Wednesday, August 12, 2020

Subsidizing Lockdowns

Jacob Moore: You know what moral hazard is, Ma? You know what that means?
Sylvia Moore: No.
Jacob Moore: It means that once you get bailed out, what's to stop you from taking another shot.
--Wall Street: Money Never Sleeps

Why would so many blue states and localities push for long term lockdowns when these measures would surely crush their main stream of resources: tax revenues? The answer seems obvious. They calculate that their behavior will be subsidized.


And now House Democrats are trying to make it happen.

Textbook moral hazard.

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