John Tamny, editor of RealClearMarkets, argues that the global response to the COVID-19 pandemic represented a tragic lapse of reason where politicians panicked and replaced the collective wisdom of the marketplace with centralized planning. Tamny identifies March 20, 2020 — the day Governor Andrew Cuomo ordered a mandated "shelter in place" for New York — as a pivotal moment signaling a severe government-mandated contraction of the economy. He contends that the economy is not a "valve" that can be simply shut and reopened, as the sudden cessation of business activity forced investors to rethink the future value of all enterprises. (1)
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