Tag: CARES Act

Monday Wake Up Call – March 7, 2022

The Daily Escape:

Watson Lake, near Prescott, AZ –  February 2022 photo by Steve Matten

Last week, the Labor Department released its monthly Nonfarm payroll report. It showed strong hiring, and a substantial decrease in unemployment. Employment rose by 678,000 in February, the unemployment rate fell to 3.8%, wages rose by just 1 cent to $31.58 per hour, although wages have risen 5.1% over the past 12 months.

We still have 2.1 million fewer jobs (1.4%) than we had in February 2020 just before the start of the pandemic. At the average rate of jobs growth for the past 6 months, it’s about 4 more months before we get back to where we were. From Krugman:

“…what people are actually experiencing in their daily lives is a very strong job market. For example, according to the latest survey from the Conference Board, 53.8% of consumers said that jobs were “plentiful,” a near-record, while only 11.8% said that jobs were hard to get.”

More from Krugman:

“Yet the public doesn’t believe it. According to a new survey by Navigator Research, only 19% of Americans believe that the US economy is experiencing more job growth than usual, while 35% say that it is experiencing more job losses than usual.”

Pandemic unemployment peaked in April 2020 at 14.7%. Back then, Congress was afraid of the country entering another depression, or at best a recession similar to 2008. Congress decided to prop up the economy through a fiscal stimulus called the first CARES Act. Many politicians have talked about how the CARES Act was the financial jolt that has caused inflation to spike.

You probably didn’t realize just how large that unemployment aid was. When unemployment benefits were at their peak in June 2020, the government pushed $1.395 trillion dollars out to the unemployed. Here’s a chart from the St. Louis Fed that shows how fast and how high that cash injection into the economy moved:

Today, these unemployment payments have shrunk by 98% to $26.7 billion. So where in our economy did that $1.4 trillion go? It went primarily to goods purchased locally at Mom & Pop stores and supermarkets. It also went to the big box stores like Walmart, Costco, and Target. It went to Amazon and hundreds of online retailers. At the Mansion of Wrong, it also went to Peloton.  And it went to online services, like Netflix and online education.

Americans spent less than usual on services, so we saw huge job losses in the services sector. Statista reports that we are still short 3.75 million jobs in the services sector and less than .5 million in manufacturing. Leisure and hospitality account for 1.38 million of the total, while losses in education, health services and government also remain high.

Much of today’s inflation is the result of this trillion-dollar unemployment stimulus. Barry Ritholtz interviewed Rebecca Patterson, Director of Investment Research at Bridgewater Associates. She described how the one-two punch of monetary and fiscal stimulus led to a “Demand Shock” where demand for durable goods overwhelmed what manufacturers could supply. She says that while global manufacturers ramped up production by 5% above pre-pandemic levels, demand for those same goods rose by 20%. This is a large part of the inflation spike we’re experiencing, and why the Fed has called it a “transitory” problem.

America’s response to the pandemic reminds us that the way our government responds to crises brings different impacts to different parts of our society.

The Federal Reserve’s expansionary monetary stimulus since 2008 has primarily benefited corporations and the well-off who could buy ever more expensive assets with very cheap money. Fiscal stimulus like the CARES Act and like the new infrastructure bill mostly benefit the bottom 50% of the country: low-wage labor, the unemployed, and the middle class.

So the economy is doing just fine for the top 10% and the upper middle class. But people who make minimum wage aren’t flying to Barcelona this year. They’re not eating at high-end restaurants. When they shop, it isn’t at boutiques. They continue to split financial hairs trying to figure out how to feed their kids and keep a roof over their heads, because rents are rising everywhere in the US and the price of food is going out of sight.

Add to this the interest rate hikes we know are coming, and things aren’t getting better for the lower middle class or people in poverty.

The discussion of the impact that fiscal stimulus had on our labor market isn’t finished. No one really knows why so many people haven’t returned to work, despite the roaring economy.

