As soon as the restrictions were lifted, companies started hiring again
It was never ever ever a demand problem, only of supply.
Unfortunately, people are too ideological and blind to diagnose issues correctly.
As soon as the restrictions were lifted, companies started hiring again
It was never ever ever a demand problem, only of supply.
Unfortunately, people are too ideological and blind to diagnose issues correctly.
People kept receiving salaries, and unemployment benefits. So financial position and income of families was always strong
There's no precautionary savings cycle.. People engaged in financial risk taking by buying houses like never before
I'm confused; weren't you arguing above that unemployment concerns shouldn't have motivated government spending because the drop in demand was artificial? You can't bolster that position by saying that the demand stayed strong because of unemployment benefits and salaries that went out despite people staying home; those spending categories (PPP loans and enhanced unemployment benefits) were a government subsidy to keep demand from cratering.
The personal savings rate tripled in early 2020: https://fred.stlouisfed.org/series/PSAVERT