Is the economy back?


By Dennis Richardson, Magic Valley Publishing

While it is no secret that we must still be very cautious about COVID-19, with new cases reported on some counties weekly I am anxious for our community to totally reopen. I do not want to get the virus and I sure wouldn’t wish it on even my worst enemies.
Hopefully it can either be eradicated or a viable vaccine found and mass produced quickly. Until a vaccine is available we must follow CDC guidelines.
All should be encouraged by the rebound in the stock market. Tremendous gains should tell us that there is much more confidence in our economy. More stores are reopening and restrictions are somewhat eased.
Anyone with a retirement fund, whether it is a 401K, SEP or other, or anyone simply investing on their own should notice a huge bounce in their portfolios, especially over the last couple of weeks.
These gains are normally followed by natural dips as people sell to cash in on the gains. If the stock market continues to rise and jobs reports continue to improve consumers will once again be headed to the stores or online in droves.
As money is infused into the economy with the purchases of goods and services the multiplier effect will come in. The multiplier effect says that money spent in a community turns over a number of times, sometimes 8-10 times as those businesses and services that receive it respend it on things that they need.
Hopefully spending will be focused on our local merchants, who can really most benefit from a shot in the arm. Undoubtedly some retail will close for good. Others have cut back. Wouldn’t it be nice to see more open up?
I am encouraged by the positive reports amid continued COVID-19 and now riots and efforts to defund police departments (which I believe is ridiculous).
These are my thoughts. What are yours? We are happy to hear from our readers.
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Dennis Richardson is the CEO of Magic Valley Publishing, Inc., which owns the Chester County Independent