Can ‘Creative Destruction’ Work During a Pandemic?
Some think governments should let teetering firms go bust. But this may not be the time.
Governments shouldn’t rescue firms that would otherwise go bust since great things can emerge from the ashes of failed companies. That’s the thinking behind so-called creative destruction. But amid the unprecedented shock of the coronavirus pandemic, does this economic theory apply, or is it too risky?
On this week’s episode, Stephanie Flanders talks to Bloomberg Federal Reserve reporter Rich Miller and Eurozone economist Maeva Cousin about the contrasting economic policy approaches taken by the U.S. and Europe.
The pandemic has also thrown up new challenges to gender equality, with women more likely to suffer financially—especially in hard-hit sectors like tourism and hospitality. Bloomberg economy reporter Yuko Takeo reports how the crisis is another obstacle for Japanese women fighting for both greater representation in the workplace and more power in the world’s third largest economy.