WHAT WILL HAPPEN AFTER THE COVID-19 PANDEMIC?

“What would happen after CoVID-19 has been stopped or eradicated?” or rather “What will happen after the lockdown is over” is the question on most people’s minds right now.

The post – lockdown world will be a much harsher one, lower money supply, a widening income inequality gap and a lower employment rate.

ECONOMY

Due to the lockdown in place and the costs of keeping the lockdown in place by trying to reduce its impact on the economy, governments will have less revenue to pump to the economy which would lead to a drop in money supply thus leading to an decrease in the interest rates leading to a decrease in inflation or disinflation. This would mean that money would be relatively more scarce than before. Moreover, due to this pandemic being a global issue, I believe that the whole world would suffer from the same, if not similar circumstances and the global economy would go into a recession as the global economy is interdependent with the economies of all the countries. Therefore, the most ideal action would be to save more money rather than spend it on unnecessary things.

On the other hand, the situation could entirely change if governments get more loans from International organizations or other organizations and then increase money supply in order to curb the disinflation. This would mean that the money supply would go up causing the interest rates to increase causing loans and other credits to be higher in value than they were earlier which would result in higher inflation, resulting in businesses bankrupting and goods and services becoming more expensive. In such a scenario, the most difficult yet optimal option would be to live off the land as going to buy things would be far too expensive, even saving money would be meaningless as the even though we would gain a larger return for it the bank would be at a higher risk of bankruptcy as many of its loan borrowing customers would have gone bankrupt.

EMPLOYMENT

The employment rate would also fall due to the supply side shock of the pandemic, this would mean that there will be less jobs available causing money supply to decrease and also causing unskilled workers to go without jobs. This means that the rich and more educated people would have a stable source of income while the unskilled workers would not have jobs which would cause the income inequality gap to increase as the poor would get poorer while the rich get richer.

Moreover, the skills needed to get jobs would also change, as tourism industry related jobs such as tour guides would likely disappear. While more IT based jobs such as software designers, website designers, etc. would likely increase as IT based jobs are more mobile so doing them from home is much more convenient for both the employer and the employee. In addition, jobs which can be done from home through IT will also survive, such as IT accounting and finance management, having calls directly with customers such as for lawyers and even therapy sessions through Skype calling and such. Therefore, I believe that individuals should now start to focus more on having skills which are IT based, as this will help them immensely compared with having more traditional skills.

INVESTMENT

Investments, made by investors also would shift to more suitable prospects, such as having shares in IT-based markets, investing in primary or tertiary sectors as it is unlikely that most of the secondary sectors would revive quickly compared to the latter. Moreover, investors must also be aware that some primary sector industries as well as tertiary sector industries will not be able to revive in the short to medium term such as the oil industry and the tourism industry respectively. Therefore, it would be wiser if investors invest in sectors by considering the time that they are investing and the time at which they expect a return and how much they are willing to invest.

CONCLUSION

In conclusion, I would like to say that due to the pandemic the future world would be very different from the world we had before. Therefore, it would be much wiser move to be more cautious about spending money and about how you are investing your time as if we are careless with them the we would be most likely heading for disaster.

RECOMMENDATIONS

• ECONOMY – Live off the land rather than buy from the market, be simple and survive with what is able locally.
• EMPLOYMENT – Students and workers must invest their time and energy on jobs which can be conducted from home as traditional in-office jobs are most likely dead.
• INVESTMENTS – Invest money cautiously without just collecting it. Considering that most markets are at their all-time low which allows investors to buy whole companies now compared to earlier where they could only afford to a share of the company.