The corrosive economic effects of the COVID-19 epidemic are becoming more evident by the day. Initial assessments that the tourism industry would be the most affected were correct. What is becoming more evident is how the economic downturn is rapidly spreading to other sectors that initially appeared not to be so directly affected.

In the last few weeks, various businesses have been pleading to the government to extend the rescue package initially intended for tourism-related operators to support them until some sort of normality returns.

The real estate, marketing and media industries are among the most affected even if there are other sectors that have so far not been very loud in their cries for help. The interconnectedness of business activities in a country that is mainly driven by services means that this sharp economic reversal will hit most industries.

The concept of a bailout was and still is anathema to many who believe that the state should not tamper with the free market dynamics.

Put crudely, this would mean that in a crisis like the one the country is experiencing only the fittest should be allowed to survive.

Fortunately, no administration ever believed that the free-market economic philosophy should be the gold standard to protect the collective well-being of society.

It is once again time for the government to introduce more shock absorbers in the economy to deal with the secondary damage caused by this crisis. The effects of the economic reversal mean that many more small and medium-sized businesses now face an existential challenge unless extraordinary support is also extended to them.

There is, of course, the risk that some entrepreneurs will want to ride on the bailout bandwagon and ask for financial support when they can dig into their reserves built when the going was good.

But weeding out unjustified claims for relief should not be all that difficult for the government crisis management team.

The time will come when the government will have to decide how to balance the books. Money does not grow on trees, and even if central banks can print money to increase liquidity, this is at best an emergency and short-term measure.

Few people doubt that after this crisis will be over the role of the state in the economy will have to change.

Wealth built by the private sector when benign economic conditions prevail should not be exempted from acting as a buffer from a financial meltdown when a national disaster erupts. However, now is the time to prevent this crisis from destroying large sections of our society.

A government bailout is not meant to act as a buffer to protect business profits. It is a safety net for vulnerable employees who have onerous commitments to raise a family.

The time will come when we all start to better appreciate the virtue of frugality that saved many generations of Maltese in the past from the harsh consequences of war and natural disasters.

We will need to discuss whether global debt, that is more than three times what the world economy generates in one year, is sustainable.

The jobs at risk will keep increasing as a return to normality – whatever form that may take – could take longer than expected.

Now is the time to protect jobs that support all families struggling to survive in tough times.