One word sums up the economic fallout from the Coronavirus—hypocrisy.
The novel pathogen did not create economic hardship. The virus was not responsible for the crippling draconian isolationist policies carried out by Democratic Governors. It was man’s handling of Covid-19—that caused the economic hardships.
As unemployment numbers soared to near record highs, those instrumental in the economic calamity behaved as if no one could have foreseen the outcome of shutting down major elements of the economy.
How is that possible!
There seems to be a complete disconnect taking place.
Mainstream media, which routinely reports on the interconnectivity of the global economy, appears flummoxed by the ripple effect created by the shuttering of all non-essential businesses.
Yet, it was their constant beating of the drum of panic that led to this outcome.
The Fourth Estate never opened the door to alternative voices—in fact, they shouted down any counter opinions. (Read: In Times of Crisis: No Room for Dissent)
The decision made by Swedish officials to keep their economy open and not go into isolation mode was excoriated by the media—as being wrongheaded. (Read: The Swedish Model)
More troubling, as Democratic Governors ran pell-mell toward the abyss of “shelter in place” edicts, like lemmings off a cliff, the Fourth Estate fell silent.
To now be surprised by the inevitable negative consequences of “shelter in place” policies—speaks volumes.
Governors responsible for ruining their economies have run to the Federal government—hat in hand—seeking to undo the financial damage they wrought.
Yet even more evidence of the utter hypocrisy taking place in the nation today:
Prior to the first “shelter in place” order it was well established—Covid-19 was a highly targeted pathogen.
The population at greatest risk would be those with underlying conditions, especially the elderly, in assisted living or nursing homes.
The response to the targeted threat—was not a targeted approach; instead the country got a nearly absolute lockdown encompassing the entire U.S. population.
The media and Democratic politicians have couched their response as “any life lost—is one to many,” therefore, extreme measures were necessary.
Sadly, this mentality ignores the obvious—the economy would suffer.
Still, the most egregious aspect is the media and politicians now feigning surprise that the shuttering of the U.S. economy would create economic hardship for a wide swath of Americans.
This is the epitome of hypocrisy.
The lack of comprehension, regarding the inter-connectivity of the different parts of the economy, is absolutely perplexing.
This does not mean officials should abandon public safety merely to maintain an economic status quo; but rather, good judgment should have been applied to balance the needs of all Americans.
Given the targeted nature of the Coronavirus—a targeted approach of protecting the most vulnerable, while concurrently pursuing herd immunity, should have been taken. (Read: Nursing Homes—The Failure of State Leaders, Coronavirus: Always a Matter of Getting Rid of Trump)
Such an approach would have left the economy largely in tact, much like Sweden—but that approach was never entertained.
Businesses shuttered for months must now try to reenter the marketplace; but they face an uphill climb. Sadly, for many, that climb will be too much.
Businesses viable in February are no longer viable after three months of economic lockdown. With reduced, often no, revenues many businesses are strapped for cash—with bills mounting, these businesses are left with no option but to shutter operations permanently.
There is some relief in the form of federally established small business loan programs—but there are only so many funds to go around.
Able to service their debt load under normal conditions, adding more debt under the uncertain conditions created by Democratic Governors just doesn’t make sense.
How many once viable businesses will never reemerge due the actions of State governments is still unknown.
What is known, each business closure will have a downstream impact that may last for years.
Worse, it was all foreseeable.
If one had any insight as to how businesses actually work—or more important cared—there would be no surprise regarding the impact “shelter in place” decrees had on businesses and their lifeblood—cash flow.
In business, cash flow is king—without it, most operations simply aren’t going concerns.
The shuttering of all non-essential businesses for any prolonged period of time meant the cash flow stream would be cut off.
A week O.K.—two weeks and things begin to become tight—3 months or more….
Most small businesses simply aren’t structured to carry that level of reserve capital.
This was always going to be the effect of the isolation policies of “shelter in place” carried out by Democratic Governors.
Sadly, companies who had once been able to support employees and still pay their bills with no cash coming in won’t be able to come out of the Covid-19 crisis.
But make no mistake about it—the Coronavirus didn’t create the economic hardship as the media would have the country believe—the hardship was purely man-made.