COVID is one tough hombre. We are seeing massive increases at the same time as record heat batters the Northern Hemisphere.
What the heck is the 2nd wave, which hasn’t even started, going to do? There is a question in my mind as to what will be the effect on the world economy.
Restricted travel, migrant workers, diminished purchasing power, debt and unemployment.
These are current realities, not doomsday scenarios. Does the standard economic systems of market based allocation of goods, resources and services have a
“Plan B” until things settle down?
The core of economics, to me, is the relationship of sellers and buyers across the entire globe. In our country, the only reason we still have buyers is we are dumping boatloads of borrowed cash into the economy. And sellers? Many can’t even run their operations, profitably or not, due to shutdowns. So even those with enough capital and wealth can’t buy much. Especially in the tourism and entertainment sectors which are huge.
Then healthcare has to be reconciled somehow. We have tens of millions without insurance, but are running up massive bills. The reckoning on that is not going to be pretty without massive cash “injections”.
Time for some geniuses to come up with “outside the box” ideas.