The Minneapolis Federal Reserve’s president wants tighter lockdown because he thinks it will help the economy to survive.
The Minneapolis Federal Reserve’s president who once said there was a lot of cash at the Federal Reserve wants the U.S. to repeat a nationwide lockdown to prevent COVID-19 from spreading.
Two people have expressed their opinions concerning this in a New York Times’ op-ed; they are Neel Kashkari and Michael T. Osterholm who writes for the University of Minnesota’s Center for Infectious Disease and Policy. In their opinion, a tighter lockdown should be implemented for at least six weeks to prevent the spread of COVID-19.
The writers opined that the U.S. shouldn’t have eased the lockdown at the time it did because the virus wasn’t yet in control. They said implementing a more severe lockdown would is necessary for both the health of citizens and the economy of the nation. A lockdown in which only essential workers could go to work was necessary.
They mentioned that the lockdown which held from March to May wasn’t effective in some states because a greater percentage of the workers were considered to perform essential duties. According to data from the Economic Policy Institute, just 39% of workers provide essential services in the U.S.
“If we aren’t willing to take this action, millions more cases with many more deaths are likely before a vaccine might be available. In addition, the economic recovery will be much slower, with far more business failures and high unemployment for the next year or two. The path of the virus will determine the path of the economy. There won’t be a robust economic recovery until we get control of the virus.”
Kashkari said before that cash wasn’t a problem for the Fed. Truly, if lockdowns are made to last long and cash is pumped into the society, people will think of investing in Bitcoins and other virtual assets because the fiat currencies will not appreciate as a result of a retrogressing economy.
The rules for COVID-19 lockdown are not the same for every state. For instance, in New York City, July 20 marked the date for the reopening of zoos, sports facilities though without people coming to watch, and the reopening of film production centers. On the other hand, places like this are yet to be open in other states.