The Virus and the Economy

The spread of the coronavirus has led to fears of a worldwide economic slowdown. China, where the virus first leaped into the human population, has quarantined large sections of the country, virtually shutting down economic activity. In South Korea, several companies—including the automaker Hyundai—closed facilities when workers there tested positive for the virus. The Italian government, meantime, has shuttered schools and universities and banned public attendance at sporting events—including the nation’s popular soccer league—for 30 days. Such responses, likely to spread to other countries as the virus itself travels, have led to estimates that containment efforts could cut worldwide economic growth in half this year. Whether that prediction proves accurate, or whether the toll proves even worse, may depend on how the economic impact of the virus plays out in the United States, the world’s largest and most consequential economy.

The U.S. has already taken several basic steps to stem the spread of the virus, including suspending flights from China and quarantining those returning from areas of the world where the infection is most intense. But as the virus spreads, officials contemplate stricter measures. These include banning public gatherings such as concerts, movies, and sports events; advising businesses to keep workers home; or even shutting down firms where the virus is detected. Read Full Article »