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For many of the things affected by the coronavirus (events, going to restaurants, going on holiday etc), you basically don't aggregate any pent-up demand. Peopl
by semi-extrinsic 7y ago
For many of the things affected by the coronavirus (events, going to restaurants, going on holiday etc), you basically don't aggregate any pent-up demand. People won't take twice as much holidays next year. It's tricky to argue for the recovery on that.
- kortilla 7y agoA great portion of people have very little self control when it comes to spending and will spend the money that would have been on a vacation on something else (weekend travel, a new phone, extra eating out, etc) so the money does indeed usually flow back.
- tnel77 7y agoIt’s sad how accurate this statement is.
- Proziam 7y ago"I didn't get to go on vacation so instead I'll..." I've heard variants of this from so many people at this point that I'm convinced the default human behavior is to consume - not to preserve or save.
- semi-extrinsic 7y agoWell, from the perspective of the overall economy over a longer period of time, maybe. But for individual companies, it's a small comfort that their missed income will eventually get spent somewhere else. If companies go out of business now, there is no quick fix to just bring them back later, so the impact to the economy is long lasting in this sense.