Investors, policymakers, businesses and the general public are increasingly concerned the coronavirus’ rapid spread will lead to a recession. While this outcome is hard for economists like me to predict, we do know one thing: The U.S. is not prepared to fight a deep recession.
Policymakers basically have two methods for reversing a downturn: monetary stimulus, primarily through reduced borrowing costs; and fiscal stimulus, when the government spends more or cuts taxes.
Unfortunately, the U.S. currently has dim prospects for success with either option.
Bill Ferguson’s article over at The Conversation is concise and precise. Two qualities our government has lost with the ignoranus-in-chief in charge. RTFA. He gets it right. The White House probably won’t even get round to admitting the question(s) need to be asked until the daily death toll gets up to 3-figures or more.