A Vaccine Could Slow Down Job Growth
At least until the details of distribution were worked out, businesses might be reluctant to hire.
Hope for the economy (but not right away).
Photographer: Andrey Rudakov/Bloomberg
Falling cases of the coronavirus imply that the U.S. economy could improve over the next month or two as lockdowns ease and Americans resume their normal lives. There is, however, an unexpected short-term risk: that a vaccine will be ready by November.
To be absolutely clear, over the medium and long term a vaccine will be a godsend for economic growth. Even if it weren’t, a lower death rate is well worth a few more quarters of higher unemployment. Nonetheless, there is a possibility that the introduction of a vaccine could actually lead to a sharp if temporary deceleration in job growth.