Once the great lockdown is lifted; Post COVID-19 options for the economy
Jo Ritzen
#2020-057
In 2021 lockdowns still will be necessary to keep COVID-19 in check
world-wide. Vaccination might bring sufficient coverage by the end of
2021 for some countries. Priorities in the re-emergence of economies
should be for sustainability, health, education, full employment and
social cohesion to preserve long-term welfare. Pressures on Government
budgets are going to rise in view of the unprecedented high public debt
to GDP ratio world-wide. Increased taxation of wealth and of the top
10%-income-group is a superior strategy compared to retrenchment (budget
cuts in health, education and social expenditures). International
cooperation is top priority. This applies to health, but also to
economic and monetary policy: it can lift economic growth in the G20
countries over the short and long run by at least one third. The
resumption of trade should be guided by rewarding the achievement of
social goals and realizing sustainability. In this way the level playing
field is restored for those countries which want to contribute to a
sustainable world and to cooperation. International taxation rules for
profits should prevent tax havens to make this a negative sum game. This
would give developing countries some of the necessary breathing space to
re-emerge from the COVID-19 crisis.
Keywords: COVID-19, employment, economic development, environmental
sustainability, social cohesion education, health, monetary policy,
sovereign long?term interest rates, conditionalities, taxation, stock
market
JEL Classification: I00, J20, H63, H74, O38, O40, O43, O44, E62, E43,
Q58, F18, F23,O52 R30, I25, F30, G15, H25, H87