Moving through the Greek alphabet… Covid variants. But one has been taking over headlines this summer: the Delta variant has led to a surge in hospitalizations among the unvaccinated. The CDC says Delta now makes up 83% of new US corona cases — it's 50% more contagious than the original Alpha strain. Now, Covid restrictions are cropping back up across the country, both from the government and companies.
- On the gov't side: Last week, the CDC recommended re-masking indoors, even for people who are vaxed. Meanwhile, half of California is back under mandatory indoor mask mandates.
- On the private side: This week, Home Depot, McDonald’s, and Target said they would require workers to wear masks in many locations, regardless of vax status. Walmart and Disney are even requiring some workers to get the shot.
Compare it... The March 2020 shutdowns led to the US’ biggest quarterly GDP drop ever. It’s not clear how much Delta could impact the economy — but it’s not expected to be nearly as severe, since 70% of US adults are vaxed now. While the chances of more US lockdowns are low, investors are worried Delta will slow the recovery:
- The US economy has experienced impressive growth this year. But it's expected to cool from here, as global shortages and Delta put a damper on the boom.
- The labor market is already tight, and Delta could make it worse. Businesses could be more strapped for workers if employees get sick — or avoid returning due to Delta fears or mask mandates.
First, there were carrots… now, there are sticks. From free Krispy Kreme donuts to Lakers tickets, companies and governments dangled freebies and incentives this spring to get people vaxed. This summer, it's more of a stick approach: be vaxed, or be left out. Equinox, SoulCycle, and Danny Meyer restaurants are requiring vax cards to enter some locations. NYC is making people to show their vax status to dine. And Google employees must be vaccinated if they want to return to the office for that free sushi.