The economic impact of reopening is unclear, but the goal to keep government "small" is unwavering even in a crisis
In the coming weeks many US states will begin the process of loosening COVID-19 lockdown restrictions and "reopening" their economies.
Other states have already done so.
While the argument for reopening has been unequivocal—it's supposedly what we need to save our flagging economy from a full-blown depression—it's not clear that it will serve that function at all. Recent polling has shown that the vast majority of Americans support social-distancing and stay-at-home measures and are not enthusiastic about the prospect of going back to restaurants and crowded stores while the coronavirus pandemic is ongoing. Which means that the number of customers who return as states drop their restrictions may not be enough to keep small businesses afloat.
Unfortunately that majority opinion has not received as much attention as many of the loudest advocates for reopening—who have argued that a death toll that is likely to more than double current figures is worth it, or that the whole pandemic is just a hoax. Of course it makes sense for small business owners and people who are struggling to make ends meet right now to want to get back to work, but what good will it do?
If cases spike, overwhelming local hospital systems and causing deaths and tremendous medical debt in the process, then restrictions will need to be reinstated, and the economic problems we're currently dealing with will only be prolonged. Right now we lack the widespread testing and the sufficiently improving conditions to support reopening without a vaccine. There are measures we could take at the federal level to improve the situation without such startling risks, but we are ignoring those options—treating reopening like it's the only solution available—for one simple reason: Americans hate "big government."
Last Monday, cases hit their lowest daily total since March. Today, the case number is up a couple thousand cases… https://t.co/NJoLmhZwMZ— The COVID Tracking Project (@The COVID Tracking Project)1589839717.0
Since at least the 1980s our society has been flooded with anti-government propaganda. We recite mantras about government mismanagement, waste, incompetence, while ignoring successful programs at home and abroad. One of our two major parties has devoted much of its political willpower to actively sabotaging federal programs and agencies like the US Postal Service to prove their point and push for further privatization (that they, along with their donors and friends, stand to personally profit from). In this context, the kind of aggressive federal spending we would need to keep small businesses and struggling families afloat in current conditions is virtually unthinkable.
Even America's relatively compassionate party is only pushing fairly moderate measures that are likely to be whittled down and paired with massive business subsidies in the Senate—just like what happened with the Cares Act in March. In its current form the Heroes Act includes $175 billion in housing assistance, a second round of $1200 stimulus payments (with children receiving as much as adults this time), $200 billion in hazard pay for essential workers, $1 trillion in funding for states to pay their vital workers, and a six month extension of the $600 unemployment expansion.
Undoubtedly these measures will help a lot—though not as much as more generous proposals—but they ignore some major issues. The biggest problem (apart from the fact that the senate isn't going to let the bill pass as is) is that states are straining to make the basic unemployment payments that the $600 expansion is meant to supplement. As a result, many of the tens of millions of people trying to file for unemployment have been stymied by bureaucratic foot-dragging and red tape, and now states are using reopening as a way to push workers off of unemployment and protect state budgets from possible bankruptcy—an outcome which Senate Majority Leader Mitch McConnell has no interest in preventing. In some states there are even systems being implemented to report workers who refuse to go back to work, regardless of their circumstances or legitimate fears.
Whether any of this will improve the national economy in the long run remains to be seen. What is clear is that state governments are being understandably cautious with their budgets, and the Republican party is playing their usual political games with lives, health, and livelihoods on the line. The result is that states are reopening, and millions of workers are about to be pushed off unemployment. The next stop is cutting retirement benefits, and fully dissolving any remnant of a social safety net this country has.
As we enter what is likely to be another global depression, it's worth keeping in mind that these programs are among the measures that helped us get through the last one under FDR and that countries that chose a different path were pushed toward a scarier form of politics that has lately been threatening resurgence: outright fascism. Let's try not to repeat the mistakes of the 1930s.
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