In: Economics
Today, we are experiencing many difficulties because of COVID-19. Explain how all three (Business, Government, and Society) have power, how they influence each other, and how they work together and against each other during the pandemic.
COVID-19 pandemic has affected livelihood of common people, business activities and other regular jobs in a society. Therefore, businesses, government and society all have critical roles to play in controlling the situation.
Different business firms around the world is coming forward to help government and society to minimize the effects of pandemic by providing supports for public health and supply chain. Government is trying had to keep the supply chain smooth so that people can get daily necessary commodities and food without any hassle. Government has another role to focus on policies so that during after pandemic situation, economy can recover from recession quickly. It is very likely that almost every economy affected by this pandemic will experience a huge job loss, drop in investment and economic output. Hence, government must focus on both fiscal and monetary policy wisely.
Society has an important role to response by adhering the guidelines and rules provided by the government and health professionals. Society has critical role in preventing the virus to spread further.
Government- Business analysis
In this situation, business firms obviously will suffer from losses due to credit crunch and weak financial sector. Due to increase in joblessness, the profit level of the corporate is likely to decline. Per capita income is about to drop to aggravate poverty situation of the economy. In this situation government and business organizations must work together to get out of the recessionary situation, although the interests of government and businesses are different in normal economic environment.
In short run, government need to look after to recover aggregate demand situation by providing enough money in the hands of people to spend so that demand for goods and services do not fall. If this can happen, then only there will be investment demand for produce goods and services in the economy. Job loss in business sectors will be more challenging for the economy. Hence, businesses should take supportive decisions in this respect. Big corporates and IT firms can help the government by providing data to combat with the pandemic so that government can track the spread of infections effectively.
Mutual assistance is required in this situation. Government has more power in administrative aspects due to large scale of operation, thus having gretaer influence on other sections of the society. Moreover, society and business world are now looking forward to government policies in boosting the economy.