U.S. output decline over last 3 weeks akin to Indiana disappearing for a year, economist says
Economic-analysis firm Moody's Analytics took a look at every county in the United States to estimate how the novel COVID-19 coronavirus pandemic has affected economic output. The results weren't pretty.
Government-ordered shutdowns of non-essential businesses have led to daily output declines in most counties, whether it be large ones like Los Angeles County or smaller ones in rural areas. Overall, the firm estimates the nation's daily output is down 29 percent from the first week of March before most businesses closed. In terms of dollars, that's $350 billion, which is reportedly more than triple the size of the decline in the weeks following the Sept. 11, 2001 terrorist attacks. Mark Zandi, Moody's chief economist, said the drop-off is akin to Indiana disappearing for an entire year.
"This is a natural disaster," said Zandi. "There's nothing in the Great Depression analogous to what we're experiencing now."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
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.
If things continue on the same path, there would be a 75-percent decline in the second quarter, but Zandi is mostly aligned with other analysts who think business will eventually pick back up, preventing such a disastrous fate from coming to fruition. Still, The Wall Street Journal notes, Moody's likely underestimates the total hit of the shutdown because it only focuses on business closures and didn't account for a drop in demand resulting from increased unemployment and the pending loss of household wealth. Read more at The Wall Street Journal.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
'Wolf Hall: the Mirror and the Light' season two – still a "crown jewel"
The Week Recommends Damian Lewis and Mark Rylance star in this 'superlative' Tudor drama on BBC One
By Adrienne Wyper, The Week UK Published
-
'Election Day. Finally.'
Today's Newspapers A roundup of the headlines from the US front pages
By The Week Staff Published
-
Incendiary device plot: Russia's 'rehearsals' for attacks on transatlantic flights
The Explainer Security officials warn of widespread Moscow-backed 'sabotage campaign' in retaliation for continued Western support for Ukraine
By The Week UK Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published