How Bailout Backlash and Moral Hazard Outrage Could Endanger the Economy

“These are the seeds of long, slow, painful recoveries,” he said.

In particular, there is an emerging tendency to apply a lens that made more sense in the 2008 global financial crisis and its aftermath: the idea of “moral hazard.” Economists use the term to refer to the bad incentives that are created when people or companies know they will be rescued from their mistakes.

Article source: https://www.nytimes.com/2020/05/04/upshot/bailout-backlash-moral-hazard.html