Time to wake up America! Some Americans are going through hard times. Clearly, people in Ukraine are facing terror that is much worse than here at home. Maybe this cover of Neil Young’s “Harvest Moon” by The Brothers Comatose with AJ Lee can bring a momentary comfort in this age of discomfort:

Watch it, you won’t be disappointed.

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The Covid Recession and American Capitalism

The Daily Escape:

Upper Buttermilk Falls, Ithaca NY – June 2021 iPhone photo by Wrongo

The following chart appeared in the NYT on Tuesday in an article claiming that the recession is over. The unfortunate reality is that the COVID recession was artificially induced by a shutdown of the economy. But it may now be transitioning into a longer, systemic recession caused by poor economic policy. Take a look at the chart:

While economists say that, by traditional definitions, the Covid recession didn’t last very long, we are still down 7 million jobs from pre-pandemic levels, even while personal income is back to pre-Pandemic levels. So, how can the recession be over?

And why are lawmakers in Republican states calling for an end to unemployment benefits when so many remain out of work? Zandar says we should start by looking at Tennessee’s official job posting website:

“There are more than 250,000 jobs available in Tennessee right now, but….Only 3% of the jobs posted — about 8,500 as of Friday evening — pay $20,000 [per year] or more. The federal poverty line for a family of three is just under $22,000.”

Of the 8,500 jobs on the state of Tennessee’s official job board, about 8,250 pay $10 an hour or less, which is a poverty level wage even in Tennessee. But Tennessee’s governor Lee has decided to stop accepting CARES Act money in July, saying he didn’t want to pay people to sit at home.

As Ezra Klein said in the NYT: America doesn’t fight poverty, it runs on it.

“The American economy runs on poverty, or at least the constant threat of it. Americans like their goods cheap and their services plentiful and the two of them, together, require a sprawling labor force willing to work tough jobs at crummy wages. On the right, the barest glimmer of worker power is treated as a policy emergency, and the whip of poverty, not the lure of higher wages, is the appropriate response…”

More from Klein:

“Vast numbers of Americans are kept poor for a reason. Any whiff of labor organization, or worker solidarity is ruthlessly annihilated in order to maintain millions of Americans working for single-digit hourly wages, or slightly higher wages, but no benefits whatsoever. We demand it, because we know corporations will just break our backs with higher prices if we give in. Either way, we’re the ones who pay, and it’s never the billionaires.”

Klein mentioned a report, “A Guaranteed Income for the 21st Century,” that would guarantee a $12,500 annual income for every adult and a $4,500 allowance for every child. It’s what wonks call a “negative income tax” plan — unlike a universal basic income, it phases out as households rise into the middle class.

The team estimates that its proposal would eliminate poverty while costing $876 billion annually.

To give a sense of scale, total federal spending in 2019 was about $4.4 trillion, with $1 trillion of that financing Social Security payments and $1.1 trillion supporting Medicaid, Medicare, the Affordable Care Act and the Children’s Health Insurance Program. As Paul Campos says:

“$876 billion represents less than the growth in the personal fortunes of America’s 651 billionaires over the course of the 16 months of the COVID pandemic. Not, mind you, anything like those fortunes themselves, but merely the growth in the personal fortunes of 651 people over the past year and a third.”

A simple annual wealth tax on the incremental gain in wealth of obscenely rich Americans would by itself pay for somewhere between a third and half of the cost of eliminating poverty in this country, via straightforward wealth redistribution.

So why don’t we get rid of poverty by giving people without money, money? Because we haven’t adjusted psychologically and politically to the fact that the developed economies produce so much wealth that getting rid of poverty could be a minor problem of distribution, one that merely requires a social commitment to doing it.

Instead, we tell the people at the bottom of wage distribution: “This is America. If you don’t like being poor, you can always do something about it, like not being poor.” And many of us go back to eating our dollar menu cheeseburgers and thinking to ourselves “I don’t know anybody *that* poor”.

