Experts Say Economic Safety Nets Could Stave Off Depression

It’s clear that the global pandemic is taking a big toll on the economy, but are we looking at a possible depression? By definition, a depression is an economic contraction that lasts several months. 

Rutgers Public Policy Professor Carl Van Horn says it’s too early to use that label, adding the country has changed since the Great Depression.

“We didn’t have any of the social safety nets that we have now, our safety net is not perfect, but we do have things that didn’t exist back then like unemployment insurance and food stamps,” said Van Horn, “I don’t think the crisis from an economic standpoint will be at that level, but again it’s too early to tell.”

So what is the future for businesses likely to be?

“It’s just a world of hurt, and it’s going to last a fairly long period of time,” said Van Horn.

Dr. Van Horn said it may be difficult for government to turn to measure such as infrastructure projects to kickstart the economy.

“That is one of the normally remedies one would think of,” said Van Horn, “but of course putting people to work with infrastructure projects would violate social distancing”