Buying time for the post-COVID reckoning

Businesses need help weathering a period of profound uncertainty — but we can't delay forever

Coronavirus.
(Image credit: Illustrated | iStock)

The U.S. stock market has had an extraordinary week, with the broad S&P 500 index rising nearly 12 percent since Monday. Investors seem to believe that the actions of the Federal Reserve in particular — which announced a new $2.3 trillion effort to support local governments and small- to mid-sized businesses — will substantially limit the economic damage caused by shelter-in-place orders and other physical-distancing efforts to combat the virus, and set the economy up for a quick rebound once the crisis is over.

Are they right? It's impossible to know. That very uncertainty is a major reason why the Fed's program, along with other government interventions to maintain payrolls and otherwise freeze the economy in place are a good idea. But the ultimate economic cost will be determined by the virus itself.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
Noah Millman

Noah Millman is a screenwriter and filmmaker, a political columnist and a critic. From 2012 through 2017 he was a senior editor and featured blogger at The American Conservative. His work has also appeared in The New York Times Book Review, Politico, USA Today, The New Republic, The Weekly Standard, Foreign Policy, Modern Age, First Things, and the Jewish Review of Books, among other publications. Noah lives in Brooklyn with his wife and son.