The COVID-19 pandemic has created a wartime atmosphere in which dramatic changes suddenly seem possible
Must-read via ForeignPolicy.com: How the Economy Will Look After the Coronavirus Pandemic
Great read via ForeignPolicy.com – really made me think. Here are some of the best quotes
“This much is certain: The pandemic will lead to permanent shifts in political and economic power in ways that will become apparent only later...The coronavirus crisis has been a powerful reminder that the basic political and economic unit is still the nation-state”
Read my 12 bullets on a post-corona future
What will the future economic system look like, POST-CORONA?
“The economic system we construct after this pandemic will have to be less shortsighted, more resilient, and more sensitive to the fact that economic globalization has far outpaced political globalization…. The coronavirus pandemic is the first crisis since the 1930s to engulf both advanced and developing economies. Their recessions may be deep and long. As in the 1930s, sovereign defaults will likely spike. Calls to restrict trade and capital flows find fertile soil in bad times”
The wartime atmosphere may fade again, but will some of these new ideas persist?
And what about UBI?
“Perhaps the emergency payments to individuals that many governments have made are a path to a universal basic income. In the United States, better and more universal health insurance might just have been given new impetus. Since we are all on the same side in this war, we may now find the motivation to build new international institutions allowing better risk-sharing among countries. The wartime atmosphere will fade again, but these new institutions would persist”.