One major reason that the U.S. became the world's economic powerhouse after World War Two was because the economic infrastructure of all of the U.S. manufacturing competitors in Europe and East Asia were in ruins. It wasn't some special American genius or ingenuity that made us an economic superpower, it was simply that we had a good decade and a half with no real competition in the industrialized world. That cemented the U.S.'s role as economic powerhouse that could continue even after other countries had fully rebuilt from the war.
I keep thinking of that during this pandemic. Because the bottom line is that among highly developed countries, the U.S. is less prepared than everyone else to handle an emergency like this. There is no universally guaranteed paid time off from work. While other nations are setting up guaranteed income replacement for everyone out of work in their country, the U.S. has only a one-time $1200 payment (which doesn't apply to everyone and is really just a tax rebate) and an enhancement to its existing unemployment compensation system, which doesn't apply to people working in the "gig economy" (or other employees who had been designated as "independent contractors" by their employers to avoid paying them benefits), and several states have made it virtually impossible to apply for unemployment benefits (I'm looking at you Florida! But it is not just Florida). Those things, plus the American political system's reluctance to provide direct aid to anyone other than large wealthy businesses, mean that the American economy will have a much harder time coming back online again after being shut down for an extended period of time. Other countries are just doing a better idea to keep up a lifeline for everyone, freezing the economy in place, so it is ready to switch back on when the disease is under control.
In addition, the U.S. is the only developed country without universal health care. That will also spread the economic misery and make fighting the pandemic that much harder in this country.
On top of all of that, we have a complete failure of the federal government in its response to this disease, which means the response is falling to state governments, and a political party dominated by anti-science morons intent on taking action that is sure to make the pandemic worse.
I don't know when or how this will end, but however that plays out, the U.S. is highly likely to be dealing with this pandemic longer than most of its economic competitors, and the economic harm is likely to be deeper and longer for the U.S. than in other developed countries. When we all emerge from this, we might find that the U.S. has lost its role as an economic superpower.
I keep thinking of that during this pandemic. Because the bottom line is that among highly developed countries, the U.S. is less prepared than everyone else to handle an emergency like this. There is no universally guaranteed paid time off from work. While other nations are setting up guaranteed income replacement for everyone out of work in their country, the U.S. has only a one-time $1200 payment (which doesn't apply to everyone and is really just a tax rebate) and an enhancement to its existing unemployment compensation system, which doesn't apply to people working in the "gig economy" (or other employees who had been designated as "independent contractors" by their employers to avoid paying them benefits), and several states have made it virtually impossible to apply for unemployment benefits (I'm looking at you Florida! But it is not just Florida). Those things, plus the American political system's reluctance to provide direct aid to anyone other than large wealthy businesses, mean that the American economy will have a much harder time coming back online again after being shut down for an extended period of time. Other countries are just doing a better idea to keep up a lifeline for everyone, freezing the economy in place, so it is ready to switch back on when the disease is under control.
In addition, the U.S. is the only developed country without universal health care. That will also spread the economic misery and make fighting the pandemic that much harder in this country.
On top of all of that, we have a complete failure of the federal government in its response to this disease, which means the response is falling to state governments, and a political party dominated by anti-science morons intent on taking action that is sure to make the pandemic worse.
I don't know when or how this will end, but however that plays out, the U.S. is highly likely to be dealing with this pandemic longer than most of its economic competitors, and the economic harm is likely to be deeper and longer for the U.S. than in other developed countries. When we all emerge from this, we might find that the U.S. has lost its role as an economic superpower.
