How will we react to reopening the economy?

The President of the United States has created a task force to reopen the economy, although individuals differ on how soon they believe he should act. It has been hinted that the end of May could potentially be when the economy reopens. Eventually people will need to return to work and social distancing guidelines will be relaxed. However, acting too soon can spur a resurgence of the virus. There is talk about having some parts of the country open up faster than others? Do you think that May is too early to open up the economy? Also, what do you think will be the effects of this long shut down that the country endured? Below is a relevant article.

https://www.wsj.com/articles/dire-economic-numbers-intensify-debate-over-lifting-coronavirus-restrictions-11586459653?mod=hp_lead_pos1

Borders Didn't Stop The Pandemic. But They Might Block The Trade Of Medical Goods

In the world of coronavirus, governments have imposed new barriers for trade to protect their own supplies. As of March 21, 54 governments had placed limits on exporting of medical goods. Some trade analysts said that the could backfire to some governments at some point. The white house warned 3M, which is the company that produces N95 masks to stop shipping the masks to other countries. But, 3M warned that blocking exports could actually reduce the availability of masks. 3M also said that if other countries retaliated by blocking masks from being sent to the US, the number of respirators being made available to the United States would decrease and that is the opposite of what everyone wants in the US. It could also have a negative impact on the smaller countries as they all depend on these big countries to import masks. 

So, what do you think should happen regarding trade barriers due to COVID-19?

https://www.npr.org/2020/04/08/828789521/borders-didnt-stop-the-pandemic-but-they-might-block-the-trade-of-medical-goods

What Missed Payments and Mortgages Mean for the Financial System

As it becomes harder for America's 120 million households to pay off their bills in the midst of the coronavirus pandemic, it becomes more and more possible that the country will face a financial crisis much like the last Great Recession over a decade prior.

Estimates show that on April 1st this year, approximately $43 billion dollars in payments may have been due. How many of those households could still afford their share of the payment after possibly losing their job? It is possible that renters may ask for forgiveness on their landlords, but that leads to a trickle-down effect of stripping income from the property owners, and them reevaluating their potential cash flow from their properties.

This article proposes that the government intervention should allow many households to postpone payments. The vast majority of residential mortgages are held/backed by government sponsored entities like Fannie Mae and Freddie Mac. Is it beneficial in this instance that the government has a personal hand in the housing market, so that they may be able to postpone disaster of 2008 proportions? Or could it make the situation even worse?

https://www.economist.com/finance-and-economics/2020/04/03/what-missed-rent-and-mortgage-payments-mean-for-the-financial-system

US is Nowhere Close to Reopening the Economy, Experts Say

Economists say there won't be a fully functioning economy again until people are confident that they can go about business without a high risk of catching the virus. "Our ability to reopen the economy ultimately depends on our ability to better understand the spread and risk of the virus,” said Betsey Stevenson, a University of Michigan economist. The US needs more testing for the virus to give policymakers more evidence to determine when it is safe for people to return to work. It is important to not restart activity too quickly because the pandemic can have a second spike which could deal more damage than the first. While we wait for the infection rates to fall, policymakers will need to continue to support workers who have lost their jobs and small businesses that are on the brink of failure. That could mean trillions in small business loans, unemployment benefits, and direct payments to individuals. When do you think we'll be able to return to normal economic activity?

https://www.nytimes.com/2020/04/06/business/economy/coronavirus-economy.html

Small Businesses Loan Program Needs More Funding

The $350 billion loan program for small businesses will soon need more funds because of the huge demand for federal assistance. Senate Majority Leader, Mitch McConnell, said "It is quickly becoming clear that Congress will need to provide more funding or this crucial program may run dry. That cannot happen." On Monday, House Speaker Nancy Pelosi (D., Calif.) told the Democratic caucus in a call that there must be more assistance for small businesses and for those who rely on food stamps, according to multiple Democratic aides. She indicated she saw this new funding as part of a new $1 trillion bill, on top of the $2.2 trillion bill signed into law last month.

Will we see a great amount of small businesses go under in the coming weeks, even with this aid package? How much are small businesses really suffering? 

U.S. Economy In The Face Of Coronavirus

There is a growing question that is being asked all across the United States, how long can our economy keep this up? Although it is still early in timeline for the pandemic's presence in the United States the virus has already killed more than 9,000 Americans. According to economists interviewed by the New York Times "there won't be a fully functioning economy again until people are confident that they can fo about their business without a high risk of catching the virus". The lack of data as well as a lack of understanding regarding the risk and spread of the virus only further complicates the economic situation as we cannot give people solutions and reopen the economy. Predictions made my health professionals that make predictions about when infection rates will peak have piled on the pressure that Americans are forced to feel. Economists have calculated that as business continue to close more that 10 million Americans have been pushed into unemployment with more to come.

President Trump has pushed back his expected date for reopening the economy to the end of April. However, he has received much push back from state and local authorities who have stated that stay at home orders will last through June 10th. Other states like Florida have set more aggressive targets for reopening (April 30th). What do you think is the best strategy for the President to take in regard to reopening the government?

Coronavirus could create ‘a generation of supersavers’ and reshape the economy

https://www.cnbc.com/2020/04/03/coronavirus-may-create-a-generation-of-supersavers-who-reshape-economy.html

Before the coronavirus, the economy was booming and extremely successful with a lot of spending. Some economists are now saying that this event in our time will help the future of our economy with more savings and fewer risks. People now believe the world isn't as strong and invisible as people once thought, so maybe people will be more careful with their money. They say this is going to be a very big generation impact on the way that our economy works. A "successful economy" may not be the same type of "successful economy we once thought before the coronavirus. How do you think more savings will benefit our economy in the long run?