Coronavirus Versus a Broken Economy

LAURENCE GATES

• Publisher: GELBSTEIN
• Year: 2020
• ISBN:
  9783969177495
• Topic: Economics
• Subtopic: International Economics
• Index: Economics

With the rise of a pandemic of a global scale comes the destruction of the economy. As more people must stay home and isolate while medical practices become overwhelmed, the decline of economic standing can be seen. When people are staying home, the economy is not being stimulated by the incoming money and many businesses must close. COVID-19 has taken its toll on both the health and the economic sectors, leaving destruction in its wake. Economy Was Broken by the Coronavirus aims to show European business leaders and politicians how they can build better practices as the pandemic comes to a close. With this guide, business can prepare for a collapse should another pandemic arise. As it currently stands, the unemployment rate due to COVID-19 is rising. In this quarter alone the rate is expected to jump from 20% to 35%. By studying better practices and how other countries are handling the pandemic, business leaders can learn how they can best protect their company and their people. In Economy Was Broken by the Coronavirus, business will be shown aspects of planning to consider should a situation like the Coronavirus ever occur again. These aspects include: -Creating solutions and guidelines around health and safety that are clearly worded and communicated to ensure both company and public understanding.-The creation of effective local plans that are ready to be acted upon should a situation arise. -Ensuring consistent steps that are followed through every day to avoid a lapse in effectiveness.Businesses and politicians need to be better equipped to deal with the possibility of an uncertain global economy.

Coronavirus Versus a Broken Economy

Copyright © 2020

All rights reserved.

ISBN

Coronavirus Versus a Broken Economy

© 2020 LAURENCE GATES.

All rights reserved.

Author: LAURENCE GATES

Gelbstein Media

Juliushof 4

12051 Berlin

Disclaimer

The information contained in “Corona virus upsets the economy” is meant to serve as a comprehensive collection of strategies that the author of this eBook has done research about. Summaries, strategies, tips and tricks are only recommendation by the author, and reading this eBook will not guarantee that one's results will exactly mirror the author's results. The author of the eBook has made all reasonable effort to provide current and accurate information for the readers of the eBook. The author and it's associates will not be held liable for any unintentional error or omissions that may be found. The material in the eBook may include information by third parties. Third party materials comprise of opinions expressed by their owners. As such, the author of the eBook does not assume responsibility or liability for any third party material or opinions. Whether because of the progression of the internet, or the unforeseen changes in company policy and editorial submission guidelines, what is stated as fact at the time of this writing may become autdated or inapplicable later.

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Contents

Disclaimer

The Corona virus upsets the economy

Covid-19 has revealed the disintegration of the economy and society

Does the corona virus cause contractions?

Economic transmission can spread.

The numbers will tell the story.

COVID-19: business consequences

Back to work: four insights

Let's start with three observations:

Audience needs: formation of urban contexts

Public policy has begun to prepare this project in three ways:

This virus irritates the supply and affects the companies.

What does it mean for the world economy?

What the market tells us

What does a Covid-19 contraction look like?

What are the possible recovery routes?

Will there be lasting economic consequences for Covid-19?

What should executives do about economic risk?

The Impact of Coronavirus on Business

Office and factory closed

The Corona virus upsets the economy

Covid-19 has revealed the disintegration of the economy and society

Despite all the roaming, the parliament economically adopted a national package and signed it with the president. National political needs are guaranteed in the same way. US economy has been shut down largely due to the social cessation of the coronary virus epidemic and, without a stimulus package, the whole system will collapse without much hope for complete recovery.

The package will cost around $ 2 trillion and can add or take billions of dollars. Whatever the final size, it applies to the $ 1.5 trillion rescue / stimulus package approved by President George W. Bush and Barack Obama to recover from the 2008 economic crisis; The coronary virus will last for about a month, after which the economy will continue, or Congress and the president will consider the need for additional stimulus packages of the same size and scope.

Corona virus health reveals some unpleasant truths about America's current state. First is the vulnerability of the American economy. After years of outsourced production, the United States has built an economy in which the service industry accounts for 55% of total economic activity. In the era of globalization, where interconnections work smoothly, this model has managed to create prosperity with high stock markets and increase GDP.

The reality, however, is that the U.S. economy is not difficult in times of crisis. The ongoing trade war with China, as well as the pressing international oil market, led to developments before the corona virus epidemic began. National stagnation and subsequent economic recessions gradually aggravate the economic recession. Although the American economy may lose its momentum, conditions for closure remain and the impact of a pandemic on the health of the world economy only gets worse.

American companies have proven unable to organize "rainy days" events and to focus their economic resources on short-term production. It is the US workforce while living on the brink of disaster, and some Americans can return to the savings that allow them to get periods without sustained economic activity, or worse, pay for emergency health care.

Another unfortunate truth about America exposed to the crisis is the general vulnerability of American society. Medically urgent, the need to cure the virus has shown that what passes through the health system of a country is a fragile organization of private foundations that is rapidly overloaded and unable to function after the flow allocation of costly health services. The cranial virus crisis exposed the reality of the current U.S. healthcare system - most Americans lack the resources to get good health care when needed - such treatment costs are unacceptable, such as insurance premiums to pay.

While supporting the economic crisis package, President Trump questioned whether this approach is sustainable. The short answer is yes. In addition to the roughly $ 2 trillion efforts provided by U.S. debt, the Central Bank has injected an additional trillion dollars into the U.S. stock market, leaving virtually uninterrupted money for U.S. banks and lenders.

The purpose of this free cash flow is to stimulate economic growth in a system that is said to be based on the principles of private capital. But when merging private capital markets by merging public capital is necessary, it is neither private nor liquid.

