Abstract
From the perspective of the market as a process, the market only exists to the extent that exchanges take place. So, what is better in times of social isolation: intervene to ensure that the market works or let the market freeze freely? Moreover, to what extent is it possible to intervene in the market in times of pandemic, preserving the principles of economic freedom? Based on the principles of cooperation and economic calculation proposed by Mises, the objective of this paper is to analyze the possibilities of public policy in a situation of social isolation. Among the main public policy devised in this time of the pandemic, the following measures have provided the continuity of the market process: credit, tax deferrals, and emergency assistance or paycheck protection program. The concern with the preservation of the economic calculation extends to all supply chain linkages, including final customers, for to companies continue to do their economic calculation.
Highlights
The recent pandemic of COVID-19 leaves, in addition to the virus trail, an extensive set of experiences of economic intervention that includes countries of the most varied levels of economic development and nuances of public management, from countries with interventionist tradition, as is the case of European Democratic Social Democratic countries, even countries that have a less interventionist public management record, notably in the health field, as is the case of the United States.The forceful need for public policies at that time is expressed in the heartbreaking data of the various economic indicators
The concern with the preservation of the economic calculation extends to all supply chain linkages, encompassing the relationship with final consumers, the USA’s “paycheck” protection program
What is better in times of social isolation: intervene to ensure that the market works or let the market freeze freely? to what extent is it possible to intervene in the market in times of pandemic, preserving the principles of economic freedom?
Summary
The recent pandemic of COVID-19 leaves, in addition to the virus trail, an extensive set of experiences of economic intervention that includes countries of the most varied levels of economic development and nuances of public management, from countries with interventionist tradition, as is the case of European Democratic Social Democratic countries, even countries that have a less interventionist public management record, notably in the health field, as is the case of the United States. In OECD countries (Organization for Economic Co-operation and Development), the drop in GDP was 10.6%. The question that arises in this article is, : to what extent is it possible to intervene in the market in times of pandemic, preserving the principles of economic freedom? Based on the principles of operation of a market economy proposed by Mises, notably cooperation and economic calculation, we seek to analyze the possibilities of public policy in a situation of social isolation. Based on fundamental questions and answers proposed in Mises’ s work, this article adapts these lessons as a reflection for the analysis of public policies in the context of social isolation. Written in 1979, public policy reflections for the future have never been as current as they are today, in times of pandemic
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