I get my news through a steady diet email newsletters from a variety of industries, sources, and political persuasions. I stay in touch with developments while keeping hype to a minimum and the wide variety of viewpoints keeps me from getting too paranoid in any particular direction. I don't get on Twitter (though I'm pondering a way to craft a useful Twitter life) and I'm too boring a person for Facebook or Instagram. I look at Reddit throughout the day and that's where my political-ness comes from. During this period of quarantine I have seen no diminution in the sheer amount of political stories (er, that is, teenagers being snarky for on-line plaudits, not even because they believe their own snark) and I guess I'm not surprised: politics is a popular parlor game among the sophisticated but bored populace.
But the gov't has never been less crucial to me than this week. I've seen enough of Trump that I don't understand why anybody bothers to watch him. What could a normal citizen possibly learn from watching this guy? He clearly doesn't get how the virus works--and why would he? Why would it matter if he did? Are you waiting for the president to cure a coronavirus? He doesn't do stuff like that, so why exactly does the population even need him to pretend like he does? Indeed, this is a States' problem more than a Federal one and each State will show different ways to react and recover that will be invaluable going forward while the Federal gov't isn't likely to do much of anything relating to the virus itself that is useful at all.
Even the quarantine didn't derive from the gov't but from the citizenry. The corporations, the banks, the insurance companies, the markets, the masses....we embraced social distancing as a means of fending off this virus and the gov't was forced to come along--even though Trump clearly doesn't like this or want any part of this. The gov't is downright hostile to the plan--so why are we looking to the gov't in this time when it is looking only to us?
It was the NBA that let the cat out of the bag: public interaction is way too much of a liability to afford to have a game. When you have 20,000 people in an arena, it is easy to assume that 2% of those people (400) have the virus and that two hours of sitting crampacked together will surely spread the disease to at least another 2% of anyone with 10 feet of the person (which might be up to 30-40 people); now if anyone dies of this virus--anyone anywhere in the world dies of this--now the NBA is potentially liable to anyone that has ever heard of the NBA. Yes, many of those cases would be frivolous but they would still cost the NBA an enormous amount just to make them go away or many cases would be cheaper for the NBA to pay off rather than litigate, which can be brutally expensive and at least implies a level of culpability, which opens the league to further claims. If the virus progresses as the spreadsheets suggest and the death rates maintain to expected levels, then the NBA becomes financially liable to potentially hundreds of thousands of claims just for a regular old Kings-Nuggets game on a Tuesday night.
Likewise with South-by-Southwest (SXSW): I suspect that at the last minute insurance underwriters came through and said something like, 'yeah, normally we charge a thousand for this but this year it's going to be a million because the rate of spread of this virus is too much to handle.' When liability balloons like that, then calling the whole thing off--cancelling out on the thousands of people and vendors that looked forward to the event every year--is much easier and cheaper than going through with the event.
Well, the logic behind the science that dictates that putting too many people together will spread the virus too quickly, applies to non-basketball games and music festivals, too. Indeed, it applies to anyone and everyone. The NBA showed us that, then the gov't jumped in to look busy.
We think of cold blooded capitalists that just want their money no matter who is injured but when the potential liability of injury is exponential then cancelling the show and foregoing the profits is a wildly cheaper move.
That's where the quarantine came from: insurance companies realizing that, in a legal liability sense, it is too dangerous (potentially too expensive) for people to be around each other. It didn't come from the gov't. The gov't was reacting to what society itself and the markets had already instinctively grasped: that 'flattening the curve' was the only hope to avoid a throttling of our health care infrastructure.
'Flattening the curve' undoubtedly came from insurance companies, not from the gov't. The gov't doesn't have a good eye for gloomy futures, politicians love to keep things rosy no matter how dire the situation truly is. But insurance companies are basically nothing but pessimism machines. And flattening the curve is the only thing that makes sense to them. Again, the gov't is reacting to the markets, not the other way around.
