Wearing masks can help the economy, according to Dallas Federal Reserve President Robert Kaplan. He adds that it can contain the spread of the coronavirus.
“The main message I’d have today about the economy from here and how to grow it probably has to do with managing this virus,” he said during an interview with Fox Business on Friday.
“While monetary and fiscal policy are very important, they’re not as important right now as us doing a good job flattening the curve on this virus. If we do that, we’ll grow faster," he added.
The Fed has implemented programs that could give $2.3 trillion in liquidity and lending while turning its key interest rate into near zero. Meanwhile, Congress has released over $2 trillion in assistance and is discussing additional funds.
“The primary economic policy from here is broad mask-wearing and good education of the health-care protocols," Kaplan said.
“If we all wore a mask, it would substantially mute the transmission of this disease and we would grow faster,” he noted. “We would have a lower unemployment rate ... and we would be less likely to slow more of our reopenings.”
According to the Covid Tracking Project, the US reported 58,836 new coronavirus cases Thursday. This was a 1.9% increase from the day before. Meanwhile, hospitalizations soared by 2.1% and deaths rose by 0.7% to 125,590.
Kaplan emphasized the stay-at-home measures imposed to stop the coronavirus transmission as the reason for the 35% contraction of the second-quarter GDP. He predicts that growth will happen in the second half but still forecasts a full-year decline of 4.5% to 5%. He notes that the spread of the virus can still influence the rate.
Mask-wearing national mandate
There have been calls for a national mandate for people to wear masks in public. However, President Donald Trump previously expressed his disapproval of it.
“I don’t know if you need mandatory,” Trump said when asked in a Fox Business Network interview if he would support a national order for people to wear masks in public.
“You have many places in the country where people stay very long distance,” Trump noted.
“But I’m all for masks, I think masks are good,” the president said, adding that he has been seen wearing one in situations where he was in a group of people.
Trump told Fox Business that the US economy is already going for a “V-shaped” recovery. “I think we’re going to be very good with the coronavirus,” he said. “I think that at some point that’s going to sort of just disappear, I hope.”
Effectiveness of mask wearing
A study published in the medical journal The Lancet revealed that social distancing and wearing of masks are effective in reducing COVID-19 risk.
For face masks, the likelihood of transmission without a face mask or respirator was 17.4%. That became 3.1% when a mask was worn. Meanwhile, the certainty of the evidence was found “low.”
Moreover, the chance of transmission without eye protection was found at 16%, compared to 5.5% with some form of eye protection. Other devices are visor, face shield, goggles or glasses. Meanwhile, the certainty of the evidence was “low.”
