Personally Trivial Things
For over two years, my wife an I did karaoke 2-3 times a week. Suddenly, that was gone and may never return.
In light of the fact we lost no lives or income, Covid-19 has so far been trivial on a personal level.
However, and in aggregate, restaurants, bars, movie theaters and even gym traffic will not bounce back to where things were before because of personally trivial things.
Reader Inspired Post
This post was inspired by reader "Wootendw" who commented on restaurant gift cards he has that may now be worthless.
He added "I Don't know how much your gift cards cost but I renewed my YMCA membership for $240 on March 3."
There's no need to feel down
I said young man
Pick yourself off the ground
That is one of the songs I do at karaoke
Karaoke is economically trivial but I miss it.
Restaurants, bars, air travel, car rentals, fingernail painting, etc., will have a very delayed recovery.
Magnify all sorts of seemingly trivial things at the personal level and the total economic impact is not trivial.
Deflationary Outcome Baked In
The summation of many small things collectively explain why the Covid-19 Recession Will Be Deeper Than the Great Financial Crisis.
Moreover, these collective responses are deflationary at a price level and very deflationary at the credit expansion level where it matters most.
For further discussion, please see Hyperinflationists Come Out of the Woodwork.
The hyperinflationists are totally wrong once again.