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The mid-to-long term issue will be demand contraction. Small businesses under stress, service workers not paid or let go completely, workers in general laid of
by skrtskrt 7y ago
The mid-to-long term issue will be demand contraction.
Small businesses under stress, service workers not paid or let go completely, workers in general laid off, etc. All this will lead to the average person being under financial duress with rent/mortgage still due, potential medical bills, and so on and so on.
If you can get money into people's pockets (Congress has to do this) instead of cheap loans to banks (Fed does this), then you have a fighting chance of actually smoothing out the major demand contraction that is coming.
- _bxg1 7y agoYep. This is what we get without social safety nets: a large fraction of the country is constantly perched on the cliff of poverty. Just one big thing has to go wrong and it's all over. Right now, that one big thing is going wrong for virtually everybody all at the same time.
- holken 7y agoWe have social safety nets here in Sweden and we're in a free fall too.
- _bxg1 7y agoYes but I assume you don't have a bunch of individuals who are about to have their lives ruined, potentially becoming homeless. The country as a whole bears the weight of the crisis, no?
- holken 7y agoIn a few days time we ran out of space in the hospitals so unless you're dying you don't really get treatment. Businesses will die and peoples life will be ruined. Not to the point of being homeless though, maybe living in the slum being dependent on government payout. (Which is not a fun existence) Sweden is talking about herd immunity just as the UK because we don't have the capacity to handle it.