Subsidies better for Covid-19 prevention than lockdowns

MANY European governments are trying to combat the second wave of the Covid-19 pandemic by imposing a "lockdown light", usually including limitations on the operations of restaurants, bars, as well as some non-essential shops.

The assumption behind these partial closures is that the risk of infection is high when people mingle in closed spaces. A recent paper published in Nature provides further evidence that places such as restaurants, gyms, and cafes can play a major role in spreading the novel coronavirus.

The mandated closures have led to strong popular protests - especially in France and Italy - because they threaten many small shop and restaurant owners' livelihoods. These sectors were already under pressure from e-commerce before the pandemic, and many marginal operators fear they cannot survive even a light second lockdown. Governments have been trying to help by compensating them for lost income. But in many cases the compensation has been late, partial, and difficult to target at the most economically vulnerable.