In a survey published by Scioto Analysis this morning, only 8 out of 36 Ohio economists believed laws shielding firms from liability relating to injury and death resulting from COVID-19 will speed Ohio’s economic recovery.
Economists who disagreed that such laws would speed economic recovery in particular emphasized long-term economic impacts, worried that such laws may prolong the pandemic and hurt the economy in the long-term. Multiple economists expressing uncertainty about the economic impacts of such laws said the “devil is in the details,” emphasizing tradeoffs between recklessness caused by too little responsibility and the opposite dangers of exercising too much caution.
Economists were also worried that such laws may increase infection rates, with 22 of 36 economists agreeing that liability laws will incentivize actions by firms that will increase the spread of COVID-19. Economists worried about these sorts of laws emphasized the negative external costs of economic activity on infection rates. Economists who were more conflicted on this question emphasized that firms have incentives in the form of reputation and workforce health to take actions to reduce spread even without liability laws.
The Ohio Economic Experts Panel is a panel of over 40 Ohio Economists from over 30 Ohio higher educational institutions conducted by Scioto Analysis. The goal of the Ohio Economic Experts Panel is to promote better policy outcomes by providing policymakers, policy influencers, and the public with the informed opinions of Ohio’s leading economists.
If you would like to suggest a question for a future Ohio Economic Experts Panel, email your ideas to panel@sciotoanalysis.com.