COVID’s trends haven’t declined substantially at all in the U.S. per the daily mortality increase.
More than the health effects, commentators and politicians alike seem to be more concerned about the ‘economy’, evidenced by the surge in CNBC views.
Yes, ‘money’ is important, since food isn’t free and it is used as a currency to help facilitate transactions. However, someone’s life is wholly irreplaceable.
Big moves in commodities, equities, and debt instruments make for great investment opp’s.
But these economic shifts (and their respective resolutions) are totally separate from the health related interventions.
Both, perhaps, deserve attention… but separately.
Either way, reducing health and wealth disparities have been a long time consistent running theme of pH14 Plan, so identifying and promoting practical solutions responsively to this economic and public health crisis just seems natural at this point…
Previous monetary policy coupled with a focus on the ‘majority of households’ contributed to an unparalleled expansion in the racial wealth gap over the recent decade.
Acutely, national policies must therefore wholly and comprehensively reflect a desire to move forward economically, without expanding racial wealth disparities, and reduce and prevent U.S. mortality.
First, to address ‘lower classes’ of people who have historically been at greater risk per past pandemics…
These ‘lower classes’ need the income and have less wealth to serve as a cushion.
They will simply go to work in the industries who are hiring. There are plenty of employers hiring.
Everyone doesn’t need additional employment-based income. Many households have wealth –the typical family has about $140k of wealth to access when hitting hard times like now.
The people who took their $$ out the market, are sitting on trillions of cash at present. If those persons have a desire to deploy it into the economy to hire people who have lower wealth and lower income, they will initiate those hiring efforts. Again – some have already begun these efforts, to their credit.
If those higher wealth persons and companies don’t make the hires, then economic disparities will persist. Herein, the ultimate economic outcomes generally reflect the morality of the wealthy.
More than the virus, it is greed that poses a greater harm to humanity.
The people who don’t need to work, will simply stay home.
That, solves the economic crisis.
— Poor people (or anyone with a ‘service’ attitude) will go to work, to the extent that employers will make hires.
— Middle class stay home temporarily – at least until they’re poor again.
— The Wealthy deploy their cash stores in the form of employment opp’s for low wealth job seekers.
The health crisis is rather simple too.
Treatment vs prevention…
Per treatment, clinicians will do their job – which is to follow the guidelines to provide treatment as needed.
Beyond that, on the prevention side, people will be tested before coming to work.
Everyone else — non workers — simply will practice social distancing.
That’s it – and best part, no ‘bailout’ is needed.
Until the coast is clear (and observed mortality trends decline sharply), some industries will survive and thrive, and others will shut down.
Instead… what we’re seeing is happening today, is people with wealth are making an appeal to gov’t to absolve any duty they have to cover the costs of hiring.
This becomes the ‘moral hazard’ of taxation and gov’t itself.
So Congress is busily responding to these appeals, with the only strategy it has at its disposal.
As a fact, no new legislative activities are needed for this particular crisis.
Corporations who will make and distribute medicines and masks (for example), will continue doing this to meet the rise in demand. Employers who need workers to re-stock shelves of food will make the hires. Similarly, if wealthy families want lower wealth Americans to shop, then they’ll make the hires using their liquid cash stores.
Instead, what we’re witnessing is the future of how monetary expansion will be pushed through and coordinated.
And sure – – the beauty of a democracy is, ANY citizen is rightfully entitled to make their appeal and put in their pitch to lawmakers and the gods of monetary policy. The difference here is ‘EVERY’ citizen group is making the same appeal, and few are truly taking matters into their own hands, deploying capital and resources to the areas who need it the most…
The inherent challenge for people from economically disadvantaged families, will be to determine how to thrive and stay alive, amidst and beyond all the trillion dollar dealmaking.
The racial wealth gap was 70 to 1 after several rounds of TARP and QE programs.
Recent history of these trillion-dollar 'rescue' packages, suggest that racial wealth gaps will soar to >100:1 in the near term, w/ portions of that debt being repaid off the labor of a 'browner' America in generations coming. Review the effect of the TARP+QE program years. pic.twitter.com/719JfQ8mk3
— pH14 Plan (@pH14Plan) March 23, 2020
The racial wealth gap between major groups in America will likely expand after this round of monetary expansion, if the outcome is similar to what happened previously.
Advocacy efforts must be directed to the Federal Reserve.
Learn to use leverage in combination with other tools to capture any accessible portion of the monetary expansion.
While others are engineering complex responses to the pandemic, there’s generally no need to over-complicate economic development efforts.