When lockdowns end, governments will have to free labour markets

NEVER BEFOREThe EconomistThe Economist Today have governments erected safety-nets as generous as those they have created during the pandemic. In Britain 7.5m furloughed workers’ wages are being paid in large part by the state, which is spending more on them than it is on health care. In France the government is topping up the majority of private-sector workers’ incomes after their hours were cut. America has increased unemployment benefits by $600 per person per week, almost trebling the average payout. Since March a staggering 34m or so claims for this kind of support have been made (see ). Germany and Japan have boosted their existing subsidy schemes for furloughed or partially furloughed workers.