The economic and political implications of the coronavirus.

When addressing coronavirus pandemic (COVID-19), we must put people’s health (and, potentially, life) at the forefront of every action taken by the public and private sectors, as well as individuals. Late prevention, poor communications, playing politics, or just focusing on economic objectives or gains without regard to science and healthcare expert guidance is extremely irresponsible. Ultimately, the latter would have more severe consequences on all the political, economic, and social issues at stake.

The Trump administration has been erratic. From denial to political gamesmanship and extreme reactions with a National Emergency declaration, which continues to be handled with inefficient or incomplete measures. The U.S. government’s narrative, together with the lack of coordinated international efforts, has created more panic and exposed the American people to a higher healthcare crisis, with a cost in lives. This pandemic crisis will inevitably redefine the economic prospects for the year ahead while reshaping the presidential race of 2020 in the U.S. 

The crisis’s economic impact is real. Multilateral agencies are projecting a current decrease of at least 1 to 1.5% in average global GDP. For the U.S. alone, this will bring economic growth down to 1.8% from 2.2%. Therefore, improper crisis management at this time could increase uncertainty, market volatility and losses (so far, the indexes are down me 15% for the year, on average), and create a significant dynamic that, in its worse case scenarios, could have the potential of a recession. 

Trump’s response also lacked building trust through bipartisanship. In his public appearances, he has even made evident his political hostility and reluctance to work with Democratic governors. For instance, he called Washington state’s governor John Inslee a “snake,” after expressing disagreement with Vice President Pence’s conciliatory tone, when he praised the coordinated efforts and state’s government response in one of the regions with the most critical exposure to COVID-19. Fortunately, there were better signals from Capitol Hill than from the White House. Trump underestimated the resources and scope of his funding request to manage the COVID-19 crisis (limiting effort on all fronts, including underfunding prevention and research). In response, Democratic leaders in the House and Senate promptly escalated the ask from $1.5 to 8 billion dollars, receiving immediate support from the Republican leadership.

In that regard, Democratic presidential front runner (with a current prohibitive lead) VP Joe Biden came out to create a sharp contrast with Donald Trump in a speech in which his statesman experience and adequate expert guidance outlined a path for crisis control. His speech demonstrated that common sense leadership and following science is essential, just like when he helped lead the Obama-Biden Administration’s effective response to the 2009 H1N1 pandemic and the 2014 Ebola epidemic.

Among the measures for a comprehensive plan, Biden outlined what so far Trump’s approach is lacking. Among other things:

    •    Ensuring that every person who needs a test can get one for free. Moreover, every person—whether insured or uninsured—would not have to pay a dollar out-of-pocket for visits related to COVID-19 testing, treatment, preventative services, and any eventual vaccine. 
    •    Expanding food relief for hard-pressed families and children.
    •    Extending unemployment insurance, paid sick leave, and other measures to help workers, families, and small businesses economically harmed by the COVID-19 crisis.
    •    Leading the global response to COVID-19 and advancing global health security.

Biden’s response contrasted with Trump’s address on Wednesday, in addition to making the same impression of congressional leaders. Not only by proposing comprehensive concrete measures and steps that put people first, even when addressing the economic impact, but also by elevating the tone above political gamesmanship and manipulation of the facts. Furthermore, a single tweet from Joe Biden may be the most powerful electoral missile ever imagined. The Democratic candidate wrote: “We need to ensure that everyone who needs a coronavirus test can get one – and that the test is free. Period”.

The issue has the potential to unleash a storm of public opinion, as official sources have confirmed to the media that the White House refused to work with the World Health Organization on the massive and free administration of these tests; being the case that in fact, one of the most successful countries in managing the pandemic has been South Korea; and one of the key tools of this success to contain the contagion, immediately applying quarantine, containment or early clinical attention protocols in the most vulnerable population, was the massive and free administration of tests to determine the presence of the virus (in schools, pharmacies, public places and ports or airports). 

There is much more ahead of us, but we must aspire that this delicate matter is responded with the best practices known to worldwide experts and health authorities, and that the political bipartisan agreement is to grant these plans, policies and actions all the necessary financial support, including (at this stage) measures of economic stimulus and support to working class people infected with the virus.