It’s not just game theory, it’s actual real world efficiency. Which translates into jobs and salaries. Reducing baseline capital efficiency drives up all baseli

It’s not just game theory, it’s actual real world efficiency. Which translates into jobs and salaries. Reducing baseline capital efficiency drives up all baseline costs. These costs are passed on to consumers and act as a drag on the economy. It would make no sense to do that in response to a black swan event. Let’s say small business has to keep 6 months of expenses in reserve instead of the typical 3 months rule of thumb. For the same amount of cash on hand that means you can afford half the monthly expenses. It’s not just a matter of “hoard more cash”. That cash had to come from prior quarter’s net income. Revenue you don’t invest drags down growth (a.k.a hiring). Revenue you don’t spend is also taxed, adding further drag on the business. Basically what this proposal is suggesting is to drastically reduce the “money multiplier”. This shrinks GDP. If the government forces your company to shut down for weeks, I expect them to pay for it. It doesn’t make any sense for small businesses to self-insure against government mandated shutdowns. That would simply be a recipe for destroying small business.