Trump is confronting the awful reality that, to prevent the U.S. economy from supporting government life, it needs to reduce and reduce the socialization restrictions needed to spread the human-to-human coronary virus disease. We have not seen whether this is economically feasible, medically recommended or politically feasible. But one thing is for sure: it is a turning point in U.S. history.

Trump's favorite case is that he can restart the U.S. economy and return to each capsule to recover where he retired before the crown virus was killed. Even if this plan is successful, it will not solve the U.S. economic and community losses that arose after the crisis.

Another option is to recognize the reality of the current state of the United States - that the US economy has been deeply affected by the crisis and to set an example of an American society that governs and supports it. To correct the deficiencies and problems described by Covid-19, the government needed a number of economic interventions that, over time, alienated America from the vision of prosperity that encouraged optimistic capitalism to a more balanced form of socialism to establish. This is a European model, which is why many Americans say they hate it.

Trump, the capitalist capitalist, recognizes this fact. He knew that the decision to restart the American economy was more than just an economic problem. It's about living American life.

Does the corona virus cause contractions?

Annual economic growth was only 2% before the virus appeared. So if the plague worsens, it is not difficult to imagine that GDP can contract at all.

However, the economic downturn is only a contraction of GDP. Given that most economists think about it, the recession is an independent cycle: the reduction of jobs translates into a reduction in incomes and a reduction in spending, which leads to cutting more work. (Of course, this will not continue indefinitely, especially if the central bank and government forcefully intervene to trigger growth.)

"Consumer spending is 70% of the economy and we need to see it in the consumer market to do this to upset the American economy," said Claudia Sahm, a former Fed official who is now responsible for policies the basis of macroeconomics for constant growth, the center of progressive thinking. He noted that some scientists have seen how shocks spread across the economy using methods originally developed to model the spread of the disease.

Think about a storm or an earthquake. Serious natural disasters in one part of the country can reduce production in the event of shop closings, transport delays and people living in homes or shelters. A bad dive can be caused by G.D.P.

But other factors are prohibited: the economy must return when water flows west or when the ground no longer vibrates. In fact, natural disasters often follow a temporary increase in economic activity when people rebuild themselves. Disasters are therefore different, for example, from financial crises which, in the short term, do not reduce spending and investments, but make people and businesses less available or unable to spend months or years together.

Economic transmission can spread.

This is how the coronary virus can contract again: the fear of spreading the virus will stop Americans in restaurants, concerts and films. The airline canceled domestic flights. Eliminate the championship game. Hotels, museums and amusement parks are nearby.

So with less income and uncertainty about the company's return, the company will start laying off employees. New unemployed workers are no longer accused, but others who are afraid of losing their jobs do the same thing. This undermines the need for a wider range of products, encourages more layoffs and some bankruptcies.

Or imagine a small twist: supply chain disruptions make it difficult for manufacturers to get goods and retailers to get warehouses. Since there is no need to sell, lay off employees, compensate for the same cycle of job losses and reduce expenses.

A common denominator in both cases is that the wave moves further into the economy once the direct effects of coronary virus on the labor market are spread. If so, the economy can remain slow even after the epidemic has ended.

"The question is whether to get enough companies to leave the business or start layoffs," said Karen Dynan, a Harvard economist and former Treasury official. "This is where you can make the biggest impact on the economy."

The numbers will tell the story.

Coronary wire effects are not immediately apparent in the economic statistics. Data is scarce since February, when the virus became widespread in China, and its effects on jobs and spending may not be seen in the spring or summer.

Some of the guides available so far provide a mixed picture. In a consumer poll at the University of Michigan last week, 20 percent of respondents worried about coronary viruses and on average were relatively safe in the economy. The most recent survey conducted by the Central Bank of Kansas City and the Institute for Supply Management says companies are on the verge of viruses but business activity continues to grow.

COVID-19: business consequences

The crown virus pandemic is a human tragedy that has affected hundreds of thousands of people. This is having an increasing impact on the world economy. The aim of this book is to give business leaders an insight into how the case develops and its implications for business. This epidemic is moving fast and some prospects may not be renewed.

COVID-19 continues to spread rapidly worldwide. Almost all countries have reported cases but the burden is distributed asymmetrically. Over the past seven days (6-12 April), only 46% of confirmed cases have been reported in Europe and 39% in the US. In part, this is because the country is at a different stage of a pandemic. Some who have been successful in the initial isolation, such as Singapore and Hong Kong, have experienced rebuilding and are taking further steps to overcome them. Others, like many countries in Western Europe, are monitoring some high-stakes scenarios or have started downsizing and discussing the right approach to reopening their economies. Some countries appear to be at the peak of the infection and are developing a rapidly increasing capacity in their health systems. Elsewhere in the world, everything is increasing rapidly. Countries like Russia and Turkey have been accelerating recently. The number of problems in India has also increased significantly since the beginning of April and has developed its response policy, including the extension of national restrictions.

In light of this post, there are big differences in public health tools and practices. Measures that include physical extension, travel restrictions, effective use of personal protective equipment, testing and monitoring, and health care facilities usually require more emphasis, depending on the state of the outbreak and local conditions. . Local use of these measures varies widely - for example, in a crowded urban environment, physical extension is practically impossible and applications and digital touch devices cannot be found in China in other parts of the world. The dependency of these features is also challenging: in one example, the time and intensity of physical extensions have a significant impact on the use of other devices.

Although physical extension has been agreed to slow down transportation in many high frequency environments, some countries, such as Sweden, use the "pressure of resistance" option which aims to protect the most vulnerable populations instead of using limited distances. Steps to distribute the process to others. The goal is to maintain many aspects of current economic and social life and, over time, to develop the majority (about 70-80%) of those who live abroad to "protect the population". The results of this approach are carefully monitored by other countries.

The next few months are generally quite volatile and strong. Some areas are genera...

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