The government should again impose strict coronavirus-related lockdowns for a month or longer across the U.S.
Neel Kashkari, president of the Minneapolis Federal Reserve Bank, said the nation needs to control the spread of the virus, which is increasing across much of the country, to get back on a path to economic health.
“That’s the only way we’re really going to have a real robust economic recovery. Otherwise, we’re going to have flare-ups, lockdowns and a very halting recovery with many more job losses and many more bankruptcies for an extended period of time unfortunately,” Kashkari said on CBS’s “Face the Nation.”
To do so, he suggested strict shutdowns, which is contrary to what President Trump and many of his allies have been pushing in recent months as measures to aid the economy.
“I mean if we were to lock down really hard, I know I hate to even suggest it, people will be frustrated by it, but if we were to lock down hard for a month or six weeks, we could get the case count down so that our testing and our contact tracing was actually enough to control it the way that it’s happening in the Northeast right now,” Kashkari said. “They had a rocky start, but they’re doing a pretty good job right now.”
NEWS: @neelkashkari says if the U.S. were able to lockdown for a month or 6 weeks “we could get the case count down” so testing was adequate to control #covid19 or risk permanent economic scarring and dent the recovery. pic.twitter.com/MAUIisokGG
— Face The Nation (@FaceTheNation) August 2, 2020
He warned the virus will spread throughout the country with flare-ups and local lockdowns for the “the next year or two,” causing more businesses to fail, without such measures.
“We’re going to see many, many more business bankruptcies, small businesses, big businesses, and that’s going to take a lot of time to recover from to rebuild those businesses and then to bring workers back in and re-engage them in the workforce. That’s going to be a much slower recovery for all of us,” Kashkari said.
He also said that Congress can afford large sums for coronavirus relief efforts, though Republican lawmakers are looking to lessen the amount of supplemental aid for unemployed Americans as part of the next relief bill. “Right now, the U.S. can fund itself at very, very low rates. Congress should use this opportunity to support the American people and the American economy. I’m not worried about it,” he said. “If we get the economy growing, we will be able to pay off the debt.” Kashkari also said he does not see evidence to support claims made by Republicans and Trump administration officials that the $600 federal increase to unemployment benefits is discouraging Americans from getting back to work. “There’s just so many fewer jobs than there are workers available,” he said. “At some point, it’ll be an issue. When we get the unemployment rate eventually back down to 5 percent, and we want to get it back down to 4 percent or 3 1/2, where it was before, yes, that disincentive to work becomes material. But right now, it’s simply not a factor in the macro-economy that we have in the U.S. because we have so many millions of Americans out of work.” Nick Note: as we have been warning you from the beginning lock downs will come in waves as the virus spreads. It cycle of opening and shut down over and over again that will cost more and more people their jobs. And closing down more and more business even the big boys. And you will have a harder and harder time getting supplied. Right now their are acute shortages of many high tech supplies. we are having trouble getting fiber optic high end equipment. Masks and PPE supplies are running short the world over. Masks face shields googles and high level filters are now exported under license and more and more countries are not granting export licenses. In Europe their are no workers for the fields. For example France relies on French speakers from Morocco who are no longer allowed in as the North coast of Africa is a red zone.. Crops are rotting in the fields, Seed companies are reporting that seed sales are plunging as Farmers have labor problems and with restaurants closing in mass are seeing a sharp cut in demand. In time more and more industrial materials will run out, specialty food at first them basic supplies. Soon in many parts of the world the internet will collapse with usage far outstripping infrastructure and even electricity will be rationed. Our policy is created your own source of supplies or live like a savage. We generate our own power, water and have moved to cheap second hand electric vehicles charged from the in house 15KW solar power plant. We have our own water wells and vast inventories of basic food and medical supplies. We have farm animals for eggs, milk and meat. and its time to crank up the vertical hydroponic gardens. This is all cheap to do. But you got to get off the radar in the country. No matter how rich or poor this can be done. shipping containers are cheap and make GREAT homes. Double wide Mobil homes can be bought cheap and easily refurbished. Solar panes have never been cheaper and your electric cars also doubles as a battery on wheels. Your city neighbors will soon be your enemies. Their will be no cure and no usefull vaccines. People will become poorer and poorer and more desperate. First you got to isolate and get the simple tools not to get the virus yourself. The P3 R Military canister filter adapted to the half mask and GOOGLES. disinfect and isolate. Now your next problem is all the idiots who are not protecting themselves and were already living hand to mouth before the plague. Run from them. their are far to many to kill and unfortunately feed either. Next is stock up on medical supplies… You all know the drill. Now is the time to implement if you have not done so already. The time to wait to see what happens is over its happening!


