How to Fix the Economy During This Pandemic? | The Blk Projek
How to Fix the Economy During This Pandemic?
COVID 19 has brought the global economy to its knees. This pandemic has been an economic shock to almost all countries in the world. Many people have lost their livelihood and jobs. Lockdowns have brought about changes that has affected the global economy, technology, finance and trade. Depending on how different Governments will adopt will determine how these county’s economy will recover.
How do we spark economic recovery?
- Spend first and save later. During the pandemic governments had been borrowing funds to keep their economy alive. At this time of the pandemic interest’s rates are very low so governments take advantage of this.
- Embrace exchange. This pandemic has brought about enormous changes. One of the biggest change is that people started working in their homes or remotely instead of the office. Many seem to prefer this. This can boost economic growth and decrease inequalities in the workplace. Before the pandemic people find it very expensive to live in areas where they can find good jobs. There is a clear opportunity if people chose to work at home to ease this constraint. Governments should embrace this change rather than not supporting it.
- Build a Safety Net. Governments stood behind its citizen during the pandemic and replaced household incomes with stimulus by the Government. This were direct cash payments to people. This will help people get back to their feet.
COVID 19 presents an opportunity for reforming the relationship between the government and its citizen.