I caught a cold last week. It showed its ugly presence on Saturday, with spasms of sneezing, a sore throat, and a developing cough. In the four days since that time, I’ve persuaded myself that it is not the dreaded new disease (no fever or chills), and that the disease is receding as I would expect it to. But its appearance even in the time of increased precautions against viral invaders shows that the new virus can be just as sneaky and opportunistic.
It is amazing how quickly the world has changed. Last week at this time, we were still looking forward to taking a trip to Key West for some hedonism. That was before I saw a cumulative display of disease cases day by day since January. When you see for yourself that the rate of reported cases was increasing by 12% per day, the numbers came alive for me and told me that if we ran the risk of taking a trip, we were not going to have a good time. Even if we safely ran the gauntlet and did not catch the disease, our time of relaxation would be ruined by worrying about making it back in one piece.
Having a background in math and statistics made it clear to me that we are in a global exercise we’ve not gone through since 1919. When a new virus emerges and passes into the human population, one that no one has immunity to, and one that appears to have a significant mortality factor, you have to watch it closely in order to gauge its infectivity and its effects. What is ironic is that China and the US shared an initial response to belittle the potential harm that this virus posed. In China, this resulted in the doctor who raised the initial alarm being censured by the Chinese state, prior to the time that the doctor succumbed to the disease. In the US, the potential for an epidemic was ridiculed by the President and his favorite press sources. We heard about the Democratic hoax that was aimed at bringing down the President. Even today, as of March 17, you can see a post by Dr. Ron Paul decrying the response to this epidemic as being overblown. In both cases, China and the US, precious time was lost in responding to the emergence of this disease. They will only take this disease seriously when family members are stricken by the pneumonia this disease can cause, and those family members are turned away from all hospitals because they’ve had to ration respirators and only those under age 80 will be treated. That’s the decision they are making in Italy, having to ration their available slots to the younger population.
It is a bit jarring to hear myself described as elderly, but since I’ve now crossed the age 65 divide, I now fall into the target demographic for this virus. So far the effect for us has been canceled concerts and canceled trips, and a lack of church services. The chorus we’ve been working on for months, a performance of Carmina Burana scheduled for April, has not been canceled formally but since no one can rehearse for it, it is on borrowed time. Our children are out of the house, and though one son is working in retail and will likely take a hit, we are able to help him out if needed. If we are not hit ourselves by the virus, we will weather the storm relatively easily.
But for the economy of the world, we are now seeing the issues caused by the streamlining of supply chains by linking to non-domestic sourcing of parts. For decades now, the maxim of running public corporations solely for the maximizing of return to the shareholders has caused businesses to rely fully on foreign partners, either for finished goods, or for creating semi-finished goods that get completed elsewhere in the world. Quality improvement processes preached the benefits of lean assembly lines, since excess inventory hid systemic inefficiencies. So more and more businesses performed global integration of their supply chains. That process worked well until there was a supply disruption at the original point of manufacture. If the ultimate goal is to have product available to sell, then some inefficiency may be needed to allow for supply chain interruptions.
The disruptions in supply chains will continue to ripple through the world’s economy for months to come. Add to that the immediate disruption in the lives of service providers who will be laid off from their retail and food service jobs in the coming weeks, and we have the potential for a huge decrease in economic activity during the year. Already the governments of the world are generating proposals for helicopter money to be shoveled out and spread across the land. All of it with money borrowed from our distant descendents. This crisis has the potential to turn into a debt implosion, with the destruction of much of the seemingly secure capital in the world through waves of bankruptcy and discharge of debt. Will this black swan event be the one that causes the world to fundamentally reset its economic system? Growing economic inequality and growing dependence upon government debt to sustain the illusion of economic growth are at the point of totally collapsing. When no one can keep the appearances up, what happens to the world?
The barren shelves in the stores and the anecdotes about pitched battles for the last shreds of toilet paper have shown us how close we are to unraveling as a civilization. As long as we had sports, and access to material goods when desired, and good restaurants to pig out at, then we were happy. But let us have one week where demand outstripped supply, and we see how thin the veneer of civilization is.
I figured that the tone of this post is so much bleaker than most of my posts, that I needed to leaven it with a reminder that there is still beauty in the world. The pictures are of my daffodils that have burst into glorious flower within this past week. Every year I have a couple of weeks of peak daffodils. This is their time, and a reminder that spring is coming, and better times are ahead. I leave you with a delight of daffodils. Stay well in the days ahead.