The clamour to save jobs and a prolonged shift to low interest rates will give big companies the upper hand in consolidating the small and the weak. This ever-greater concentration of industry and power will ultimately exacerbate the sorts of shortages now hurting big economies.
Winston Churchill’s biographer Boris Johnson deemed Britain’s 1925 return to the gold standard a “catastrophic error”. The Great Lockdown may be another economic disaster in the making. The recovering leader must hope that the experts haven’t misled him as they did his hero.
Plagues have always induced panicky responses. The key is to avoid innate cognitive flaws overwhelming better judgement. The findings of modern psychologists like Daniel Kahneman offer protection against groupthink and other behavioural biases unleashed by the Covid-19 pandemic.