- The Minneapolis federal reserve president has just recently called for a National lockdown in order to fight the growing presence of COVID-19.
- Neel Kashkari said that a more restrictive lockdown of up to 6 weeks is a necessity in order to fight the virus and save the economy due to the backlash received from coronavirus.
The Minneapolis federal reserve president has just recently called for a National lockdown in order to fight the growing presence of COVID-19.
Neel Kashkari said that a more restrictive lockdown of up to 6 weeks is a necessity in order to fight the virus and save the economy due to the backlash received from coronavirus. He goes on to say that not only would this save lives but it would also help the recovery of the economy.
He further went on to add that the United States gave up on the lockdown efforts in order to control the virus even before the virus is under control. He adds that for a lockdown to truly be effective in the nature of what is happening this year, only truly essential workers should be allowed to go to work.
The problem with the lockdowns earlier this year in March and May was that many states throughout the US saw a big part of its population as essential workers. However, the reality is that many of these could work from home. The economic policy Institute has said that 39% of workers in the United States are classed as essential. If this information was taken on board by many states, the virus may have been somewhat under control, although many countries that initially had strict lockdown such as the United Kingdom, are slowly going back into a rise of COVID-19 cases due to coming out of lockdown too soon.
“If we aren’t willing to take this action, millions more cases with many more deaths are likely before a vaccine might be available. In addition, the economic recovery will be much slower, with far more business failures and high unemployment for the next year or two. The path of the virus will determine the path of the economy. There won’t be a robust economic recovery until we get control of the virus.”
Countries such as New Zealand have done a good job of controlling the virus. Although of course, you can’t really compare New Zealand to the United States or the United Kingdom as the population of NZ is significantly less than the UK and the US. The harsh lockdown measures in NZ lead to a very limited amount of coronavirus cases throughout the country though.
In the past, Kashkari has said that the Federal reserve has infinite amounts of cash and it’s this kind of quantitative easing that could provide benefits for Cryptocurrency such as bitcoin. Recessions such as the one that we are in now, highlight the benefits of bitcoin and other alternative cryptocurrencies.
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!
