Coronavirus destroys jobs and worsens inequality, with or without full lockdown

Coronavirus plunged the world into the worst economic crisis since the Great Depression. Many governments are trying to revitalise their economies by gradually lifting lockdown measures, including the UK. But reopening may not rescue their economies to the degree they hope. Evidence from South Korea, which never shut private businesses, tells a cautionary tale. Rushing to reopen without the proper measures in place may not only jeopardise public health, but economic recovery may also be limited. UK consumer spending has already stalled since the gradual lifting of lockdown measures in May. And earlier evidence from other countries shows people spend less in the midst of a pandemic – lockdown or no lockdown. For example, Sweden decided against a severe lockdown, but still experienced economic contractions of similar magnitudes to its European neighbours.