Unparalleled insights into economic thinking

{ ZIA HAQ } Associate Editor

The pandemic had “differential impacts” on the economic fortunes of millions. It has offered unparalleled insights into economic thinking and reasoning. Economist Ryan A Bourne has come out with a sharply written book, Economics in One Virus; An Introduction to Economic Reasoning through COVID-19, that explains simple economic concepts through the US government’s response to the pandemic, whose lessons are consequential for all. Why were N-95 masks and hand sanitisers in short supply as Covid-19 raced across the globe? Why did wages in certain jobs go up while many lost their livelihoods? Why did CEO salaries quadruple even as heartrending stories of small businesses folding up became ubiquitous? Bourne is a Daily Telegraph columnist and R Evan Scharf Chair for the Public Understanding of Economics at the Cato Institute. He’s a libertarian and champions right-leaning free-market economics. But even for someone like me who believes the State has a legitimate role in managing economies, this book has served well to lay bare important economic lessons gleaned from the pandemic. Here’s an example: as economic indicators turned negative for millions, a lucky few were better off because they could work from home. The book helps explain everything from why nations were underprepared for a pandemic to the trade-offs government economists faced, most notably between saving lives and livelihoods. A fascinating read for anyone interested in economics.