Finns Warned World's Best-Funded Welfare State Collapsing Under Virus-Triggered Mass Unemployment

  • Written by Zero Hedge
  • Published in Economics
Finns Warned World's Best-Funded Welfare State Collapsing Under Virus-Triggered Mass Unemployment

On March 30, Finland said it would extend its countrywide shutdown until May 13 from April 13. It appears strict social distancing and quarantines are working, but it comes at a massive economic cost. Now we're beginning to learn that the country's welfare system is cracking and cannot handle the influx of unemployed.

Finland has recorded 1,615 confirmed COVID-19 cases and 19 deaths, by far, some of the lowest numbers when compared to the rest of Europe

There are signs that restrictions on civilian movement are working, Mika Salminen, the director of health security at the Finnish Institute for Health and Welfare (THL), told reporters at a government press conference on April 1. 

The number of people in the risk groups for #coronavirus varies significantly by region in #Finland – variation may affect the need for hospital care across the country.
Read more 👉https://t.co/brrqdQGBDn pic.twitter.com/sJlQjFfZ5k

— Finnish Institute for Health and Welfare (THL) (@THLresearch) April 2, 2020

The opportunity cost of flattening the pandemic curve has come at a tremendous economic cost, resulting in a downturn and high unemployment. Bloomberg notes that Finland has the best welfare system in the world, which is now starting to crack as the surge in unemployment applications is overwhelming the system.

And just like that, in a matter of weeks, 300,000 Finns lost their jobs because of quarantines. The tradeoff is preserving the nation in the long run while dealing with short term economic pain.

Managing Director Sanna Alamaki said on April 1 that funding the welfare system isn't the current issue: It's "that the benefit applications can't be processed and,...

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