{"id":28496,"date":"2020-03-02T05:31:38","date_gmt":"2020-03-02T13:31:38","guid":{"rendered":"https:\/\/goldco.com\/?p=28496"},"modified":"2022-12-28T06:47:32","modified_gmt":"2022-12-28T14:47:32","slug":"think-coronavirus-wont-affect-us-economy-think","status":"publish","type":"post","link":"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/","title":{"rendered":"Think the Coronavirus Won\u2019t Affect the US Economy? Think Again"},"content":{"rendered":"<p>There seems to be a great deal of complacency among many in the United States about the effect that the coronavirus will have on the US economy. Thus far it\u2019s been treated as an issue that only affects China, and whose effects on the US economy will be limited. But the US and Chinese economies are so tightly intertwined that anything that happens in one country affects the other. It\u2019s only a matter of time before the disruption to supply chains and the drawing down of parts inventories results in an economic slowdown in the US. Those who downplay the economic effects of the coronavirus seem to make some assumptions that just don\u2019t hold up to scrutiny.<\/p>\n<h2>1. The US Economy Can Operate Just Fine Without Chinese Products<\/h2>\n<p>This just isn\u2019t true. So much of what is produced in the US relies on Chinese inputs, from metals to electronics to auto parts. As China\u2019s production continues to stagnate, US firms reliant on Chinese sources will either have to find other sources or shut down their own production.<\/p>\n<h2>2. China\u2019s Economy Will Get Back Up and Running Soon<\/h2>\n<p>Even in areas where the Chinese government is attempting to coax workers back into factories, few seem willing to do so. Those who have thus far escaped the virus don\u2019t want to go back to factories in which they\u2019ll mingle with thousands of others and possibly risk contracting the virus. Expect Chinese production to remain low at least through the end of March.<\/p>\n<h2>3. Chinese Consumers Will Begin Consuming Again<\/h2>\n<p>Look at pictures of malls in China and you\u2019ll notice that no one is out shopping. It will take a long time for Chinese consumers to feel confident enough to risk going back out in public again. Even then, they\u2019ll want to minimize how much time they spend around other people. Once again, expect the first quarter of this year to be a wash, and for consumer spending not to pick up again until April at the earliest.<\/p>\n<h2>4. US Firms Have Sufficient Inventory to Keep Production Going<\/h2>\n<p>Many US companies pride themselves on their just-in-time inventory systems, timing things just right so that they can keep production flowing smoothly while not holding excess amounts of inventory. That means that even a few days of disruption to their inventories can have long-term effects on their productive ability. And once production stops, it can take days or weeks to get back up and running again.<\/p>\n<h2>5. Companies Have Enough Cash on Hand to Ride Out Any Disruptions<\/h2>\n<p>The majority of Chinese companies have only a few months of cash on hand, so the longer they\u2019re closed or operating at reduced capacity, the more money they\u2019re hemorrhaging. American companies are in a worse position, as many are heavily indebted and don\u2019t have cash on hand to ride out major supply disruptions. Many businesses, both in the US and in China, could face bankruptcy in the event of serious production difficulties. Then their creditors start having difficulties, etc., until we find ourselves back in a 2008-like situation with a potential snowball of bankruptcies.<\/p>\n<p>It\u2019s amazing that with all of this as a backdrop, so many in the US are still so blas\u00e9 about the effects the coronavirus will have on the economy. Even <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/speech\/clarida20200225a.htm\" target=\"_blank\" rel=\"noopener noreferrer\">Fed officials such as Richard Clarida<\/a> seem to think that the effects of the virus on the US economy will be minimal, and that there might conceivably be a case for the Fed to begin hiking interest rates again this year. They\u2019re so blinded by their reliance on \u201cdata\u201d that they can\u2019t see the economy coming crashing down again all around them just like in 2008.<\/p>\n<p>If you\u2019re an investor, you should be viewing all of this with trepidation, and making plans to protect your assets. You can\u2019t trust the Fed or anyone else to be the white knight rushing in to rescue you and restore your 401(k). If you don\u2019t <a href=\"https:\/\/goldco.com\/gold-ira\/\" target=\"_blank\" rel=\"noopener noreferrer\">invest in gold<\/a> or otherwise hedge against the real risk of a recession, you\u2019ll likely face the possibility of your investment portfolio losing significant amounts of value, just like in 2008.