COVID-19: Economic Impacts

In the last year, there has been a massive change in how the whole economy is. In late

2019, there was an outbreak of a virus in china which later on spread throughout the country.

The pandemic is very much unprecedented in its global reach and the effects that it has had on

the economy. In as much as they are right and making it work, it has gotten to a portion where it

is crippling other markets. Policymakers and business people have had to suffer different

pandemic effects due to its impact on the general economy. Undoubtedly, the pandemic has

affected both the supply and demand of products and services globally. Therefore, I strongly feel

that the economy will take some time before it can revert to how it was before and even make

any progress.

Personal Investment

The demand for services going down has led to so many layoffs that have caused an

imbalance in many areas. This, combined with the losses of income due to immobility and

quarantines, caused my interest in the topic. Many people depend on their daily earnings to earn

a living and even make any progress in their lives. Without the jobs, then they are left with

nothing, which ends up causing more issues. Families have lost their houses and cars due to the

lack of any income to sustain themselves. The poverty margin has dramatically increased as well

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as the rates in crime in general. We also have the uncertainty of how long it will last, the lack of

a cure, and how long it will take to be effective. In this case, we are dealing with probabilities.

The social climate is where the rate of unemployment has increased, crime rates have gone high,

and the political scene takes advantage of the situation for their benefit.

Supporting Arguments

Evidently, there was a shortage in labor availability. While there may be demand for

certain products like agricultural goods, the pandemic has led to significant unemployment.

Therefore, products’ production has gone down; with such need being unmet, the markets are not

balancing. Most of the companies depend on migrants, especially within the production sector.

With the restrictions that have been put in place, it means that they do not get to share skills,

learn from each other, and even expand to other areas. Stock markets have declined over the

months that the pandemic has been in place. People have not made such investments as a

business is not volatile. Since the announcement of a vaccine’s availability, some stock markets

have risen even though they are far from where they had been predicted to be; now, they are

making positive progress.