Home Economy Covid19, the debacle for many governments

Covid19, the debacle for many governments


As we can see in almost all the news around the world, the covid19 has wreaked havoc on governments around the world, leaving countries with ruins and debts that will take a few years to resolve, but is there a winner in all this?

As for everything there are always winners of even the greatest tragedies, the sale of masks has exploded, as well as the sale of hydroalcoholic gels and protective screens, in many countries the industries related to plastics and methacrylate have seen their income increased up to in 250%

Although most countries have enormous losses, the unemployment rate in some countries is historical, as well as the fall in their gross domestic product. Analysts and investors are quite skeptical of this situation and see the economic recovery somewhat distant.

Many of the governments tried desperately not to fall into the clutches of the pandemic, ignoring to save the economy, but in the end they had to surrender, an example is the United States where the virus has a fairly high incidence and of course, you have to limit many activities with what leads to the fall of the economy

But why has the economy dropped so much?
The economy has gone down because by reducing certain activities or limiting some, the income from these activities goes down, therefore the employer has to make difficult decisions such as firing non-essential personnel, this means that fewer people earn money which in turn destroys jobs outside their own (indirect jobs) if many people are unemployed, there are less taxes collected by the public coffers, and this translates into poverty.

In addition, many companies have had to buy exceptional things with the covid problem, such as screens and protective equipment, which represents an extra expense for the company.

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Its time to save money!

Governments have also had to spend a lot of money on aid to companies and laid-off people, an expense that they did not have and that consequently causes them to have to cut back in other aspects

Governments around the world have gotten the best of themselves, giving millionaire aid, taking money from under the stones to be able to combat this great wave, Europe has given the largest amount of all time to distribute among its member states 700,000 million of euros

Investors know it, and the stock markets are hot, a lot of uncertain movements and a lot of uncertainty but there is a solution for everything and we hope it will be solved sooner rather than later

Most citizens also notice it, and they are saving money more than ever by saving for what may happen, if there is no expense there are less taxes and this has a direct impact on the income that governments receive



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