We have to recognize the COVID-caused recession (and help others recognize it) as a reprieve for the ecosystem; the stage upon which tomorrow’s economy is set. The healthier the ecosystem, the healthier the economy to be sustained. Why race to tear it all up again as soon as we get past the peak of the pandemic?
COVID-19 has done in a deadly way what steady-state economists would prescribe in a healthy way: putting the brakes on a runaway economy. In fact, the pandemic has slammed on the brakes and jammed the GDP gearstick into reverse. It has ushered us into a recession that will be pronounced and protracted. In a COVID-caused recession, it’s nature at bat, not the Fed.
In these dark times, any source of comfort is welcome. Steady-state economists offer one of the only economic comforts to be found, a bona fide silver lining that warrants inspection by the mainstream media, public, and policymakers. There are three qualifiers. First, the silver lining is mostly macroeconomic, not micro. In fact, it is so big-picture we might call it supra-economic as it transcends the standard economic indicators. Second, the comfort it provides will be palpable primarily to younger generations. Third, it may take a paradigm shift…
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