How Do We Black Start the Economy?
This article was originally published here by Joel Thomas.
— by Joel Thomas
"Black start" is a term used in the energy industry. It refers to a situation, for example, when an entire electrical grid goes dark in a state, region or an entire country. In such scenarios, power plants are often unable to turn back on because they need electricity to start and run. As a result, it is necessary for the operators of the electrical grid to maintain resources that are able to start when the rest of the grid goes dark, which can then bring the rest of the grid’s resources back online. This is where black start resources come into play.
COVID19 has introduced an enormous challenge to our economy and the economic security of families in America. In recent weeks, I have watched with great admiration as national health experts, American governments, industry and business leaders have with one voice pressed for aggressive action to protect the lives of Americans and the capacity and strain on the healthcare systems, hospitals, and workers through a widely popular model known as “Flattening the Curve”.
Private-Public Partnerships Pave the Way
"Flattening the Curve" is a notion that if we collectively respond to this global coronavirus pandemic, we can reduce the strain on health care systems and providers, and as a result, save lives. Through one of the world's finest examples of a Private-Public Partnership ever, the U.S. government has partnered with private industry to rapidly develop tests with LabCorp and Quest, and deliver them in parking lots of well known stores such as Walmart, CVS, Target, etc. “According to one government official, at this point officials believe that private-public partnerships are a more effective way to get the resources they need quickly.”
Unforeseen Casualties of the COVID19 War
Concurrently, Governors and Mayors around the country have issued government orders to shut down schools, restaurants, stadium events, and issue quarantines around the country with one loud voice and decisive action. This is incredible to watch unfold. Concurrently, we are seeing humanity respond by hoarding, social distancing, the best hygiene ever, and lots of fear. This fear is driving stock markets mad. This fear is also rooted in a reality that the unintended casualties of this war will principally be calculated by the total number of business closures and job losses...
Thousands of hospitality workers are being laid off. The Pour Taproom restaurant that I own in Greenville, South Carolina just got orders from the Mayor to close indoor service yesterday. We are trying to innovate, offering to-go "crowlers" between the hours of 4-7pm daily. But America needs to understand that restaurants and retail industry are already inherently a risky industry that employs millions of Americans, especially the vulnerable, people who depend on tips and can't work from home. Restaurants operate on a need for cash week to week and month to month...we are going to need a plan to get cash in people's pockets and then get out of debt.
Even the U.S. Secretary of the Treasury believes that unemployment may rise to as much as 20% due to COVID19. This moment may have ripple effects that will last an entire generation.
But it doesn't have to...
That is why we need collective action to Flatten the Economic Curve which includes Flattening the Supply Chain Disruption Curve. There are multiple curves that need flattening, and in this time of national emergency. Its time to broaden the aperture.
We. Must. Act. Now.
Therefore, I implore the U.S. Government and all of American Industry to consider how we can lean forward and apply a maximum pressure now to Flatten the Economic Curve. As the White House National Security Strategy states, “Economic Security is National Security”. In just the past week, Congress has passed legislation to address some of the economic challenges, while the Fed has cut interest rates, and the Small Business Administration has introduced COVID19 loan assistance program, and more measures are being considered to help put cash in the pockets of Americans, while business owners are doing everything they can to keep their business alive.
These bold measures have been exemplary, yet we need to do more as a nation, recognizing that liquidity, sales, and jobs are what matter the most right now, and that legislative and policy maneuvers alone will not save our economy. We need private and public sectors and the citizens of this nation to come together as a whole community to take aggressive measures to Flatten the Economic Curve, especially for the most vulnerable such as small businesses and ‘main street”, including women-owned and minority-owned, lest our great country fall into another great depression. Watch this video.
SPIN Global proposes a strategic national approach:
We need a plan to "Black Start" the economy that we have intentionally shut down. Some day in the coming months, lights will be turned back on, but what will still remain is up to the aggressive actions we take now.
Convene a National Economic Private-Public Partnership - Using the model led by Vice President Pence with private industry partners such as Quest and LabCorp, Walmart, Walgreens, CVS, Target etc...a national economic partnership should be formed immediately, and include representation of key business leaders, industries, economic experts, and the National Security Council working together to address this challenge.
Understand Current and Forecasted Economic Impacts of COVID19 - The disruption to our economy caused by COVID19 is unprecedented. We need to use the most current and granular data to conduct routine pulse checks on our economic environment, and use various vital signs in our economy to inform courses of action.
Mobilize America to “Flatten the Economic Curve”. In the midst of national closures, cancellations and quarantines, we need to provide guidance and messaging about how every American can contribute to sustaining the livelihoods of families in America by patronizing small, medium and large businesses in a safe and responsible way. This can be partially achieved thru a variety of measures including online purchases, pickup, no-contact delivery...and by finding ways to re-open businesses as soon as possible in a safe and responsible way, especially small business and main street, which according to the Small Business Administration represent over 99% of all businesses in America and employ 45% of the country. Second only to the life-saving mission led by the healthcare industry, the life-sustaining mission must be aggressively tackled through coordinated effort to stabilize the economy and help it to recover in the months and years ahead.
Have we got a plan to black start this economy? It's time to take a cold hard look at this, and flatten the economic curve for the average American before it gets out of control.
Editorial note: A true black start predicates the economy stops entirely. It would be more precise to say the entire economy is in a "grey start" and we need to avoid a black start, while some local micro-economies, industries and businesses do require "black starts".
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[Special thanks to Claudio Schwarz for the cover photo]