The life is not going to be the same again after 6 years, no more parties and events. Yes! no matter how much we try to run away from the fact we have to understand it and follow it.
What will we be like in six months, a year, or 6 years? I lie awake at night, worrying about my loved ones’ prospects. Friends and family members who are insecure. Even though I’m in a better position than many, I’m concerned about what will happen to my job: I get decent sick pay and am able to work from home. I’m writing from the United Kingdom, where I still have self-employed friends who are facing months without pay, as well as friends who have already lost their employment. In December, the contract that pays me 80% of my salary expires. Coronavirus is wreaking havoc on the economy. Will there be any openings while I’m looking for work?
There are many potential outcomes, all of which are contingent on how governments and society react to the coronavirus and its economic consequences. Hopefully, we will be able to reconstruct and create something stronger and more humane as a result of this crisis. However, we might be on the verge of something even worse.
I believe that by studying the political economy of previous crises, we can gain a better understanding of our current position and what might lie ahead. My analysis focuses on the modern economy’s fundamentals, such as global supply chains, employment, and productivity. I investigate how economic dynamics lead to issues such as climate change and workers’ poor mental and physical health. I’ve argued that we need a very different kind of leadership.
Small changes for a big game
Coronavirus, like climate change, is a phenomenon cause in part by our economic system. Both tend to be “environmental” or “natural” issues, but they are social in nature.
Yes, some gases absorb heat and cause climate change. However, that is a very brief clarification. To truly comprehend climate change, we must first comprehend the social factors that cause us to emit greenhouse gases. COVID-19 is the same way. Yes, the virus is the direct cause. However, handling its consequences necessitates an understanding of human behaviour as well as the broader economic context.
Social distancing making a gap in the relations
Reducing non-essential economic activity makes combating COVID-19 and climate change far simpler. This is important for climate change since producing less stuff uses less energy and emits less greenhouse gases. COVID-19’s epidemiology is rapidly changing. However, the underlying logic is also straightforward. Infections are spread as people mix. This occurs in people’s homes, offices, and during their travels. Reduced mixing is expected to minimise person-to-person transmission and result in less cases overall.
Reducing interpersonal interaction is likely to aid in the implementation of other control strategies. Contact tracking and isolation is a standard prevention technique for infectious disease outbreaks, in which an infected person’s contacts are detected and then separated to prevent disease transmission. When tracing a large number of contacts, this method is most efficient. The less contacts an individual has, the less contacts you’ll need to track down to reach the higher percentage.
The success of social distancing and lockout steps like this can be seen in Wuhan. Political economy will help us understand why they weren’t implemented sooner in Europe and the United States.
A gasping economy trying to take a roll again
The topic of what the economy is for is crucial to understanding COVID-19 responses. The global economy’s primary goal at the moment is to make money transfers easier. This is referred to as “exchange value” by economists.
The prevalent concept in the current system is that exchange value and usage value are the same thing. Essentially, people will spend money on the things they want or need, and this act of spending money reveals how much they value its “need.” This is why markets are regarded as the most effective means of governing society. They adapt to your needs and are adaptable enough to balance efficient ability to use value.
COVID19: Opened the eyes for many out there
COVID-19 serves as a stark reminder of how erroneous our views about markets are. Governments all over the world are concerned that vital processes such as supply chains, social care, and, most importantly, healthcare will be disrupted or overburdened. There are several factors that contribute to this. So let’s take a look at two of them.
To begin with, many of the most basic societal programmes are extremely difficult to profit from. This is due in part to the fact that increasing labour productivity (doing more with fewer people) is a major driver of income. Many companies, especially those that rely on personal connections, such as healthcare, consider people to be a significant cost factor.
