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Coronavirus economy: Reports of an economic crash have been greatly exaggerated
h/t Instapundit[USA Today] - ... Americans are selling securities and buying toilet paper as Donald Trump urges us all to socially distance ourselves at least six feet from each other and limit gatherings to no more than 10. Local stores have announced that oldsters like me will be allowed to shop their empty shelves for one hour before regular opening time. There is a deep economic lesson hidden in this rush to stock up on ordinary consumer goods, coordinated spontaneously by common fears of supply shortages and stock-outs. Explanation of supply & demand, and why price controls can't work ...I believe the economy today lives in suspense, not free-fall. The pandemic will pass; public health institutions have been a model of forthright dissemination of information on the spread of this disease and sanitary procedures to minimize its impact. It’s the citizenry that has been unruly for a time. Supply chains will refill and stabilize quickly, as the pandemic passes, securities markets will recover, and growth will continue to reduce poverty everywhere. Homes are more valuable than ever as a haven of safe and secure living. Provided that we continue to buy them with some of our own money, homes will be part of a secure future. Posted by: g(r)omgoru 2020-03-23 |
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