We must find the delicate balance between the virus and our economy

The Covid-19 virus has caused significant damage to the health of many. The number of people testing positive to date is 750,000 with 40,000 related deaths. The seriousness of this pandemic can’t be overstated, and all resources must be utilized to combat it. This includes quarantining those at-risk and their immediate family members and taking every precaution to prevent exposing them to this potentially lethal virus. This virus doesn’t break into homes, however, and infect people; it infects those that are needlessly exposed to a carrier. In the case of my 86-year-old mother; her children are sharing the responsibility of leaving food and other necessities on her doorstep. It’s difficult for her emotionally to not be able to see her children, grandchildren, and great grandchildren, but we have no fear of her being infected. No, not every at-risk person can be completely isolated, but the vast majority can, which reduces the spread exponentially.

Equally devastating, however, is the economic damage being imposed on millions by the executive decisions of many state governors who have taken draconian measures by forcing closure of thousands of private businesses. Many of them will never reopen and will face certain bankruptcy through no fault of their own. We haven’t begun to see the domino effect, and we are, by most estimates, still weeks away from any reestablishing of our economy. The calamity will be enormous, and no amount of government intervention will correct it. In fact, many economist are sounding the alarm due to the massive CARES Act that is adding $2.2 trillion to our debt. To put it in scale, the entire federal budget for 2020 is $4.8 trillion. We have now increased our spending by 46 percent at a time when our production output is estimated to be reduced by 25-30 percent for the 2nd quarter. The worst single quarter during the Great Depression was an 8 percent reduction.

Let that sink in for a moment. Again, our government is spending 46 percent more when the GDP is expected to drop by 25-30 percent. Simply creating more money doesn’t eliminate the problem created by the shutdown; it merely shifts it, and somewhere along the line, others are bearing the cost. It would be naïve to think that the politicians and policy makers are finished tossing more money at the problem. There is little doubt that they will make themselves look good by spending trillions more, whether it makes a difference or not, before we see the other side of these unprecedented times.

It’s worth noting that many millions who will receive the federal $1,200 checks as income relief don’t need relief at all. The incredible cost of that is unnecessary at present. Consider federal employees, state employees and pensioners who are seeing no impact on their incomes. Many have had their duties eliminated or reduced by the shutdown, such as health department restaurant inspectors or TSA workers at airports, but continue to be fully compensated. This is not a stimulus package meant to spur discretionary spending. With most retail establishments shutdown, what is there to buy and stimulate the economy anyway? That money would have been better spent if allocated to the unemployment insurance funds of the states and directly funneled to those who suffered loss of jobs and income.

By no means should we stop the efforts at containing this virus, but a more measured approach is needed that doesn’t put us on the precipice of a Great Depression that could potentially cost more lives than the coronavirus itself.

Ronald Vissing is a local business owner and can be reached at RJVissing@TWC.com.