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RESEARCH ROUNDUP
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May 16, 2020
COVID-19 Policy Brief Series
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Legal Liability and COVID-19 Recovery
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Tyler Cowen and Trace Mitchell
As Americans come to terms with the fact that there will be no fast resolution to the coronavirus pandemic, the attention of policymakers and analysts is now centered on reopening the economy. Over 26 million people have filed for unemployment since the onset of the crisis, and the longer lockdown policies continue, the greater the risk of irreversible declines in business solvency. One key question concerns legal liability in retail and workplace settings: how can government policies restore some of America’s GDP and employment while avoiding the most egregious instances of harm to workers and customers?
In their recent policy brief, Tyler Cowen and Trace Mitchell assert that policymakers should limit liability in the short term to cases of recklessness, use direct regulation to prohibit some obviously risky options, and create and fund a COVID-19 compensation program while capping liability for covered entities. They provide examples to explain their reasoning, and offer suggestions for implementing these policies in the short- and long-term.
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