Stock market rallies, celebrities infected, no one is safe! Grocery store shelves are empty, no toilet paper! It’s the apocalypse!
Since the COVID- 19 pandemic started in November of 2019, everyone who was not in China at the the time seemed to feel as though this virus would not result in anything drastic, it was just another bug or flu discovered in an already dirty part of the world. Fast forward to March of 2020, and the world is telling a far different story. Citizens all over the world are seeing dramatic headlines that speak about “the end of days, disease is here to kill us all, buy out as much toilet paper and canned goods as you can before it is too late!” In this current day and age, news about every aspect of the pandemic travels as the click of a button. In seconds, the latest news about this virus is sent straight to our phones or televisions to fill us in on the horrors of the current state of the world. But what it can also do, is name and shame politicians, celebrities, and normal citizens about their behaviour towards this pandemic while also warning us about the economic ramifications of a world wide hysteria.
The use of technology during this time has only made matters worse. Despite not having any power over a microscopic disease, President Trump himself has been in the hot seat as he has been blamed for the virus itself, being questioned in how he is dealing with ordering self quarantines and social distancing for all Americans, and also placing travel bans to certain parts of the world. While he is only one man, he is not alone as a handful of celebrities have been the subject of the comment lashing on social media due to their blatant disregard for the warnings set by the CDC by posting pictures or tweets that they are not going to let COVID- 19 stop them from living their lives and therefore do not practice social distancing. Spring breakers in Florida contracted COVID- 19 this past week when they too disregarded the health and well being of not only themselves but those around them.
Others are questioning if China is being honest in reporting the real numbers of confirmed cases while we are all questioning how soon a vaccine will be distributed. Rumours and stories about doctors who discovered this disease have mysteriously died since announcing the virus or admitting to the real number of confirmed cases which paints a damning picture for the Chinese people. Whispers have been heard about China refusing to share their vaccine if they are the firsts to discover one that works, as the rest of the world can suffer in the illness.
Some may argue that this pandemic is being made to be more than it is due to the extreme over use of social media and technology. Others say that COVID- 19 is a hoax that was created so that health and cleaning product companies can capitalise on the hysteria set by posts made on the internet. Toilet paper companies, soap and sanitiser companies, and anything related to health care are making money hand over foot as people from around the world are quite literally buying into the hysteria. Yes, this virus is deadly and it is a real issue that must be dealt with immediately but if it is so easy to create hysteria across the globe, what else can we expect in the future relating to economic impact of the world after this pandemic has passed?
When we look at the financial aspect of this pandemic, people are either making money or losing money. First, the CDC has asked everyone to engage in an act known as social distancing; a practice used to prevent the spreading of germs from one body to another by keeping a distance of six feet between persons or staying home in isolation whenever possible. This is one way to keep citizens safe if they must go outside their homes. The effect of this is that all non essential businesses (anything that does not provide food or medicine) have been shut down across the United States as well as other parts of the world. Because of this, restaurant owners have had to shut down dining rooms while they are still able to provide take out and delivery orders instead. This does not bring in the same revenue as a full dining room would. Employees have been laid off as an effect of this while other parties have very well benefited. Not to mention all other businesses like salons, gyms, malls, and others that get to suffer along with it.
While restaurants and non essential businesses run out of money and lose their employment, health care companies and food manufactures have had the chance to capitalise on this pandemic. It seems as though since the number of confirmed cases go up, the more hysteria breeds in the world. In November, the world outside of China did care much about public health and safety until COVID- 19 was in their neck of the woods. Since then, masses of consumers have been buying out shelves and entire inventories of toilet paper, surgical masks, hand sanitiser, disinfecting bleach, and as many canned goods they can get their hands on. Fights and riots have broken out over the desperate nature of those thinking that the more supplies they have, the more protected they will be. Keep in mind, the precautions the CDC is preaching to us now is no different than the ones they tell us during every cold and flu season. Simply wash your hands for twenty seconds, cough or sneeze into a tissue or your elbow, and stay away from sick people.
Because we cannot know for sure what will come off this pandemic, we can predict and prepare for what could be our reality. A much bigger economic crisis that could arise is the continual increase of unemployment because small businesses that would be forced into bankruptcy and foreclosure and therefore cannot return to their jobs. In addition to this, there could also be a banking crisis in which people cannot recoup their finances and be forced into foreclosure. Unemployment could be as high as 30% while it was only 25% during The Depression. It is predicted that it will take the stock market several years to recover from the losses already taken. Inflation will be put on goods and services to make up for losses made during this time.
With these dyer predictions, how can we use this to help regulate capitalism after the mass profiteering we have seen?
In order to regulate, we need to deregulate! When certain products are in high demand, companies can do something called price gouging, which is an illegal act of charging far more money on a product than it does to produce and sell it. Some companies feel that because there is such a high demand for their product, people will buy it no matter how much it costs. The solution to prevent price increases is to order price caps to be put on goods so that prices do not go up higher than they need to and can therefore be more accessible and affordable to those who need them. Another tactic companies can do to turn a bigger profit would be to decrease wages too again, make more money.
This brings in the question of socialism which is the principle that allows for the means of production, distribution, and exchange of goods should be regulated by the community. While large corporate companies mostly have their own say in the means of their production, exchange, and wages of their employees in cooperation with federal and state laws, should they have more restrictions in how they run their business in a time where we need them the most? Manufacturers and corporations could very well raise prices of products and claim that it is due to the high demand of the supply they are selling.
However, nations are taking the initiative to help their people. In the UK, the government is helping to support freelancers while community groups are forming and volunteering to help with the crisis. In the US, the government is advocating for the stimulation package that would grant financial aid to those who have been forced to stay home away from work during this trying time. Medical advances have been made such as the discovery that the same medicine used for autoimmune disease can be used to help with certain symptoms of the virus. The recovery rates in China have risen to 70%. Quicker testing for COVID- 19 has been developed while Canada has made massive breakthroughs into providing a vaccine, and air pollution has gone down dramatically.
But just because there is good coming about in medical breakthroughs and recoveries from this virus, the economic and social ramifications are still damning. We have to prepare for the rebuilding of the stock market, dealing with the largest unemployment rate the world has seen, while praying that companies will not price gouge supplies just to profit off of the mass hysteria surrounding a pandemic that could harm us in a very significant way.
If there are specific news and headlines pertaining to the UK or Britain, please let me know, I will be more than happy to add those in! I did not want to get too political or write something that you did not approve of.
