Economies run on confidence – the government mustn’t undermine it
Throughout the past few months the government has appeared to face an unenviable choice between saving lives and saving livelihoods. Nevertheless, a fortnight ago the path seemed clear. The numbers of Covid infections were falling, but the economic news was dire — hence Boris Johnson was engaged in a drive to reopen the economy as quickly as he could without prompting objections from his scientific advisers. Now things feel rather different. Economic figures from recent days have surprised on the upside: the CBI’s figures for retail sales in July show a sharp V-shaped recovery. Sales of cars and houses were running ahead of last year — during July at least.
