I think the last good thing I remembered was the Happy New Year, the next I saw was a stand still economy which fell badly afterwards, thanks to the pandemic. A lot of people have not been able to wake up from the pandemic shock and a lot of government are still looking at how they can pump money into the economy so as to remove the problem (this is just one of the numerous trial solutions), but in all, we must say for sure that the economy experienced an Ice Age phenomenon (I hope you watched that animation “Ice Age”).
Companies close down activities, in fact there are a lot of offices now vacant as a lot of them have moved to remote working and teleworking. It is no doubt that the world GDP will drop real bad compared to when the pandemic didn’t happen. Countries around the world experienced the highest level of unemployment since after the great depression and it is now evident that the faster governments are able to adapt and work with this situation, the earlier they are able to solve the pandemic economic problems.
My Thoughts on How to Solve the Pandemic Economic Problem
If you have noticed, a lot of governments in countries have resulted to a quick way to stabilize the GDP of their countries and in other to do this, they have chosen to spend money. When money is in circulation, it is a sign that the economy is strong but this time, the governments have been borrowing money to spend. Countries have been creating new money through the help of the central bank so as to help with both government and citizen basic expenses during the period of lockdown. At the moment, interest rates are really low as the even the government want people to get loans so as to keep living. For me, I know that money needs to keep flowing so as to keep the economy going and I support a little the fact that governments are printing money to stabilize the economy as the government spend taxes and it was evident that there were no taxes during the lockdown period except for a few companies that were able to make good revenue but it will be advisable if the interest rate can remain low for at least two years, so people can borrow and still pay back with ease.
For the Unemployment, the government can’t solve all of unemployment issues, it will take people to start to adapt to the new way of living and working so as to create new types of jobs and positions. Working remotely will help people get jobs as freelancers and digital workers. The digital revolution of work should be encouraged so work will continue and this will help the economy grow. As a lot of workers were lay offed, the government had to find a way to solve the basic needs of workers as well as support businesses which are now closed with funds so they can start or keep running.
It is no news that even the 5 largest economy in the world needed the government to support companies and citizens with finance. The economy will take a lot of time to come back to normal but till then, we have to keep the economy hanging and not allow it crash.
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Theonebrief