That tells you the insane amount that governments are spending to try and prevent a long-term economic crisis
And the 40 million workers estimated by Bloomberg from each country’s furlough program only covers the six biggest economies in Europe. Roughly €100 billion has been spent to provide aid to workers during this time. That’s some perspective right there.
This unprecedented government support is mainly to avoid people losing their jobs, which could lead to more undesirable economic and social consequences in the long-run.
For governments all over the world, it is basically a choice of deciding between the lesser of two evils. They either bear the massive fiscal costs from the furlough programs or risk soaring unemployment levels that could lead to a more protracted economic downturn.
In any case, these programs can only do so much to help businesses and their employees.
There is no guarantee that some business models will be able to continue to operate and that we will see consumption activity return quickly over the next few months.
If that is the case, all this does is help to address short-term problems created by lockdown measures. However, the long-term problems caused by the fallout from the virus outbreak will be evident in time and that will see lasting pain for many around the world.