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That is a reach. Although people stop spending the delayed demand will return once the danger has gone. People will want holidays and cars that they put off buy
by nutjob2 7y ago
That is a reach. Although people stop spending the delayed demand will return once the danger has gone. People will want holidays and cars that they put off buying. Demand will produce jobs. Even businesses that failed will be replaced by new ones that satisfy new demand.
This is different to something like 2008 where people no longer trusted financial and other institutions.
- Gibbon1 7y agoI was thinking that too. We've normalized bad responses to finance driven recessions. Where trying to make the finance sector whole results in a half decade of lost ground for the real economy. This is more like pre-1970's recessions where the central banks squeeze the money supply for a couple of months. Or WWII mobilization. In each of those cases the economy came roaring right back due to pent up demand. We will get the worst of both worlds if our response to this is to either a) let it 'run it's course' or b) try to make the finance sector whole. The US is looking at both those options and the result will be catastrophic of they come to pass.