Edgeworth Analytics is providing a series of data-driven briefings that deliver an initial assessment of the various economic consequences of the Coronavirus. We take a broad-based approach, as there is no single data source which can capture the impact of this pandemic.
According to the World Health Organization, the first incidents of a “pneumonia with unknown cause” were detected in Wuhan, China on December 31, 2019.[i] Since that time, the global spread of the novel COVID-19, colloquially known as Coronavirus, has led to a declared worldwide pandemic and a public health crisis unlike any in recent experience.[ii]
As a practical matter, local governments and business leaders are confronted with a range of difficult decisions to try and slow the community spread of this virus to avoid overburdening the health care system in the US.[iii] Public health officials have advocated for social distancing measures to “restrict when and where people can gather to stop or slow the spread of infectious diseases.”[iv] In the last week alone, social distancing efforts to limit large group gatherings have included:
- Virtually all major sports associations in the United States—National Basketball Association, National Hockey League, Major League Soccer, NCAA, and Major League Baseball—have suspended or cancelled major sporting events.[v]
- Major theme parks (Disneyworld), museums (Smithsonian museums and National Zoo in Washington, DC), and theaters (Broadway) have closed for the foreseeable future.[vi]
- Live music and festival organizers have also postponed and cancelled their events, including Coachella, South by Southwest, and all concerts by Live Nation and AEG.[vii]
- Large scale trade association conferences across virtually all industries, from Self Storage to Data Privacy to Education have been cancelled.[viii]
- Dozens of states have shut down all public schools for several weeks, and major universities have either gone to virtual classes, cancelled classes, and/or asked students to leave campus entirely.[ix]
- Retail businesses are also beginning to act, such as the decision by Apple to close all retail stores outside of China for several weeks.[x]
- Cities and states (for example, the state of Ohio and the city of Los Angeles) have announced closures of bars and limited restaurants to takeout and delivery only.[xi]
- Many companies are implementing or even mandating telework and restricting non-essential travel, including the Washington Post, Google, Microsoft, and the United States Government.[xii]