An economist is confidant the local and national economy will eventually make a comeback. But in the short term, Dr. Ken Kriz is not sure how we'll manage the decline and all the problems that come with it.
Michelle O'Neill reports last week, Kriz discussed the economic effects of the coronavirus pandemic with members of the Quad Cities Chamber of Commerce (video below).
Dr. Ken Kriz first gave an overview of the swift and dramatic decline in economic activity. He says at least 15 to 20% of the US workforce is unemployed, compared to 13% in the Quad Cities area. In April, retail sales dropped 16% and industrial production was down 11%. US manufacturers operated at 61%, the lowest reading ever.
Kriz also says economic conditions would be "much worse" if the Federal Reserve and central banks around the world had not quickly taken action to intervene.
And in general, he's satisfied with relief packages passed by Congress, such as the CARES Act.
No one knows exactly how the economy will recover, or whether it'll take months or years for it to return to pre-pandemic levels. But Dr. Kriz wouldn't ever bet against the US economy, saying it's resilient and will come back in the long run.
