-
- Copy Link
With a quarter of the American economy at a standstill, more than 26 million unemployment claims filed in just few short weeks, and a historic near $3 trillion in response and relief programs already seen as inadequate for the economic pandemic COVID-19 has unleashed, the President unveiled “Guidelines—Opening Up America Again,” a three-phased approach to reopen the economy, moving away from a strategy of mitigation to targeting the infected and getting America back to work. The Guidelines appropriately do not open the economy all at once. They set out benchmarks for progression to phases of reopening to protect lives, get people back to work and recognize and protect the most vulnerable. Uncertainty about the disease is considerable, and above all any approach must be adaptable to new information. However, granting that uncertainty, the Guidelines do have several significant shortcomings that can and must be addressed expeditiously. America is going back to work. It must be done safely. And it can be done safely even with today’s limited testing capacity by pacing the reopening to the testing capacity.A Realistic Blueprint for Reopening the Economy by Sector while Ramping Up Testing
In a modified approach, our nation’s leaders on the federal, state and local levels must work urgently with business leaders to ensure that reopening does not cause a resurgence of the pandemic, which would have debilitating effects on American lives and set the economic recovery back even further. A modified approach woud also allow time to ramp up our public health capacity to contend with the probability of a second wave. Such an approach would:
As America gets back to work, while COVID-19 still threatens our health and well-being, the overriding principles for reopening the economy—which is much harder than turning the economy off—must be: the health and safety of American workers; protection of the most vulnerable citizens and frontline workers; the smart easing of regulatory requirements and “Manhattan Project” scale financial support of innovation in the pursuit of treatments and a vaccine. Adhering to these principles will ensure that we responsibly and safely return to an economy that provides high levels of employment, production and consumption.
The Guidelines for Opening Up America Again present three phases for states to reopen their economies and for employers to reopen their businesses. The key elements of the Guidelines put the States’ responsibilities front and center:
One of the central concerns about the Guidelines is that they will not reopen the economy without putting more lives at risk unless the federal government plays a greater leadership role than it has thus far or than the Guidelines themselves articulate. Under the Guidelines, the states and employers are each responsible for testing and safety measures. Consequently the states will not only compete with each other, but also with private businesses to acquire personal protective equipment, tests and testing equipment, cleansing materials, and other needs. The resulting price inflation, acquisition chaos and opportunities for fraud and abuse, particularly in fraudulent testing devices, will escalate unless the federal government plays a stronger coordinating role for the supply chain and its distribution. Greater use of the Defense Production Act may be the only recourse.
Increased trained public health personnel to implement testing and contact tracing, as well as increased funding for the states—particularly for increased hospital capacity (including for deferred non-COVID-19 treatments) and implementation of the testing guidelines—are also critical.
Sufficient funding for a wide range of potential testing methods, treatments and vaccines—at a Manhattan Project scale—and immediate, on-going, smart regulatory relief are essential. We need innovation to quickly and safely find treatments and a vaccine, and also reliable testing capacity for both the disease and its antibodies. Treatments are likely to be as important as a vaccine in dampening the threat, as we have seen in the battle against HIV-AIDS. A reliable cure would allow people to go back to work without fear even before a vaccine is available.
Under the Guidelines’ “Testing and Contact Tracing,” the states are required to set up testing facilities for both COVID symptomatic and syndromic/ILI (influenza) individuals, and to do contact tracing for all COVID positive results. Further, states are to ensure that “sentinel surveillance sites” that serve older individuals, low-income Americans, minorities and Native Americans test these groups for asymptomatic COVID cases and follow up with contact tracing where test results are positive. Other than this symptomatic/syndromic testing and the testing of specified groups, there are no further stated required testing protocols.
First and foremost, beyond what is specified in the Guidelines, the capacity for point of care testing needs to be rapidly increased, and reliable tests for anitbodies from prior exposure (known as “serology tests”) need to be developed and deployed. That will take increased federal funding and a coordinated federal strategy with all the key stakeholders to promote innovation and ensure an adequate supply chain.
