Business Continuity Insurance: Keeping America's Lights on During The Pandemic

The authors argue that a one-time government program, which we call Business Continuity Insurance (BCI), should be included in the U.S. government’s response to the COVID-19 pandemic and the resulting sudden economic stop. The goal of this program is to prevent the sudden stop from triggering an unprecedented wave of non-financial business bankruptcies, which would greatly amplify the economic contraction and inhibit economic recovery once the health emergency passes. Put simply, the goal is to enable businesses to keep their lights on during the health emergency so they can rapidly reopen afterwards. This new BCI program, in combination with other programs, maximizes the chance of a rapid economic recovery and minimizes the chance of a deep, prolonged recession.

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