Attention to the Unseen

CNBC reports: Millions of Americans already have lost their jobs due to the coronavirus crisis and the worst of the damage is yet to come, according to a Federal Reserve estimate. Economists at the Fed’s St. Louis district project total employment reductions of 47 million, which would translate to a 32.1% unemployment rate, according to a recent analysis of how bad things could get. The projections are even worse than St. Louis Fed President James Bullard’s much-publicized estimate of 30%….

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Farhad Manjoo writes: Why is the United States running out of face masks for medical workers? How does the world’s wealthiest country find itself in such a tragic and avoidable mess? And how long will it take to get enough protective gear, if that’s even possible now? I’ve spent the last few days digging into these questions, because the shortages of protective gear, particularly face masks, has struck me as one of the more disturbing absurdities in America’s response to…

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The Washington Post reports: With President Trump saying he wants “the country opened” by Easter to salvage the U.S. economy, a fierce debate is now raging among policymakers over the necessity of shutting down vast swaths of American society to combat the novel coronavirus. Health experts point to overwhelming evidence from around the world that closing businesses and schools and minimizing social contact are crucial to avoid exponentially mounting infections. Ending the shutdown now in America would be disastrous, many…

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Derek Thompson interviewed Flemming Larsen, a professor at the Center for Labor Market Research at Denmark’s Aalborg University: Larsen: [T]he government is paying companies for employees who are going home and not working. These workers are being paid a wage to do nothing. The government is saying: Lots of people are suddenly in danger of being fired. But if we have firing rounds, it will be very difficult to adapt later. This way, the company maintains their workforce under the…

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The Observer reports: Such was the scale of the global market crash last week in the wake of the coronavirus outbreak, the spectre of the 1929 Wall Street rout and the ensuing Great Depression of the 1930s has been raised. Comparisons no longer seem fanciful. The failure of the US and the UK to swing into action with a wide range of mitigation measures – despite the lessons of Italy’s slow response to the spread of Covid-19 – has heightened…

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Bloomberg reports: Federal Reserve Bank of St. Louis President James Bullard predicted the U.S. unemployment rate may hit 30% in the second quarter because of shutdowns to combat the coronavirus, with an unprecedented 50% drop in gross domestic product. Bullard called for a powerful fiscal response to replace the $2.5 trillion in lost income that quarter to ensure a strong eventual U.S. recovery, adding the Fed would be poised to do more to ensure markets function during a period of…

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  CNBC reports: Investor Bill Ackman urged President Donald Trump and corporate America in an impassioned plea on CNBC to shut down the country for 30 days to contain the fast-spreading coronavirus, calling it the only option to rescue the economy. “What’s scaring the American people and corporate America now is the gradual rollout,” Ackman told Scott Wapner on “Halftime Report” on Wednesday. “We need to shut it down now. … This is the only answer.” “America will end as…

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Jamelle Bouie writes: The outbreak threatens entire industries with destruction. Most restaurants, for example, can probably survive a week or two of social distancing. Some can survive a month. But if self-quarantine lasts for months, then hundreds of thousands of businesses, including suppliers and distributors, will fail. Millions of Americans will be out of work. It’s even worse for travel and tourism. The so-called accommodations sector of the economy, which includes hotels and other forms of lodging, accounts for more…

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The Washington Post reports: The United States is suffering the most abrupt and widespread cessation of economic activity in its history, hurtling toward a recession that could mean lost jobs, income and wealth for millions of Americans. Across the country, consumer spending — which supports 70 percent of the economy — is grinding to a halt as fears of the escalating coronavirus pandemic keep people from stores, restaurants, movie theaters and workplaces. The rapid national shutdown already has caused layoffs…

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Larry Elliott writes: The Italian government’s decision to suspend mortgage payments for its quarantined citizens is a drastic step in the battle to mitigate the impact of the coronavirus, but commensurate with the predicament the country finds itself in. Italy is the eurozone’s weak link. Even before the current lockdown it was facing a fourth recession in little more than a decade and there has been only minimal growth in living standards in two decades. Its manufacturing sector is dominated…

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Charlie Warzel writes: Constant connectivity defines 21st-century life, and the infrastructure undergirding it all is both digital (the internet and our social media platforms) and physical (the gig economy, e-commerce, global workplaces). Despite a tumultuous first two decades of the century, much of our connected way of life has evaded the stress of a singular global event. The possibility of a global pandemic currently posed by the new coronavirus threatens to change that altogether. Should the virus reach extreme levels…

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Reuters reports: The coronavirus spread further on Friday, with cases reported for the first time in at least six countries across four continents, battering markets and leading the World Health Organization (WHO) to raise its impact risk alert to “very high.” Hopes that the epidemic that started in China late last year would be over in months, and that economic activity would quickly return to normal, have been shattered. World shares were on course for their largest weekly fall since…

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