The coronavirus pandemic will last 18 months or more, could come in several waves and cause critical shortages of medicines, equipment, and staff, the government has been warned.
A 100-page document, issued Friday as Donald Trump announced a state of emergency, says Washington should close schools and cancel public events to curb the spread of the virus.
The missive also urges the President to invoke Korean War-era powers to force industries to respond to the crisis by ramping up production of key items.
The coronavirus pandemic will last 18 months or more, could come in several waves and cause critical shortages of medicines, equipment, and staff, the government has been warned
A 100-page document, issued Friday as Donald Trump (pictured) announced a state of emergency, says Washington should close schools and cancel public events to curb the spread of the virus
Activating the Defense Production Act would force companies to accept and prioritize government contracts for items including ventilators, protective gear for medical workers, medicines and diagnostic tools such as testing kits, the plans says.
The document, a copy of which was seen by the New York Times, also warns that state and local government resources will be stretched and less reliable as the crisis goes on.
‘These stresses may also increase the challenges of getting updated messages and coordinating guidance to these jurisdictions directly,’ it says.
On Monday Trump urged Americans to avoid public gatherings of 10 or more people, but stopped short of a federally-enforced ban.
While individual states have shuttered schools and universities, there has been no order from Washington to do so yet.
And Trump has also avoided invoking the Defense Production Act, despite widespread problems with testing that has been blamed on a lack of kits.
Asked Tuesday about invoking the act, Trump said: ‘We’re able to do that if we have to. Right now, we haven’t had to, but it’s certainly ready.
‘We’ll make that decision pretty quickly if we need it. We hope we don’t need it. It’s a big step.’
As of Wednesday morning there were almost 6,500 confirmed coronavirus infections in the US – more than double the 2,300 cases reported on Friday when the plan was issued.
Deaths have also climbed above 100, more than double the 48 reported Friday.
What the plan does not address is the economic impact of the crisis, which is being felt across the globe as Treasury Secretary Steve Mnuchin warned that a recession has already begun.
Mnuchin told senators in a Tuesday briefing that he believes the economic fallout from the coronavirus is potentially worse than the 2008 financial crisis, Bloomberg reports.
He then said that the virus could drive up the unemployment rate to 20 per cent, a level not seen since 1935.
The missive also urges the President to invoke Korean War-era powers to force industries to respond to the crisis by ramping up production of key items
Mnuchin lawmakers don’t provide a swift financial response to wage workers and small- and medium-sized businesses to alleviate the problems.
A Treasury Department spokeswoman later denied that Mnuchin was making predictions, and was giving examples of what might happen if no action is taken.
‘Secretary Mnuchin used several mathematical examples for illustrative purposes, but he never implied this would be the case’.
Regardless, economists for Goldman Sachs and Morgan Stanley say that a global recession has likely already begun, with the only question remaining how severe the pullback will be, and how long it will last.
‘We expect the recession to be front-loaded, with a recovery in [the second half of the year],’ said Goldman Sachs’ chief economist in a note to clients.
‘This assumes that infections will slow significantly by the end of April as the lockdowns and other mitigation measures bear fruit.’