The nine months of the pandemic have shown that in a modern state, capitalism can save the day — but only when the government exercises its power to guide the economy and act as the ultimate absorber of risk. The lesson of Covid capitalism is that big business needs big government, and vice versa. With astonishing nimbleness and speed, businesses in the United States and worldwide have accomplished remarkable feats — most notably the biotechnology and pharmaceutical companies trying to fight the virus. If you substitute masks for umbrellas, and substitute apparel companies for street hawkers, you have a fair description of the magic of the marketplace in 2020. Congress enacted legislation to support millions of small businesses, many of which would have closed otherwise, and funneled money to ordinary Americans to help prevent a collapse in spending.

Source: New York Times November 14, 2020 09:56 UTC