Except that if you think about it, you know plenty of people who ARE that poor. And apparently, many of us want to keep it that way, just in case we end up rich someday.

America’s $21 trillion American economy has been captured by its oligarchs and their political servants who say we can’t eliminate poverty because that would be socialism, and socialism makes the baby Jesus cry.

So, 50 million Americans continue to wake up dirt poor every day.

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Will Congress Act on Funding Before Christmas?

The Daily Escape:

Turkey Pond, near Concord, NH – November 2020 photo by panasthropodism

The last time Congress passed a COVID relief bill was over seven months ago. This week, a bipartisan group of Senators revealed a new $908 billion stimulus proposal. This reflects a substantial cave-in by Democrats and House Speaker Pelosi, (D-CA) whose last offer was about $2.2 trillion.

Whether it goes forward depends on Pelosi and Senator Mitch McConnell (R-KY) finding agreement, and then getting Trump to sign off. Pelosi and McConnell talked on Thursday about how to find common ground on both a funding bill to keep the government’s doors open, and on another coronavirus relief package. Needless to say, they are still far apart.

Jeff Stein of WaPo tweeted about how different this Covid proposal is from the last two circulated by Mitch McConnell: (brackets by Wrongo)

Sept. 8: McConnell releases plan including $300/week in supplemental federal UI [unemployment insurance] for jobless Americans

Dec. 1: McConnell releases plan including $0/week in supplemental federal UI for jobless Americans https://t.co/GywLXGzOP9

According to the Century Foundation, 12 million people could see their Covid-related aid disappear the day after Christmas. This cliff is a major factor in pressuring Congress to pass a new bill before their 2020 recess. This funding need is separate from the need to fund the government past December 11. James Kwak of the Baseline Scenario says:

“One of Congress’s top priorities this week and next is to pass some kind of funding bill that will keep the federal government operating past December 11.”

Kwak points out that there are two ways this could happen: First, Congress could pass a continuing resolution that maintains funding at current levels for a period of time, until after Biden is inaugurated, and a new Congress is seated.

Second, the Parties could agree to pass an omnibus fiscal year 2021 spending bill that funds the government through the end of the current fiscal year on September 30, 2021. This is Trump’s preference.

This is a bit of inside baseball. Government funding measures are must-pass bills. No politician wants a government shutdown. Democrats have historically been able to pin most of the blame for a shutdown on Republicans, starting in 1995, when Bill Clinton successfully portrayed Newt Gingrich as a zealot who wanted to slash Medicare.

OTOH, an omnibus budget reconciliation bill could represent one of the Biden administration’s few real chances to pass anything big through Congress. This is true since bills passed via the reconciliation process are not subject to the Senate’s filibuster.

Biden probably doesn’t want to cede the omnibus bill win to Trump just as Trump is packing his bags.

But, if Dems linked the short-term funding bill to an omnibus budget reconciliation bill, they’d only need a bare majority of Senators to pass both. The gamble would be that in order to avert a government shutdown, a scant few Republican moderates might be pressured to join in an omnibus budget deal.

Part of the Dem’s reasoning for wanting to take only a short-term government funding deal is a bet that Jon Ossoff and Raphael Warnock can both win in Georgia on January 5. Then, the Senate would be split 50/50, with VP Harris, as President of the Senate, in a position to cast the deciding vote(s) on the Democrat’s agenda.

If both Georgia candidates win, Democrats will control both Houses of Congress for the first time since 2010, but by a razor-thin margin. They would need to insure that the one Senate Democrat in name only, Joe Manchin (D-WVA) would agree with whatever bills they put forward. Manchin will be in a position to control much of the Democrats’ political agenda.

We’ll see how all of this plays out in real-time, since the Senate is planning to head for home on December 18. Kwak says:

“…Democratic leadership in Congress seems inclined to give up the potential chance to write their own appropriations bill in January in exchange for a bill that they have to negotiate with McConnell and…Donald J. Trump.”

