The ongoing COVID-19 pandemic has brought down the world to its knees. The outbreak has confined most of humans to their homes with strict travel restrictions imposed by many countries, both domestically and globally.
Many powerful nations- including Russia, England, Australia, Jordan, Israel, and more- have ordered compulsory lockdowns, limiting people to move out of the house only for basic necessities.
Almost all the population of the earth has been affected by the outbreak in one way or another, and most anyone is scared as hell at this point. The only person who seems to be taking the virus lightly is U.S. President Donald Trump. Though he has imposed social distancing until 30 April 2020, the lack of a compulsory lockdown in many states- excluding California and New York- is taking a turn for the worse as the death toll seems to be increasing with every passing day. Till 31 March, over 3000 people have died in the states, while more than 160000 people have been infected with the said disease.
So, is President Trump's decision not to lock down the nation a wise move that can help the U.S. in the long-run? Or, is he endangering the whole country by not accepting the magnitude of the Coronavirus crisis? Let's evaluate!
Effects Of Lockdown On US Economy
Though money is the least of the concern for any nation right now, the global economy is surely suffering at this point due to the shutting down of industries and lack of financial activities.
People are focused on buying only basic necessities such as medical supplies and foods. Several multi-billion dollar industries- including fashion, electronic gadgets, automobiles, and such- have been shut down temporarily due to a lack of demand.
New York City goes silent after the lockdown in March 2020 (©: Mirror.co.uk)
Despite a lack of lockdown, the United States of America has also seen a negative impact of the Coronavirus crisis.
The U.S. economy is one of the largest in the world; in January 2020 alone, the nation exported products worth $135,861.5 million and imported goods worth $201,758.6 million.
But, there was a trade deficit of $65,897.1 million in January 2020, along with a total deficit of $852,787.9 million in 2019. Does that mean cutting off businesses with other countries is actually beneficial to the U.S.?
Answer: No, not really!
The above figures only represent the physical goods that went in or out of the country. Services- which are provided by firms of the U.S. to other nations- have not been considered in the exports. The states often provide high-value services to other countries, while outsourcing the lowly-valued services- including customer care and telemarketing. Further, the imports also consist of several raw materials that are value-added in the U.S. and used within the country or exported.
However, the economy is not only dependent on foreign trades. Internal trades also play a crucial role in the workings of a nation's economy. It was reported that, in 2015, monetary transactions inside the U.S. amounted to $14 trillion a day. From 2015 to 2020, the population of the U.S. has increased from 321 million to over 331 million; thus, the daily money transactions have also increased significantly over the years. These undertakings are a source of revenue to the general public and the government in the form of taxation.
In case of a total lockdown, these transactions can be limited to basic goods and services, with people distancing themselves from luxuries. As a result, it can hamper the overall growth of the American economy and may also affect it adversely.
Duration Of The Lockdown May Be A Reason
The number of infections from the COVID-19 pandemic is growing every day. Despite many global superpowers spending billions on the research of a vaccine, a cure for the coronavirus may be months or even years from development.
If a lockdown is imposed all over the North American nation, it will be next to impossible for the government to uplift the quarantine before a vaccine or cure is found. Unlike China, the constitutional powers of the USA are decentralized, and the ruling party may not reach the required majority in case they want to reverse their decision to impose the lockdown.
If, by any chance, the duration to find the cure exceeds the expected time frame, uplifting the lockdown for the sake of the economy will certainly be thought of as a d*ck move on the President's part.
U.S. President discusses the ongoing coronavirus outbreak during a press meet in March 2020 (©: USNews.com)
So, it must be understood for now that though President Trump is considering a compulsory lockdown for the safety of the American people, he doesn't want to make any rash decisions in a hurry- which he might regret in the future.