I have been watching this looming crisis for months. The federal moratorium on evictions from federally subsidized housing has a ballooning effect. The Hill reported a few months ago that 60% of the leases were two months behind and would be subject to eviction. Now CNBC reports that 28 million may be on the street. Folks, we are focused on a virus and not paying attention.
If you believe the civil unrest was challenging over the Floyd incident, wait until families are on the street struggling for food, security, and shelter. The explosion of homelessness will be far more detrimental and devastating than you can imagine.
Precautions are necessary, but we need to get folks back to work as soon as we can. At some point, there must be a recognition that the government was not can't solve every problem. In the end, individuals must be held accountable for there own actions and putting themselves and others at risk, all while getting the economy moving.
When the government moves to influence market conditions, it creates anomalies or bubbles in natural equilibrium. What does that mean? It means that the government is creating artificial support in the market. When removed, the bubble will burst and result in painful dislocations in the market. We are witnessing that right now in both utility payments and rents. There are tremendous exposures and financial implications for both utilities and mortgage holders.
Stop and think for a few moments what the government has control over and can influence. At the same time, where can the government direct positive outcomes for the majority of citizens? In other words, if there is a breakdown, what areas create significant harm?
Food Supply - State government needs to act swiftly to protect an adequate food supply. Agricultural regulation needs reform to reduce burdensome and antiquated regulations to make sure shortages don't occur this fall and winter as a result of the destruction of livestock early in the COVID crisis.
Water Supply - the government needs to continue its diligence in the protection of the water supply.
Healthcare - The government needs to direct appropriate funding and resources to protect facilities and those on the front lines in our healthcare institutions.
The rest of us need to do our part. Accept responsibility for your actions. Wear a mask in public, Practice Social Distancing, and get back to work. Why, because the Government Cure to the COVID pandemic, closing down the economy, is much worse than the disease.
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