The beatings will continue until morale improves: Below are some stories I found today describing the on-going the collapse of the economy due to the nationwide lock downs imposed by state and local governments because of their panic over the Wuhan flu.
Note how the first two stories are about the sufferings of state employees, whether in government or academia. Note too how these stories only mention as an aside the collapse of the real economy. Who cares if millions of private businesses are going under? What’s really important is that we won’t be able to grab their profits and the government will have to shrink! Horrors!
Only the last two stories are about the real crash, with only the last, buried among many other stories on RealClearPolitics, telling the true tale:
The Commerce Department said on Thursday business applications dropped 21.4% in the week ending April 11, compared with the same period last year.
…The slump in business applications comes as states and local governments have issued “stay-at-home” or “shelter-in-place” orders affecting more than 90% of Americans to control the spread of COVID-19, the potentially lethal respiratory illness caused by the virus, and abruptly halting economic activity.
At least 22 million people have filed for unemployment benefits in the last four weeks. Retail sales suffered a record drop in March and output at factories declined by the most since 1946. Homebuilding crumbled in March at a speed not seen in 36 years. Economists believe the economy contracted at its steepest pace since World War Two in the first quarter. [emphasis mine]
A 21% drop in new businesses tells us that the economy will not recover from this madness very quickly. Money is drying up, the banks are under a strain, and the economy is shrinking like a burst balloon.
The middle paragraph in the quote above is intended to justify this crash and government abuse of power by the use of the word “lethal,” thus playing up danger of the Wuhan flu, even though the evidence still shows it to be, like the flu, only a threat to the old and the sick. Like the flu, most everyone else simply fights it off with no long term consequences.
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