WASHINGTON – White House economic adviser Larry Kudlow thinks the country has learned enough to prevent another economic shutdown from taking place.
While speaking during an interview, he voiced this optimism. Kudlow said the country is coming down the home stretch in terms of reopening the economy. He stated May and June are reopening months with the hope of returning to full strength later this Summer.
He said as the economy restarts, it won’t have to shut down again. He stated there is contingency planning being done in the event of a second wave outbreak. But he said he’d been told by the coronavirus task force the country has learned lessons since this outbreak began. He was told there was no need to halt the economy again.
Everywhere we turn, U.S. states have announced plans to allow businesses to reopen their doors soon.
It began a couple of weeks in Georgia. They decided to let small businesses open up. Now others such as Alaska, Florida, South Carolina, and Oklahoma, among others, are doing the same.
California is letting retailers reopen their doors today. Then, it will slowly move forward, letting more and more companies restart, as long as the number of new infections doesn’t ratchet higher.
But the primary question is potential damage done by a second wave. Kudlow doesn’t see that as an issue. He’s optimistic about what third and fourth quarter growth is going to look like.
If this proves to be the case, and the U.S. has learned enough to keep the economy going once it restarts, this should bode well for the growth outlook. If growth can rebound and demand can pick up going forward, that should be a positive for corporate earnings potential going forward.
Then, as earnings increase and corporations begin making money once more, that will increase investor optimism the S&P 500 Index’s valuation potential, rallying domestic markets