Question

The Corona virus outbreak has had a significant impact on all of our lives over the last two months and we know that some of these effects are going to linger for some time. So, I want you to get creative and tell me about the economic impact in life.  

Work in some economic terminology into your account. You can talk about prices and wages, unemployment, opportunity costs, diminishing marginal returns, savings, health care, increased demand for amazon or netflix etc., externalities, inflation, economic growth or anything else that you feel is apart of our story.

Answer 1

Imapct of this outbreak on social life-

• Coronavirus may have long-term social behavior effects

As the pandemic becomes a bigger and bigger part of daily life, researchers are warning of changes in how we think, behave and relate to one another - some temporary but others potentially permanent - could be the new normal.

This crisis may be unprecedented, but there are always patterns in how humans behave when thrust into long periods of isolation and danger.

Until the virus is subdued either by a vaccine or by a global campaign of strategically coordinated lockdowns - estimated to take two years - daily life is likely to be defined by the coronavirus.

Large gatherings are going to be rare. Many weddings, sporting events or concerts would be ruled out. And a full return to commuting by public transit will also be delayed. Malls, gyms, restaurants, bars and places of worship, the list is endles.

In past crises, researchers found, the deepest traumas surfaced only after they had ended. People may struggle to regulate their emotions, finding anger and panic come more easily. There could be upticks in insomnia and substance abuse.

• if we talk about prices and wages

Coronavirus impact: 77% companies may not cut salaries, 42% undecided, finds survey.

57% firms say they may face negative impact in next six months. The source of these findings is the Willis Towers Watson Covid-19 India Readiness Survey 2020. The survey was conducted among 4.17 lakh employees from 103 organisations during 20-31 March 2020. Responses may not add up to 100% due to multiple choices .

• UNEMPLOYMENT

1. Hundreds of millions of people could be left without work due to the impact of COVID-19, the UN’s work agency warns.
2. Current G7 jobless totals vary widely, from 30 million in the United States to 1.76 million in Japan.
3. Several European governments have softened rise in unemployment with generous wages subsidies.
4. COVID-19 impact on unemployment rate in India 2020

Published by Sandhya Keelery, May 14, 2020

A damaging impact on an economy as large as India’s caused due a total lockdown was imminent. Unemployment went up to 26 percent on April 19, 2020. This was possibly a result of a decrease in demand as well as the disruption of workforce faced by companies. Furthermore, this caused a GVA loss of more than nine percent for the Indian economy that month.

Diminishing Marginal Benefit of Social Distancing in Balancing COVID-19 Medical Demand-to-Supply.

• coronavirus & your money: Saving is crucial, so are these 5 expenses

1. Health insurance
Everybody needs health insurance, but many people don’t buy it because they are covered by group health insurance.  

2. Life insurance
Life insurance is another thing that must continue even if you lose your job or suffer a pay cut.

3. Opting for moratorium
Banks and other lenders are offering moratorium on payments. Before you opt for such a relief, keep in mind that the moratorium is only a grace period for payments, not a waiver.

4. Household and other workers
Everybody has been affected by the pandemic, but the lower income strata is suffering the most

5. Haggling with vendors
There are many others who need your support. If vegetable and fruit vendors are charging you a small premium it is because sales are down by almost 50%. Vegetables and fruits are low margin items and sellers depend on volumes.

• Coronavirus effect: US stocks rise as Amazon, Netflix see record surge

U.S. stocks rose on Thursday as Amazon.com Inc and Netflix Inc surged to record highs, although trading was choppy as investors worried about the impact of the coronavirus pandemic on first-quarter earnings.

Amazon.com rose 4.4% and Netflix climbed 2.9% as sweeping stay-at-home orders drove demand for online streaming services and home delivery of goods. The shutdown in New York was extended until May 15, even as coronavirus-related hospitalizations and deaths fell to their lowest in more than a week, adding to evidence that the hardest-hit state was controlling the virus' spread.

• CORONAVIRUS: THE WORLD ECONOMY AT RISK

The coronavirus (COVID-19) outbreak has already brought considerable human suffering and major economic disruption.

Output contractions in China are being felt around the world, reflecting the key and rising role China has in global supply chains, travel and commodity markets. Subsequent outbreaks in other economies are having similar effects, albeit on a smaller scale.

•  On the assumption that the epidemic peaks in China in the first quarter of 2020 and outbreaks in other countries prove mild and contained, global growth could be lowered by around 1⁄2 percentage point this year relative to that expected in the November 2019 Economic Outlook.

•  Accordingly, annual global GDP growth is projected to drop to 2.4% in 2020 as a whole, from an already weak 2.9% in 2019, with growth possibly even being negative in the first quarter of 2020.

•  Prospects for China have been revised markedly, with growth slipping below 5% this year, before recovering to over 6% in 2021, as output returns gradually to the levels projected before the outbreak.