Infotech Have mercy on the “zombie” companies!

Have mercy on the “zombie” companies!

This is the big question that agitates economists as the Covid-19 pandemic resumes. Should the State continue to massively support all companies, at the risk of building an army of “zombies”, these companies which would have died under normal circumstances (1)? Or, on the contrary, should the Covid be allowed to carry out a Darwinian selection, dear to the Austrian economist Joseph Schumpeter (1883-1950)? For the theorist of “creative destruction”, we must accept the loss of jobs in sectors in difficulty and facilitate their transfer to dynamic activities. In his eyes, there is no better guarantee of growth than this renewal.

When we look at the evolution of unemployment curves since the start of the pandemic, the United States seems to assume the Schumpeter option. Europe, on the contrary, from Rome to London, is assuming the risk of creating zombies, with severe partial unemployment and guaranteed loans to businesses.

This European choice has not really been the subject of debate. He had the scent of the obvious. When the Covid is defeated, the economy will pick up all the more quickly as the appa

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