The crisis caused by the forced shutdown of the economy has given us some important lessons. Number one, shutting down the economy entirely is a dangerous experiment with important long-term implications. Number two, there is no such thing as “lives or the economy”.
Many countries have implemented support systems to address the pandemic while preserving the business and productive factory. South Korea, with less than 300 dead in a 51 million population, published an unemployment rate of 3.8% and its economy, closer to China than many, is estimated to fall less than 1% in 2020. South Korea is also a country with lower government spending to GDP and lower healthcare spending per capita than the average of leading nations and the OECD. They are just better at managing.
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