One major omission in the federal gating criteria is a metric for the percentage of the population that has been infected and clear, transparent reporting. Higher rates of infection indicate a greater presence of the virus in the community and raise the likelihood of still further spread, which must be taken into account in deciding whether to reopen a given state or local economy. The federal Guidelines defer to the states and are not specific regarding what determines when or whether a local area can open. The confusion that results can be seen already as some states and localities are opening quickly and haphazardly.
“Guidelines–Opening Up America Again” calls on state and local officials to apply the recommendations, particularly the gating requirements, to local criteria to reopen geographic units below the state level. To do so in an orderly and consistent manner with the goal of identifying areas for reopening, governors should determine classifications, not only for the state itself, but for each county, city, town, or any other political subdivision (herein called a Defined Area) based on the testing metrics, including the additional metric of the percentage of the population that has been infected—which is omitted from the federal Guidelines. The initial classification may indicate that some Defined Areas qualify for increased economic activity immediately, and should be the first to reopen, while others should stay in lockdown and can only relax restrictions safely after conditions improve.
The States are at the epicenter of governance and management of the fight against this pandemic to get America back to work. The central shortcoming of the Guidelines, as governors, mayors, business leaders and public officials have emphasized, is that they will not succeed without a robust capacity and capability to safely and rapidly test, diagnose, treat, and isolate COVID-19 cases and trace their contacts, at scale—which the US does not currently possess. Under the following alternative approach, the economy can start reopening safely at the pace allowed by its current testing capacity while ramping up its testing and tracing capabilities for more extensive reopening as soon as safely possible.
Given the shortfall of testing and public health capacity (and the lack of treatments and a vaccine), a more realistic approach for state governors would be to carefully scale the opening of the economy by sector in keeping with the public health infrastructure’s capacity to test, track and isolate. This process demands close cooperation and collaboration between business leaders and state governors to phase reopenings and determine appropriate health protocols. Until treatments or a vaccine is available, the businesses that governors should reopen first would be:
Under this approach, the sectors that closed first, because they were hotbeds for the spread of the virus, should be among the last to reopen. Food services and drinking places, sports stadiums, museums, movie theaters, spas, gyms, vacation and hotel locations—places of social gathering and entertainment—should be the last to reopen, assuming that they are confined to their pre COVID-19 business models.
But as other sectors open, demand for services such as food and drink will also increase. That demand should initially be met under alternative business models where takeout and catering services would expand before physical spaces open to the public. Similarly, in entertainment and sports, the National Basketball Association (NBA) idea of restarting games to virtual audiences, or drive-in theaters reopening, are examples of altered business models that can follow CDC guidelines for employees and customers more manageably. In each of these examples, maintaining the health and safety of the employees is far more realistic. As testing capabilities ramp up, smaller gathering places first, and then the larger gathering places could be allowed to open if they can demonstrate that they can provide the appropriate social distancing, sanitation, and a screening method to make sure patrons and employees are safe.
Schools should also remain closed physically but open virtually at least until the fall term, although childcare and youth centers, vital to America’s ability to go back to work, could gradually reopen under CDC guidelines to accommodate parents who must go back to work.
And, as underscored in the Administration’s Guidelines, those businesses that can continue to work and function remotely should continue to do so, with as small a physical presence as possible, throughout the phased reopening. Every avoided commute reduces the number of personal contacts, which reduces the number of infections, makes social distancing more feasible, and permits the concentration of scarce testing resources on people who must return to work physically because remote work is impossible for them.
As the nation works to control the pandemic, this proposed approach would include:
The Administration’s Guidelines (which leave employers responsible for collaborating and coordinating with Federal, state and local officials, for developing and implementing appropriate workplace policies including testing, isolating and contact tracing in all three phases, and for protecting vulnerable populations) are heading toward a “learn as you go” process which could prove disastrous for health and safety. The federal government, beyond acquiring PPEs and distributing testing kits and related equipment, must provide clearer guidelines which the states can manage and employers can use as guidance for the development and implementation of their plans.
