Maine faces major challenge in
restarting business
Gordon L. Weil
Who will decide when to begin to open
the economy as Covid-19 fades?
President Trump? After a false start,
that's clearly out. State governors? Legally, but not likely.
Government has mandated limits on
individuals and businesses. People are often told to stay at home
except for venturing out for essential purposes. All but essential
businesses, often broadly defined, must be closed to the public.
From the outset of the arrival of the
virus, the country reacted as if the crisis would be brief. Aid to
businesses and workers would tide them over while the coronavirus was
brought under control. Almost unprecedented protective measures were
imposed, but in the belief they could soon be lifted.
In effect, government action was
grounded in remarkable faith in science to come up with an effective
treatment in a matter of months or rapidly to develop a vaccine.
Until science triumphs, government
patches and protects. The patch is the massive action by the Federal
Reserve and Congress, pouring funds into the
economy to maintain some personal and business income. The
protection is “stay-at-home” and lock-downs.
Discovery of cures is usually slow and
uncertain, not a recipe for quick recovery. But the economy cannot
be put on hold for an endless period. Governors must come up with
policies for “opening” their states. That is proving to be
difficult.
Gov. Janet Mills faces an almost
impossible challenge. Oxford Economics, a research firm, finds that
Maine
will be the hardest hit state by the Covid crisis.
Its older population and dependence on tourism
plus a retail economy with many small
business and self-employed people combine to make recovery unusually
difficult.
Seniors must continue to be protected,
but Maine needs an influx of people to its lodgings and restaurants
and to occupy their second homes. The obvious problem is that they
may bring the virus with them, even if they are unaware of it.
Federal guidelines focus on the
stabilization and decline of virus cases. Much depends on testing,
but, right now, it is overrated. There are insufficient testing
supplies, and their effectiveness is questionable. So the date
remains elusive when all are tested and those cleared can go to work.
Maine's progress has been good, though
it is not yet evident that the state has reached its peak in new
cases. It may benefit from its relative isolation with the Canadian
border effectively closed and self-quarantine regulations and
shuttered accommodations discouraging the flow from elsewhere.
While there is general recognition that science, not government,
calls the shots, the economy cannot wait for months or even a year
with current cutbacks. Many people will resist being kept at home.
Governors will have to allow for gradual opening.
In
Georgia, the governor began opening his state last
week. But many people and businesses did not change their protective
stance. One mayor there received requests for guidance. She said
she responded: “Don’t look to government to tell you what to do.
If you want to go and get your hair done, that’s on you.”
That's the kind of advice Mills and
other governors may have to give as the economy reopens. Not the
president, not the governor, but the individual will decide.
It's possible that a vaccine
will become available this year, which could reduce
the risks of reopening. But behavior may have been changed by the
initial Covid-19 experience, especially for the most vulnerable.
Even with a vaccine, reopening would be cautious and and decided by
each individual.
The state role may be to allow people
to take whatever risks they want, provided they don't increase the
risk for others. And it can issue mandates that would enhance the
freedom of the most threatened.
Stay-at-home and business closings will
eventually be relaxed, but wearing masks, which prevent taking in the
virus, or face coverings, which prevent spreading it to others, may
be mandatory for the long-term. Similarly, social distancing could
be maintained, though it would undercut dining out or attending large
events.
The result of a policy combining state
safeguards and individual decisions could be a self-segregated
society. Many people, either because of scientific gains or
indifference to risk, may decide to live as freely as possible.
Others, including the most vulnerable – seniors and those with
illnesses, might stay home.
Whether this course of action would
work is unclear. If Covid-19 brings even more serious health
problems like blood
clots or opening society without an effective
vaccine causes the resurgence of the virus, even greater changes in
our lives and the economy may be inevitable. Right now, uncertainty
reigns.
The most obvious challenge for federal
and state governments and individuals struggling with Covid-19 is its
menacing mystery.