FAST FIVE: Sydney Lockdown Extended For At Least A Month Stoking Fears Of "Double-Dip" Recession
While restrictions have been eased in Melbourne and Adelaide – practically all of Australia's state capitals have been locked down to combat the delta variant, which has infected…only a few hundreds people across the entire country – authorities in New South Wales officially extended the lockdown in Greater Sydney for at least another four weeks.
Australia's government famously has a “zero tolerance” approach to COVID, something that's diametrically opposed to “the science”.
Of course, this means the money tap will need to remain open.
Capital Economics put it even more bluntly: “New South Wales 'will probably be in lockdown for at least two months and many businesses will have to shut altogether,” Capital Economics senior economist Marcel Theiliant warned in a note before the extension.
“Under those circumstances, wage subsidies are unlikely to prevent large-scale job losses.'” With the country's unemployment rate expected to spike, the Australian government is clearly eager to double down on its “zero tolerance” approach, despite the economic devastation it will reap, even as the lockdowns appear to have little impact on the rate of viral transmission.