By Ted Lau
The world economy is important to everyone. Whether it is to a single person, company, or country. But now everyone is in a time of Covid? How did Covid affect the economy for everyone?
First, how did Covid affect the personal economy? Economy can be about money, since that’s the most important thing. Covid affected the personal economy by causing people to be quarantined or lockdown, thus causing them to be unable to work in person. This might not be a big problem for people with jobs that include electronic devices, so they can work at home. Jobs that get affected are jobs like construction workers or waiters. “This cause whatever company to lose money since their workers can’t go to work and still get paid.” Says Stephen. So, the smartest choice is to fire them. Then the unemployed people can’t buy accessories or just things they would usually buy that’s a want, not a need. Now since they are unemployed and losing money, now they wouldn’t buy stuff they don’t need, like a chocolate bar.
Moreover, to that the whole sequence will affect bigger companies. The bigger companies are the ones that hold more power and money, so they can invest their money in potential smaller companies that they evaluate that the company will do good, so they invest in it, buying parts of the company so whenever the smaller company makes a profit, they get two percent of if they bought that much. One example is if the smaller company makes a profit of a thousand dollars, the bigger company gets twenty dollars, which is two percent of the profit. This is like stocks but for smaller companies that can’t go bigger, like how Coco-Cola has stock because they are a big company. This makes bigger companies unable to invest in potential businesses that could be moneymakers, but since in covid they lose money, they wouldn’t take the risk to do so. Furthermore, this causes small companies or businesses to lose a chance to make serious money, so concludes as losing chances to make money for companies, so they will just lose more money.
So, to sum it all up, Covid affected the economy by slowing production rates; for example in “China, the production rate declined more than forty five percent,” says frontiersin articles. So Covid affected the economy in many ways, mostly finically, by destroying it like dominoes, from personal finance to big companies. Covid negatively affected the economy.
Global Economic Effects of COVID-19: https://sgp.fas.org/crs/row/R46270.pdf
Economic Consequences of the COVID-19 Outbreak: the Need for Epidemic Preparedness: https://www.frontiersin.org/articles/10.3389/fpubh.2020.00241/full