How The COVID-19 Shock Is Different

At Zerohedge.

The COVID-19 crisis has struck the economic ‘machine’ in several places at the same time, as Figure 1 illustrates schematically.

Figure 1 COVID-19’s multiple strikes in the circular flow of income diagram

The figure displays a version of the well-known circular money flow diagram (e.g. Mankiw 2010). In simplified form, households own capital and labour, which they sell to businesses, who use it to make things that households then buy with the money businesses gave them, thereby completing the circuit and keeping the economy ticking over.

27 Replies to “How The COVID-19 Shock Is Different”

  1. Conrad Black writes about the China virus at the National Post. And the diverse population in diverse Toronto are adjusting to the virus in their own special way. A fight broke out in a downtown Loblaws store. Two people were injured and one person was arrested for pulling a gun.

  2. You forgot to mention the economic stimulus resulting from panic buying and stockpiling. Must be a substantial offset there.

  3. Anything to defeat Trump. It’s like a thousand black kids can get shot with hand guns in Chicago and … crickets but let six people get killed by an AR-15 and it’s time to ban guns! Never let a crisis go to waste. They should call it the Alinsky Flu.

  4. I think that someone should explain this to Robert Morneau, the Doofus and Gerald’s Butt because they obviously don’t understand it at all.

    1. Prinz Dummkopf wouldn’t bother looking at it because there aren’t any pictures for him to colour .

  5. a little bit of brit grit (via grandpa)
    “whether the weather be fine,
    or whether the weather be not;
    we’ll weather the weather
    whatever the weather,
    whether we like it or not.”

  6. Turdhole goes into hiding while the borders remain wide open… the Liberal policiy of open borders is the reason the virus is here, they are to blame, but receive none.

  7. The danger is that when you “Short” the system it won’t be easy to restart….What is the exit plan… I see ~ about 3 months of minimum available services & lost GDP…. Getting ready to leave AZ for Sask, but that may be unwise if travel services (Motels Etc.) are not easy to find (available)… Normal is not the normal….

    Arizona is not such a bad place to hunker down!

  8. Opportunity knocks for real ‘Made in Canada’ and ‘Made in USA’ labels, hard to know if they’re genuine, but use the market disruption to cut out imports from the uncivilized world.

    Information in Canada is very poor, but at some level even dumb people should realize it’s unwise to be dependent on distant foreigners who hate us for life’s essentials.

    Government cash injections should work toward independence, but the Liberal Party is only handing out a billion dollars to its friends of course, it’s da usual bizness.

    Maybe it’s the end for Canada? The federal government picked up passport holders from virus zones and unleashed them on the public but hasn’t done anything useful.

    1. The Liberal government today announced measures to limit international flights to a few airports in order to screen travellers who might be infected with the coronavirus.

      Well, they say they’re in consultations and are still working out the details.

      So it may take several more days before the policy is implemented.

      We’ve known for weeks that the virus was spreading in Canada almost entirely through arrivals from high-risk countries.

      But to this day there are still people arriving from these countries.

      And no one is asking them any question or checking if they are sick.

      All they get is a paper warning them to be prudent.

      This is criminal negligence on the part of the Liberals.

      Justin Trudeau is completely wedded to his vision of a multicultural Canada with open borders, welcoming the whole world.

      So much so that he is willing to stick to it dogmatically even if it means risking the lives of millions of Canadians.

      Canada needs a government that prioritizes Canadians’ and their security first.

      https://mobile.twitter.com/MaximeBernier/status/1238105868685783042

      1. Exactly!

        Canadians and their security should be the federal government’s highest priority at all times, but this pathetic Liberal government works against Canadians and their security.

        1. The normal reasoning that we the people should think first before speaking doesn’t exist for them the woke, for it LEFT them, long long ago…

  9. Rex Murphy writes about the China virus and climate fanatics at the National Post.

  10. Another great reason to be a public servant. You will be able to stay home at full salary to take care of your kids and not loose your job.

    1. Taking care of her own children is the absolute LAST thing a typical Ottawa civil servant wants to do.

      Days spent “working from home” are supposed to be devoted to morning drinking, telling Twitter how men are swine and Trump is Hitler, and entertaining the Muslim she’s screwing behind hubby’s back.

      Three weeks of having to actually take care of her own snotnosed brats? Our civil servant would sooner die of COVID-19.

    2. Yes the real world doesn’t exist

      And it should…

      The government of we the people should be so small that they can never ever take advantage of we the people ever again for they should be lucky enough to be serving for all the RIGHT reasons.

      Term limits needs to be installed for all who serve we the people.

      You serve to serve we the people and not selfish yourself and those you corruptly conspire against us…

  11. Leadership: mediaite.com/tv/trump-questioned-on-slow-coronavirus-testing-i-dont-take-responsibility-at-all/

    1. He is not responsible for the CDC clown show, so no, he should not be ridiculous and mouth meaningless words like “I take full responsibility for etc.” meaningless words are a liberal progressive thing, listen to our idiot prime minister.

      The CDC has needed a thorough house cleaning for many years, liberals politicized it and diverted it from its mission, it’s about time they dropped the crap and focused on disease control.

  12. If everyone of us got the chicom virus would the outcome be any different than the madness that is going on now?

    Jeebus give me strength

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