Why This Downturn Has Many Economists Stumped

John Harwood: “The numbers evoke the worst economic nightmares in American history. But White House economic adviser Kevin Hassett freely admits he can’t map the path out.”

Said Hassett: “A lot of it depends on things I have no expertise in.”

“That’s the surreal reality facing President Trump’s economic team as growth turns into contraction and 30 million Americans have lost their jobs. It is a Great Depression-level economic crisis that has everything to do with public health — but, unlike the 2008 financial collapse, very little to do with anything wrong in the underlying economy.”

“As a result, the tools economists typically use for adjusting supply and demand — targeted spending, tax cuts, changes to trade and regulatory policy — hold little power. The restoration of American prosperity lies more in the hands of the public health officials, epidemiologists and scientists racing to develop a coronavirus vaccine.”