Sunday, April 12, 2020

On Opening a Locked Economy

A government has the power to lockdown the economy; it doesn’t have the power to open it. The businessmen, farmers, investors, professionals, and workers are the movers of the economy—theirs is the power to keep an economy open by participating in voluntary economic activity. When the world governments rescind their lockdown orders, they will discover that the movers of the economy are unwilling to wholeheartedly participate in the marketplace because they have become distrustful, demoralized, and risk-averse. The lockdown may extend far beyond the government mandated period; there might be four to five years of tepid economic activity.

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