Congress might pass something that is an extension of the CARES Act, stranger things have happened. It’s likely it will pass a government funding extension before leaving for the holidays.

For the CARES extension, it appears that Democrats will have to cave in to McConnell on the corporate liability shield he’s looking for as the price of a relief bill.

It’s doubtful that Dems can go home without having passed something for Covid relief and some way to fund the government until at least late January.

The challenge of limited time and limited trust will test a divided Congress’s ability to make a few deals after months of gridlock.

Good luck America.

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Trump’s Closing Argument? More Covid, Less Stimulus

The Daily Escape:

Littleton ME, October 2020 photo by Kim Smith-Williams. The trees were planted by her grandfather in 1942.

It was amazing to see Trump turn down an offer from the Democrats to inject $ trillions of stimulus into his weak economy just days before the election. Wouldn’t that have helped his chances?

And he did this the day after his “helicopter salute” ceremony that raised questions about his Covid strategy. Based on what he said, it sounds a lot like “Don’t worry about it, you’ll be fine, it’s no worse than the flu”. Trump resurrected “Same as the Flu“, and killed the economic stimulus package on the same day.

Sadly, Covid is much worse than the flu. Trump says that the flu claims more than 100,000 lives some years. Maybe it did when he was a kid, but for the past 10 years, the seasonal flu has killed between 12,000 and 61,000 Americans a year. In fact, Covid has killed more Americans in the past 8 months than the flu has killed in the past 5 years combined.

So his Covid strategy is: “Grandma’s gotta die because people need to go to restaurants”. Not a winning message.

Let’s move to Trump saying he won’t pass a new stimulus until he’s reelected. Republicans have been divided on more money for states, individuals and businesses, with those in close races generally more amenable to a bigger stimulus package.

But the hard-core conservatives have been opposed to a bigger package, and Trump is particularly hostile to providing funds to state and local governments. OTOH, while negotiations weren’t going anywhere fast, they weren’t that far apart. The House had passed a $2.2 trillion bill, while Mnuchin’s offer was $1.6 trillion.

According to the WSJ, the trigger for Trump’s pulling out of a possible deal was an update from Mitch McConnell, who said that even if Mnuchin and Pelosi came to an agreement, he wasn’t likely to have enough Republican votes in the Senate. There would have been sufficient votes in the Senate to pass the bill, but it would have required Democratic Senators to put it over the top, an unacceptable look for Trump.

Somebody should have told Trump the master negotiator, that if you walk away from a deal, you don’t get anything you want, either.

The stock market didn’t like Trump’s bailing on another stimulus. And on Wednesday, Trump reversed course and talked instead about bailing out the airlines :

“The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!”

If seems likely that the CEO of Delta might have suggested to Trump that mass layoffs in Atlanta wouldn’t be helpful to his re-election. But Trump apparently hasn’t learned that when you’re dealing with people with actual leverage (instead of a contractor who can’t afford to sue you), you actually have to give up something to make a deal.

The CARES Act was the high-water mark of federal government response to the pandemic-caused economic disaster. That was six months ago, and nothing substantial has happened since. It’s hard for Trump or his Party to say, going into the last three weeks that they really care at all about those who have lost their jobs to the pandemic.

Through a series of bad decisions and foolish actions by Trump, America has been hit harder by the coronavirus than any other industrialized nation. The outbreak has killed 210,000 and caused large numbers of people to change how they live their lives.

And those changes have created enormous economic disruptions, everywhere.

There are just 27 days to go until the election. All of those people who are out of work have to make rent. And all of them, when they worked, supported other businesses with their spending. That’s all gone.

The only thing which will “fix” the economy are masks, physical distancing, and a vaccine. Nothing gets us back to “normal” until then.

The only question is whether or not the federal government will spend the money to keep as many people and businesses afloat as possible until a vaccine gets here.

Trump and the Republicans won’t work on either Covid or help those hurt by the pandemic. So no one should vote for them.

