COVID-19 Considered a 'Third World War' Crisis...Governments Worldwide Emphasize 'Wartime Situation' (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] In response to the alarming spread of the novel coronavirus infection (COVID-19), leaders of major countries worldwide are considering measures reminiscent of a 'wartime level' response. This pandemic has been defined as a 'war against the virus,' effectively treating the situation as if it were wartime. Private companies unrelated to healthcare have joined in producing medical supplies, and among private economic experts, the COVID-19 pandemic response has even been dubbed the 'Third World War.'

According to foreign media including the Associated Press, on the 18th (local time), U.S. President Donald Trump stated at a COVID-19 task force press conference, "I am a wartime president," referring to the situation as "our war against the Chinese virus." President Trump views the current situation as equivalent to wartime and announced plans to invoke the Defense Production Act, which grants the president authority to expand production of essential goods for national security reasons. Additionally, he declared a temporary closure of the border with Canada, which had previously been exempt from foreign entry bans.

On the same day, as the cumulative number of confirmed cases and deaths in Europe surpassed those in China, leaders of various countries emphasized the wartime nature of the situation. German Chancellor Angela Merkel, in a national address, called it "the greatest challenge the country has faced since World War II," urging compliance with unprecedented restrictions such as store closures and movement bans, stating these measures are "essential at this moment to save lives." Earlier, French President Emmanuel Macron declared in a national address, "We are at war, and all citizens must stay at home unless for essential reasons." He added, "We will deploy 100,000 police officers to enforce movement restrictions," a statement that was widely regarded as a declaration of war.

The economic magazine Fortune reported that General Motors (GM), which produced firearms and tanks during wartime, is now manufacturing surgical masks at its plant in Liuzhou, China. Larry Kudlow, chairman of the White House National Economic Council (NEC), also mentioned that GM is considering producing ventilators at its North American plants, which are currently shut down.

Leaders of various countries have mentioned wartime-level strong measures because the speed of COVID-19 damage remains rapid. According to the global COVID-19 status compiled by Johns Hopkins University from various countries' announcements, the cumulative number of confirmed cases worldwide reached 214,894 as of that day. In Europe, 11 countries have more than 1,000 confirmed cases, including Italy with 35,713 and Spain with 13,910. The total confirmed cases in these countries amount to 85,804, surpassing China's 80,894.

The number of confirmed cases in the U.S. is also rapidly increasing. CNN reported, citing the U.S. Centers for Disease Control and Prevention (CDC) and state and city health authorities, that as of the afternoon (Eastern Time) of that day, the cumulative number of COVID-19 infections in the U.S. increased by about 2,700 in one day to reach 8,525. Johns Hopkins University's count was 7,769.

Economic experts unanimously agree that governments should implement even stronger measures in their wartime responses. Bill Ackman, a famous U.S. hedge fund manager and chairman of Pershing Square Capital, said in an interview with CNBC, "President Trump says it's wartime, but in reality, a tsunami is coming, and people are still playing on the beach." He emphasized, "Only by imposing a strong nationwide lockdown for at least a month can the COVID-19 problem be resolved and the stock market rebound." Barry Sternlicht, chairman of Starwood Capital Group, also said, "The current situation is like a 90-day Third World War," and criticized, "The Trump administration must abandon the idea that this war will end in 5 or 10 days."

There are also criticisms that the $1 trillion (approximately 1,258 trillion won) COVID-19 economic stimulus package announced by President Trump the previous day is far insufficient for the current situation. Andrew Ross Sorkin, a financial columnist for The New York Times (NYT), wrote in a column published in the NYT that "The Trump administration plans to provide $1,000 financial support to every citizen with the $1 trillion stimulus package, but this will not help at all," and argued, "At least $10 trillion or more should be mobilized to implement interest-free bridge loans with government guarantees for large corporations, small and medium-sized enterprises, and self-employed individuals alike for five years to prevent economic damage."

This content was produced with the assistance of AI translation services.