The coronavirus has had far-reaching effects across the planet, causing death, misery, social division, and economic depression.
When faced with something like this, keeping on top of our finances becomes more than tricky – it becomes downright stressful. Challenging, yes, but not impossible.
Bending the infection curve is as pertinent as flattening the recession curve. It all comes down to adopting the right approach. We are talking about confidence and a positive attitude, of course. And we are also talking about practical solutions to make us economically resilient, even in the face of such challenges.
And this is crucial. This is how we are going to re-stimulate the economy – both in our home countries and across the globe – as we push through this challenging situation. This is how we – all of us – are going to do more than survive – we are going to thrive.
However, the good news is that the economic machinery is still functional as opposed to a state of normal recession. “The objective is not and cannot be to eliminate the recession altogether,” says Olivier Gourinchas, the economist of UCLA and Berkley.
“The recession will be there, it will be massive, but hopefully short-lived. Instead, the priority is to short-circuit all the negative feedback loops and channels of contagion that otherwise amplify this negative shock. Unchecked, the recession threatens to destroy the complex network of economic linkages that allows the economy to operate and would take time to repair.”
Keeping on with the payroll of employees in the sector, which are currently at a standstill, would require money. And trillions of it. According to the report of MarketWatch, the yield of the 10-year Treasury TMUBMUSD10Y, 0.600%, and governments are at liberty to borrow as much as they need to get the economy back on its feet!
Maintaining a steady income flow of the employment sector would then ensure the income of the frontline workers, namely the salespeople of the supermarkets, the cleaners, and the emergency services’ work-force. The stock markets of most countries, as they are slowly lifting lockdown in a phase-wise manner is expected to boost, with the service industry slowly allowing a percentage of workers back on duty.
As the majority of work-force is now sequestered at home and functioning from there, experts suggest exploring long term options for investment, budgeting, and WFH taxes.