A Long Time Until the Economic New Normal
sloanreview.mit.edu
A Long Time Until the Economic New Normal
1–10 of 322 posts
Re: A Long Time Until the Economic New Normal
#2The articles states as fact there will be negative impacts on long term consumer sentiment and spending without really providing any evidence.
Most Americans are about to receive a $1200 check and unemployment benefits that pay more than their job did for the next 6 months. I don't think consumer spending is going anywhere soon.
Re: A Long Time Until the Economic New Normal
#3While I agree that it will take longer (and wind up different looking) to full recovery, having governments and business plan for the next pandemic will not happen. Short sighted people do not waste time on long term thinking.
Re: A Long Time Until the Economic New Normal
#4The articles states as fact there will be negative impacts on long term consumer sentiment and spending without really providing any evidence. Most Americans are about to receive a $1200 check and unemployment benefits that pay more than their job did for the next 6 months. I don't think consumer spending is going anywhere soon.
How many people on a single $1200 check and unemployment will go out and buy a car, a house, a washing machine or visit a Disney park?
Re: A Long Time Until the Economic New Normal
#5The articles states as fact there will be negative impacts on long term consumer sentiment and spending without really providing any evidence. Most Americans are about to receive a $1200 check and unemployment benefits that pay more than their job did for the next 6 months. I don't think consumer spending is going anywhere soon.
The markets - after a welcome and long overdue correction - are up a few percent, so people seem to be buying in on the expectation of things getting back to normal. Prices seem to be back to 2016/2017 levels. This doesn't indicate to me that people with money believe we're in for a great depression.
Re: A Long Time Until the Economic New Normal
#6The articles states as fact there will be negative impacts on long term consumer sentiment and spending without really providing any evidence. Most Americans are about to receive a $1200 check and unemployment benefits that pay more than their job did for the next 6 months. I don't think consumer spending is going anywhere soon.
This is only anecdotal, and I'm probably not representative of the norm but, I will be saving every nearly every penny from UI and the stimulus incentive.
Re: A Long Time Until the Economic New Normal
#7The articles states as fact there will be negative impacts on long term consumer sentiment and spending without really providing any evidence. Most Americans are about to receive a $1200 check and unemployment benefits that pay more than their job did for the next 6 months. I don't think consumer spending is going anywhere soon.
How many people on a single $1200 check and unemployment will go out and buy a car, a house, a washing machine or visit a Disney park?
In Q1 pick-up sales were up 2%. Granted only half of the quarter was in coronavirus pandemic but it still shows people are willing to spend dollars.
Re: A Long Time Until the Economic New Normal
#8The articles states as fact there will be negative impacts on long term consumer sentiment and spending without really providing any evidence. Most Americans are about to receive a $1200 check and unemployment benefits that pay more than their job did for the next 6 months. I don't think consumer spending is going anywhere soon.
How many people on a single $1200 check and unemployment will go out and buy a car, a house, a washing machine or visit a Disney park?
For many people outside the highly paid HN reading bubble that's a huge windfall.
Re: A Long Time Until the Economic New Normal
#9The points made are fine insofar as they go. At the same time, the current economic situation is, very literally, unprecedented. It has aspects of a war, a natural disaster and a secular recession. Economists should try to estimate its effects, but in this case their predictions need to be taken with an extra large grain of salt.
Re: A Long Time Until the Economic New Normal
#10While I agree that it will take longer (and wind up different looking) to full recovery, having governments and business plan for the next pandemic will not happen. Short sighted people do not waste time on long term thinking.
I also think a lesson people might have learned on the business side is that theres almost no point planning for something like this - how is a small business supposed to have enough cash on hand to make it through something like this? This is just so bad for so many restaurants/small businesses etc that it's not really something you can overcome with some planning if you own a small margin small business