Overall, the study indicates, the economic impact of the pandemic was severe. Using state-level data, the researchers find an 18 percent drop in manufacturing output through 1923, well after the last wave of the flu hit in 1919.
Looking at the effect across 43 cities, however, the researchers found significantly different economic outcomes, linked to different social distancing policies. The best-performing cities included Oakland, California; Omaha, Nebraska; Portland, Oregon; and Seattle, which all enforced over 120 days of social distancing in 1918. Cities that instituted fewer than 60 days of social distancing in 1918, and saw manufacturing struggle afterward, include Philadelphia; St. Paul, Minnesota; and Lowell, Massachusetts.
“What we find is that areas that were more severely affected in the 1918 flu pandemic see a sharp and persistent decline in a number of measures of economic activity, including manufacturing employment, manufacturing output, bank loans, and the stock of consumer durables,” Verner says.
http://news.mit.edu/2020/pandemic-health-response-economic-recovery-0401