Article 54M7H Fear of coronavirus, not lockdown, is the biggest threat to the UK's economy | Simon Wren-Lewis

Fear of coronavirus, not lockdown, is the biggest threat to the UK's economy | Simon Wren-Lewis

by
Simon Wren-Lewis
from on (#54M7H)

Tory MPs are missing the point: lifting restrictions won't ease this recession, people need to feel the outbreak is under control

In April, UK GDP was 25% below its level in February. While such a rapid fall in output is unprecedented, so are the reasons for it. Unfortunately many Conservative MPs seem to think the collapse in output is due to the lockdown, whereas in reality it is due to the pandemic. If there had been no lockdown, and the epidemic had run its course unhindered, we would have seen a fall in output of similar size.

The reason is that in the middle of a pandemic most people will try to avoid catching the virus. That means they will avoid going to pubs and restaurants, or cinemas and concerts. These are all part of what we can call social consumption. Many people will stay at home as far as possible voluntarily, which means using transport less and perhaps taking their children out of school.

The quickest way to get the economy going again is to get new infection numbers right down

Related: After Covid, is it time for the UK to invest in its industry again?

Simon Wren-Lewis is emeritus professor of economics and fellow of Merton College, Oxford


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