(After) the Virus - #2 (The Economy and Political Theater)

Here are a couple things to consider. It was reported that through-out the country and other parts of the world that renters began going on strike. In solidarity they have been hanging out white sheets from their balconies with a philosophy that “the landlord can’t throw us all out.”

This is also at a time when small business owners are requesting hardship postponements on their rent as well. For some landlords this placed them in a precarious position in that if they don’t get paid, their lien holders (banks, investors etc.) won’t either. Eventually the entire house of cards may collapse.

 If residential apartment renters are thrown out, where would they go? Would they end up joining the homeless? Being exposed, wouldn’t this exasperate the spread of the virus and further burdening our health care?

As for Health Insurance, how much more burden will this place on them? How many claims can they cover before they’re out of cash? If they implode, will this bring us the Public Option of Socialized Health Care that Bernie Sanders campaigned for?

And what about all the money many of us have been receiving? With the national budget in (beyond record deficits) where is the money coming from? In the 1920's Germany burdened by the reparations imposed by the victors of W.W.1, thought they could address their deficits by simply printing more money. This ended in the implosion of their economy after printing so much money brought on hyperinflation. The end result also brought Hitler to power. How well did that work out?

While these illustrations may seem dire, it also presents possible opportunities for us to consider how we can harness and monetize a new economy. With that said, I would encourage our financial advisers, and economist to chime in.