corona Financial virus

The first response of the federal government was to throw money -- or promises of money -- to business. Forget the disease, look afternthe people who buy the votes.

Once the government took serious action -- I was impressed. Gone was Scotty from Marketing, here is a PM who is making good decisions. Okay, choosing the only sensible options. Still, PM and government performed well.

Now there is time to look at protecting "the economy". At the level that really matters. That is, people and jobs.

In the UK the government is offering to cover 80% of everyone's pay. So people will continue to be employed. When the crisis is over, people will still be employed. If their employers still exist.

Meanwhile, what are they doing? Sitting at home, presumably, because shops and businesses are all closed.

In Australia the government offers welfare. Employees are being laid off, they join the welfare queue. When the crisis is over they will all be looking for new jobs. Unions would prefer that workers remain as employees, even though there is no work to be done. And, often, no place of employment.

Is there a compromise?

Lay off workers but retain their employment status.

Everyone is sent home. The government picks up the welfare/wages  bill. When the crisis is declared to be over -- everyone is employed again. Automatically. If they are no longer needed -- normal employment law takes over.

This allows businesses to cut the wages bill, perhaps to survive. It provides continuity of employment, before and after coronavirus. It protects both business and employees. It will simplify business restart, post crisis.

Nick Lethbridge  /  consulting dexitroboper
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"We must believe in free will -- we have no other choice." … Isaac Bashevis Singer
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