Is the COVID-19 Wave Subsiding... US Governors Discuss Economic Reopening

Governors of 9 East and West Coast States Including New York Review
Trump Says "Presidential Decision"
Europe Also Prepares Exit Roadmap

[Asia Economy New York=Correspondent Baek Jong-min] The issue of lifting lockdown measures, which has begun to be mentioned at the federal government level in the United States, is expected to be actively discussed at the state government level as well. Interest is focused on the results of the discussions as easing social distancing measures to prevent the spread of the novel coronavirus infection (COVID-19) is linked to the resumption of economic activities. In Europe, some countries such as Spain and Germany have started transitioning to normalization stages, while France has extended lockdown measures, showing divergent 'choices.'

According to the Associated Press and others on the 13th (local time), governors of six states in the U.S. East Coast, including New York, decided to form a task force to jointly discuss plans to ease and lift various restrictions. The six states participating in the task force are New York, New Jersey, Connecticut, Rhode Island, Pennsylvania, and Delaware. These governors from regions experiencing the most severe situations in the U.S. have laid the groundwork to voice independent opinions on economic reopening, marking the first time that state governments have discussed economic reopening at this level.

The reason the state governments announced their intention to discuss the timing of economic reopening is due to the recent assessment that the spread of COVID-19 has slowed down. The number of COVID-19 deaths in New York State, which is experiencing the worst outbreak in the U.S., increased by 671 from the previous day, the smallest increase in a week. The number of newly hospitalized patients was 1,958, the lowest in two weeks. New York Governor Andrew Cuomo said, "If we continue to respond smartly, I believe the worst is over."

New York City is deserted due to a stay-at-home order.
[Image source=AP Yonhap News]

However, they did not mention a specific timeline for normalization. Accordingly, the prospect that reopening on May 1, as envisioned by President Donald Trump, is practically impossible is gaining weight. Governor Cuomo said he would appoint health and economic officials to the task force to decide when to start easing restrictions.

Governors of three western states?California, Oregon, and Washington?also agreed to take a joint approach for economic reopening. Although they did not present a specific schedule, they stated that they would gradually lift stay-at-home orders with residents' health as the top priority guideline. California Governor Gavin Newsom said he would unveil California's economic reopening plan on the 14th.

However, President Donald Trump has expressed opposition to the moves by the states, making review difficult. On the same day, President Trump tweeted, "Reopening the economy is the president's decision. There are many valid reasons for this," adding, "I would like to let them (the governors) decide to lift stay-at-home orders, but that is entirely my right."

He is scheduled to announce the formation of a committee for economic reopening decisions on the 14th. According to Fox News, the committee will include Ivanka Trump, White House advisor and daughter of President Trump; Jared Kushner, White House advisor and son-in-law; Treasury Secretary Steven Mnuchin; White House Chief of Staff Mark Meadows; Commerce Secretary Wilbur Ross; National Economic Council Director Larry Kudlow; and U.S. Trade Representative Robert Lighthizer. If this proceeds as planned, economists or health experts will not be included in the committee.

In Europe, Spain, which is the hardest hit by COVID-19, lifted restrictions on economic activities for some sectors where working from home or remotely is difficult, such as construction and manufacturing, on the same day. Approximately 300,000 non-essential workers began economic activities to revive the economy. Germany is also reviewing whether to partially ease movement restrictions by the 19th. The European Union (EU) Commission is expected to deliver a four-page document titled "European Roadmap Towards COVID-19 Exit" to member states on the same day.

However, concerns have been raised that resuming economic activities prematurely is risky. Paul Krugman, a professor at the State University of New York, said, "The moment Secretary Ross and Director Kudlow say everything is resolved, we will have to head to underground shelters."

Meanwhile, the New York Stock Exchange closed mixed on the day. The Dow Jones Industrial Average fell 1.39% (328.60 points) to 23,390.77, and the S&P 500 index dropped 1.01% (28.19 points) to 2,761.63. However, the Nasdaq index rose 0.48% (38.85 points) to close at 8,192.42.

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