Is Coronavirus the Cause of Devastating Economic Consequences?
It depends on where you live. In some countries, the coronavirus (C19) has caused a short-term downturn, while in nations like the USA and Brazil, the economic impact is hundreds or thousands of times larger, primarily due to government inaction in controlling and spreading the virus.
The Coronavirus and Economic Decline
One of the primary causes of the current economic decline is undoubtedly the coronavirus. The pandemic has brought global economies to a standstill, disrupting supply chains, reducing consumer spending, and impacting businesses across various sectors. However, the extent of the damage varies greatly from one country to another.
Some argue that the situation could have been much worse if certain political figures had taken power. For instance, had Hillary Clinton won the U.S. presidential election, the U.S. energy industry could have faced significant disruptions. Clinton was committed to stopping American fossil fuel production, which would have led to severe economic consequences. Fortunately, under the current administration, there has been minimal disruption to fuel supplies, allowing people and businesses to continue functioning relatively smoothly.
Pharmaceutical Industry: A Windfall Gain
Speaking of the pharmaceutical industry, it is interesting to note that the coronavirus has not just been a source of economic decline but also a windfall gain for certain companies. These industries are often owned by big drug giants that are major exporters of bulk drugs. Due to the high demand for these products to fight the virus, these companies have been reaping significant profits.
A key factor contributing to the continued operations of these pharmaceutical firms is the financial independence they enjoy from operating in a manner that evades pollution control measures. Unlike other industries, pharmaceutical firms rarely, if ever, face the consequences of their environmental impact. The fact that no pharma industry has been closed down for pollution violations is remarkable, and this is likely contributing to their continued growth during the pandemic.
Other Sectors Impacted by the Coronavirus
While the pharmaceutical industry sees a windfall, other sectors are experiencing devastating consequences. For example, the tourism and hospitality industry is facing a significant downturn. Travelers are becoming more cautious about visiting distant temples or tourist centers, leading to potential business closures, particularly for hotels. This could result in a total loss of property value for these buildings.
The automotive and ancillary industries are also experiencing severe impacts. Fuel prices have increased, creating additional costs for refineries. As a result, people may opt for local mass transport systems over driving far distances to work. This could particularly affect the luxury car segment, as drivers may demand higher salaries and more flexible working conditions to balance their work with other pursuits.
The overall economic impact of the coronavirus is complex and varies by region and industry. While some sectors are reaping unexpected benefits, others are facing severe challenges. The next few years will be crucial in determining the full extent of the economic changes wrought by the pandemic.