The new geography of economics: ‘Coronavirus cliffs’

Today marks the completion of my 61st journey around the sun. There is, as there has been on numerous previous such milestones, absolutely nothing to celebrate.


Recession

Mitch McConnell continues to play the ‘bad guy,’ helping to defend neoliberal priorities.[1] This enables Democrats to pretend to want much more spending—they don’t and would be sounding a very similar note to what we hear from McConnell if they controlled the presidency and the Senate—in the name of economic recovery, for which read, reasserting economic power relationships.[2] This way, the Republicans continue to appeal to so-called “fiscal conservatives” (mostly capitalist libertarians and neoconservatives) while Donald Trump holds on to his authoritarian populist and social conservative base, the Democrats appeal to functionalist conservatives, neoconservatives, and progressives, and both parties are happy, at least through November, no matter who wins. But as usual, workers will get stiffed and the environment will get stiffed. In other words, politics as usual.

What remains to be seen is how well it all works and what happens when, as now seems almost certain, we plunge over what Ben White calls the ‘coronavirus cliff’[3] because neither party really wants the stimulus that is needed.[4]

On May 8, the Bureau of Labor Statistics will release its monthly unemployment report. Watch this report and the one in the following month, on June 5.[5] These are the first reports that will fully reflect the ‘cliff’ we have in fact already fallen over and are still tumbling down.[6] As these numbers sink in, watch the reaction. That will tell you much more than what we’re hearing right now.

There is a new blog post entitled, “On a baffling presumption of goodwill toward ‘essential’ workers.”

Martina Hund-Mejean and Marcela Escobari, “Our employment system has failed low-wage workers. How can we rebuild?” Brookings, April 28, 2020, https://www.brookings.edu/blog/up-front/2020/04/28/our-employment-system-is-failing-low-wage-workers-how-do-we-make-it-more-resilient/

Ben White, “Trump faces the risk of a coronavirus cliff,” Politico, April 28, 2020, https://www.politico.com/news/2020/04/28/trump-reopening-coronavirus-213535

Justin Lahart, “Why the Economy Was Even Worse than the GDP Report,” Wall Street Journal, April 29, 2020, https://www.wsj.com/articles/why-the-economy-was-even-worse-than-the-gdp-report-11588176851

Heather Long, “U.S. economy shrank 4.8 percent in first quarter, biggest decline since the Great Recession,” April 29, 2020, https://www.washingtonpost.com/business/2020/04/29/gdp-coronavirus/


Pandemic

I’m guessing there is going to be a run on four-ply microfiber cloth.[7]

Matthew Cox, “Army Says It Has Found the Best Fabric for DIY Face Masks,” Military.com, April 28, 2020, https://www.military.com/daily-news/2020/04/28/army-says-it-has-found-best-fabric-face-masks.html

Taylor Telford and Kimberly Kindy, “Trump to order meat plants to stay open in pandemic, person familiar with action says,” Washington Post, April 28, 2020, https://www.washingtonpost.com/business/2020/04/28/trump-meat-plants-dpa/


