, Goolsbee assesses how the economic impacts of COVID-19 will be significantly greater in the United States than in China.<\/span><\/p>\nChina experienced a broad and rapid spread of COVID-19 \u2014 quarantines slowed the spread of the virus; however, basic commodities and output substantially slowed down with the shuttering of factories and other businesses. This global supply chain shortage from everything from auto parts to generic medicines and production delays in things like iPhones is being felt everywhere. Since the article\u2019s publishing date on March 6th, countries are scrambling to take measures to minimize the effects of a global recession in the coming months.<\/span><\/p>\nBut how the United States experiences COVID-19 in an economic sense, will be starkly different than China\u2019s experience, \u201cJust as the disease poses a particular threat to older patients, it could be especially dangerous for more mature economies.\u201d<\/span><\/p>\nHere are three major factors that change the scope of the impact:<\/span><\/p>\n\n- Urbanization:<\/b> The U.S. is more heavily urbanized, which could accelerate more rapid contagion.<\/span><\/li>\n
- Containment:<\/b> A large share of American workers lack paid sick days and health care coverage, so people may be less likely to stay home or get timely, proper medical care.\u00a0<\/span><\/li>\n
- Service Sector:<\/b> Consumption and the service sector play an outsized role in the U.S.\u2019 GDP. When people pull back from interacting with others – choosing not to shop, travel, or attend group events – bigger industries like travel, sports and entertainment, fitness, and more, will feel greater economic repercussions.<\/span><\/li>\n<\/ul>\n
Numerous social, political, and economic differences will determine how the United States differs from China in terms of coronavirus\u2019 short and long term financial effects. If a quarantine remains in place for months and consumers are instructed to or have the inclination to stay at home, a \u201cdemand shock\u201d is certain.\u00a0<\/span><\/p>\nGoolsbee draws an analogy to that of a \u201cSnowmaggedon-style storm\u201d that hits the whole country and lasts for months, where economic activity and social interaction shuts down until the snow is cleared away. In the case of the United States – when the peak of the virus is currently estimated to be two to four weeks away – this corona-geddon is going to pack a lot more of a gut punch for America\u2019s economy.]<\/span><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"
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