The Economist – March 6th – 12th 2021

Bouncing Back: A welfare state for the post-covid world

After the Depression and the second world war, voters and governments in rich countries recast the relationship between the state and its citizens. Now the pandemic has seen the old rules on social spending ripped up. More than three-quarters of Americans support President Joe Biden’s $1.9trn stimulus bill, which is due in the Senate and includes $1,400 cheques for most adults. And in the budget on March 3rd Britain extended a scheme to pay the wages of furloughed workers until September, even as public debt hit its highest level since 1945 (see article). Such boldness brings dangers: governments could stretch the public finances to breaking-point, distort incentives and create sclerotic societies. But they also have a chance to create new social-welfare policies that are affordable and which help workers thrive in an economy facing technological disruption. They must seize it.

Politics this week

In Hong Kong, 47 activists were charged with violating the territory’s national-security law. As a court began hearing defendants’ petitions to be released on bail, hundreds of supporters gathered outside. The activists’ alleged crimes relate to an informal primary ballot held last year by pro-democracy politicians in order to produce strong candidates for the Legislative Council. The government saw this as a plot to gain control of the council and block its work.