More than 100 economists have urged the Australian government to prioritise public health when combatting the economic fallout of the coronavirus crisis.
Prime Minister Scott Morrison has come under pressure to ease the financial burden of the COVID-19 pandemic by relaxing social restrictions as new infections tumble.
However, a group of more than 170 economists - including a Reserve Bank of Australia board member - has penned urging the Prime Minister to stay the course on coronavirus restrictions.
“Some commentators have expressed the view that there is a trade-off between the public health and economic aspects of the crisis,” the letter read.
Australia has successfully stemmed the spread of coronavirus. Source: AAP
“We, as economists, believe this is a false distinction. We cannot have a functioning economy unless we first comprehensively address the public health crisis.”
Widespread social restrictions have successfully stemmed the spread of the virus in Australia. NSW, the state hit hardest by the outbreak, recorded just six new infections on Monday morning.
But social restrictions and travel bans have caused significant economic damage in sectors such as hospitality and aviation.
“We recognise that the measures taken to date have come at a cost to economic activity and jobs, but believe these are far outweighed by the lives saved and the avoided economic damage due to an unmitigated contagion,” the letter read.
“It is vital to keep social-distancing measures in place until the number of infections is very low, our testing capacity is expanded well beyond its already comparatively high level, and widespread contact tracing is available.”
Australia is expected to suffer its of the 1930s, with unemployment to remain high for at least two years beyond the coronavirus pandemic.
Treasury modelling has predicted Australia’s unemployment rate could spike to 10 per cent by June.
The International Monetary Fund expects the Australian economy to shrink by 6.7 per cent this year, more than double the global rate.
University of Melbourne economics professors Chris Edmond and Bruce Preston were the letter's corresponding authors alongside UNSW professor Richard Holden and George Washington University academic Steven Hamilton.
The letter has been signed by economics professors from most major Australian universities, as well as current Reserve Bank of Australia board member Ian Harper.
Academics from the University of Chicago, University of Oxford and University of Toronto are .
People in Australia must stay at least 1.5 metres away from others and gatherings are limited to two people unless you are with your family or household.
If you believe you may have contracted the virus, call your doctor (don’t visit) or contact the national Coronavirus Health Information Hotline on 1800 020 080.
If you are struggling to breathe or experiencing a medical emergency, call 000. SBS is committed to informing Australia’s diverse communities about the latest COVID-19 developments.
