USA - The coronavirus pandemic has exposed some uncomfortable truths about the state of America today. First and foremost is the fragility of the American economy. After years of outsourcing manufacturing, the United States has constructed an economy where services industries comprise some 55 percent of overall economic activity. In the age of globalization, with interconnectivity functioning seamlessly, this model has been able to generate the appearance of prosperity, with a booming stock market and increased GDP.
The reality, however, is that the American economy lacks resilience in time of crisis. The ongoing trade war with China, combined with a depressed global oil market, were in the process of exposing this reality before the coronavirus pandemic. The national lockdown, and resulting economic stoppage, only accelerated what was a gradual economic recession in progress. Even if the US economy could be taken off stimulus-driven life support, the conditions that preceded the shutdown still exist and, if anything, have only been exacerbated by the impact of the pandemic on global economic health.
Trump is wrestling with the horrible reality that in order to take the American economy off government life support, he must lift the restrictions on socializing that were imposed to slow down and reduce the human-to-human transmission of the coronavirus disease. Whether this move is economically sound, medically advisable or politically viable has yet to be seen. But one thing is for certain – the US is at a crossroads in its history.