The moral hazards of our economic response to COVID-19

Little doubt exists that COVID-19 represents an existential challenge. But could our economic policy responses complicate the return to “normalcy” whatever that may mean?

Governments everywhere are introducing massive subsidies to individuals and business, replicating the standard response in previous recessions. But what if government did much less, or even nothing?  What might that look like?  And could capitalism ride to the rescue? Has the government created a massive moral hazard for our economy?

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