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1/ The government is loosening lockdown requirements allowing "skill-based" jobs. https://dunyanews.tv/en/Pakistan/541071-Federal-Cabinet-coronavirus-situation-country
Here's a ECON 101 argument for why this is not just a bad idea, but the government is trying to get credit for abdicating it's basic responsibility.
Here's a ECON 101 argument for why this is not just a bad idea, but the government is trying to get credit for abdicating it's basic responsibility.
2/ The core argument behind allowing skill based workers (and for his thread let's use barbers as the example) is that these are daily wage workers who are disproportionately being effected by the lockdown. While true, this would typically call for government support programs.
3/ We are told these are not feasible and so it is argued the only option is the looser restrictions. But here's the thing, that makes no sense and you only need Econ101 to see through it. How many people will go to the barber when there is a infectious pandemic going on?
4/ And since the loosening of restrictions is limited, most people in the barbershop's cachement area will not be working, so they will will be delaying optional expenditure. So barbers will face limited demand.
5/ For a barber already living hand to mouth, this will be very insignificant relief. Therefore without any government support, the situation will be nearly as dire as it was during a full lockdown. Maybe even worse if the barber faces costs for keeping his empty shop open.
6/ All the while, the disease spreads more rapidly. At the end of the day, the point is fairly simple. In a pandemic it is the government's job to help those in need. What we are seeing is a government using poverty as an excuse to not do anything.
7/ We therefore have no lockdown to fight the crisis and limited benefits, if any in the long run from "opening up" what is a depressed market to begin with. The government has failed and should be held accountable and made to do better.
8/ We can not be fooled into believing this is a pro poor move. It is anything but, they have thrown the poor out to fend for themselves in a market with little to no demand and somehow managed to call it a pro-poor policy with a straight face!
In short, it's time we hold the government accountable. Make it help the poor, not use them as props in a policy debate #PakistanVsCorona
