Quote:
Originally Posted by downquark1
I would put money on there not being any tax rises when it reopens. The demand for things is going to be very low and they will be wanted to get people spending again. It is not going to be as simple as borrowing money to pay back.
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Short term I agree. The economy needs stimulated, but that means keeping people in work, protecting small businesses and giving people security to get through the crisis.
While the health crisis is about 'flattening the curve" the economic response is about "sharpening the V". The quicker the economy goes down, the shorter timescale that it needs supported and by protecting incomes, jobs and businesses the quicker it recovers.
Otherwise we just have a recession that drags on for years because 'household budget capitalism' can't simulate the recovery required.