things to do before those sectors can recover.
Please take a look at this:
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'Flatten the curve' is the best we've got but it's not going to be enough. We're going to have a massive amount of deaths. This will leave a scar.
My point is, whether you practice social distancing or not, the economy is already ruined. Even if we isolate the vulnerable, the health system still won't be able to cope with the number of 'young' people who are going to getting sick. When that happens, it will decimate about 10% of the 'young' population. Some might sustain permanent damage to their lung capacity -- now what will that do, permanently, to their lives? No matter what we do, there is no 'saving the economy'. The only way to save the economy is to save the people first.