Respond to the Coronavirus With Everything, All at Once
As Washington considers a stimulus package, it should remember that it’s better to do too much than too little.
Preparing for pent-up demand.
Photographer: Drew Angerer/Getty Images North AmericaAs the White House and Congress negotiate an economic package to address the coronavirus outbreak, it may be useful to think of this crisis in three distinct phases. What Washington needs to do is address each stage of the crisis at once, in a way that makes the next one easier to deal with.
The first phase is the intentional economic shutdown, produced by social distancing and other practices, that is designed to stem the spread of the virus. This policy causes immediate and direct economic harm in the hope of preventing greater loss of life. It is a necessary and justifiable tradeoff. The economy will have to absorb this loss and the government should provide direct assistance to families and businesses in need.