When governments shut down parts of the economy, they need to do more than hand out subsidies

van der Burg, T. (19 January 2022) When governments shut down parts of the economy, they need to do more than hand out subsidies. LSE COVID-19 Blog.
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The Netherlands’ highest court has ruled that COVID-hit businesses should be able to claim rent discounts. This represents a failure by economists, argues Tsjalle van der Burg (University of Twente). Given the government has controlled the output of sectors like hospitality during lockdowns, more muscular central government policymaking would have been fairer and more appropriate.

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