#Ignorance is #Bliss: Economists still don't get #Lockdown #Economics. As long as 60% of economy is in #Lockdown conventional fiscal stimulus has zero effect, 0. So anyone still talking about it, is either dumb, living in cloud cucko land or deliberately trying to fool th public
2/lde #Lockdown means there is no supply or demand in the part of economy (60%) which is shut(lockdown). We cannot buy any non-essential goods.Its not a matter of lack of money or desire. There is no way you, i or anyone can buy any non-essential G&S when producers can't sell it.
3/lde Conventional Fiscal stimulius Will Become relevant only after we transition from Lockdown to "normalcy". It's only during transition that we will know if there is lack of demand in which sectors & a fiscal stimulius package can be devised & ready before end of transition
4/lde During the #Lockdown Govt must take all feasible step to stave of human stress and firm bankruptcy. During transition Govt must focus on ensuring manufacturing supply chains don't get fragmented, facilitate workers movement to jobs & working capital for stressed firms.
5/lde I am (1) trying to explain the economic difference between a fiscal stimulus and Govt action to save firms and individuals from Mass bankruptcy during lockdown (👍).(2) Recommending that any fiscal stimulus after normalization(👍), be linked to tax & expenditure reform.
