The Impact of The Lockdown on The Economy - Part 3

Restaurants can be open with only half the number of usual tables with additional steps taken to minimize contact between the staff and the patrons. Companies can start working with half the employees in the morning shift and the other half in the noon shift; to maintain social distancing. They must put off paying bills- payment to landlords and lenders. Online classes for students of colleges and universities will have to be a constant in the near future. Retail stores can limit the number of customers in the outlet at any one time and with the required salespeople and customers to wear masks and gloves, construction projects can be reconfigured and rescheduled, keeping social distancing in mind. Golf courses, badminton courts could limit players to one cart or two players at a time. Aged people can work from home with an established productivity standard. Providing homes for the homeless and displaced people. It is essential to ensure the supply of essential and basic commodities, this basically means allowing these factories and processing units with the recognition of their input requirements: backward and forward linkages- the entire ecosystem of production and distribution. Cash transfers need to go beyond the poorest of the poor, consumer spending will need to increase, E-Commerce should be allowed and encouraged, the government should keep a check and control on undercover operations, crimes, etc due to the volatility of times. Stimulus packages are required, employment should be assured to people, unnecessary deductions in the salaries should be avoided as it is only going to make consumption demand fall. Simply robbing Aman to pay Amar makes no sense. We need various plans, policies, and schemes to be introduced and implemented before the economy falls off the cliff. The government should keep in mind about the expansion of health infrastructure and follow wider testing.

A little relaxation of the lockdown becomes necessary for it will give some breathing space to a suffocating economy. However, no compromises should be made on social distancing becoming the norm. It is very important to think about the costs and the risks that we as a society are willing to accept. Of course, there are no costless or risk-less solutions. we need to be more than prepared to deal with trade-offs, they are inevitable. We need to weigh risks against rewards and decide how much we value one thing over the other. The restrictions on mobility and economic activity must be implemented for sure but with more sensitivity and awareness of the living and working conditions of most Indians, as well as recognition of the economic damage that it will cause.

Written by: Shifa Munshi and Ritika