What's shut down is nearly completely because the government from up on high closed it.
Maybe for our own good, but also likely unconstitutionally.
How is this economic devastation different from the previous two?
It's not a natural market failure or correction.
It's being imposed from outside the market.
World War 2 was similar with regards to a large portion of the market as everything shifted to a war footing.
When the war ended, we got to spending and pent up demand got met.
The recovery from this could be very swift.
I hope so.
Click here to submit $0.00 US for a lifetime subscription
Posts
Comments
Short of massive government interference, the recovery will be swift and startling in its rebound.
ReplyDeleteWhat will be interesting is seeing what businesses fold, what businesses rise and what new businesses will appear. Same with cities and states, who will collapse further into hell, who will win from the shift out of old-school cities (what few actual businesses really are based in o-s cities, that is) and what new weirdness will occur (like, suddenly, that middle of Arizona nothingness springs up with new companies, or Nevada finally realizing they need more than sin to run their economy on...)
Having the Southern Border seriously closed for the first time since Eisenhower will potentially change agriculture for the next few years. Loss of ag income in Mexico, combined with loss of drug income, and toss on good old Mexican corruption looks to really screw up the trade in illegal workers. Hopefully.
As you noted, this will be the first time since WWII that the national economy has been so screwed up. Same with post WWI. Going by those two examples (and even the post 9-11 rebound) it should be gang-busters.
Again, as long as big government stays out of it.
Happily we have a president who will get government out of the way.
DeleteI'm a child of the generation that fought WW2. While my youth is far in the past, I haven't forgot how my parents lived, focused on a frugal lifestyle, and related their sacrifices for the war effort. Many things were not available, death of loved-ones was saddening, but accepted, and the determination to survive was as strong as their desire to flourish after it was over. It's now our duty to embrace this attitude, and help the newer generations understand success, and liberty, can be fleeting, without sacrifice. Whether they listen is to be seen, but if not, they will lose what they desire.
ReplyDeleteMaybe not. The conglomeration of wealth accumulation (Haves gathering up from the Broken & the Panicked) is going to change a big slice.
ReplyDeleteThe Payroll system is being destroyed today. Gov't through Banks to employers are setting up a $350 Billion scheme to "help" payroll with "loans" that they say will be forgiven. Unless you can't prove you used the money as intended (now you're on the hook.) What if the gov't forgives the loan to the bank, but the Bank says "No, your ass is ours now. We're not forgiving it." Now you're really on the Hook.
Many people will never return to a state of trust to get close to each other again.
I hope I'm wrong.
Jerry
Unfortunately Jerry, I think your an optimist.
Delete