Treasury Secretary Steve Mnuchin tried to reassure Wall Street at the end of the week that the economy would not be shut down a second time, regardless of the resurgence of Covid-19 in many states across the country. Concern that there would be a return to lock-downs reportedly played a role in the sharp drop of the markets during the week. “We can’t shut down the economy again,” Mnuchin told CNBC’s Jim Cramer on Thursday. “I think we’ve learned that if you shut down the economy, you’re going to create more damage.”
The financial website MotleyFool emphasized a related issue. “State and local budgets are imploding from a sudden plunge in sales tax revenue and other receipts. New York City, for example, said it expected a loss of revenue up to $10 billion from the crisis. All of that means that state and local governments will be loath to implement another lock-down unless it is absolutely necessary.”
