Economical decisions are always risky, even when market participants believe to foresee the future with the help of statistical models enabling that reasonable decisions can be made. That was successfully realized in the past, but shaken because of the Corona crisis.
The Corona pandemic has changed everything. The always called “Drive by Sight” is nothing else but a temporally statement for a now foggy future. It is irritating that the increasing uncertainty of the future heats up the search for certainty of expectations. Ultimately, this leads to protection of liquidity accompanying that to significant investment restraints of economic actors.
For this reason, the enormous support measures by the state are nothing else than sedative pills, which shall suggest available planning security in order to create optimism and stimulants by flooding the markets with money.
It is to assume that those kind of calming pills involve regular undesirable side affects like inflation, stagflation, tax increases and economical distortions caused by protection of noncompetitive companies. And it is necessary to discuss inter-generational justice.
Deceleration by short-time work on the one hand and acceleration of life in chosen areas like medicine on the other hand have caused the use of time to get out of step. Available time is not productively in use anymore but subordinated to the fight against Corona. Instead of constant acceleration and increase in production in (decaying) times, the societal and economical life will be politically driven down.
A slowdown means inevitably a crisis for the economy – thus the state’s sedative pills.