Further fuel for the stay at home debate - S. Florida Business & Wealth

Further fuel for the stay at home debate

Individuals, employers and local governments beat states to the punch when it came to limiting the spread of the coronavirus and shutting down much of the U.S. economy, according to a new research paper by William Luther, an assistant professor of economics in Florida Atlantic University’s College of Business.

William Luther, an economics assistant professor at Florida Atlantic University

In analyzing Google Mobility data, Luther found that consumers, workplaces and local governments started imposing their own restrictions even before the states took action in March and April. Roughly three-quarters of the change in residential, retail, recreation, workplace and public transportation activity preceded orders by states to shelter in place.

“Many employees who could work from home were already doing so,” Luther said. “Consumers were making fewer trips out, and most of those trips were to stock up on groceries so they would not have to venture out as much when the risk of spread increased over the weeks that followed.”

Luther’s conclusion creates problems for both sides in the debate over state-sponsored, stay-at-home orders.

Some insist that state orders are vital to keeping COVID-19 under control and saving lives, but others suggest that forcing non-essential businesses to close leads to massive unemployment, economic hardship and psychological effects from which the country won’t soon recover. Instead, the evidence shows that much of the desirable mitigation and undesirable slowdown in economic activity would have happened even without state-level, stay-at-home orders.

Local governments took their own mitigation measures before state governments. Elected officials in state and federal governments tend to be slower to act because they’re waiting until they have widespread support for their policies, Luther said. While local leaders also have to worry about re-election, their smaller jurisdictions allow them to gain consensus and respond quicker.

“It’s very easy to say, ‘Well, the state was too slow to respond,’ but that’s a feature of democracy, not a bug,” Luther said.

In times of crisis, people often wonder what state and federal governments can do to fix the problem—and there is plenty they can do, Luther said. But he also suggests looking for local solutions.

“Local leaders have a much better understanding of local life,” he said. “They can identify which locations and interactions are likely to encourage spread and where it is relatively safe to continue on more or less as usual. The result is locally tailored policy that is much more likely to be followed.”

You May Also Like
Clamor Grows for More PPP

Anticipation is growing for Congress to free up another batch of PPP loans for small businesses as part of additional legislation to respond to the economic fallout from the COVID-19

Read More
Heroes of the Pandemic

By Clarissa Buch and Sally-Ann O’Dowd • photography (where indicated) by Eduardo Schneider “It’s so terrifying because as a pregnant female, I’m considered immuno-compromised. If I get infected, my immune

Read More
Business as usual

In the aftermath of our spring feature on how companies were dealing with the shutdown, businesses from all over South Florida continue to share their pandemic stories with SFBW. Here

Read More
Business as usual

[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column width=”2/3″][vc_column_text] By SFBW editorial staff Kevin Sheehan Jr. President, Bahamas Paradise Cruise Line Business backstory: The only two-night cruise sailing from the

Read More
Other Posts
Palm Beach Gardens Tower Targets Next Wave of Corporate Relocations

A new Class A office project reflects continued demand for premium workspace as financial and professional firms expand across South Florida.

Read More
Modern glass office building with palm trees in front, people walking nearby, and a decorative green sculpture at the entrance, under a clear blue and pink sky at sunset. South Florida Business & Wealth
Boca Raton’s Glass House Advances With $70M Financing

Maxim Capital loan positions the nine-story luxury condominium for vertical construction and a projected 2027 completion

Read More
Modern, minimalist lobby with curved, wave-like ceiling and wall design, light wood and white furniture, abstract blue artwork, large windows, and a view of palm trees outside. South Florida Business & Wealth
Transit-Oriented Living Arrives in Boca

Link at Boca breaks ground near the Tri-Rail station, adding 340 apartments, retail, and new density to one of Palm Beach County’s fastest-evolving corridors.

Read More
A group of people in business attire and hard hats stand in front of a construction site banner, holding shovels and posing for a groundbreaking ceremony on a sunny day. South Florida Business & Wealth
Related Ross Expands Its Palm Beach Waterfront Portfolio

Edgeworth follows strong sales at South Flagler House as West Palm Beach’s corporate growth drives demand for high-end housing.

Read More
Two modern high-rise buildings with curved balconies, viewed from below against a blue sky. Palm trees frame the scene, adding a tropical atmosphere. South Florida Business & Wealth