The coronavirus crisis has led to the unexpected return of the visible hand of government after decades of small government consensus throughout the West. The pandemic has demonstrated how the erosion of public services has made capitalist societies vulnerable to disruption, less internationally competitive, and ultimately less resilient.
From massive monetary and fiscal stimulus to benefits for unemployed workers, the public sector has significantly increased its weight through deficit spending in the past year. This emergent neo-statism runs counter to the free market doctrine that held sway in the West for 40 years.
