We must not forget coronavirus bill will have to be paid someday

Those calling for increased State intervention on permanent basis need to bear this in mind

Raising taxes sharply would be a bad idea, at least in the next year or two, as it would discourage individuals and firms trying to get back on their feet. Photograph: iStock

Raising taxes sharply would be a bad idea, at least in the next year or two, as it would discourage individuals and firms trying to get back on their feet. Photograph: iStock

Although we are currently far from seeing the light at the end of the tunnel, some discussion is already needed as to the implications for Government economic policy whenever the crisis runs its course.

There are several issues to be disentangled. First, what will be the budgetary cost of the precipitous fall in economic activity and the mitigating fiscal measures required? Second, how are these costs to be borne ? Third, what structural changes in fiscal policy (particularly in social expenditures) may or may not be appropriate in a post-virus world? Finally, how will the response and recovery differ from that during the 2008-2009 crisis?

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