Home / Publications / Research / Who Will Pay for the Economic Lockdown?
- Research
- |
Who Will Pay for the Economic Lockdown?
Summary:
Page Title: | Who Will Pay for the Economic Lockdown? – C.D. Howe Institute |
Article Title: | Who Will Pay for the Economic Lockdown? |
URL: | https://cdhowe.org/publication/who-will-pay-economic-lockdown/ |
Published Date: | March 23, 2021 |
Accessed Date: | February 6, 2025 |
Outline
Outline
Authors
Related Topics
Someone has to pick up the tab for lockdown-induced debt
- Federal debt is likely to be about $550 billion higher because of pandemic-related lockdowns, and fairness requires this increase in debt be retired before the next generation starts working and paying taxes, which will occur 18 to 25 years from now.
- The analysis in this paper indicates that the income loss arising from the recession can only be deferred, not eliminated, by issuing debt because debt has an economic cost.
- Government needs to implement a set of debt reduction policies that, given the distribution of income losses during the recession, achieves a fair sharing of the burden of the recession, without passing the debt on to future generations.
Related Publications
- Intelligence Memos
Parisa Mahboubi, Tingting Zhang
- Intelligence Memos
Steve Ambler, Jeremy Kronick