The Coronavirus Crash has now wiped out all of the gains in the stock market since Trump took office. Since well before Trump took office, actually. State and local governments shutting down commerce for less than a week has removed all the gains of tax reform, regulation reforms, the USMCA and other new trade deals.
If state and local governments keep this up, this legitimately might be the Great Depression. But they are at a point now where they can’t acknowledge that they’ve blown it big-time in managing this. They are path-dependent now and they are bullying other governments into doing the same thing. They fed the panic doom loop when they should have been coming up with ways to calm people down.
There are about a billion books that have been written on financial panics explaining why politicians and civic leaders should not behave exactly the way they are behaving this week. If we had a quality higher education system and better discourse, like what produced the Greatest Generation and their communitarian instincts, we might of had leaders that had read them and took them seriously.
But we have major centers of population that are being governed by people obsessed with gender theory instead. They’ve spent years debating what bathrooms people use and plastic straws rather than working on boring problems like essential government services and hospital capacity. We’ve got people managing this crisis who can’t even run an electric utility without setting half a state on fire, so I suppose it shouldn’t be a surprise they’ve burned their financial houses down too.