Goldman Sachs (NYSE: GS) released the details of a study on Wednesday that showed a correlation between the use of masks, a decrease in coronavirus infections, and protect the economy from another hit that would come as a result of the virus' ongoing resurgence.
The study by Goldman Sachs falls in line with ongoing studies by the Centers for Disease Control and other health experts regarding the effectiveness of face masks. The investment bank compared infection rates in U.S. states with and without mask mandates, as well as against European countries that have required face masks. The study concluded that a national mask mandate in the United States could cut the growth rate of daily infections by as much as 1%.
While some states already require masks for anyone attempting to go outdoors, there is a great level of disparity between states in terms of participation. In many southern and western states, such as Minnesota and Arizona, fewer than half of all state residents wear masks regularly. As many as 20% of state residents in some states admit to not wearing masks at all.
According to Goldman Sachs' study, a national mandate could help even-out disparities and raise the rate of participation by 15%.
The obvious benefit to such a mandate would be, of course, slowing down infection rates. Slowing down infection rates even by a small margin could make reopening measures easier to implement, a preferable alternative to the looming threat of the country once again closing. The process of re-closing has, however, already begun in several states where infection rates skyrocketed to record highs.
Slowing down infection rates would also reap the benefit of saving the economy from another massive hit from state and potentially nationwide lockdowns. The study by Goldman Sachs found that another round of lockdowns could erase as much as 5% of the national gross domestic product (G.D.P.). Concerns of a significant G.D.P. hit are close to becoming a reality as coronavirus cases surge out of control in dozens of states, which is already beginning to wreak havoc on the economy. Many experts are becoming less optimistic, with some going so far as to say a "V-shape" is totally out of the question already.