Sunday, April 12, 2020

On Opening a Locked Economy

The government has the power to lockdown the economy, but not to open it. The businessmen, farmers, investors, professionals, and workers are the movers of the economy—they possess 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 lockdowns could extend far beyond the government mandated period. There could be four to five years of tepid economic activity.

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