The Economy Under COVID-19: Notes From the Trenches

There are currently two crises underway simultaneously. The advance of the novel coronavirus is taking a terrible toll in terms of physical and emotional well-being. At the same time, job losses resulting from ‘social distancing’ are sending the economy into a tailspin. To fight on both fronts, governments are advancing rescue packages of never-seen-before dimensions. Every day, the tremendous number of factors in play reconfigure in a new way. These ‘from the trenches’ notes attempt to shed some light along a murky pathway.

The mayors of New York and Los Angeles have announced there will be no major league sports events or concert stage shows in their cities until 2021 at least. As Liza Minnelli would sing, “Start spreading the news …”

When I think of the Big Apple, something that couldn’t happen today comes to mind, the Occupy Wall Street movement. Protesters have been sidelined by the coronavirus and shelter-at-home directives. Ingenuity will always prevail, though. Protesters today, rather than walking a picket line with a placard, are approaching the targets of their disaffection in a vehicle, honking the horn and vocalizing through a lowered window.

If past momentous economic events are any indication, the current tough times won’t be objectively comprehensible until they’ve been given a proper name (e.g., Great Depression, Great Recession). What’s my nomination for the best handle to describe our present circumstances? … the ‘corona coma’ contraction.

In a move sure to please a great many young people, SAT and/or ACT scores are being dropped from the admission requirements of many universities. Conducting the tests and providing feedback can’t be completed in time for the fall. The only people who might be upset by this news are the parents who shelled out the money for their children’s tutorials.

When you find me kidding like this, don’t suppose I’m not terrified by the prospect of myself, my wife, my kids or any of our friends catching the coronavirus. The thought of having to go on a ventilator as a possible best-case scenario is deeply frightening. And my sympathy for the tens of thousands who have not passed through the storm successfully, and for their loved ones, is profoundly inadequate.

Read the previous article here: The Economy Under COVID-19: Notes from the Trenches – April 17, 2020.

Alex Carrick is Chief Economist for ConstructConnect. He has delivered presentations throughout North America on the U.S., Canadian and world construction outlooks. Mr. Carrick has been with the company since 1985. Links to his numerous articles are featured on Twitter @ConstructConnx, which has 50,000 followers.