Billionaire investor Warren Buffett, speaking at Berkshire Hathaway’s first-ever virtual shareholders meeting on Saturday, said that he is optimistic that the U.S. economy can bounce back and overcome coronavirus.
While Buffett admitted that “we haven’t faced anything that quite resembles this problem” before, he said that the United States has “faced tougher problems” and overcome them in the past.
“I remain convinced… nothing can basically stop America,” he said. “The American miracle, the American magic has always prevailed and it will do so again.”
Buffett acknowledged that the virus is “still hard to evaluate” and “we’re learning as we go along,” though he says that he does take solace in the fact that it is “not as lethal as it may have been.”
While he is optimistic about America’s economic future, Buffett said that the fallout from coronavirus is still unclear—and hard to compare to past crises: “In 2008-2009, our economic train went off the tracks,” he described. “This time, we just pulled the train off the tracks and put it on a siding.”
The Oracle of Omaha took a big-picture view to demonstrate his optimism about the economy: The United States today is “an incredibly more wealthy country than we were in 1789.”
He calculated that the net worth of the United States in 1789 amounted to around $1 billion, while the wealth of the country today is well over $100 trillion: “That’s mind blowing,” he said.
“In the end, the answer is: Never bet against America,” Buffett said.
Big number: $49.75 billion
That’s how much Buffett’s investing conglomerate, Berkshire Hathaway
U.S. economic activity plunged during the first quarter, with GDP contracting by 4.8%—the biggest downturn since the 2008 financial crisis. The benchmark S&P 500 index had fallen over 30% by late March, before recouping some of those losses in April: It’s now down 13% so far in 2020. What’s more, with corporate earnings season well underway, many companies are also disclosing the damage the virus has done; Even some of the biggest companies in the world, such as Apple
, have felt the impact.
Can't solve economy issue without solving COVID-19, says professor – KitchenerToday.com
It’s a classic case of trying not to put the cart before the horse.
There’s no doubt the economic disaster is caused by the COVID-19 pandemic, but an associate political science professor at Brock University indicates you can’t solve the economic crisis without dealing with the health crisis first.
“You can’t have a strong functioning economy if you’ve got the disease running rampant in the community, it just can’t happen,” Blayne Haggart told The Mike Farwell Show on 570 NEWS.
He said economists have been clear on the issue from the beginning, advocating for financial support on the health side and figuring out later how to pay for it.
Haggart said overall, while we started off the pandemic well and saw numbers begin to drop, not enough was done to prepare for fall and winter, such as adequate investments in contact tracing and testing.
He said when it comes down to it, just the mere presence of the virus is causing the economic problem, not the restrictions related to it.
“People are not going to go into shops (as per usual), even if there’s no government intervention, because people don’t want to die,” Haggart added.
“Some people will, but a lot won’t, so businesses are going continue to be depressed up until the moment where the disease finally hits a breaking point, where we’ve got to basically close things down, or everybody gets sick.”
“That’s the kind of roller coaster that we’re on, and the key is to get off it. The longer you wait, though, the more costlier it is to get off the roller coaster.”
Reimagining the global economy for a post-COVID-19 world – Brookings Institution
When the COVID-19 pandemic sent the global economy into a deep recession, it exposed structural weaknesses in economic institutions and highlighted the need for reform. The challenges countries face today are daunting, but this moment should be recognized as an opportunity to build back more sustainable and inclusive economies. David Dollar is joined by three Brookings experts—Eswar Prasad, Marcela Escobari, and Zia Qureshi—to discuss their forward-looking policy proposals for a post-COVID-19 world.
Prasad, Escobari, Qureshi, and Dollar are all contributors to a new report, “Reimagining the global economy: Building back better in a post-COVID-19 world.”
Singapore upgrades third-quarter GDP, sees economy returning to growth next year – TheChronicleHerald.ca
SINGAPORE (Reuters) – Singapore’s economy contracted much less than initially estimated in the third quarter due to gradual easing of COVID-19 lockdown measures and authorities expect the city-state to bounce back to growth next year from its worst recession.
Gross domestic product (GDP) fell 5.8% year-on-year in the third quarter, the ministry of trade and industry said on Monday, versus the 7% drop seen in the government’s advance estimate.
Analysts expected a 5.4% contraction, according to the median of 10 forecasts.
The government said it now expects full-year GDP to contract between 6.5% and 6% versus its prior forecast for a 5% to 7% decline. The country is still facing the biggest downturn in its history.
The economy is expected to grow 4% to 6% next year.
“The recovery of the Singapore economy in the year ahead is expected to be gradual, and will depend to a large extent on how the global economy performs and whether Singapore is able to continue to keep the domestic COVID-19 situation under control,” the MTI said in a statement.
The economy grew 9.2% from the previous three months on a seasonally adjusted basis, compared with the 13.2% contraction in the second quarter. The bounce marked the end of a “technical recession”, as it followed two preceding quarterly contractions.
(Reporting by Chen Lin and Aradhana Aravindan; Editing by Sam Holmes)
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