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> I agree we need more cash payments to humans. But we have to be careful not to confuse money with stuff (the goods and services produced by the economy). Givi

by ardy42 6y ago

> I agree we need more cash payments to humans. But we have to be careful not to confuse money with stuff (the goods and services produced by the economy). Giving money does not produce any more stuff, it only increases the competition for and price of the stuff that is being produced. > We are producing less stuff because of the pandemic, which means there is less to go around (however it gets allocated), and no amount of money will change that. A large fraction of that stuff is not strictly necessary for anyone's survival, especially in the short term. It's various degrees of "nice to have." Too see this, look at the kinds of rationing they did in WWII. A successful COVID containment strategy would have identified the truly essential vs nice-to-have parts of the economy, and temporarily shut the latter parts down while supporting all affected workers in those sectors with payments sufficient to provide all needed access to essential goods and services for the duration (including housing). That wouldn't work as a permanent economic policy, but it would work as a temporary coordinated response to time-limited crisis.

nradov 6y ago
Too many HN users have no idea how businesses operate outside the software sector. Many of those "non-essential" businesses and the associated supply chains are simply not set up in a way that can be stopped and then successfully restarted months later. If they're shut down for any significant period then they're gone for good. Crashing the economy into another Great Depression would kill more people than the virus. There has to be a sensible balance.
- ardy42 6y ago
  > Many of those "non-essential" businesses and the associated supply chains are simply not set up in a way that can be stopped and then successfully restarted months later. If they're shut down for any significant period then they're gone for good. Honestly, that sounds like hyperbole. You'll have to give examples, and not something like retail or restaurants. Honestly, with a little imagination and expertise (and most importantly the political will to deal with the problem), I think it doable to make the legal changes necessary to pause most business like that with little damage, just as long as the aid is there. For instance, make 2020 something like an intercalary year. IMHO, this stuff only seems impossible if you tie your hands and restrict yourself to a limited number of first-order interventions. The situation we have now is something like an ER doctor who's too busy playing on his phone to save the life of someone who's been shot, and who then turns around and loudly blames "guns" for that unnecessary death.
  - jelliclesfarm 6y ago
    Example: dry cleaners.

by ardy42 6y ago

nradov 6y ago

Too many HN users have no idea how businesses operate outside the software sector. Many of those "non-essential" businesses and the associated supply chains are simply not set up in a way that can be stopped and then successfully restarted months later. If they're shut down for any significant period then they're gone for good. Crashing the economy into another Great Depression would kill more people than the virus. There has to be a sensible balance.

ardy42 6y ago
> Many of those "non-essential" businesses and the associated supply chains are simply not set up in a way that can be stopped and then successfully restarted months later. If they're shut down for any significant period then they're gone for good. Honestly, that sounds like hyperbole. You'll have to give examples, and not something like retail or restaurants. Honestly, with a little imagination and expertise (and most importantly the political will to deal with the problem), I think it doable to make the legal changes necessary to pause most business like that with little damage, just as long as the aid is there. For instance, make 2020 something like an intercalary year. IMHO, this stuff only seems impossible if you tie your hands and restrict yourself to a limited number of first-order interventions. The situation we have now is something like an ER doctor who's too busy playing on his phone to save the life of someone who's been shot, and who then turns around and loudly blames "guns" for that unnecessary death.
- jelliclesfarm 6y ago
  Example: dry cleaners.