“Faced with an escalating pandemic in March, the President and most governors did not want to “stimulate” the private economy. They wanted to shut it down –with stay-at-home orders and mandated business closings. That was a deliberate government supply-side crisis, not an accidental demand-side recession. People were not suddenly prohibited from buying many goods and services because they had no income. They had no income because they were prohibited from producing desired goods and services by working in certain “nonessential” jobs or opening “nonessential” businesses.
Supply-side restraints on economic activity, whether caused by prohibitive regulations or punitive taxes, cannot be fixed by having the Treasury issue more IOUs and/or having the Federal Reserve buy those IOUs by expanding bank reserves.”