News Item
Medium featured Clinical Assistant Professor of Economics Todd Yarbrough piece "The Economic Fallout of COVID-19"
COVID-19 and its economic fallout represent a simultaneous supply-side and demand-side shock, with each shock itself of historic proportions. It is absolutely unprecedented in the modern economic era, and the solutions will themselves be just as unprecedented.
COVID-19 and its economic fallout represent a simultaneous supply-side and demand-side shock, with each shock itself of historic proportions. It is absolutely unprecedented in the modern economic era, and the solutions will themselves be just as unprecedented. First and foremost, any policy undertaken by governments should first seek to keep as many people from contracting COVID-19 as possible. Every contraction and death frays our social fabric and runs the risk of making our economic system moot. And reducing contraction is the ONLY way to truly prevent and mitigate the economic fall-out.
On the fiscal policy side, congress needs to act immediately to ensure that those who have lost their jobs will be able to pay for the basic needs of life, rent, food, childcare, and healthcare. Without this immediate basic support, we run the risk of triggering an even larger economic fall-out than we already face. Every day without a greater than $2 trillion fiscal stimulus — which should directly seek to keep businesses open and basic needs of individuals covered who may happen to lose their job — is an increased potential for a longer recession. Without unprecedented fiscal policy, the demand-side of the economy will suffer.
