As days, weeks, and now months have passed with the corona virus shaking our world and leaving medical practitioners, biologists, and world leaders dumbstruck, it is a scary thought what this has in store for our futures. While it is, without doubt, true that the lives and health of the people are more important than the economy, there is a question persistent in all our minds: what next? Could corona virus be the reason for a global recession? Jordan Bailey, from Saint Louis University, thinks the answer is likely positive.
The international economy today is at one of its worst. Not only is there a gradual collapse in the economies of countries at a domestic level, but at a global level as well. The first tremors of this was felt in China where the virus emerged and can now be seen in other parts of the world like Europe and USA. With millions of jobs lost and unemployment shooting up, what this now paves way for is a sharp increase in the depression rates.
With corona virus cases increasing every day, economists and analysts believe that the best way to tackle the situation is a lockdown. Looking at the lockdown policies implemented in China and South Korea, they say, that these have been effective in preventing an economic collapse. However, whether such policies will be effective in the USA is doubtful. Face-to-face businesses dominate the economy in places like the USA and the impacts of the virus in the lives of the people will affect these. “If people stay home from school, stop traveling, and don’t go to sporting events, the gym, or the dentist, the economic consequence would be worse.”, says economist, Austan Goolsbee.
If anything, what this has shown us is how our society is a careful balance of various systems like economy, health, political, and social, with any one being affected disturbing the entire network.
N Malavika Mohan