Doyne Farmer has been interviewed in the Santa Fe New Mexican about a paper he recently coauthored. “Supply and Demand Shocks in the COVID-19 Pandemic” the supply and demand shocks for the immediate months following the shutdown.
The report predicts a 24 percent job loss across the U.S. with a 17 percent loss of total wage income. By contrast, Farmer said, job loss was 3.3 percent during the 2007-09 Great Recession and 22 percent during the peak of the Great Depression.
He says that policymakers need to urgently ensure that lower and middle-income workers are protected from these blows as it is impossible to predict how long recovery will take.