Is too much helps killing America's recovery ?
Covid helps saved many companies and so many families. In the last weeks several studies on the current effects of those helps have been completed and published. One from North America with a collaboration of multiple scholars and universities analyzing the job market impact, the other one from France focusing on the corporate impact.
The latest french study is even highlighting the improvement of the overall corporate health since Covid: french companies revenue vs debts is deemed better now than before Covid. The massive corporate graveyard feared at a time seems salvaged.
There is even some analysis completed by Qualtrics on the internal corporate work mentioning drastic improvement on the employees collaboration. Since the pandemic is now entering a business-as-usual mode, we should start analyzing the limits of maintaining those helps. Confinements are done, and hopefully not coming back. Therefor what are the constraints to be taken into account ?
As often, supply chain remain the main challenge
Supply chain of the work force as well as manufactured goods. US employment has reached the level of pre-covid era. Many industries are facing a employments shortage.
A research publish on August 20th 2021 by several economists and researchers from University of Toronto, Harvard, Colombia and the university of Massachusetts Amherst, highlights the limited impact of interrupting the Covid unemployment's programs. The paper available here look at both benefits and costs.
We can even anticipate an additional impact with the increased pressure on the monetary policy of the central banks expected to limit the related inflation growth. On top of it, since the funding of maintaining all those helps has already been announced with an increase taxation of the companies, the trade balance gap will continue to grow not in favor of the US.
That being said, are the objectives of those helps still fulfilled ? It would be time to consider the efficiency of those spending to allow prioritization of public investment. Working on the country modernization sounds like a necessary revolution. A full engagement of public and private on the new economy should be considered.
Lets not miss the shift to the new technological infrastructure that will pull tomorrows economies and forces. Quantum technology is already landing, preparation time is almost over.
We already need to prepare the regulation adjustment, the training of future resources, the public/private engagement...
Think encore !