The corona virus is so shocking to economies that it suddenly is obvious to almost everyone.
Prof. Bill Mitchell's blog post for Thur., 3/26/20 lays it all out.
The following are all untrue or lies --- Quoting Bill's blog post.
1. Fiscal deficits push up interest rates and crowd out private investment.
2. Deficits run up unsustainable public debt which mortgages our children's futures.
3. Deficits cause inflation.
4. Central banks cannot fund government deficits or else hyperinflation results.
5. Governments cannot promote growth and create employment.
6. Income support provided by the government undermines private incentives and subsidizes unemployment.
7. Essential infrastructure should be provided by the private sector.
8. The banking system should be deregulated because financial markets are efficient (always put funds into best value use).
9. The private market (price system) will always deliver outcomes that generate the most wealth for all.
10. Rising inequality does not undermine growth and prosperity.
I could go on.
Bill goes on to point out this article ---
"And overnight, the Financial Times published an Op Ed from former ECB boss, Mario Draghi (March 25, 2020) – [titled] We face a war against coronavirus and must mobilise accordingly – where he said: ..."
The challenge we face is how to act with sufficient strength and speed to prevent the recession from morphing into a prolonged depression, made deeper by a plethora of defaults leaving irreversible damage. It is already clear that the answer must involve a significant increase in public debt. The loss of income incurred by the private sector — and any debt raised to fill the gap — must eventually be absorbed, wholly or in part, on to government balance sheets. Much higher public debt levels will become a permanent feature of our economies and will be accompanied by private debt cancellation.
Acting to save the economy fro the shock that coronavirus is giving it (the economy) WILL NOT destroy the economy. Almost every conservative economic expert is saying this now.
But, this has always been true since the world went off the gold standard in 1971.
Link to the blog post.