fbpx

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 pandemic. “For the past month, Congress has abandoned small businesses in turmoil,” said Small Business Majority Founder and CEO, John Arensmeyer, upon Congress’ return to

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 system won’t be able to fight off the virus as well.” Edmara Nieves Attending physician, emergency room, Broward Health Medical Center Background: Nieves earned her

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 are some of the recent businesses that reached out to us. By SFBW editorial staff   Tim Coffield President and CEO, YMCA of the Palm

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 Port of Palm Beach to Grand Bahama Island and Nassau gives travelers a mini-getaway option that the larger cruise lines don’t—with many of the same

Other Posts

Stephanie Green Appointed South Florida President of Fifth Third Bank

Fifth Third South Florida has 76 full-service banking centers and over 550 employees.

Proficio Capital Partners Opens Miami Office

Proficio takes a strategic approach to diversification by creating a well-diversified portfolio comprising various asset classes and securities.

Atlantic Group of Companies Begins Sales of Ultra-Luxury, Boutique Project in Palm Beach Shores

The Atlantic Group of Companies is a comprehensive, multi-division real estate brand focused on all aspects of real estate development with successful properties throughout Florida and North Carolina. 

Breakwater Hospitality Group Unveils Sneak Peek of New Miami Headquarters

Interior architecture designers have crafted a space that exudes the lively and hospitable coastal vibe of Miami.