The rest of the world watched as the United States dramatically reopened “the economy” last month. Now, it seems we’ve changed our minds about that.
The White House has repeatedly said that it will be up to individual states to form their own pandemic response plans moving forward. But letting local governments devise their own solutions has produced large gaps in their preparedness, as well as profound confusion around the best practices for balancing the country’s public and economic health.
California, which represents the largest economy in the US and the fifth largest in the world, was one of the first states to put serious quarantine restrictions in place. The decision to relax those orders only came after anti-lockdown protestors demanded that Governor Gavin Newsom reopen the state’s beaches, businesses and churches. Newsom may now regret this capitulation as California just called for a second round of statewide lockdowns.
Other state legislators are slowly following their lead, as the threat is becoming very dire in some places. Florida, for instance, is now a global hotspot for COVID-19 and Miami is being called “the new Wuhan”. The state is also currently struggling against another wave of unemployment, partly because their economy is heavily dependent on summer tourism (which has persisted despite the spike in cases, but not nearly at pre-pandemic levels).
Florida, California and Texas are altogether responsible for 20 percent of all new COVID-19 cases globally.
Every state is fighting two battles here. Coronavirus relief efforts in the US are still seriously underfunded, and most health organizations here lack the resources to effectively test and treat their communities. But the problems that have emerged for workers and small business owners, like evictions and layoffs, have also been devastating in their own right.
In essence, the United States reopened in an effort to curb the nation’s financial freefall and ballooning unemployment. Economists predicted at the beginning of July that reopening would allow the US to avoid a recession, and all would go smoothly. These projections likely did not account for a spike in cases that would halt this economic rebound.
That’s not to say the circumstances here haven’t improved at all over the past months; currently there is no acute shortage of ventilators, and doctors have had some time to refine their strategies for treating the virus. Overall, the national unemployment rate is slightly declining, while working from home is going so well for companies like Twitter and Facebook that they will be permanently switching much of their staff to remote work.
By comparison, though, New Zealand took the pandemic much more seriously than the US did, and they are objectively in a better position now in all respects. Prime Minister Jacinda Ardern cracked down hard and early, closing the country’s borders completely, and instituting rent freezes nationwide. As a result they have virtually eradicated COVID-19 within their borders. A report from S&P Global also expects New Zealand’s economy to recover quickly compared to the rest of the world.
While this tradeoff seems like a zero sum game – as if we have to pick either our health, or our wealth – it is not. In fact, we could very well end up with neither if our lawmakers don’t proceed with caution.
Genuine Chris Johnson
November 22, 2009 at 3:23 pm
I would hope–sincerely–that people would take principle over their own pocketbook. When I was in the biz, it was presumed that I would support the confiscatory and socialist measures that the NAR supported (tax credits being one) because they benefited me. I didn’t want the nose in the barn.
Self interest is no excuse for supporting bad politics.
Debbie Kirkland, Realtor
November 22, 2009 at 3:48 pm
Greg:
I completely agree that the climate of business and politics have dramatically changed. As governmental affairs chair for our local board, I have been amazed at the changes that Realtors are making in their involvement locally, on the State and national level. gone are the days of complacency and the taboo that our elected officials are taking care of business. Politicians are actually having to dig in and work. They are being held accountable to those that are closely scrutinizing not only their knowledge of the “business” of government, but of the business men and women that fuel the government machine.
Realtors are digging in as well, protecting not only their industry, but the people that support this industry. The “full-service” Realtor is indeed providing service and consultation to many who will hopefully remember the work done on their behalf and those that are in the trenches with lenders and mortgage companies as well as the local politicians who can make or break communities.
We are bringing the issues to the table, and we are working together, as it IS the real estate industry that largely supports this country. We have no choice but to be involved, period. As heated as it is and as it gets at times, neither Realtors or politicians have an easy job. However, it is a job of commitment and dedication.
It is my belief every Realtor should be educated and communicating regularly to their constituents.
Thanks for the thought provoking post.
Debbie Kirkland, Tallahassee
daltonsbriefs
November 22, 2009 at 3:53 pm
Many years ago I was worried about stepping on toes if I talked about politics, I was worried it would offend those that did not agree. I have really changed my position, obviously for those that read me every day, and found a niche as a writer and real estate finance professional with a strong political sense. Most of my borrowers are conservative and choose to use me because they agree with my politically. It has become my brand, and frankly I’m more comfortable in the transparency of being myself in my career.
Terry@Charlotte Homes
November 22, 2009 at 7:43 pm
Our PAC s have been effective- especially when it came to keeping banks out of RE. Recently the first home buyer tax credit- and the new “Move Up” credit work for us- even if they aren’t in the best interest of the country in the long run.
That said, every housing recession I’ve seen is tied most closely to economics. Fed policy, which is supposed to be above politics, is directly responsible for the monetary policy- interest rates- within the US economy… They are supposed to be the wise arbiter-it was said for years the job of the Federal Reserve was to ” take the punch bowl away before the party gets out of hand.” …this time the party lasted too long and it got a little too screwed up.
I’m more worried about game changing technology- i.e. Google. They have a much better chance of disrupting what we do in 2010.
RealEstate Babble
November 22, 2009 at 8:29 pm
AgentGenius: How Political is Your Real Estate Business? https://bit.ly/6OIDHa Full https://bit.ly/5bJuvn
Debbie Kirkland
November 22, 2009 at 8:49 pm
RT @LaniAR: realtors, how political is your real estate business? should it or should it not be? https://is.gd/51eIa (I commented,.. YES!)
Real Estate Feeds
November 22, 2009 at 9:07 pm
How Political is Your Real Estate Business?: A unique time in history
Politics and business have never been so conn… https://bit.ly/5j1vlL
realdiggity
November 23, 2009 at 12:13 am
How Political is Your Real Estate Business?: comments https://bit.ly/5yrkCM
Natasha Hall
November 23, 2009 at 12:27 am
How Political is Your Real Estate Business? – A unique time in history Politics and business have never been so con… https://ow.ly/163CWq
Dave Woodson
November 23, 2009 at 11:15 am
Greg
I really could not agree more with you. I used to keep my politics out of my business, but I have opened up about it here in the last year. I have seen more and more people that I thought were on the other side of the street from me, would agree with me. I did a weekly radio show, and I told everyone that would listen my views. Some would disagree with me, but they all respected that I put it out there and still continued to do business with me. There are those that would not, but really did I want to put up with those people anyway.
D
Matthew Rathbun
November 24, 2009 at 8:02 am
I support a lot of what RPAC has supported, but not all. Still not a fan of the tax credit, but for selfish reasons like not wanting my daughters to have to be encumbered with overwhelming federal debt in their generations…
Can you do a vlog on your view of RPAC? If you have, I’m sorry I missed it.
Missy Caulk
November 24, 2009 at 8:48 am
Greg, you know how I feel about this, I put myself out there quite often on political issues. I can’t separate who I am as a Realtor. ( my occupation) Balance in all things I post, I am a Realtor who sees the necessity of standing up for issues facing our Nation.
Charlotte Real Estate
May 7, 2011 at 6:06 pm
I personally hate that the RE business has become so dependent on politics. But as a Realtor I guess I need to be thankful because we need folks to look after the interest of those in our profession. Wonder what's going to happen with folks like google that have stronger political ties and lobbying power than we do?