3 ms·

> even if businesses are closed down temporarily, no assets are lost Intangibles like customers, suppliers and know-how can be a lot more valuable than physica

> even if businesses are closed down temporarily, no assets are lost Intangibles like customers, suppliers and know-how can be a lot more valuable than physical assets. Maybe the restaurant building is still there, but if the visionary chef changed careers because she has to pay the rent, is it really still the same restaurant? The tables, chairs and kitchen equipment are still there, but if former customers can no longer afford to dine there, is the restaurant still a viable business?

Barrin92 7y ago
None of those intangibles are lost either though. The visionary chef is still going to be a visionary chef once the pandemic is over and things return to normal, it's not like knowledge workers or artisans all turn into permanent forklift drivers or something. There is going to be some degree of disruption as organisational capacity needs to be restored but this is no different than any other natural disaster, from which economies usually rebounce very quickly. And as to customers still being able to afford things, that's where the government can and will step in to stabilize demand.
- nate_meurer 7y ago
  > government can and will step in to stabilize demand. As much as they can. Government debt at all levels across Europe and the Americas was out of control before the epidemic, especially in the U.S. This crisis will lead directly to waves of state/sovereign defaults. I should say I'm optimistic about the pandemic itself. I firmly believe the morbidity and fatality rate will drop sharply as it spreads, even where medical systems are poorly prepared. I think the economic effects will end up being the bigger concern.
  - deleted 7y ago
    [deleted]
  - Bubbadoo 7y ago
    Prior to the pandemic, Government spending was out of control. Considering we were/are paying billions for an already obscelete border wall and our defense forces (ironically totally defenseless against the C19 enemy)are soaking up almost a trillion$ of our national budget, it may be time for the our fearless leaders to re-prioritize.
    - woodandsteel 7y ago
      Quite true, the federal deficit has skyrocketed under the Trump presidency.

Barrin92 7y ago

None of those intangibles are lost either though. The visionary chef is still going to be a visionary chef once the pandemic is over and things return to normal, it's not like knowledge workers or artisans all turn into permanent forklift drivers or something. There is going to be some degree of disruption as organisational capacity needs to be restored but this is no different than any other natural disaster, from which economies usually rebounce very quickly. And as to customers still being able to afford things, that's where the government can and will step in to stabilize demand.

nate_meurer 7y ago
> government can and will step in to stabilize demand. As much as they can. Government debt at all levels across Europe and the Americas was out of control before the epidemic, especially in the U.S. This crisis will lead directly to waves of state/sovereign defaults. I should say I'm optimistic about the pandemic itself. I firmly believe the morbidity and fatality rate will drop sharply as it spreads, even where medical systems are poorly prepared. I think the economic effects will end up being the bigger concern.
- deleted 7y ago
  [deleted]
- Bubbadoo 7y ago
  Prior to the pandemic, Government spending was out of control. Considering we were/are paying billions for an already obscelete border wall and our defense forces (ironically totally defenseless against the C19 enemy)are soaking up almost a trillion$ of our national budget, it may be time for the our fearless leaders to re-prioritize.
  - woodandsteel 7y ago
    Quite true, the federal deficit has skyrocketed under the Trump presidency.