CORONAVIRUS: Economic Effects Could Last 70 Years
Although most Americans think we'll get through the coronavirus crisis within the next year or so, a new study says the economic effects could last 70 years.
A paper titled "Scarring Body and Mind: The Long-Term Belief-Scarring Effects of COVID-19" was released last week at the Federal Reserve Bank of Kansas City’s annual conference.
It suggests that individuals and businesses will be more risk-averse with the knowledge that a pandemic could throw the global economy into recession practically overnight. The authors also note that certain capital investments -- such as office supplies -- have been reduced because so many people are working at home -- and that businesses will be wary of spending that money elsewhere. Plus the spate of bankruptcies will discourage entrepreneurs from opening new businesses.
The paper does note that the depth of the economic toll will depend on whether the country is forced to undergo future lockdowns.