Americans are optimistic by nature, and the public is right to hope for the best. But policy makers must prepare for the worst. And that means we must consider options for reopening the economy in a world in which we have not completely controlled the Covid-19 pandemic. Time is of the essence. Every week matters. A 2016 study by the JPMorgan Chase Institute found that the median small business holds just 27 days’ worth of cash in reserve. For restaurants, retail shops and construction firms, the buffer is even thinner.
Cash Crunch – some businesses can last longer than others without money coming in.
The good news is that there are ways to get America back to work while we control the spread of SARS-CoV–2, the novel coronavirus that causes Covid-19. We need to escape from the false dichotomy which insists that the only way to improve public health is by shutting down the economy and the only way to improve the economy is by sacrificing public health.
(H/T: Wall Street Journal)
