Virus Causing Permanent, Lasting Damage to Jobs: Economist Shepherdson

The video discusses the economic impact of delayed reopening due to a pandemic, highlighting permanent job losses, especially in the service and consumer goods sectors. It explains how deferred purchases and reduced service sector activity lead to lasting economic damage. The video emphasizes the need for government intervention through stimulus packages to fill the demand gap left by the private sector. Despite potential government actions, the video predicts a slow economic recovery with some irreversible damage.

What sectors are expected to experience permanent job losses due to delayed reopening?

• Education and finance

• Technology and healthcare

• Agriculture and manufacturing

• Service and small ticket consumer goods

Why might purchases of new homes and cars be deferred rather than canceled?

• Due to permanent job losses

• Due to a lack of available inventory

• Because of increased interest rates

• Because of improved public transportation

What is the expected impact on the services supply chain due to the loss of activity in the discretionary services economy?

• It will have no significant impact

• It will cause a permanent loss of activity

• It will lead to increased demand

• It will result in a temporary slowdown

What is the likelihood of the economy returning to pre-virus levels by the end of the year?

• Certain

• Almost nil

• Moderate

• Very high

What role does Congress play in addressing the economic impact of the virus?

• Reducing taxes for large corporations

• Filling the demand gap with stimulus packages

• Promoting international trade

• Increasing interest rates