mfb said:
The proposal is not to repeat what was done before:
[Osterholm: the government could borrow enough money to pay for a package that would cover lost income for individuals and governments during a shutdown. ]
If that was referenced in this conversation, I missed it. But regardless, that's a hypothetical from a member of an administration that won't exist for two more months, so it can have no impact on shutdown plans that are being enacted as we speak. Also, it's a stretch to even call it a "proposal", since it is one guy's idea, which at that point he hadn't even shared with his new boss, who doesn't agree with it:
https://www.cnbc.com/2020/11/11/bid...ould-control-pandemic-and-revive-economy.html
This is purely a hypothetical scenario, but I don't think a repetition (that no one plans!) would be worse. The first time everything was chaotic and unexpected. It's still somewhat chaotic but way less than in April.
[snip] You can't assign all of the economic downturn to a specific set of government measures.
I don't think chaos was the primary driver of the damage. I'm not even really sure what you mean by that -- I didn't see much of what I'd consider "chaos". Shutting businesses and laying off workers was the damage. Yes, I'm speculating, but it is a pretty logical speculation: in order to survive a downturn in business, a business needs a war chest of money. Businesses that had their war chests depleted have not had time to replenish them. This isn't a matter of the weak businesses dying off and the strong that survived are fine now. They're not; lots are damaged and in more danger because of the damage.
And as I'm typing this, I heard this on the news, from a business owner in Philadelphia, where new restrictions were announced today:
"We believe we are going to see a worse wave of business closures this time than we saw thus far, because we used all of our resources to get through this summer."
And of course the economic downturn started before the government measures and went way beyond their impact.
What data are you looking at to support that? Here's the weekly new unemployment claims for the US:
https://www.dol.gov/ui/data.pdf
Most of the jump happened in the 3rd week in March: the week the shutdowns started, and the peak was in mid-April. Then they started dropping as businesses gradually re-opened.
GDP in the US dropped 5% in Q1, the quarter that ended just as the restrictions were being put in place, and was down 31% in Q2. It's pretty close to an exact match of 2 weeks of shutdown following 10 of normalcy in Q1, to the Q2 drop. Then things mostly re-opened in Q3 and the GDP went back up.
The only indicator I know of that showed anything before the shutdowns started was the stock market, which is a leading indicator, not an indicator of at-the-time damage.
Closing a specific set of businesses is not a lockdown (
@nsaspook). A true lockdown - what we had in Italy for example - would ban the gatherings of people not living in the same household.
Granted -- the media throws around that term wantonly and I need be more careful about how I use it. We primarily have had
shutdowns, not lockdowns. But still, a ban on gatherings not in the same household - which Philly just re-implemented, isn't a lockdown either, it's just a stay-at-home
order. It only becomes a lockdown if it is enforced. I don't know if Italy enforced theirs, but the USA did not. As a practical matter, Western countries are unable and as a philosophical matter are unwilling to enforce them.
They are not completely stupid and they didn't start doing this yesterday. They see an increase in traced contacts from small gatherings relative to what happened before.
I don't think they are stupid. What they are is woefully under-manned, and incapable of tracing the majority of infections.
https://www.inquirer.com/news/coron...lly-contact-tracing-pa-nj-cases-20201027.html
https://www.inquirer.com/health/cor...ng-hospital-news-20201116.html#card-996471612
Half of people don't cooperate. Half of those who do don't know who infected them. And as of this past week, less than a third get traced at all (the article is almost 3 weeks old). So that's just 8% of cases being successfully traced. I don't know if they are prioritizing the tracing, but again, logic tells me that a small social gathering where the participants all know each other (and later share COVID status with each other) would be the easiest to trace. It's an awfully big margin for error and potential systemic bias.