Published:
March 26, 2020
"As the COVID-19 crisis deepens, my fellow economists have reached deep into their bare cupboards of old ideas, and what have they found?," writes economist and LBJ Professor James Galbraith in the Los Angeles Times.
"Models that do not work: bailouts for big companies. Tax cuts for people well-off enough to owe taxes. Cash-grant schemes, a favorite of the universal-income crowd.
"These tactics won’t be effective. We cannot predict how bad the economic situation will get. And however bad it is, you cannot fill the hole with money alone."
Galbraith explains the critical necessity of keeping critical sectors open while closing everything inessential during the COVID-19 emergency.