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Government Orders Alone Didn’t Close the Economy. They Probably Can’t Reopen It. Government Orders Alone Didn’t Close the Economy. They Probably Can’t Reopen It.
(3 days later)
In the weeks before states around the country issued lockdown orders this spring, Americans were already hunkering down. They were spending less, traveling less, dining out less. Small businesses were already cutting employment. Some were even closing shop.In the weeks before states around the country issued lockdown orders this spring, Americans were already hunkering down. They were spending less, traveling less, dining out less. Small businesses were already cutting employment. Some were even closing shop.
People were behaving this way — effectively winding down the economy — before the government told them to. And that pattern, apparent in a range of data looking back over the past two months, suggests in the weeks ahead that official pronouncements will have limited power to open the economy back up.People were behaving this way — effectively winding down the economy — before the government told them to. And that pattern, apparent in a range of data looking back over the past two months, suggests in the weeks ahead that official pronouncements will have limited power to open the economy back up.
In some states that have already begun that process, like Georgia, South Carolina, Oklahoma and Alaska, the same daily economic data shows only meager signs so far that businesses, workers and consumers have returned to their old routines.In some states that have already begun that process, like Georgia, South Carolina, Oklahoma and Alaska, the same daily economic data shows only meager signs so far that businesses, workers and consumers have returned to their old routines.
Georgia, for example, began to reopen in waves starting April 24, first with gyms, salons and tattoo parlors, and several days later with dine-in restaurants and movie theaters. But the share of small businesses operating and the hours worked in them budged little through the following week, according to data from companies that help firms manage business and track payrolls, or that aggregate credit card transactions. The share of small businesses open remained down about 30 percent from January.Georgia, for example, began to reopen in waves starting April 24, first with gyms, salons and tattoo parlors, and several days later with dine-in restaurants and movie theaters. But the share of small businesses operating and the hours worked in them budged little through the following week, according to data from companies that help firms manage business and track payrolls, or that aggregate credit card transactions. The share of small businesses open remained down about 30 percent from January.
“There’s just no evidence that this partial reopening in Georgia has significantly changed anything in the economy,” said John Friedman, an economist at Brown University and a co-director of Opportunity Insights, a Harvard-based organization that is publicly tracking economic data on the crisis from a number of private companies. Consumer spending data in Georgia has fluctuated up and down, but moving averages of the metric have remained about the same.“There’s just no evidence that this partial reopening in Georgia has significantly changed anything in the economy,” said John Friedman, an economist at Brown University and a co-director of Opportunity Insights, a Harvard-based organization that is publicly tracking economic data on the crisis from a number of private companies. Consumer spending data in Georgia has fluctuated up and down, but moving averages of the metric have remained about the same.
Consumer spending data gathered by the project has not fallen as far as other measures of the health of the economy, partly thanks to tax refunds and federal stimulus checks that helped prop up spending in April. But daily measures of employment and store closings, particularly for small businesses, fell precipitously through March and have remained low.Consumer spending data gathered by the project has not fallen as far as other measures of the health of the economy, partly thanks to tax refunds and federal stimulus checks that helped prop up spending in April. But daily measures of employment and store closings, particularly for small businesses, fell precipitously through March and have remained low.
Even in states that imposed stay-at-home orders or closed nonessential businesses relatively early, households and businesses had begun to shift their behavior about 10 days before those orders. In states that closed later, that shift had come about 20 days earlier.Even in states that imposed stay-at-home orders or closed nonessential businesses relatively early, households and businesses had begun to shift their behavior about 10 days before those orders. In states that closed later, that shift had come about 20 days earlier.
Across all of these states, most of the decline in these economic indicators occurred before official closure orders.Across all of these states, most of the decline in these economic indicators occurred before official closure orders.
Even states that never put in a statewide stay-at-home order, like Iowa, South Dakota and Utah, saw significant drops in consumer spending and employment, as well as in the share of small businesses open.Even states that never put in a statewide stay-at-home order, like Iowa, South Dakota and Utah, saw significant drops in consumer spending and employment, as well as in the share of small businesses open.
This basic pattern is visible in other corners of the economy: Well before shutdown orders, restaurant reservations were plummeting. Electricity usage, which falls when office buildings and factories empty out, was dropping, too. Public transit in many cities was in free fall. So was the number of air travel passengers passing through T.S.A. checkpoints.This basic pattern is visible in other corners of the economy: Well before shutdown orders, restaurant reservations were plummeting. Electricity usage, which falls when office buildings and factories empty out, was dropping, too. Public transit in many cities was in free fall. So was the number of air travel passengers passing through T.S.A. checkpoints.
