Given that the COVID-19 crisis demands unprecedented levels of stimulus spending, policymakers should use the occasion to adopt a more flexible form of public-sector accounting. Insofar as public-sector assets like infrastructure add to the state's "net worth," they should be put to use generating new revenue flows.
NEW YORK – One effect of the COVID-19 lockdowns this year is that many young adults have returned home temporarily to stay with their parents, subletting their apartments to others in need. For those who have lost their jobs, the rent paid by these tenants has doubtless provided a welcome and necessary safety net. Thanks to the modern gig economy, victims of the downturn can operate like corporations, “sweating” their balance sheets to maximize the income from their existing assets.
NEW YORK – One effect of the COVID-19 lockdowns this year is that many young adults have returned home temporarily to stay with their parents, subletting their apartments to others in need. For those who have lost their jobs, the rent paid by these tenants has doubtless provided a welcome and necessary safety net. Thanks to the modern gig economy, victims of the downturn can operate like corporations, “sweating” their balance sheets to maximize the income from their existing assets.