The following article, IMF Claims COVID-19 Crisis Has Now Caused Worst Economic Crisis Since The Great Depression, was first published on Flag And Cross.
One of the biggest concerns that has come about due to the measures the governments of states around the country have taken to try and flatten the curve of the coronavirus outbreak is the possibility of our economy tanking in a major way due to everything being shut down.
It seems those fears are not unfounded, as the International Monetary Fund is now claiming that the coronavirus pandemic has caused the worst economic crisis since the Great Depression.
Check out the details from The Washington Examiner:
“This makes the Great Lockdown the worst recession since the Great Depression, and far worse than the Global Financial Crisis,” IMF economic counselor Gita Gopinath wrote in the revised World Economic Outlook.
That analysis projects a “cumulative loss” of roughly $9 trillion around the world, as billions of people have adopted social distancing practices to stop the contagion’s spread. The IMF projection assumes that “the pandemic fades in the second half of 2020,” but there’s no guarantee that the crisis will be so short-lived.
The IMF analysis went on to say, “The pandemic could prove more persistent than assumed in the baseline. Moreover, the effects of the health crisis on economic activity and financial markets could turn out to be stronger and longer lasting, testing the limits of central banks to backstop the financial system and further raising the fiscal burden of the shock.”
Despite the doom and gloom of their take on the economic consequences of the measures being enforced to stop the spread of COVID-19, the IMF are supportive of the “Great Lockdown” and the other social distancing measures being taken, calling them prudent tactics.
“Flattening the spread of COVID-19 using lockdowns allows health systems to cope with the disease, which then permits a resumption of economic activity. In this sense, there is no trade-off between saving lives and saving livelihoods,” Gopinath said.
There’s now a debate raging within the United States about whether or not to reopen the economy and how that should be done if that particular direction is chosen. Some folks are advocating for a slow reopen that still attempts to implement a lot of the social distancing measures as a means of compromising in order to help protect vulnerable folks from the virus’s spread as well as keeping the economy stable.
A lot of this would encourage herd immunity, which might be our only true defense against this evil scourge.