Article 544NV Coronavirus is our chance to completely rethink what the economy is for | Malcolm Bull

Coronavirus is our chance to completely rethink what the economy is for | Malcolm Bull

by
Malcolm Bull
from on (#544NV)

The pandemic has revealed the danger of prizing efficiency' above all else. The recent slowdown in our lives points to another way of doing things

There's been a lot of argument about how best to handle the coronavirus pandemic, but if there are two things on which most people currently agree, it's that governments should have been better prepared, and that everyone should get back to work as soon as it is safe to do so. After all, it seems more or less self-evident that you need to be ready for unexpected contingencies - and that it is better for the economy to function at full capacity. More PPE would have saved doctors' and nurses' lives; more work means less unemployment and more growth.

But there is a catch to this, and it has been at the heart of political debate since Machiavelli. It is impossible to achieve both goals at once. Contingency planning requires unused capacity, whereas exploiting every opportunity to the full means losing the flexibility needed to respond to sudden changes of fortune.

Related: We now have the proof: greening the economy doesn't come at the price of prosperity | Fiona Harvey

Related: Coronavirus excess deaths: UK has one of highest levels in Europe

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