What Is Killing Our Economy? It’s “Demand Shock” Not Shutdowns

  • As lockdowns have been lifted in most of the country and businesses have been able to reopen, that supply shock has waned, only for a new problem to emerge: weak demand.
  • As Six Flags CEO Michael Spanos said in a conference call with analysts: “What customers are telling us is when they see a flattening of the curve, they want to get out. We also see a chunk of guests that are saying that when they’re comfortable with the vaccine, they want to get out.”
  • What Spanos was describing is the new reality now facing entire clusters of American businesses — restaurants, movie theaters, airlines, gyms — and the economy more generally: Consumer anxiety over the continued spread of the pandemic is holding back the recovery by making it impossible to get back to business as usual. 

See full story here.

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