We all want a vaccine to Covid-19 to be made, but let's not become immune to the bad data. It’s very easy to be inoculated against the collapse in economic activity because we've had nothing but bad news for 6 months; what you could term the ‘new normal’. Just as we are at risk of sleepwalking into a lower level of existence, worse education outcomes for our children, persistently lower incomes and reduced social interactions against our will, it’s far too easy to watch the economic data and think it’s not so bad after all. The truth is it remains shocking and will get worse. UK debt has risen above £2 trillion, or 100.5 per cent of GDP. This need not be a problem in itself – governments in control of their own currency don’t need to ‘pay it back’ by returning to austerity and raising taxes. One in eight UK workers remains on furlough. Meanwhile 25 per cent of Spanish businesses are in a ‘technical bankruptcy’, it was reported this morning. Germany wants to furlough workers for years, which would lead to a lost generation of zombie employees working at zombie companies.
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