Coronavirus: Considering the longer-term impact – Charles Schwab
|The economy is currently facing down its largest contraction since perhaps the Great Depression. For now, we are all mired in the short-term impact; but it’s also worth considering some of the longer-term impacts, as Liz Ann Sonders from Charles Schwab notes.
Key quotes
“Deglobalization is a force unlikely to recede. One of the longer-term implications of that might be a higher level of inflation than we’ve become accustomed to.”
“Health screenings will likely become a part of life akin to the ushering in of the TSA following 9/11.”
“Deficits/debt will likely rise to even greater levels as a share of GDP that was imaginable before COVID-19.”
“Corporate America was forced to react quickly to the economic shutdown possibly leading to structural adjustment to how they operate.”
“Financial caution will likely persist, by households who may want to build a more consistent liquidity cushion, and by companies looking to shore up their balance sheets.”
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