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Californians are bracing for a second COVID-19 Pandemic lockdown.  This will be a precedent for other states and is extremely disruptive to the fragile post-shutdown economic realities.

The first lockdown, which began in March of 2020, had a profound effect on the United States unemployment rate and GDP.  The result of these lockdowns was a loss of tens of millions of American jobs.

The second lockdown has shut down bars, nightclubs and restaurants.  The businesses who shut down now may never open again.  The economic and social costs of these lockdowns will be felt by all.  As schools decide on what the 2020 school year will look like, it appears more and more that working parents will suffer as staggered schedules will make flexible work essential.  A class of those who have flexible work from home accommodations will rise above those who cannot to further separate the haves from the have nots.  

California is a major contributor to the United State's GDP, and institutions stationed there will feel the pain.  Disneyland and the entertainment industry is centered there, and much of the state is dependent on services.  The nature of our economy as a service-based economy in which services encompass 70% of all economic activity means that a lockdown is especially dangerous to us.

Other states including Washington are beginning to consider a rollback on economic opening or even a second shutdown.  This is a damaging and problematic framework during such a fragile time.  Lockdowns were not effective last time, and this time our economy is in big trouble.


Sources:

Image from Pixabay.

https://www-wsj-com.cdn.ampproject.org/v/s/www.wsj.com/amp/articles/californias-second-shutdown-11594770566?amp_js_v=a3&amp_gsa=1&usqp=mq331AQIKAGwASDYAQE%3D#aoh=15950104679932&referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.wsj.com%2Farticles%2Fcalifornias-second-shutdown-11594770566