By Paul Romer (original source The New York Times)
“Covid-19, the most threatening pandemic of the past century, has precipitated both a health crisis and an economic crisis. The strategies that governments have adopted to deal with each crisis separately are contradictory and risk catastrophic, long-term failure.
Social distancing is an emergency measure that will save lives but brings economic activity to a near-halt. During the worst of the Great Depression, 25 percent of the labor force was out of work. Several days ago, on March 17, Treasury Secretary Steven Mnuchin warned Congress that the unemployment rate could soon reach 20 percent. The economic news since then has been ominous. A growing fraction of the population — about one in four Americans — is under orders to stay home.
Loan guarantees and direct cash transfers will stave off bankruptcy and default on debt, but these measures cannot restore the output that is lost when social distancing keeps people from producing goods and services.
To protect our way of life, we need to shift within a couple of months to a targeted approach that limits the spread of the virus but still lets most people go back to work and resume their daily activities.”
Click here to read more
Peter Zeihan: The Revolution in Military Affairs and Europe’s Future
Last time on Zeihan on we chatted about the misalignment between American weapons systems and European needs. So, what does the future of Europe’s military…
Thought Leader: Peter Zeihan
Niall Ferguson Says Donald Trump Is Not an Isolationist
Oil prices will surge above $100 a barrel if Iran blocks the world’s most important crude shipping route in retaliation for America bombing its nuclear…
Thought Leader: Niall Ferguson
Joseph Grogan: GOP Lawmakers Block Health Cost Cuts
President Donald Trump was swept into office last November with a promise to lower prices for Americans who had suffered under 40-year-high inflation under President…
Thought Leader: Joseph Grogan
