As I’ve been writing this article it has sadly become apparent that despite many of our best efforts, the virus is continuing to spread. This time round there have been suggestions that the economy should stay open regardless of the health risks, whereas others have called for even tighter lockdown measures. Both of these extremes will cause huge damage to our lives, and it is not clear exactly what the right balance is in this lose-lose situation.
But let us consider what social restrictions mean for the economy, both today and in the future when this pandemic comes to an end.
First, because many of us are able to work from home, part of our economy can still operate. Although the economy shrunk by almost 20 per cent in the second quarter of the year, without the ability to work from home, that fall would have been much worse. What we did see close down were shops, restaurants, pubs, and other leisure activities.
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