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Reopening Has Begun. No One Is Sure What Happens Next.

Restarting the economy

Restarting the economy

The economy shut down almost overnight. But reopening it will not happen the same way. It may take months and possibly years to fully open, even under the most optimistic estimates.

Saying the economy should reopen gradually is more easily said than done. One business that could reopen may depend on other companies that are not allowed to reopen.

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Reopening Has Begun. No One Is Sure What Happens Next.

Reopening Has Begun. No One Is Sure What Happens Next.

https://www.nytimes.com/2020/04/25/business/economy/coronavirus-economy-reopening.html

nytimes.com

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Key Ideas

Restarting the economy

The economy shut down almost overnight. But reopening it will not happen the same way. It may take months and possibly years to fully open, even under the most optimistic estimates.

Saying the economy should reopen gradually is more easily said than done. One business that could reopen may depend on other companies that are not allowed to reopen.

Implementation is complicated

The proposed three-phase plan will allow many businesses to open in the first phase.

Schools and daycare centers can open in the next phase. But that means millions of working parents could be asked to return to their jobs before they have someone to take care of their children.

Partial reopening

In the early phases of reopening, businesses could be required to operate at a reduced capacity.

Offices might operate in rotating shifts, but other businesses could have a harder time. Restaurants may have tight profit margins even in better times. Operating at half capacity may mean working at a loss.

Confidence is crucial

In countries that have avoided formal lockdown, people have sharply reduced their activities without government mandates.

Surveys show there is little evidence that the public is ready to return. The economy will only reopen when people are willing. The greatest fear is the second wave that could be too much to manage.

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