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Up until this past January, 70,000 people got off an airplane in Las Vegas every single day, mostly to take in the city’s charms. On these flights, passenger seats are roughly 17 inches wide with 31 inches of pitch.

Getting on an airplane to fly to a city so that you can stay in a hotel, eat in crowded dining rooms, and stand elbow-to-elbow with strangers around a craps table will be far, far down the list of behaviors on which most people are open to taking a risk.

If the tourism industry were to only decline by 30 percent in Las Vegas, it would be an utter catastrophe

Dinner and a Movie Consider the movie theater.

(1) If every theater in America opened tomorrow, what percentage of normal attendance would you see? 70 percent? 50 percent? 30 percent? What would that translate into as a percentage of total revenue decline, once you factor in concession sales? (2) The theatrical exhibition business is such a low-margin industry that even a 30 percent decline in revenues would be enough to push just about every operator in America into bankruptcy.

Let’s say you are Disney and you made Black Widow expecting it to open to $130 million dollars, pre-pandemic. Now you think that, at some point in the undetermined future, maybe it will open $70 million. Or possibly $30 million. Are you going to take that sort of chance with this asset? Or would you rather bootstrap the part of your business that looks like the future—meaning, your streaming service—and eschew the theatrical release altogether?

we could scan the economic landscape and find existential dislocations pretty much everywhere.

How will the airline industry “come back” when people decide to take flights only for travel that cannot be avoided—and international travel is severely restricted?

How will professional sports—which require thousands of people to be packed into small spaces—play in front of live crowds again? The sports leagues may be able to limp along with only broadcast revenues, but the micro-economies built around stadiums and arenas will not.

As teleworking becomes increasingly accepted—or even preferred—the physical office will wane. What happens to commercial real estate?

The Long War

the American economy is a tightly integrated system where disruption in one sector can cascade into failures everywhere else. In the last 50 years we’ve seen how shocks to finance or energy were sufficient to throw the entire country into deep recessions.

Exactly what sort of recession should we be expecting when several sectors are pushed toward extinction, all at once?

Here in the United States, we watch, week by week, as highly regarded financial analysts from Wall Street and economists from the academy misestimate the depths of the damage we can expect—always erring on the side of optimism.

After the March lockdown of the country to “flatten the curve,” the boldest voices dared to venture that the United States might hit 10% unemployment before the worst was over

our weekly jobless claims reports and 22 million unemployment insurance applications later, U.S. unemployment is already above the 15% mark: north of 1931 levels, in other words. By the end of April, we could well reach or break the 20% threshold, bringing us to 1935 levels, and 1933 levels (25%) no longer sound fantastical

Even so, political and financial leaders talk of a rapid “V-shaped recovery” commencing in the summer, bringing us back to economic normalcy within months. This is prewar thinking, and it is looking increasingly like the economic equivalent of talk in earlier times about how “the boys will be home by Christmas.” . . .

not just a single national lockdown of a country’s population and economy is in store to fend off mass contagion but rather quite possibly a succession of them—not just one mother-of-all-economic-shocks but an ongoing crisis that presses economic performance severely in countries all around the world simultaneously.

yes, there will eventually be creative destruction that spurs innovation and increasing economic activity. But that is in the long run.

The reality of our near- and medium-term future is something very different. And whatever the government orders people to do, that reality will look more like our “stay-at-home” present than the pre-virus past.

he movement to “reopen” America is a fallacy based on a fantasy. The fallacy is the notion that lifting stay-at-home orders will result in people going back to their normal routines. This is false.

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the sooner people grasp how completely and fundamentally the world has changed, the faster we’ll be able to adapt to this new reality. Let’s take a close look at just a couple of examples.

The sheriff said investigators are continuing to interview Paddock's girlfriend, Marilou Danley, who has told authorities she had no inkling Paddock was plotting a massacre.