Without government support most companies could not fund fixed costs and staff pay for somewhere between 3 months and a year. Closure would (a) lead to huge levels of unemployment (5-10m??), and (b) would make it very difficult to restart the economy post crisis.
Most people live with little or no money in reserve - they would simply be unable to pay the bills. Worse, possibly, than several 100,000 deaths of the mainly elderly, is the risk of social breakdown, mass riots, troops on the streets, shooting looters etc. It takes very little to turn normally equable people to violence - we see it when fuel deliveries are delayed, shops run out of toilet rolls etc. This is potentially much worse.
So the government have no choice but to bail companies and individuals out in the hope that post crisis we recover to some kind of normality rapidly.
This has a cost and it is not clear right now who will pay. But it is a fair bet that the outcome may look a little like the last decade following the bail out of the banking system - austerity, real wage stagnation, low growth.
It is also unclear how behaviours may change - after (say) a 2 week shutdown behaviours are likely to return to the pre-crisis status quo. But after 3-12 months it could all change - work from home becomes the norm, travel and traffic level much reduced, people realise they do not need the material goods in the way they once aspired, community not self becomes more important etc.
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