TOPLINE
As coronavirus cases surge to record levels across the United States, Dallas Federal Reserve President Robert Kaplan told Fox’s Maria Bartiromo Friday that a national mask mandate would encourage economic growth and push the unemployment rate down.
Healthcare workers meet before the COVID-19 drive-thru testing begins at the Duke Energy for the ... [+]
KEY FACTS
Kaplan said that mask-wearing would reduce the transmission of the coronavirus (scientific studies have shown this to be true) and as a result, the economy would grow faster and the unemployment rate would fall.
He also noted that policies on mask-wearing have been “uneven” so far in the United States; some regions, like New York and Texas, have adopted mask mandates for public places, but others including South Dakota have no requirements for mask-wearing.
Masks have become a political flashpoint in recent weeks, with local officials and lawmakers often clashing over whether mandates are necessary.
Kaplan said his policy recommendation for the economy would be “broad mask-wearing and good execution of these health care protocols.”
He noted that he expects to see economic growth start to rebound in earnest in the third and fourth quarters of this year.
Big number
$1 trillion. That’s how much a national mask mandate would save the economy (by preventing a 5% loss in GDP), according to Goldman Sachs. Analysts from the bank conclude that reducing further transmission of the virus would prevent additional lockdown orders and the economic damage that would accompany them.
Crucial quote
“I’ve talked widely to epidemiologists all through the United States and the one consistent message I've been getting for months now...if we all wore a mask, it would substantially mute the transmission of this disease and we would grow faster,” Kaplan said. We would have a lower unemployment rate...and [we]
would be far less likely to slow some of our reopenings.”Key background
With unemployment clocking in at 11.1% in June (down from 13.3% in May and 14.7% in April) and states and cities pausing or rolling back their reopening plans, the new restrictions that accompany those closures have already begun to dampen growth. Goldman Sachs this week said that tighter containment measures and voluntary social distancing are already having a “noticeable impact” on the economy.
Further reading
America’s Economy Is Taking Another Hit As Coronavirus Cases Surge And Businesses Shut Down Again (Forbes)
A National Mask Mandate Could Save The U.S. Economy $1 Trillion, Goldman Sachs Says (Forbes)
Masks Help Stop The Spread Of Coronavirus, Studies Say—But Wearing Them Still A Political Issue (Forbes)
New Jersey, Atlanta To Mandate Masks In Public Places (Forbes)
