The Triple Castastophe of COVID-19

Coronalog

We’re facing a triple catastrophe. First, is the virus itself, though the human toll might be great, the economic toll due to loss of productivity due to sickness would be minimal. The demographic that the virus hits the hardest is predominately retirees, so not in the workforce. Next comes the immediate economic toll due to business closures being called for by many of the nation’s governors and mayors. While devastating in the short-term, they will end soon after the crisis passes. The third catastrophe, which will have the worst and most long-lasting impact will be the trillions of dollars of debt that we will incur. All the emergency spending, bailouts, and all the grants will come at a huge cost in terms of inflation and/or increased taxes. Some of it needed, some of it– not so much. Congress is acting like a bunch of teenagers that just broke into their parent’s liquor cabinet, lots of fun now, but there will be a steep price to pay later.

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