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This is disastrous for the economy. This depression will last at least 3 years possibly could last a decade. Even if you just cut everyone's income by 10%, th
by Mikeb85 6y ago
This is disastrous for the economy. This depression will last at least 3 years possibly could last a decade. Even if you just cut everyone's income by 10%, that's 15% less discretionary spending (assuming 1/3 of one's income is spent on housing) which puts the reduction in economic activity on par with the Great Depression.
Of course thinking only 10% of aggregate income was cut is wishful thinking; this is going to be the greatest worldwide depression we've seen yet. The UN is forecasting that 130 million more people could be at risk of starvation because of this, all because ~250k old people in developed countries died.
- puranjay 6y agoI really don't know if the old behaviors are going to come back. They say that it takes 2 months of doing something regularly before it becomes a habit. I've been in lockdown for over 2 months now. Cooking instead of ordering in, repairing instead of buying new have now become habitual. I was used to ordering in 3-5 times a week - even though I have above average cooking skills. 2 months of cooking everyday and my brain doesn't think of picking up the phone and ordering food anymore. I just rummage around the kitchen and fix something to eat, even though delivery is now open and I have no hangups about safety. Maybe the old habits will come back. Maybe they won't. But I sure as hell wouldn't want to build a business that bets on the former.