As countries around the world see second waves of Covid-19 lockdown emerge, Rishi Sunak, and UK hospitality business leaders will benefit from watching a new video, and reading a report we have reviewed by Goldman Sachs’ Chief Economist Jan Hatzius.
In the video Hatzius explores the link between face masks and coronavirus outcomes, and the economic value of a national face mask mandate in reducing the need for broad lockdowns.
The focus of the report looks at the impact of second wave lockdowns in the US particularly where the hospitality industry is now facing second lockdown periods as the contagion spreads.
The report is based on very substantial amounts of research and data, readers that want to examine the minutiae will find a link below.
The research has been conducted on two levels – cross state in the US comparing where face mask mandates have been imposed and where they have not. A significantly lower spread of Covid-19 is seen in the states where face mask mandates have been imposed, and increases where it was not.
The second part of the research was through applying the same comparisons internationally, seeing the same results. The consistency of the results were surprising said Hatzius who was not expecting to see such a clear pattern emerge.
Asia was cited as the best example of adopting widespread usage of face masks and seeing the greatest reduction of spread. In Europe Italy and Spain were praised for their adoption and saw similar reductions in the spread as a consequence.
When asked to forecast the impact on reducing transmission of Covid-19 in the US Hatzius says a mandate to wear face masks would reduce transmission from 1.6% to 0.6%. He advocates the states that currently do not have face mask mandates, that are also the states with highest transmission rates, adopt a face mask mandate.
The financial implications are staggering. Hatzius states clearly that the research, like all projections based on statistical information are always prone to a margin of error. But he estimates that if the US imposed a face mask mandate, the impact economically through reducing second lockdowns is equivalent to saving the US 5% of GDP.
So, we looked up the US GDP figure for 2019 and it was $21.43 Trillion, and double checking exactly what a trillion in dollar terms equates to in full number format it is $1,000,000,000,000.
The saving forecast by Goldman Sachs’ Chief Economist Jan Hatzius of 5% of US GDP equals $1,075,000,000,000 in full numbers.
We hope that Rishi Sunak has seen the video and shared it with his cabinet colleagues.
While second waves and second lockdowns in the UK have been limited so far, Leicester shows what the impact can be from second waves.
The video can be seen here – and the full report findings and data analysis can be seen here. We recommend both as essential viewing for all in the hospitality business.
If your hospitality business is searching for face masks that have been rigorously and independently tested, look professional and save money, here’s a company that has been working with five star hotels for more than 26 years, or you can request further information by simply completing the form below.
Goldman Sachs Face Masks – 7 July 2020 – Goldman Sachs Face Masks
