Yet a closer look at one key piece of equipment—masks—during the coronavirus crisis shows that this standard view needs revamping. Economists are normally loth to tamper with prices, the most basic element of any market. But little about this pandemic has been normal. Price signalling alone would have been inadequate to the challenge of ensuring vast increases in supply.
First, consider the manufacture of masks. They might look simple, but producers need sterile factories and sophisticated machinery to churn out melt-blown fabric. Upfront costs would be hard to justify if the virus were quickly snuffed out. So in January, the early phase of the outbreak, Chinese firms began by scouring the world for masks rather than by making more of their own. It took government action to change that.
While you're here, how about this:
Daily Chart - China's data reveal a puzzling link between covid-19 cases and political events |
EVER SINCE the new coronavirus started to spread beyond China's borders, the country's official tally of infections has served as a grim benchmark for the outbreaks that followed. On March 26th the count in China was surpassed by that in America, now the centre of the pandemic. Since then China's total, now close to 83,000, has also been overtaken by those of Italy, Spain, Germany and France.
Such scepticism may be deserved. An analysis by The Economist of data reported by China's National Health Commission reveals two peculiar features. First, the data are volatile. Across the nine Chinese provinces with serious outbreaks, we identified 15 episodes in which new cases of covid-19 jumped by more than 20% in a single day, before quickly returning to earlier levels.
Young Adults, Burdened With Debt, Are Now Facing an Economic Crisis - The New York Times
Young people who entered this financial downturn with fewer resources than previous generations are enduring pain.
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Their position looks doubly precarious when measured against older generations today and relative to those generations when they were the same age, from 23 to 35 years old.
Now members of Generation X, who are from 40 to 55 years old, are in a strong position relative to millennials, even after being battered by the 2008 crisis. They have about four times the assets and more than twice as much in savings as today's youngest American adults.
Study ranks Florida 4th most vulnerable state to economic shock from pandemic
Florida’s economy is very fragile amid the coronavirus pandemic, according to Oxford Economics, but what does that mean for our Southwest Florida communities?
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“Florida is going to be impacted and maybe more impacted than others,” said Dr. Tom Smythe, Florida Gulf Coast University professor of finance.
The new study from Oxford Economics refers to Florida as one of the most vulnerable states when it comes to its economic structure, ranking it 4th.
This may worth something:
Business this week | The world this week | The Economist
ExxonMobil reduced its planned capital spending by a third this year, a deeper cut than its rivals, which are also curtailing output amid forecasts of plunging energy demand. "We haven't seen anything like what we're experiencing today," said the chief executive, Darren Woods.
Russia's central bank said it would continue to sell dollar reserves, and that this was intended to stabilise markets. The rouble has weakened as oil prices have tumbled. The central bank indicated that a cut to interest rates was also on the cards. Non-essential businesses in Russia have been ordered to close.
Coronavirus economic updates: Markets edge upwards - ABC News
The U.S. remains among the worst affected countries, with nearly 400,000 people diagnosed with COVID-19, according to data compiled by researchers at Johns Hopkins University.
Starmer's credibility will soon be tested by the brutal economics of this | Rafael Behr | Opinion
I t was an ordinary October morning in 2001 and Gordon Brown was shouting at Ed Balls. The chancellor was furious with his adviser for telling journalists that the government would take "whatever action is necessary" to fund the health service. "The papers are all saying we're going to raise taxes for the NHS!" Brown raged. "But we are going to raise taxes for the NHS," was his lieutenant's defence.
Since then the gap has grown ever wider between the public's expectation of services and its awareness of what is required to fund them at that level. Even before coronavirus, the Tories were heading for a reckoning on that front. Their 2019 manifesto promised more nurses and police officers with lower taxes and limited borrowing. The pandemic then forced a vast expansion of the state, with no prospect of greater Treasury revenues.
’Huge, unprecedented, devastating hit’: Warnings mount about economic damage -
The signs of economic distress point to deeper trouble in the months ahead as the coronavirus crisis worsens in cities outside New York and New Jersey.
Former Fed Chair Janet Yellen predicted a hit to GDP from April to June that if sustained for a year would shrink the economy by 30 percent. | Andrew Harnik, File/AP Photo
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The nation's former top central banker called the damage "absolutely shocking." The head of America's largest bank said he's preparing for financial dysfunction similar to 2008. And a gauge of consumer sentiment showed soaring angst across the economy.
Happening on Twitter
@joshgnosis This expedient contempt is, of course, revealing. But, like the sports rorts affair which goes right in… https://t.co/Y0uc2GEvJ9 QuentinDempster (from Australia) Fri Apr 03 13:29:00 +0000 2020
to everyone with addictions, or really, everyone, please be gentle with yourself. being harsh increases recurrence… https://t.co/DtC3qOgqQ1 maiasz (from New York) Thu Apr 02 16:01:42 +0000 2020
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