More, not less, state intervention is necessary to counter the economic impact of coronavirus

LONDON, ENGLAND - OCTOBER 08: Commuters cross the river Thames as they head to work, a decade after the British Government paid billions of pounds to support the UK banking sector during the 2008 financial crash, on October 08, 2018 in London, England. The Royal Bank of Scotland is still 62% owned by the British taxpayer, down from 70% in 2008, after a £20billion payment to prevent the collapse of the lender as the crisis deepened. (Photo by Leon Neal/Getty Images)

While the government’s generous job retention scheme is unprecedented and welcome, the sheer number of claimants underlines the need for it.

The decade of austerity that had preceded the outbreak coupled with the prevalence of insecure and under-regulated employment, according to the New Statesman’s senior online editor George Eaton, had left the UK unprepared.

If similar crises are to be averted in the future, the government must act quickly and use the tools at its disposal: tax rises on the wealthy, and new money creation through the Bank of England.