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There seems to be a great deal of complacency among many in the United States about the effect that the coronavirus will have on the US economy. Thus far it\u2019s been treated as an issue that only affects China, and whose effects on the US economy will be limited. But the US and Chinese economies [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":32193,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[207,208,209],"tags":[238,782,324,233,218],"class_list":["post-28496","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-federal-reserve","category-precious-metals","tag-china","tag-coronavirus","tag-corporate-debt","tag-economy","tag-federal-reserve"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.0 (Yoast SEO v25.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Think the Coronavirus Won\u2019t Affect the US Economy? Think Again &#8211; Goldco<\/title>\n<meta name=\"description\" content=\"There are still people who think the coronavirus won&#039;t affect the US economy. Here are 5 assumptions they make, and why each one doesn&#039;t hold up.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Think the Coronavirus Won\u2019t Affect the US Economy? Think Again &#8211; Goldco\" \/>\n<meta property=\"og:description\" content=\"There are still people who think the coronavirus won&#039;t affect the US economy. Here are 5 assumptions they make, and why each one doesn&#039;t hold up.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/\" \/>\n<meta property=\"og:site_name\" content=\"Goldco\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goldcopreciousmetals\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-02T13:31:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-28T14:47:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Homepage-1200x630-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Paul-Martin Foss\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:description\" content=\"There are still people who think the coronavirus won&#039;t affect the US economy. Here are 5 assumptions they make, and why each one doesn&#039;t hold up.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/02\/NewYork325x246.jpg\" \/>\n<meta name=\"twitter:creator\" content=\"@GoldcoPM\" \/>\n<meta name=\"twitter:site\" content=\"@GoldcoPM\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Paul-Martin Foss\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/\"},\"author\":{\"name\":\"Paul-Martin Foss\",\"@id\":\"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada\"},\"headline\":\"Think the Coronavirus Won\u2019t Affect the US Economy? Think Again\",\"datePublished\":\"2020-03-02T13:31:38+00:00\",\"dateModified\":\"2022-12-28T14:47:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/\"},\"wordCount\":713,\"publisher\":{\"@id\":\"https:\/\/goldco.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/03\/NewYork-855x570-1.jpg\",\"keywords\":[\"China\",\"Coronavirus\",\"corporate debt\",\"economy\",\"Federal Reserve\"],\"articleSection\":[\"Economy\",\"Federal Reserve\",\"Precious Metals\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/\",\"url\":\"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/\",\"name\":\"Think the Coronavirus Won\u2019t Affect the US Economy? Think Again &#8211; Goldco\",\"isPartOf\":{\"@id\":\"https:\/\/goldco.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/03\/NewYork-855x570-1.jpg\",\"datePublished\":\"2020-03-02T13:31:38+00:00\",\"dateModified\":\"2022-12-28T14:47:32+00:00\",\"description\":\"There are still people who think the coronavirus won't affect the US economy. Here are 5 assumptions they make, and why each one doesn't hold up.\",\"breadcrumb\":{\"@id\":\"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/#primaryimage\",\"url\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/03\/NewYork-855x570-1.jpg\",\"contentUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/03\/NewYork-855x570-1.jpg\",\"width\":855,\"height\":570},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/goldco.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Think the Coronavirus Won\u2019t Affect the US Economy? Think Again\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/goldco.com\/#website\",\"url\":\"https:\/\/goldco.com\/\",\"name\":\"Goldco\",\"description\":\"Top Rated Gold &amp; Silver IRA Company\",\"publisher\":{\"@id\":\"https:\/\/goldco.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/goldco.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/goldco.com\/#organization\",\"name\":\"Goldco Precious Metals\",\"url\":\"https:\/\/goldco.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldco.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png\",\"contentUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png\",\"width\":220,\"height\":101,\"caption\":\"Goldco Precious Metals\"},\"image\":{\"@id\":\"https:\/\/goldco.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/goldcopreciousmetals\",\"https:\/\/x.com\/GoldcoPM\",\"https:\/\/www.instagram.com\/goldcopm\",\"https:\/\/www.linkedin.com\/in\/goldcopreciousmetals\",\"https:\/\/www.pinterest.com\/goldco\/goldco-precious-metals-blog\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada\",\"name\":\"Paul-Martin Foss\",\"url\":\"https:\/\/goldco.com\/author\/paul-martin-foss\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Think the Coronavirus Won\u2019t Affect the US Economy? Think Again &#8211; Goldco","description":"There are still people who think the coronavirus won't affect the US economy. Here are 5 assumptions they make, and why each one doesn't hold up.