The gov't wasn't completely absent but are the CDC and the Federal Reserve really "gov't"? (Ehh, that's a hobby horse I'll give a ride to some other time) The gov't's initial response came in the form of the CDC sending out tests in early February to track down the spread of the virus within USA's borders. The tests were faulty, thus we lost two weeks of figuring out what was going on. Is that Trump's' fault? No. Hell, I'm not even blaming the CDC--this shit's hard, man! No one knew this virus existed three months ago, putting together a test, mass producing it, implementing it, getting the results back and then analyzing said results is a long process. And it is much easier to do it wrong (as we've seen) than it is to do it right. That's not a function of gov't, that's just how life works. Expecting the gov't to immediately and completely solve all problems (or even diagnose them) is an unrealistic expectation and though it may be fun to barb your political enemies, it does you no service as a citizen or a human being to fill your brain with unrealistic expectations.
The other early gov't action was the Federal Reserve spontaneously lowering interest rates near zero on March 3. That was about week before the virus started spooking Americans but it had already begun to hit the markets. As far back as January I saw choppy waters ahead for the stock market but I figured this was just another one of those viruses we've been getting steadily for the last 20 years (H1N1, swine flu, Mers, bird flu, SARS, West Nile, Zika, Ebola, just to name a few) and that this one would fade like the others, making an impact but ultimately moving on. When the Fed did that rate cut in the middle of the day, that caught me off guard (kinda scared me, truth be told), because that was the first indication that the powers that be knew this was going to be huge. That was the first moment that Covid-19 struck me as a coming onslaught, not merely another one of these influenzas that occasionally spooks us.
The effect of the Fed actions and Congress's subsequent economic overhauls will only become apparent over time. For now, these moves are so large as to be pretty much imaginary. Congress's newly passed $2 trillion bill is really just a giant placeholder for what will eventually be negotiated. Economically speaking it's easy to see where this is going: for now the credit card companies will pay all the bills and the insurance companies will end up with all the liability and they'll have to sit down with the gov't to whack it all out. Until then, I don't really understand why the markets would bother to go up or down: I know cash flow is a concern but in my lifetime I doubt there has ever been less cash flow in the American economy than this week (or the coming weeks) and it feels like getting by on even the shakiest credit is probably gonna work for most people.
I expect the economy to bounce back quickly. Why? Because there has been no physical deterioration of industrial production or of our supply lines. This is not like a war or a hurricane or an earthquake. What this is, economically speaking, is a labor stoppage: the physical infrastructure is just fine except that the workers are not working right now. Once they get back to work, I expect the economy to come back hard and fast. This period will be a gap down in the macro-economy, which is a godawful struggle while its happening but should be a boon to new and future growth once it has been absorbed.
When the workers get back to work, the economy will be strong again--indeed, I don't see why it wouldn't. Not everything will be the same, not everyone will emerge unscathed, it will be a while before things get back to "normal" (yeah, with quotation marks). But the larger economy has suffered only a shock to the system, nothing suggestive of overall material decline, a coma (as Larry Summers suggested). When people do get back to "normal" I think they'll get back to it hard. Workers will suddenly have a new appreciation for work and consumers will have a new appreciation for the products and services they need.
Remember the CDC was the first to act and the Federal Reserve came next (two quasi-gov't institutions, I would add). The gov't is not well-equipped to get ahead of problems: the White House steadily downplayed this as long as they could--and fought being dragged into a quarantine--and Congress only acts when it is absolutely forced to. You can blame the particular personalities in office at the moment or you can recognize that that is simply how gov't works: slowly and only when forced to act. It was SXSW and the NBA and the NCAA that made the fateful decisions that showed the public the light....not the gov't. Long live the people!
It is the citizenry, the markets, the corporations, the PEOPLE that made the move to save lives and they will bring back a new way of life when the time is right. The people have done it and the people will do more. Fuck the gov't, they're a bunch of fucking clowns. In short, Trump was forced into this. I am convinced he never wanted any of this and still doesn't. So crediting Trump or blaming Trump is just a waste of your time. Perhaps pillorying politicians is an amusement to you, in which case, well, Trump is a pretty obvious target. But in my home state of Kentucky we have a governor that's on TV every night and pummeling my inbox with spam every day and he sure wants to look like he's in charge and he is kindly, he is the anti-Trump...and I got no use for him either. What is that dude gonna tell me that's gonna make my life better?
Politicians don't create vaccines and until they do, who gives a fuck what they have to say? They are functionaries, they are fungible commodities, they are not sexy or knowledgeable or important and pretending as if they are (or are supposed to be) is a just a poor use of your conception of gov't. This nation is people, the gov't is just the gov't.
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