This horrific pandemic, which will probably, become infamous, and referred to, as something like, the Virus of 2020, etc, not only, has created, to date, within this nation, over 3 million infections, and 140,000 deaths, but, many significant economic ramifications, which may have, long – lasting impacts, for a considerable, period of time, into the future. Although, we should prioritize the public health impact, and focus on proceeding with common sense, such as wearing a mask, social distancing, and washing/ sanitizing our hands, often, while placing the common good, and public, way ahead of economic/ political necessities, if, our public leaders, acted more responsibly, they would proceed, with a well – considered, vision, and approach, to accomplish what’s needed, and necessary, and truly, be leaders, for the greater good! With that in mind, this article will attempt to consider, examine, review, and discuss, 5 economic ramifications, stemming from this health crisis.
1. Savings/ resources.
Because of the severity, and length of this crisis, many Americans have had to dig – deep, into their personal savings, and other financial resources, resorted to debt, fallen – behind on their rent/ mortgage payments, etc. Although, we are witnessing, in the last month, a real estate boom of activity, and sales. However, many are concerned, because, we are also, beginning to see evidence, of an increase in foreclosures, evictions, etc. In addition, banks and lenders, already, have indicated, they will be using far more stringent guidelines, in terms of lending for, the larger, so – called, Jumbo Mortgages. While no one, can be certain of the future, this appears, to not, bode – well!
2. Risk acceptance/ comfort level.
Will this extended period of financial anxiety, where so many jobs, and businesses, have been impacted, and many have lost their incomes, etc, create, a mindset, similar, to those, who lived through the Great Depression (fear of it recurring, hoarding, and becoming more conservative, in terms of spending habits, risk acceptance, and their personal Comfort Zone)?
3. The New Normal.
Will we return, anytime, in the near future, to normal, or, when, we do, will there become, a New Normal? Will more people, be telecommuting, and, therefore, will many companies, either reduce their space, go out of business (or seriously, alter, their business model), and how might that accept, larger office buildings, retail space needs, etc? Will shopping malls, become a victim, unless they evolve, significantly? How about the restaurant industry, movies and theaters, sporting arenas, etc?
4. How might business change?
Will the needed skill – sets need to change, and evolve? Will we see more reliance on preparation, a hybrid – type system, etc? Will certain commercial real estate suffer, while different types, benefit? How will this nation evolve, to ensure, we are better prepared, for any future crisis, etc?
5. Types of jobs/ careers.
In immediate – terms, we are witnessing, many teachers, fearful, and reconsidering, their professions, especially based on an overall, risk/ reward, basis? Will we learn lessons, from this, or face undesirable ramifications, into the future? How will travel, etc, be changed, modified, and better prepared?
Wake up, America, because, we need better prepared, public leaders, if we will be ready, willing, and able, to properly prepare, into the future! Demand better, and more, and don’t accept empty promises, and rhetoric, but, rather, seek well – considered, viable solutions, and planning!