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Adam Smith Inst - Not getting to grips with the virus is costing country dearly
Matthew Lesh, Head of Research at the Adam Smith Institute, responded to the Chancellor of the Exchequer's expansion of corporate welfare into the Spring
"The failure to control the virus is costing the country dearly. Consumer activity is falling as case numbers rise and lockdowns are instigated. We risk firm after firm failing and a cascading credit crunch as unpaid debts mount up.
"The Chancellor’s furlough extension is to avoid unnecessary economic scarring; however, it also risks propping up companies that are not profitable in the longer run. At some point, we must allow the economy to adjust, firms to fail and new ventures, and new jobs.
"The Chancellor should immediately release, and if it does not yet exist commission, the underlying economic modelling to justify these decisions. The shroud of secrecy must come to an end."
For further comment or to arrange an interview, please contact Matt Kilcoyne via Matt@adamsmith.org or 07904099599.
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