On the same day health officials warned the public to prepare for the “inevitable” spread of the coronavirus, another Trump official declared that the administration had effectively “contained” the virus.
“We have contained this,” White House economic adviser Larry Kudlow told CNBC. “I won’t say it’s airtight, but it’s pretty close to airtight.”
It’s important to note that as President Trump’s economic adviser, Kudlow’s role is much different from, let’s say, the Centers for Disease Control and Prevention. His responsibility is to the markets, and he is trying to prevent serious disruptions from taking place.
The virus is a “human tragedy,” he admitted, but it won’t be an “economic tragedy.”
The problem is that Kudlow’s declaration of victory is premature. The coronavirus could indeed throw the markets into disarray, as recent numbers have indicated. And if the spread of the virus continues, it’s very likely that trade will dwindle, supply distribution will waver, and American businesses will suffer.
Just yesterday, the Dow Jones Industrial Average plummeted more than 1,000 points, which is the worst single-day drop it has had in more than two years. Other stocks, too, have dropped as the coronavirus’s death toll grows around the world.
The reality is: We don’t know what we’re dealing with. We don’t know how many lives the virus has taken in China, and we don’t even know how many confirmed cases there are in the United States. The mutable nature of the virus and the familiarity of its symptoms make it difficult to identify, which is why health officials are preparing for a potential pandemic.
This doesn’t mean it’s time to panic. Our system is well-equipped to handle this outbreak if it comes to that. The good news is that health officials are now saying the development of a coronavirus vaccine is ahead of schedule.
Still, it is foolish to understate the effects preemptively, both physical and economic, of this virus, as Kudlow did. Our outlook should be one of cautious optimism and prevention. The declarations of victory can wait until after we’ve beat this.
