• SHARE

To date, the economic damage wrought by the pandemic has been mostly hidden by massive government subsidy. That’s about to change. And so the next few months will reveal the underlying economic impact of COVID-19 across the globe more clearly. My bet: As governments withdraw fiscal support, the economic picture is going to look worse than commonly appreciated.

Getting a sense of what’s about to happen requires that we first be clear about how and why the pandemic has affected the economy: Is it because governments have required people to stay home, or is it because of the virus itself? New research shows that economic losses have come mainly from fear, not government mandate. So eliminating the mandates without ending the fear does very little.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.

SUBSCRIBE NOW

PHOTO GALLERY (CLICK TO ENLARGE)