Since December 2019, coronavirus has been affecting us all in some way or the other. One significant effect that the coronavirus had taken is on the economy. In some way or the other, not just countries, but individuals have also had a certain loss. The three main issues related to the economy that have or may occur have been that smaller and bigger firms have experienced a lower turn over in the second quarter of this year, firms have adapted to the virus by either laying off people or decreasing working hours and consumerism has decreased therefore there has been a defiant in currency flow.
To begin with, a lot of companies facing struggling times for revenue-generation compared to the last quarter. According to BBC News, over 4000 companies in the UK have substantially earned below normal from 9th March onwards. This has impacted their plans for future advancements and will set them back way more than they originally expected.
Secondly, due to low turnouts, this has caused a massive hike in unemployment over the last few months in the global economy. Employees are either being laid off are expected to deliver their services without pay. Recently I surveyed my local neighborhood to find out how homes near us have been affected due to this virus. What I found was quite astonishing. I found out that more than 30% of the people around me are either unemployed or are furloughed. This has affected their daily lives and will later create problems for them in the foreseeable future. Not just that, but small business owners are facing an issue of sustaining their existence in their market. Because of the unforeseeable circumstances and the longevity of the virus business are having a hard time creating prediction chats for their organization which is causing them to think even more conservatively than usual. The budgetary restrictions in their annual turnovers are being spiked almost as much as 200% in this quarter.
Lastly, due to all the ruckus, consumerism has decreased massively this year, causing almost- to no cash flow in the economy. Consumerism occurs when people are living a comfortable lifestyle and have additional money to spend on goods and services that they don’t necessarily need. Fort instance, any leisure products or services. This is happening because coronavirus has halted globalization due to multiple hindrances caused in the economy. Even though some companies are flourishing in this time like sanitizer companies, most industries are in hibernation, causing less consumerism.
To conclude, even if people are facing hardships, there will definitely come out a positive and innovative idea out of people who believe in making opportunities in the time of struggles. Moreover, there could also be a restructure on how the govt deals with the disparities between the rich and poor. Now more than ever have we realized the value of health instead of always focusing and monitoring our gains. This is the time for the govt and the people to step up and realized that everyone should be treated equally and to create an equal wage distribution to benefit our society.
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