Sunday, May 24, 2020

RAGHURAM G. RAJAN - Which Post-Pandemic Government?

https://www.project-syndicate.org/commentary/covid19-decentralized-vs-centralized-government-by-raghuram-rajan-2020-05?utm_source=Project+Syndicate+Newsletter&utm_campaign=288cbd1ab3-sunday_newsletter_24_05_2020&utm_medium=email&utm_term=0_73bad5b7d8-288cbd1ab3-93854061&mc_cid=288cbd1ab3&mc_eid=be3809ebbc

...In crowded New York City, a strict lockdown may have been the only way to get people off the streets, and its economic impact may have been softened by the fact that many there work in skilled services like finance, which can be done remotely. Moreover, even laid-off waiters and hotel workers know they won’t get their jobs back until the public feels safe going out again. Health concerns seem to be paramount.
In contrast, in Farmington, New Mexico, the New York Times reports that, “few people know anyone who was ill from the coronavirus, but almost everyone knows someone unemployed by it.” The lockdown, imposed by the state’s Democratic governor, seems to be unpopular across a community that was already in serious economic decline before the pandemic. In this case, economic concerns have trumped more modest health worries.
...If a central government has questionable motives or simply is incompetent, the calculus changes. 


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