The “Unsinkable” Financial Markets Just Slammed Into A Massive “Iceberg” Called The Coronavirus
But if there is a widespread outbreak, all bets are off. More than a decade ago, the CBO conducted a study which examined this sort of a scenario, and what they discovered is definitely alarming…
CBO did a study in 2005 and 2006, modeling the impact of a 1918-sized flu pandemic on the economy. They found that a pandemic “could produce a short-run impact on the worldwide economy similar in depth and duration to that of an average postwar recession in the United States.” Specifically, a severe pandemic could reduce U.S. gross domestic product by about 4.5%, followed by a sharp rebound.
The CBO assumed that 90 million people in the U.S. would get sick, and 2 million would die. There would also be demand-side effects, with an 80% decline in the arts and entertainment industries and a 67% decline in transportation. Retail and manufacturing would drop 10%.
Personally, I think that those numbers are probably too optimistic.
via theeconomiccollapseblog The “Unsinkable” Financial Markets Just Slammed Into A Massive “Iceberg” Called The Coronavirus