Monday, March 16, 2020

What Happens to the Economy When Everything Stops?

The U.S. economy has experienced sudden stops in the past, but nothing like this

That '80s ShowQuarterly change in real final sales of domestic product, at an annual rateSource: Commerce Department
0%1979’80’81-10-8-6-4-2024681Q 1979x1.3%

The U.S. economy has experienced sudden stops in the past, but nothing like this.
The abrupt disruption to business over the past few days is without precedent. While there have been more jarring hits to the American psyche in the past century—the attack on Pearl Harbor, the assassination of President John F. Kennedy, the Sept. 11 felling of the Twin Towers—nothing has led to such a precipitous drop in everyday commerce quite like the moves people, governments and businesses have taken to counter the spread of the novel coronavirus. A recession is a given.

No comments:

Post a Comment