Taggert J. Brooks, PhD, Professor and Chair of Economics at the University of Wisconsin-La Crosse, presented on the local economics of COVID-19. The presentation covered the current state of the virus and timeline, the economic policy response through monetary and fiscal actions, and reopening plans. It showed data on rising unemployment claims in La Crosse County and discussed the short and long-term local economic impacts. The presentation concluded that a return to normalcy will require a vaccine, improved treatment options, herd immunity, or expanded testing and contact tracing.

1. Taggert J. Brooks, PhD
Professor and Chair of Economics
University of Wisconsin-La Crosse
The Local Economics of
COVID-19

2. I’m not a medical practitioner, nor virologist,
nor epidemiologist. But I am a Doctor.
Disclaimer:

3. Agenda
 Current State of Virus with Timeline
 Economic Policy Response
 Monetary Policy
 Fiscal Policy
 Opening Up and Road Ahead
 Questions and Answers More Questions

4. Questions
 Questions and Answers More Questions

6. 2020-04-20 Covid19 Cases

7. 2020-04-20 Covid19 Cases

8. 2020-04-20 Covid19 Cases

10. 0
500
1,000
1,500
2,000
2,500
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
La Crosse County: Initial Claims
2020
2019
Unemployment Week

11. 0
1,000
2,000
3,000
4,000
5,000
6,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
La Crosse County: Continued Claims
2020
2019
Unemployment Week

12. Local Impact
 Short Run
 Transition from one state to another, rapidly
shifting location and type of demand, not level.
 Long Run
 Declining demand with falling incomes.

16. Policy Response
 Monetary Policy (Fed)
 Rate Cut
 Forward Guidance (lowers long rates)
 QE, Lending and Backstopping
 Mainstreet Loans
 TALF
 Fiscal Policy
 CARES Act
 PPP

17. Policy Response
 Fiscal Policy
 Round 1 - $8.3 Billion for Preparedness
Response
 Round 2 - $192 Billion Families First Coronavirus
Response Act
 Round 3 - $2.2 Trillion CARES Act includes PPP,
stimulus etc.
 Round 3b - $?? More money for small business
PPP

22. “All” Economists (liberal/conservative) agree with the following:
Question A: A comprehensive policy response to the coronavirus will involve
tolerating a very large contraction in economic activity until the spread of infections
has dropped significantly.
Question B: Abandoning severe lockdowns at a time when the likelihood of a
resurgence in infections remains high will lead to greater total economic damage than
sustaining the lockdowns to eliminate the resurgence risk.
Question C: Optimally, the government would invest more than it is currently doing in
expanding treatment capacity through steps such as building temporary hospitals,
accelerating testing, making more masks and ventilators, and providing financial
incentives for the production of a successful vaccine.
http://www.igmchicago.org/surveys/policy-for-the-covid-19-crisis/

25. First Case 2/5, Second 3/9
Bars Close 3/17, Schools 3/18
Safer At Home Orders 3/25

28. Return to “normal”
1. Vaccine → 80% of population vaccinated.
2. “Treatment” such as antivirals which
dramatically reduces the extreme symptoms,
and deaths.
3. Naturally achieved herd immunity.
4. Massive increases in test/trace/immunity
identification

30. Taggert J. Brooks, PhD
Professor of Economics
University of Wisconsin-La Crosse
Thanks and Be Safe
tbrooks@uwlax.edu