Commentary: The way the U.S. handled the Coronavirus (COVID-19) pandemic is embarrassing. We had intelligence reports on the seriousness of this virus in January, but the Trump Administration downplayed its potential impact. We now have about 55,000 deaths and over a million known cases.
The economic response is no better. For example, the botched implementation of the Paycheck Protection Program (PPP). The first phase authorized up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. They could apply beginning April 3, but within days the money ran out. Countless small businesses were shut out as many large publicly traded companies received millions of dollars in aid—due to their coziness with banks that administered the program and lack of oversight by Small Business Administration (SBA). Recently, an additional $310 billion was added to the program with no guarantee it will be better managed.
Compare this response to the COVID-19 pandemic with how Denmark handled this crisis. In early March, the national government shut the country down and closed the border. They told private businesses that were struggling they would cover 75% of employees’ salaries if they promised not to cut staff, up to a maximum of $3,500 per month, while the companies pay the remaining 25%.
These dramatic actions limited the spread of the virus, kept the death rate low and allowed average workers to have enough money to pay their bills.
Compare that to the situation in the U.S., where the bottom 50% of the workforce is still in desperate straits.
Now Denmark is gradually opening-up. Some kids are going back to school and businesses are slowly opening with strict guidelines.
The U.S. used to lead by example—but no longer.