  1. [1]Ben White, “Trump faces the risk of a coronavirus cliff,” Politico, April 28, 2020, https://www.politico.com/news/2020/04/28/trump-reopening-coronavirus-213535
  2. [2]David Benfell, “The capitalist death cult,” Not Housebroken, March 27, 2020, https://disunitedstates.org/2020/03/27/the-capitalist-death-cult/
  3. [3]Ben White, “Trump faces the risk of a coronavirus cliff,” Politico, April 28, 2020, https://www.politico.com/news/2020/04/28/trump-reopening-coronavirus-213535
  4. [4]Anne Applebaum, “The Coronavirus Called America’s Bluff,” Atlantic, March 15, 2020, https://www.theatlantic.com/ideas/archive/2020/03/coronavirus-showed-america-wasnt-task/608023/; David Benfell, “Elite priorities: Why social, animal, and environmental justice remains essential with COVID-19,” Not Housebroken, April 26, 2020, https://disunitedstates.org/2020/04/26/elite-priorities-why-social-animal-and-environmental-justice-remains-essential-with-covid-19/; David Blanchflower, “Pandemic Economics: ‘Much Worse, Very Quickly,” New York Review of Books, March 26, 2020, https://www.nybooks.com/daily/2020/03/26/pandemic-economics-much-worse-very-quickly/; Kim Hart, “The coronavirus economy will devastate those who can least afford it,” Axios, March 23, 2020, https://www.axios.com/coronavirus-economy-layoffs-children-families-bad-d588cc93-ff26-4031-8be8-5654cce05a15.html; Zoë Hu, “A New Age of Destructive Austerity After the Coronavirus,” New Republic, April 23, 2020, https://newrepublic.com/article/157417/new-age-destructive-austerity-coronavirus; Sarah Jones, “Dear Rich People: Please Stop Hoarding Things,” New York, March 30, 2020, https://nymag.com/intelligencer/2020/03/things-are-bad-and-rich-people-arent-helping.html; Hanna Kozlowska, “Coronavirus is revealing ugly truths about social structure in the US,” Quartz, March 14, 2020, https://qz.com/1818548/coronavirus-is-revealing-ugly-truths-about-social-structure-in-the-us/; Eric Levitz, “In the Age of the Coronavirus, Biden’s ‘Results’ Require Bernie’s ‘Revolution,’” New York, March 16, 2020, https://nymag.com/intelligencer/2020/03/who-won-the-democratic-debate-between-biden-and-bernie-coronavirus.html; Tony Romm, “Uber drivers and other gig economy workers were promised unemployment benefits. It may be a long wait,” Washington Post, April 2, 2020, https://www.washingtonpost.com/business/2020/04/02/uber-airbnb-lyft-unemployment-coronavirus/; Jenny Schuetz, “America’s inequitable housing system is completely unprepared for coronavirus,” Brookings, March 12, 2020, https://www.brookings.edu/blog/the-avenue/2020/03/12/americas-inequitable-housing-system-is-completely-unprepared-for-coronavirus/; Luke Taylor, “When coronavirus is behind us, will you still think of restaurant and bar workers?” Vox, March 21, 2020, https://www.vox.com/2020/3/21/21188210/coronavirus-restaurant-bar-workers-economy-service-industry; Reis Thebault, Andrew Ba Tran, and Vanessa Williams, “The coronavirus is infecting and killing black Americans at an alarmingly high rate,” Washington Post, April 7, 2020, https://www.washingtonpost.com/nation/2020/04/07/coronavirus-is-infecting-killing-black-americans-an-alarmingly-high-rate-post-analysis-shows/; Funda Ustek-Spilda et al., “The untenable luxury of self-isolation,” New Internationalist, March 18, 2020, https://newint.org/features/2020/03/18/untenable-luxury-self-isolation; Jennifer Valentino-DeVries, Denise Lu, and Gabriel J.X. Dance, “Location Data Says It All: Staying at Home During Coronavirus Is a Luxury,” New York Times, April 3, 2020, https://www.nytimes.com/interactive/2020/04/03/us/coronavirus-stay-home-rich-poor.html
  5. [5]Bureau of Labor Statistics, “Schedule of Releases for the Employment Situation,” n.d., https://www.bls.gov/schedule/news_release/empsit.htm
  6. [6]David Blanchflower, “Pandemic Economics: ‘Much Worse, Very Quickly,” New York Review of Books, March 26, 2020, https://www.nybooks.com/daily/2020/03/26/pandemic-economics-much-worse-very-quickly/; Justin Lahart, “Washington’s Trillions Alone Can’t Stop the Jobpocalypse,” Wall Street Journal, March 26, 2020, https://www.wsj.com/articles/washingtons-trillions-alone-cant-stop-the-jobpocalypse-11585235110; Justin Lahart, “Why the Economy Was Even Worse than the GDP Report,” Wall Street Journal, April 29, 2020, https://www.wsj.com/articles/why-the-economy-was-even-worse-than-the-gdp-report-11588176851; Heather Long, “U.S. economy shrank 4.8 percent in first quarter, biggest decline since the Great Recession,” April 29, 2020, https://www.washingtonpost.com/business/2020/04/29/gdp-coronavirus/; Derek Thompson, “All the Coronavirus Statistics Are Flawed,” Atlantic, March 26, 2020, https://www.theatlantic.com/ideas/archive/2020/03/fog-pandemic/608764/
  7. [7]Matthew Cox, “Army Says It Has Found the Best Fabric for DIY Face Masks,” Military.com, April 28, 2020, https://www.military.com/daily-news/2020/04/28/army-says-it-has-found-best-fabric-face-masks.html

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