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Where COVID Goes, the Economy Will Follow

The Daily Escape:

Hetch Hetchy, Yosemite, CA – 2020 photo by sfo2phx. This reservoir was created by damming the Tuolumne River in the Hetch Hetchy valley in 1923. The project remains controversial, since the valley was thought to be as beautiful as Yosemite.

Where is America going? It’s clear that wherever our economy is going mostly depends on where our Covid-19 pandemic goes.

Congress passed the CARES act to provide us with a financial bridge until August, when the Coronavirus was expected to be under control, and life would be able to return to something like normal. But the pandemic is now worse than we imagined in March. From the WaPo:

“Sunday marked the 41st straight day that the seven-day average for new daily coronavirus infections in the United States trended upward. Six months after the novel coronavirus reached America, more than 3.7 million cases have been detected, and at least 137,000 people have died.

Kentucky, Louisiana, Oregon and South Carolina all set new single-day records on Sunday….Idaho, Nebraska, Iowa and five other states have seen their seven-day average for daily new fatalities rise by more than 40% in the past week. More than 100 Florida hospitals have run out of ICU beds for adults.”

We’ve spent $ trillions, but we’re no better off than when the pandemic started. And we’re got a lot to think about as these programs start to end. Bloomberg prepared this timeline of what financial benefits are ending, and the likely impact on America:

These looming cutoff dates come amid signs the labor-market recovery has stalled. While the Senate is willing to send new financial bridging legislation to Trump, Republicans and Democrats disagree on number of issues, and Trump has his own demands. The WaPo reports: (emphasis and brackets by Wrongo)

“Senate Republicans were seeking to allocate $25 billion for states to conduct testing and contact tracing, but certain administration officials want to zero out the testing and tracing money entirely…. [the administration] is also trying to block billions of dollars that GOP senators want to allocate for the Centers for Disease Control and Prevention, and billions more for the Pentagon and State Department to address the pandemic at home and abroad…”

Trump wants the states to own the responsibility for testing. The Coronavirus spending bill Congress approved in April included $25 billion to increase testing and also required HHS to release a strategic testing plan. The agency did so in May, but the plan simply asserted the administration’s insistence that states, not the federal government, should take the lead on testing.

Another sticking point is that Trump wants the legislation to include another payroll tax cut. The payroll tax is used to fund Social Security and Medicare, so cutting it is a stealth way to cut Social Security in a time of crisis. Trump is also trying to fund a new FBI building.

In May, the House approved a $3.5 trillion relief bill. Pelosi’s bill funnels $100 billion to help schools to safely reopen and calls for $1 trillion to be sent to cash-strapped states to pay essential workers and prevent layoffs. The impact of shortfalls in sales, income, hotel, and gas taxes are already biting.

The White House has said the final package shouldn’t exceed $1 trillion, showing how far apart the Parties are.

Axios has it right: (brackets by Wrongo)

  • We blew it on testing…America hasn’t built the infrastructure necessary to process [tests] and trace the results….
  • We blew it on schools. Congress allocated $150 billion for state and local governments as part of the CARES Act. [But] there was no money earmarked for schools to buy new safety equipment, or to hire additional teachers for [adding many] smaller classes.
  • We blew public health….Had we all been directed to wear them [face masks] in March — and done so…you might not be reading this post.
  • We blew goodwill. Millions of Americans sheltered in place, pausing their social lives for the common good. But many millions of other Americans didn’t. Some were essential workers….Some just didn’t care, or didn’t believe the threat.
  • All of this was complicated by mixed messages from federal and state leaders. Top of that list was President Trump, who claimed to adopt a wartime footing without clearly asking Americans to make sacrifices necessary to defeat the enemy.

That was the same mistake that GW Bush made with America after 9/11.

Michelle Goldberg in the NYT said this:

“Lawrence O. Gostin, professor of global health law at Georgetown, told me he doesn’t expect American life to feel truly normal before summer 2022. Two years of our lives, stolen by Donald Trump.”

