Steven Malanga and Brian Anderson discuss how the economic shock resulting from the coronavirus—the closing of large sections of the American economy, the plunge of stock markets—is likely to undermine state and local budgets around the country.
Even as states are searching for extra funds to help battle Covid-19, the loss of tax revenue during the crisis will be devastating. "States that rely on meetings, conventions, and tourism, or that derive substantial economic growth from energy production, or that depend on big gains in the financial markets from wealthy individuals, will be among the biggest losers unless the economy turns around fast," Malanga writes.
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Seth Barron and Nicole Gelinas discuss the coronavirus outbreak in New York City, the drastic measures being taken to control its spread, and the consequences of an economic slowdown for the city and state budget, the MTA, and New York residents.
New York—particularly New York City—is moving toward a full shutdown. Over the past week, schools have cancelled classes for an extended period and restaurants, bars, and many other businesses have closed. The historic losses in revenue to the city's public-transit system alone will require a multibillion-dollar bailout, Gelinas believes. Read more of City Journal’s COVID-19 coverage on our website.
Confirmed cases of COVID-19, the disease caused by the new coronavirus SARS-CoV-2, have been identified in more than half of U.S. states. Globally, the number of coronavirus cases exceeds 100,000. "The New York experience to date suggests," writes Zinberg, "that the disruptions this new virus causes—particularly to the availability of medical care, for any condition—may be more dangerous than the illness that it causes."
Rafael Mangual joins Kay Hymowitz to discuss evidence suggesting that children are often better off when criminal parents are imprisoned—the subject of Mangual's story, "Fathers, Families, and Incarceration," from the Winter 2020 Issue of City Journal.
A common criticism of incarceration in the United States, notes Mangual, is that it harms children by taking parents or siblings out of their homes. But recent studies show that children living with a parent who engages in high levels of antisocial behavior may be worse off than kids with incarcerated parents.