Two major events have gone un-noticed by Ordinary People.
The first was the slow shift, after the GFC, to a global economy run on debt – on printed money. And in recent years, the discussions of MMT – Modern Monetary Theory: free money for all – has gone equally un-noticed.
The second, almost totally overshadowed by the social and medical aspects of the pandemic, has been the sudden and almost total implementation of 80% of What MMT Is.
Now a prediction:
the present discussion goes: we lockdown; business is shut down; we disburse massive stimulus; we lift the lockdown when the virus is defeated; business begins to recover. But it’s been notable since the outset that discussions of It All have been on a nation-by-nation basis. No one has mentioned slums and refugee camps, which are places largely beyond the range of governments.
So, what if the virus entrenches itself in such places? When the lockdown is lifted/stimulus is disbursed, but the virus is still present, what happens?
The answer is: more lockdowns; more stimulus. By Christmas, the entire global economy may be operating on Gubmint funds.