Why it may be harder for our economy to recover from the virus

[RDANGELO]

Our economy is very much a service economy where disposable income is spent by consumers in places like restaurants, bowling establishments and sporting events. This spending is very non essential and is also the kind places you would want to avoid during the pandemic and might be reluctant to go to even if it was declared safe towards the end of it. If you had a habit of engaging in these activities, you might lose interest after the danger period is over. On the other hand, if your refrigerator breaks down, that is more essential, but when you buy a new one, the chances are close to one hundred percent that it was not made in the United States.

[JCMach1]

1. I have a mechanical Covid-19 victim sitting in the corner of my kitchen

Fridge compressor is under warranty, but it's pretty much a moot point as repair would cost as much, or more as it's scratch and dent replacement.

The SOB died the first day of quarantine.

Can't even take it curbside as large items are not being picked at present ...

We desperately need local supply chains in this country. It was my first pandemic lesson.

[True Blue American]

11. My fairly new

TV was hit by a strike, even though I had a surge protector. Thank goodness I had my old one.

Store has now reopened by appointment only. Will wait a couple more weeks.

Hairdo and cut Thursday. Feel like a new person.

[JCMach1]

14. I have no hair, so good on that front. I did see my GP yesterday

and the meds are soooo helping my knees (suffering for about 6 weeks) and got an anti-body test done.

[True Blue American]

15. I do that Monday:)

What I really miss is my 3 times a week at the Y pool for the same reason you mentioned. The machines are great but doing a number on my legs. Water exercise is the best.

[RDANGELO]

3. Good advice.

[JI7]

4. yup, We aren't going to have a serious effort at the national level stop the spread of the Virus

until the shit is gone.

And the threat of the virus is going to hold back the world economy .

[uponit7771]

5. What percentage of the economy is close venue or large gathering types of spending events?!? tia

[RDANGELO]

7. I really don't know, but I am 66 years old.

I remember when most consumer items were made in the US and we had a strong middle class.

[uponit7771]

13. +1, it looks like Red Don's trade war has broken the supply chain to the point we can't do crap here

... any longer.

Putin is proud and loving it

[rickyhall]

6. Getting rid of our industrial backbone was our biggest mistake.

[jaxexpat]

9. Another poor decision made on the corner of.......

Wall Street and Madison Avenue. Symbolically speaking, of course.

[True Blue American]

12. And if laws are not changed to bring them back nothing will change.

[DrToast]

8. Agree

I think the savings rate is going to stay at higher levels than before. The lack of a social safety net has been exposed for all to see. I think spending habits will be changed.

[bucolic_frolic]

10. Not to worry

They said the same in '09. Consumers need to spend to save the economy and can't spend because they lost their jobs, houses and are broke.

Enter the Fed! The Fed is printing $3 Trillion monthly. They flood the world with cash by buying assets. Soon in the bond and equity markets. The money goes to hedge funds, and they raise the market. Soon everyone is rich! Spending recovers. Money is depreciating, and the whole system depends on sequestering the supply of money in strong hands - banks, bonds, equities, wealthy people - enough to prevent rapid inflation. And when that eventually does happen, they will just do what governments have always done - convert the currency to a new denomination. We've done it, in history, the changes were subtle, but they were there. Greenbacks, Silver coinage, copper coinage, composite coinage, copper-plated zinc, Silver Certificates, Gold certificates, Federal Reserve Notes, United States Notes, the gold standard. A 1960 dollar is worth about what - 15 cents?

Converting currency to new denomination is like a company declaring bankruptcy. The old shares are worthless or thereabouts. The new is accepted and trades well. It's just not worth what it used to be.