The COVID/Economy Connection
a three-minute lesson from The Practical Prof®, Dr. Santo D. Marabella
Today, let’s look at the connection between COVID and the economy…
BOTTOM LINING IT FOR YOU: an increase in unemployment has occurred as a surge in COVIC cases is happening. We can’t say it’s a “cause and effect,” there is not enough data to make that claim. But, what we can say is it’s pretty damning for those states/municipalities who ignored the science and forced a quick re-opening of the economy. The opposite effect occurred — they hurt their economies.
The rush to open the economy and combat the devastation caused by COVID is understandable. Many people are hurting, unable to work because of illness or the shut-down. What is not understandable is the politicizing of a public health crisis which makes it somehow un-patriotic to protect health at the cost of harming the economy. We faced the challenge of a short term hit to the economy to curb a long-term hit to our public health. We failed. We see the surge in COVID cases, hospitalizations and death and the increase in unemployment claims (see below for stats).
I said months ago on my social media: you can’t have a healthy economy if people are afraid to engage in it as consumers or workers, and if they are sick or dead! Now, unfortunately, we are seeing evidence of the veracity of that statement.
According to the Pew Research Center, on June 11, 2020, “Unemployment rose higher in three months of COVID-19 than it did in two years of the Great Recession” June 11, 2020. (Source)
And, today, according to many respected sources, including the LA Times, “The number of laid-off Americans seeking unemployment benefits rose last week for the first time since the pandemic struck in March, evidence of the deepening economic pain the outbreak is causing to the economy.” 1.4 million claims were filed, up from 1.3 million the previous week. (Source)
It’s no coincidence that the unemployment rise is happening along side the surge in COVID cases. “32 states have reported record increases in coronavirus cases in July and 16 states an increase in deaths,” Aljazeera reports. (Source):
Some states’ unemployment claims have dropped, such as my home state of Pennsylvania, which had the 3rd highest recovery/lower unemployment claims since last week, behind Michigan and Oregon, where the virus seems to be more under control. Florida is dead last (no pun intended) at 51st (DC is counted as a state, hence 51). They fared the worst in the country in terms of recovery from last week. And, as we know, Florida currently has the “distinction” for the greatest number of COVID cases. (Source).
What do we need to do going forward? The same thing public health officials have been saying since early in the pandemic: wear a mask, practice social distance, wash your hands. There is so much evidence that transmission of the virus is dramatically reduced when we do these simple things.
We are going to have to adapt our lifestyle — this virus is not going anywhere unless we are committed to proactive, aggressive steps to stop it. Believe it or not — our life and our work depend on it!
