Time to eat a deficit and create human + health capital. A few prayers to the powers.

Deficit finance a "health capital vaccine" to preserve the most valuable capital - human.

This is a post on hope, written with expectations and a few humble suggestions that the powers that be, be it government, business empires and the more privileged & fortunate, could consider, if not already, am sure planning it. Use a fiscal deficit now if needed to protect and boost human & health capital. One can take hope from the fact that if fiscal deficit is capital creating, it’s increasing %age is not as much of a worry. And this time more than ever, it is human capital and health capital that is at risk and fighting a battle against a pandemic bully. This deficit could be used as a contingency stimulus and contagion defence fund.  Hence shed cloaks of invincibility, avoid debates and get into mission critical mode now. 

OFFER A LADDERED ECONOMIC STIMULUS - First protect and support the first line of defense and the last mile economic producer

A laddered stimulus and contingency fund/ program to start helping (a) the most vulnerable producers and marginalised wage players (b) the most essential service providers and (c) the first line fighters against the contagion. A laddered stimulus and recovery plan that first starts protecting them with direct cash transfers, repayment holidays, subsidised food programs would be a blessing. If the most vulnerable economic units aren’t protected, i.e. marginal producers, farmers, wage workers and micro-suppliers, then the entire supply chain would be at threat. This along with a nurtured PDS and ration system would go miles in this battle. This would be most critical, to ensure that everyone is prepped for a longer haul if necessary.

ALL IN ONE PARTY, ALL PARTY TASK FORCE – This is a national emergency and needs a united response more than ever. 

An all-party national task-force to lead the battle against Corona and lead the healthcare, economic and social recovery program. This is a national emergency and brilliant minds and hands across the aisle and political spectrum and public and private players would be a great message and leverage the best resources and help the Government beat the hell out of this pandemic.

EMPIRES COULD GIVE TODAY, SO THAT THERE IS A HEALTHIER TOMORROW

A call out to the largest business empires to contribute to a contingency and national stimulus fund which can help take the pressure off government and strained budgets. Business empires survive on the backs of billions of consumers and their ability to stay healthy. This is the time to make use of contingency funds and even put the CSR funds to good use. The time to act is now. India's top 1% of the population now holds 73% of the wealth while the bottom 50% own only 2.5% of wealth. The Gini coefficient of India, which is a measure of income distribution inequality, was 0.352 in 2011, ranking 95th out of 157. Similar numbers hold sway across the world, and a chance at life needs to be EQUAL OPPORTUNITY more than ever particularly for the economically more vulnerable.

REWARD EMERGENCY AND ESSENTIAL WORKERS – FIRST LINE DEFENCE

A reward and benefits package for the frontline healthcare force, healthcare industry, essential services including law and order and emergency services workforce so that it boosts their morale while they are doing their most noble work – giving citizens like us hope and security. We must show we have their back. After all they are guarding our lives.

SUSTAIN THE MIDDLE PLAYERS WHO STREAM, DELIVER SANITY 

Breather programs for the key players like telecom, broadband, streaming services, dispensaries, health centres – these players are offering the basic supply of sanity and information for locked in citizens who are working from home and keeping the engine running as best as they can. They need to be able to continue. Video conferencing for office meetings or school lessons, logging into networks remotely or using streaming services for news, to cure isolation, boredom, all mean the amount of bandwidth the average home needs is going to go up significantly. 

PRESERVE THE ENTREPRENEURS

Look at offering the entrepreneurial community some financial relief, moratorium on debt repayment, interest rate interventions, mortgage support programs and tax holidays where it can, and provide access to subsidized emergency funds. This community has wagered its most valuable capital to help build the economy, jobs and wouldn't have counted on a contagion in their risk assessment sheet – and it’s their entrepreneurial spirit, more than ever that needs support now. More than anything they are the soldiers of the capital world, that battle odds every day to keep running and keep contributing to the national economic growth. These exemplary breed must be supported, nurtured.

CESS ONLINE COMMERCE 

Is there a way where vanity and non-essential products have a small/ marginal cess on online shopping and transactions (Amazon, Flipkart, Netflix, Prime) which could be pooled and used for a direct transfer to people who live from day to day and depend on wages and even those who are delivering online orders. This would be a transfer from people who are better off and hence can shop online.  Or is this wishful thinking?

An interesting perspective below on interest rate intervention 

PREPARE FOR FUTURE BULLIES

Given that this pandemic is a dire warning of what could be and could have been, its a great time to even think in policy terms to set up a national contributory fund (both funds and ideas) and a rapid task force with the best and brightest to help devise and ready a plan to battle any such eventualities in the times to come. Think of it as a emergency fund & force handy, like a Swasth Bharat program. Often crises are the best teachers and leave the best lessons. And this crisis with its distributed impact has cause for big learnings.

The virus is an equal opportunity infector. And it’s probably the way we would be better if we saw ourselves that way, which is much more alike than different - Larry Brilliant, the doctor who helped beat the smallpox