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/","og_locale":"en_US","og_type":"article","og_title":"Think the Coronavirus Won\u2019t Affect the US Economy? Think Again &#8211; Goldco","og_description":"There are still people who think the coronavirus won't affect the US economy. Here are 5 assumptions they make, and why each one doesn't hold up.","og_url":"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/","og_site_name":"Goldco","article_publisher":"https:\/\/www.facebook.com\/goldcopreciousmetals","article_published_time":"2020-03-02T13:31:38+00:00","article_modified_time":"2022-12-28T14:47:32+00:00","og_image":[{"width":1200,"height":630,"url":"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Homepage-1200x630-1.jpg","type":"image\/jpeg"}],"author":"Paul-Martin Foss","twitter_card":"summary_large_image","twitter_description":"There are still people who think the coronavirus won't affect the US economy. Here are 5 assumptions they make, and why each one doesn't hold up.","twitter_image":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/02\/NewYork325x246.jpg","twitter_creator":"@GoldcoPM","twitter_site":"@GoldcoPM","twitter_misc":{"Written by":"Paul-Martin Foss","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/#article","isPartOf":{"@id":"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/"},"author":{"name":"Paul-Martin Foss","@id":"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada"},"headline":"Think the Coronavirus Won\u2019t Affect the US Economy? Think Again","datePublished":"2020-03-02T13:31:38+00:00","dateModified":"2022-12-28T14:47:32+00:00","mainEntityOfPage":{"@id":"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/"},"wordCount":713,"publisher":{"@id":"https:\/\/goldco.com\/#organization"},"image":{"@id":"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/#primaryimage"},"thumbnailUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/03\/NewYork-855x570-1.jpg","keywords":["China","Coronavirus","corporate debt","economy","Federal Reserve"],"articleSection":["Economy","Federal Reserve","Precious Metals"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/","url":"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/","name":"Think the Coronavirus Won\u2019t Affect the US Economy? Think Again &#8211; Goldco","isPartOf":{"@id":"https:\/\/goldco.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/#primaryimage"},"image":{"@id":"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/#primaryimage"},"thumbnailUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/03\/NewYork-855x570-1.jpg","datePublished":"2020-03-02T13:31:38+00:00","dateModified":"2022-12-28T14:47:32+00:00","description":"There are still people who think the coronavirus won't affect the US economy. Here are 5 assumptions they make, and why each one doesn't hold up.","breadcrumb":{"@id":"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/#primaryimage","url":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/03\/NewYork-855x570-1.jpg","contentUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/03\/NewYork-855x570-1.jpg","width":855,"height":570},{"@type":"BreadcrumbList","@id":"https:\/\/goldco.com\/think-coronavirus-wont-affect-us-economy-think\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/goldco.com\/"},{"@type":"ListItem","position":2,"name":"Think the Coronavirus Won\u2019t Affect the US Economy? Think Again"}]},{"@type":"WebSite","@id":"https:\/\/goldco.com\/#website","url":"https:\/\/goldco.com\/","name":"Goldco","description":"Top Rated Gold &amp; Silver IRA Company","publisher":{"@id":"https:\/\/goldco.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/goldco.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/goldco.com\/#organization","name":"Goldco Precious Metals","url":"https:\/\/goldco.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldco.com\/#\/schema\/logo\/image\/","url":"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png","contentUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png","width":220,"height":101,"caption":"Goldco Precious Metals"},"image":{"@id":"https:\/\/goldco.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/goldcopreciousmetals","https:\/\/x.com\/GoldcoPM","https:\/\/www.instagram.com\/goldcopm","https:\/\/www.linkedin.com\/in\/goldcopreciousmetals","https:\/\/www.pinterest.com\/goldco\/goldco-precious-metals-blog\/"]},{"@type":"Person","@id":"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada","name":"Paul-Martin Foss","url":"https:\/\/goldco.com\/author\/paul-martin-foss\/"}]}},"_links":{"self":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/posts\/28496","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/comments?post=28496"}],"version-history":[{"count":0,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/posts\/28496\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/media\/32193"}],"wp:attachment":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/media?parent=28496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/categories?post=28496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/tags?post=28496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}