We’ve lost more than two years. We may have lost the enonomy.

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Monday Wake Up Call – May 18, 2020

The Daily Escape:

Colorado River, from South Kaibab trail, Grand Canyon NP, AZ  – photo by DJ Memering. The bridge is called the Black Suspension Bridge. It is 5,260 ft below the canyon rim.

The CARES Act was sold as emergency funding for individuals and small businesses. In all, Congress has authorized $3.3 trillion in coronavirus relief in four separate acts over the last two months. The stated intent of those bills was to protect the American economy from long-term harm caused by the overall impact of the virus.

Alas, Congress also took care of their true constituents, Big Oil and other fossil fuel companies. Those companies got CARES Act tax breaks. The subsidies were supposed to help bail out small businesses pounded by the pandemic, but at least $1.9 billion of it was sent to fossil fuel companies and their executives.

Bloomberg News reports:

“$1.9 billion in CARES Act tax benefits are being claimed by at least 37 oil companies, service firms, and contractors”

Bloomberg used the example of Diamond Offshore Drilling Inc. who manipulated the bailout: (emphasis by Wrongo)

“As it headed toward bankruptcy, Diamond Offshore Drilling Inc. took advantage of a little-noticed provision in the stimulus bill Congress passed in March to get a $9.7 million tax refund. Then, it asked a bankruptcy judge to authorize the same amount as bonuses to nine executives.”

But, Diamond’s refund wasn’t all. Some went to their larger competitors. More from Bloomberg:

“…$55 million for Denver-based Antero Midstream Corp., $41.2 million for supplier Oil States International Inc. and $96 million for Oklahoma-based producer Devon Energy Corp.”

In addition, Kevin Crowley reports that Marathon Oil got $411m, Occidental $195m, and Valero $110m.

Hats off to all of our Senators, Congresscritters and the Trump administration! They all continue pursuing a pro-fossil fuel agenda, even as the economic disaster of the pandemic unfolds. Bernie Sanders tweeted:

“Good thing President Trump is looking out for the real victims of the coronavirus: fossil fuel executives,”

But, Bernie apparently voted for the bill, which passed the Senate in a unanimous vote. Hypocrisy much, Bernie?

These loopholes in the Act were deliberately written in so that corporations could feed at the trough along with small businesses, and we the people. Moreover, the initial bill was written in the House, although presumably in consultation with Trump and the Republicans. So, you can view this as either the cost of doing business for Democrats, or as just another day at the office listening to the lobbyists. Subsidy legislation has been a bipartisan objective.

Its always been this way. Here’s a cartoon from 1920 that could be drawn today:

Let’s remember that a big issue was the requirement for oversight, particularly after Trump said he wasn’t interested in having any. A compromise was struck so that an oversight commission could be empaneled to keep track of how the money was spent.

Today, it remains without a leader. Four of the five members of the Congressional Oversight Commission have been appointed, but Speaker Nancy Pelosi, (D-CA) and Senate Majority Leader Mitch McConnell, (R-KY) have not agreed on a chair.

While the current members of the panel can perform some oversight, without a leader, it can’t hire staff or set up office space. In addition, the four members have not met as a group since the economic rescue law was passed. The PBS NewsHour quotes John Coates, a professor of law and economics at Harvard Law School:

“If the commission is not functioning — which it is not — then there is no oversight on a huge part of the economic rescue law…”

We seem to be able to bail out the rich every few decades, and we always seem to do it on the backs of the poor. It will probably happen again in another 10 years or so. Between these bailouts, politicians and pundits appear on all of the news shows, and write very serious articles proclaiming the need to resist socialism and to preserve “the free market” for the sake of “wealth creation and innovation”.

Time to wake up America! This great con has been going on for all of Wrongo’s lifetime and by looking at the cartoon above, for a few lifetimes before. Yet voters seem to be oblivious to this insidious form of corruption each and every time they go to the polls.