The White House Guidelines call on businesses to develop and implement appropriate policies, in accordance with federal, state and local regulations and guidance informed by business best practices regarding monitoring the workforce for indicative systems; temperature checks; social distancing at work; workforce contact tracing; protective equipment, cleaning protocols, and procedures for handling employees who become sick at work.
Clearer federal, state and local regulations and guidance would allow businesses to develop their plans with the best advice from pubic health experts and to reopen with greater confidence that they will not be held liable for any unfortunate outcomes that may occur despite their best efforts to maintain a safe workplace environment. Ideally, government could soon develop comprehensive safe harbors, adaptable to firms in different industries, that establish standards for conscientious businesses to safeguard their employees and customers and thereby receive a rebuttable presumption against liability for events that are truly beyond their control. The federal government, either through the White House Task Force or the appropriate federal agency, can serve as a clearinghouse for these best practices.
Employers are the sentinels for tracking and tracing the spread of the disease in the workplace and preventing a widespread recurrence. While testing and health care capacity are ramping up to be available on a large scale and before a vaccine or treatment is available, employers must continue to protect the most vulnerable, while ensuring that those who return to the workplace are healthy and not compromising the health and safety of their fellow workers or the larger community.
The pandemic has highlighted that vulnerable members of our communities at the lower end of the economic spectrum, and the institutions that serve them, bear a disproportionate health and economic burden. Economic recovery policies must be sensitive to the needs of these communities and ensure that the many small and minority-owned businesses that have not received funding under the CARES Act receive relief. And health institutions serving diverse populations must urgently receive the critical further federal financial support they need.
Americans have proven over these recent weeks that citizens in a democracy can effectively and responsibly respond to a pandemic threat. We can likewise effectively and responsibly reopen our economy as we race to develop effective treatments or a vaccine, and strengthen our public health infrastructure and health care system. To achieve these objectives, the US must apply a wartime approach to the economy, with stronger federal, state and private sector leadership that matches its testing capabilities to its workforce capacity, to gradually achieve a peacetime, post-COVID-19 economy, where true and comprehensive fiscal responsibility must follow.
Implementing Strategic Investments
October 21, 2024
The Future of Administrative Law
September 17, 2024
Postsecondary Pathways for the Workforce of Tomorrow
August 12, 2024
Postsecondary Pathways for the Workforce of Tomorrow
August 12, 2024
Charts
Consumer Confidence Declined for Second Consecutive Month in February
LEARN MORECharts
Omicron, Inflation, and Fed Dampen US Growth Prospects
LEARN MORECharts
Almost two years after the COVID-19 pandemic plunged the United States and the world into economic and social disruption, the nation is recovering.
LEARN MORECharts
High demand for labor is resulting in rapid hiring of the unemployed.
LEARN MORECharts
The global supply chain disruption associated with the COVID-19 pandemic has resulted in production delays, shortages, and a spike in inflation in world.
LEARN MORECharts
The Conference Board’s Salary Increase Budget Survey indicates that the average annual raise for current employees is accelerating.
LEARN MORECharts
The Conference Board Consumer Confidence Index® declined in November, following an increase in October. The Index now stands at 109.5 (1985=100), down from 111.
LEARN MORECharts
The Conference Board recently released its updated 2022 Global Economic Outlook.
LEARN MORECharts
America’s recent decline in global competitiveness raises concerns about the nation’s future economic stability and national security
LEARN MORECharts
Firms are struggling mightily to hire workers.
LEARN MOREFilter By Center
PRESS RELEASE
Global Productivity Growth Set to Disappoint Again in 2023
May 17, 2023
PRESS RELEASE
Stagnant Productivity Growth Returns
April 29, 2022
BRIEF
January Retail Sales Rise Despite Omicron
February 16, 2022
BRIEF
2022 Starts with Strong Job Growth
February 04, 2022
BRIEF
December Spending, Income, and Inflation Readings Disappoint
January 28, 2022
BRIEF
Modest Job Growth and No Signs of Easing Labor Shortages
January 07, 2022