Coronavirus

It has been a year since the US and the world went into recession.  Because of its origins in the sudden pandemic, it was possible to reliably discern the advent of the recession before it was reflected in any of the standard economic statistics, which is rare.  (I hope it shocks no one to learn that economists can’t normally predict recessions.)

By the end of the second quarter of 2020, US GDP had fallen 11 %. This record plunge took the US economy from a level that is estimated to have been 1.0% above potential output at the end of 2019, to a level 10 % below potential in mid-2020.  Potential output is the level of GDP that is produced when unemployment is at its so-called natural rate, the capital stock is operating at the capacity for which it was designed, buildings have their normal occupancy rates, etc.

The United States and the world entered recession a year ago. Normally, economists can’t predict the onset of a downturn. But because this recession stemmed from the COVID-19 pandemic, they could reliably discern its beginnings without waiting for the standard economic indicators.

A nuclear explosion detonated anywhere by a terrorist group would be a global humanitarian, economic, and political catastrophe. The current COVID-19 pandemic reminds us not to ignore prevention of and preparation for low-probability, high-consequence disasters. For nuclear terrorism, while preparation is important, prevention must be the top priority. The most effective strategy for keeping nuclear weapons out of the hands of terrorists is to ensure that nuclear materials and facilities around the world have strong and sustainable security. Every president for more than two decades has made strengthening nuclear security around the globe a priority. This includes the Trump administration, whose 2018 Nuclear Posture Review states: “[n]uclear terrorism remains among the most significant threats to the security of the United States, allies, and partners.”