Editor’s note: This commentary is by Gwendolyn Hallsmith, of Cabot, who is the founder of Vermonters for a New Economy , an advocacy group established to change key economic systems in Vermont.
The state legislators have given themselves a recess before addressing some of the problems that the declaration of a public health emergency and mass quarantine creates. Very few of our legislators need to worry about paying their rent and mortgage when they are not working, but for the vast majority of working Vermonters, the closures, cancellations, and delays cause serious economic distress.
In case you are keeping track:
Grounded - The impact of covid-19 on airlines | Business | The Economist
IT IS NO surprise that the industry clobbered hardest by the covid-19 pandemic is the one responsible for helping spread it to the four corners of the Earth. But the speed and depth of the nosedive which airlines have taken is nevertheless breathtaking. In a memo to staff on March 13th, entitled "The Survival of British Airways", the carrier's boss, Alex Cruz, spoke of "a crisis of global proportions like no other we have known".
The immediate pain is evident. European and American carriers' share prices have declined faster even than the globe's covid-struck stockmarkets (see chart 1). Revenues are in free fall as travel restrictions mount and as fear of infection puts people off spending hours with others in enclosed spaces. On March 5th the International Air Transport Association (IATA), a trade group, projected a possible hit to worldwide revenues of up to $113bn this year.
Coronavirus Response: People First, Economics Second
As we've all been in shock at the last week of events (nearly every event, meeting, and conference is now canceled), I'm trying to make some sense of this.
The big message I think we're learning is that whatever happens, the right response is People First, Business Second .
For those of you who are my age (60s), we are seriously worried about this crisis. Some of us may be highly susceptible to the illness, and we want to feel safe above all.
Markets Unsteady as Fed Signals Urgency of Economic Threat - The New York Times
Futures on the S&P 500 and crude oil prices signaled continued pessimism about the outlook for the economy at the start of trading in Asia on Monday, after the Federal Reserve took emergency measures to address the economic slowdown taking hold in the United States.
The Fed cut interest rates to near zero and said it would buy hundreds of billions of dollars in government debt, moves that are reminiscent of its actions during the financial crisis in 2008.
Many things are taking place:
Goldman Sachs sees zero US economic growth as the coronavirus spreads
Goldman Sachs on Sunday downgraded its outlook for the economy in the first two quarters of 2020 as the coronavirus zaps all growth from the U.S.
Jan Hatzius, Goldman's chief economist, lowered his first-quarter GDP growth forecast to zero from 0.7%. The economist also sees a 5% contraction in the second quarter, followed by a sharp snapback for the remainder of the year.
"We expect US economic activity to contract sharply in the remainder of March and throughout April as virus fears lead consumers and businesses to continue to cut back on spending such as travel, entertainment, and restaurant meals," Hatzius said in a note to clients Sunday.
Subscribe to read | Financial Times
Coronavirus outbreak's supply hit fading, but not demand shock: Economist
China's industrial production is likely to improve in March over a slump in January and February due to the coronavirus outbreak, but consumer demand will take longer to recover both in the country and globally, an economist said Monday.
"We will see some recovery, but this recovery, I think, is being undermined by the global spread as well," said Bo Zhuang, chief China economist at TS Lombard.
China's industrial output contracted at the sharpest pace in 30 years in January and February, according to Reuters records.
Sticking plasters - The challenge of addressing covid-19's economic effects in Europe | Finance
F EW PEOPLE would wish to trade places with Giuseppe Conte, Italy's prime minister. As covid-19 spread he put the entire country into lockdown for the first time since the second world war. Now he must try to contain the economic effects. But he is finding that tackling them also depends on lenders and Europe's institutions.
That is perhaps why the European Commission says it will allow Italy to break its fiscal rules. The commission plans to issue new guidelines on spending next week. Emmanuel Macron, France's president, wants bolder action. He is pressing for the rules to be suspended altogether, and for member states to co-ordinate spending increases; that could shore up confidence that Europe will do what it takes to cushion the economic blow from the virus.
Happening on Twitter
Ook echtgenoot van Gwendolyn Rutten organiseerde 'coronafeestje' https://t.co/3RpWDwOzV0 https://t.co/rOSvKZb3PH HLN_BE (from België) Sat Mar 14 17:44:03 +0000 2020
Cebu Governor Gwendolyn Garcia says all domestic flights and sea travels to Cebu will be banned starting March 17,… https://t.co/c5eYrIDB1I cnnphilippines (from Philippines) Mon Mar 16 05:12:22 +0000 2020
Gwendolyn Rutten excuseert zich voor lockdownparty van echtgenoot en selfie met MR-collega https://t.co/bx5OT2lPYS demorgen (from Brussel) Mon Mar 16 14:15:01 +0000 2020
Cebu Governor Gwendolyn Garcia has ordered the suspension of incoming flights from Cagayan de Oro City, Clark Inter… https://t.co/K0NkN21cWM PhilippineStar (from Philippines) Sat Mar 14 11:24:29 +0000 2020
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