Excellent @jasonfurman thread about sick leave.
Rule #1 rule of virus economics: the best thing for the economy is anything that slows the spread of the virus
Rule #2: work to prevent permanent damage from a temporary fall
Rule #1 rule of virus economics: the best thing for the economy is anything that slows the spread of the virus
Rule #2: work to prevent permanent damage from a temporary fall
So for #1, this means that things which we would normally view as reducing output—like paying infected people not to come to work—can actually be critically important stimulus by reducing the spread of the virus
And for #2, this means staving off bankruptcies of people and of companies that are coming just because of the virus.
@jasonfurman’s idea of sick leave for all and have the govt help businesses with the cost bails both of these virus economics rules
I hope others to consider will include rent/mortgage hiatuses, lines of credit, freezes on penalties, fees and extra interest charges, etc
I hope others to consider will include rent/mortgage hiatuses, lines of credit, freezes on penalties, fees and extra interest charges, etc
And we need to keep the life preservers out for people and businesses.