Such data, combined with opinion polling today, suggests that Americans who were turning off the economy on their own may not readily reopen it soon — even if officials say it’s OK to.Such data, combined with opinion polling today, suggests that Americans who were turning off the economy on their own may not readily reopen it soon — even if officials say it’s OK to.
Weekly surveys of thousands of Americans by the Democracy Fund + U.C.L.A. Nationscape Project have found that a majority of Americans wouldn’t eat in a restaurant, go to the movies or return to a shopping mall even if they were now told they could.Weekly surveys of thousands of Americans by the Democracy Fund + U.C.L.A. Nationscape Project have found that a majority of Americans wouldn’t eat in a restaurant, go to the movies or return to a shopping mall even if they were now told they could.
Those findings in the Nationscape surveys are remarkably consistent across different groups. Residents of states that have already reopened or plan to soon are about as wary of these activities as residents of states that remain locked down, a pattern also found in polling by The Washington Post and the University of Maryland.Those findings in the Nationscape surveys are remarkably consistent across different groups. Residents of states that have already reopened or plan to soon are about as wary of these activities as residents of states that remain locked down, a pattern also found in polling by The Washington Post and the University of Maryland.
Among people in the Nationscape surveys who said they did these activities before the coronavirus crisis, Democrats are about eight to 12 percentage points more likely than Republicans to say they wouldn’t do them now. But those differences are far narrower than on many other polling topics today. Vast majorities of both groups say they would not ride public transit, attend sporting events or go on a flight. Majorities of both say they wouldn’t send their children back to school, a prerequisite to resuming many economic activities.Among people in the Nationscape surveys who said they did these activities before the coronavirus crisis, Democrats are about eight to 12 percentage points more likely than Republicans to say they wouldn’t do them now. But those differences are far narrower than on many other polling topics today. Vast majorities of both groups say they would not ride public transit, attend sporting events or go on a flight. Majorities of both say they wouldn’t send their children back to school, a prerequisite to resuming many economic activities.
“Here’s this moment where almost everybody in the country agrees on a number of different things,” said Lynn Vavreck, a political scientist at U.C.L.A. working on the survey, and an Upshot contributor.“Here’s this moment where almost everybody in the country agrees on a number of different things,” said Lynn Vavreck, a political scientist at U.C.L.A. working on the survey, and an Upshot contributor.
Updated June 5, 2020Updated June 5, 2020
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
That is good news for political scientists who worry about partisanship amid a pandemic, and for public health experts who are urging caution as states begin to reopen. But for anyone hoping the economy will soon rebound, this picture may be more discouraging.That is good news for political scientists who worry about partisanship amid a pandemic, and for public health experts who are urging caution as states begin to reopen. But for anyone hoping the economy will soon rebound, this picture may be more discouraging.
Significant shares of Americans — 30 percent to 40 percent — who say they oppose business closures and stay-at-home orders still report that they personally would not return to shopping malls, restaurants or church just yet. That means that many people who object on principle to government mandates will still be among those staying home once those mandates are lifted.Significant shares of Americans — 30 percent to 40 percent — who say they oppose business closures and stay-at-home orders still report that they personally would not return to shopping malls, restaurants or church just yet. That means that many people who object on principle to government mandates will still be among those staying home once those mandates are lifted.
The researchers at Opportunity Insights collected the anonymized economic data shown above from several partnering companies. Consumer spending data comes from Affinity Solutions, a company that collects consumer purchasing information from card-based transactions. The change in small businesses open is based on small businesses making transactions on a given day, using data by Womply, a company that collects commercial transactions data. Time spent at work is based on publicly available GPS data provided by Google. Hours worked at small businesses were estimated using data provided by Homebase, a software company that helps firms track scheduling and employee time.The researchers at Opportunity Insights collected the anonymized economic data shown above from several partnering companies. Consumer spending data comes from Affinity Solutions, a company that collects consumer purchasing information from card-based transactions. The change in small businesses open is based on small businesses making transactions on a given day, using data by Womply, a company that collects commercial transactions data. Time spent at work is based on publicly available GPS data provided by Google. Hours worked at small businesses were estimated using data provided by Homebase, a software company that helps firms track scheduling and employee time.