To help America wake up, let’s listen to Drive by Truckers, and their tune “Armageddon’s Back in Town” from their 2020 album, “The Unraveling”

Sample Lyric:

There’ll be no healing
From the art of double-dealing
Armageddon’s back in town again

Those who read the Wrongologist in email can view the video here.

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Monday Wake Up Call – What’s Next Edition

The Daily Escape:

Chamisa plants near Abiquiu, NM – photo by zuzofthewolves

(Publishing of daily COVID-19 data is on hold while Wrongo tries to understand inconsistencies in the data)

Trump isn’t wrong to begin thinking about what comes next. At some point, we will again poke our heads out of our burrows, and feel the warmth of sunlight. We’ll attempt to resume the life we had before the virus struck. There are two risks in this: First, will we be back in the swing of things too soon? And second, what should we demand be different, given what the nation has experienced?

In Trump’s view the answer is simple. He wants most people back to work in time to have a robust economy come Election Day. He’s targeted May 1st as the start date for his governor buddies to begin revitalizing the economy.

Once again, the Trump administration is showing itself to be utterly incapable of dealing with this crisis.

He’s moving the country to re-open, despite warnings from public health officials and from most state governors. Here’s a germane comment on Wrongo’s Saturday’s column by long-time blog reader Terry McKenna:

“We really know so little. To begin with, we don’t know how the virus spreads. We are learning but that’s all. In the beginning, we guessed wrong that it was not spread by healthy (asymptomatic) persons. Doctors disagree over the size of the droplets that carry the virus. So we are almost like we were before we had the germ theory where all we can do it isolate.

Also “test” is a simplistic word. Which test? We need a test that tells a clinician that someone had the virus in his system, and a test with a fast result is essential. But a negative test means little, especially in a healthy (asymptomatic) person, because in the absence of a vaccine, that person could be infected next week or next month. So we need a test of antibodies – but even still, we don’t know how long immunity lasts.

And then we have the notion that the president can order the country back to work. Even if a business reopens, who will come? And yes, I know someone will, but imagine the NY Mets having their opening day May 15. Will anyone show up? And if they do, will we see a spike in sickness a few weeks later?

We need time for the science to do its work. We may get lucky, viruses do became less virulent over time (sometimes to re-emerge with vigor).”

A partial re-opening of those portions of the economy that are now shuttered is a risk both to the workers, and to the returning customers. Terry is right to ask if we’ll see a spike in sickness a few weeks later, and if we do, what will be Trump’s plan then?

Broadening out our view, many are starting to think about what needs to be different post-pandemic. As we emerge from this crisis, we have a rare opportunity to focus on change: Do we want a Star Trek, or Blade Runner future? A utopian, or a dystopian one?

As Viet Thanh Nguyen said in the NYT:

“Our real enemy is not the virus but our response to the virus — a response that has been degraded and deformed by the structural inequalities of our society.”

We have a once-in-a-generation opportunity to rebuild for tomorrow. Or will we just prop up the economic and political process that has given us today’s problems? As an example, if we don’t want sick and contagious people trying to go to work, America must have paid sick leave.

During the lead up to passing the CARES Act, Democrats in Congress recognized this, but at the behest of business lobbies, the Act exempted 80% of all workers, including all those working at firms with over 500 employees AND those working at firms with under 50 employees!

Here’s an illuminating chart:

And in America, add $600 for four months for 20% of our workers. This is post-Reagan America. Assistance to the poor and working class is given grudgingly, and with strings attached. The rich and corporations are showered in subsidies since they are too virtuous and important to let fail. MAGA really means “Make Americans Grovel Again”.

What has to die after Covid-19 is the myth that America is the best country on earth. We’re not as healthy as we thought we were. The symptoms — racial and economic inequality, callousness and selfishness, have been covered up by our unquestioned acceptance of American Exceptionalism.

We’ve lost our right to that view, despite the many, many small acts of heroism every day by health workers and all the “essential” hourly workers who face becoming infected every day.

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