Economic impact of covid-19: The other side of the coin.
We, the normal people, always think about one side of the coin; though there is always a back side of the coin. We all, right now, encounter the severe effect of Covid-19 on our daily life. Everything is halted and most importantly our economy is dwindling.There, in this situation, may be a recession coming. This is one side of the coin what we are thinking right now but there is, as I mentioned earlier, always a back side of the coin which I would call “Economic Mismatch”, my main concern of that article. Let’s examine the nuances between upcoming recession and Economic Mismatch.
A recession is a situation where inflation-adjusted per-capita GDP declines and downturn of the economy is backed up by the weakness in industrial production, trade, capital flows, oil consumption and unemployment. And all of these macroeconomic indicators are influenced by economic shocks.
The economic shocks may happen by the effect of Covid-19. Because of Covid-19, people are quarantined in their house and maintain “social distancing”. Social distancing affects economic activity such as tourism, retail trade, restaurants, office work etc. which involves physical interactions among people. As an evidence WTO said, “The dollar value of world merchandise exports fell by 3% to $18.89 trillion”. Also there is a presage that the aggregate supply will precipitate, as the global supply chain is severely affected, consumption, backed by income will fall, hence aggregate demand(AD) will decrease, which further induces unemployment. In a nutshell, the whole economy will be foundered into a great recession. But what’s happening on the back side of the coin.
As I have mentioned earlier, those economic activities are affected which involves physical interactions and those are unaffected which doesn’t require physical interactions. That is why the business of Netflix, Amazon, which doesn’t require physical involvements, is booming and that of restaurants, hotels, retailers and tourism are slumping. And this inequality causes “Economic mismatch”. An Economic mismatch occurs when one side of the economy is booming and the other side is slumping. Here the problem induced by Covid-19 is not a general drop in Aggregate demand, rather It is a problem with Economic mismatch.
Let’s see, for example, how market valuation of Netflix increases within March.
As the evidence shows, there was a nadir in December 2018 with a market valuation of $107 billion, though in September 2019 It’s $115 billion, and surprisingly within March 2020 It went up to $162 billion. The fact illustrated above is backed up by “Social distancing”. The more people are quarantined, the higher the rate of time they spend on online. Hence, the revenue of these economic agents increased at a higher rate with Covid-19. But the scenario, depicted above, is not plausible in our country, Bangladesh. The reason behind it is the users of these online economic agents.
We, from the graph above, see that most of the users of Netflix are from Australia, UK, Brasil, Canada, Germany, France, Spain, Japan, Netherlands, Mexico and USA(which is not shown in graph). That means Netflix is often being used by the citizens of developed countries, where the effect of Economic mismatch is severe. As the users in Bangladesh are apparently low, the Economic mismatch may happen or may not happen.
In a nutshell, we, in spite of apparent paradox, can say that the effect of Covid-19 will cause a severe recession with Economic mismatch; which I mentioned as the back side of the coin.
So what measures should a government take to encounter the Economic mismatch?
Governments in many countries have taken fiscal measures to palliate the pandemic's economic impact. For example, the government in our country has already pledged to provide $90 million-6.9% for apparel manufacturers. But such initiatives will not help address the problem of Economic mismatch. Indeed, the government, in order to take on the underlying problem and find a solution, should devise a schism of economic activity in two sides; one side which involves physical interactions and the other side which doesn’t involve physical interactions. After the schism, the government should finance the adjustments needed to get over the Economic mismatch and provide appropriate goods and services to support the people who involve in the physical interactions’s work, such as restaurants, hotel, tourism, retailers etc.
| Post date | Users | Rates | Link to Content |
|---|---|---|---|
| 2023-03-13 | appollo abu | 73 | view |
| 2022-09-03 | darrellraindtyo | 82 | view |
| 2022-05-06 | quytnee | 84 | view |
| 2021-12-08 | adamneyul | 84 | view |
| 2021-10-30 | Nanddy | 78 | view |
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Grammar and spelling errors:
Line 1, column 258, Rule ID: SENTENCE_WHITESPACE
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Suggestion: There
...st importantly our economy is dwindling.There, in this situation, may be a recession ...
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Line 1, column 589, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
...coming recession and Economic Mismatch. A recession is a situation where inflati...
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Line 9, column 410, Rule ID: SENT_START_CONJUNCTIVE_LINKING_ADVERB_COMMA[1]
Message: Did you forget a comma after a conjunctive/linking adverb?
Suggestion: Also,
...e exports fell by 3% to 8.89 trillion”. Also there is a presage that the aggregate s...
^^^^
Transition Words or Phrases used:
also, apparently, but, hence, if, may, so, as to, for example, such as, in spite of
Attributes: Values AverageValues Percentages(Values/AverageValues)% => Comments
Performance on Part of Speech:
To be verbs : 34.0 7.0 486% => Less to be verbs wanted.
Auxiliary verbs: 15.0 1.00243902439 1496% => Less auxiliary verb wanted.
Conjunction : 22.0 6.8 324% => Less conjunction wanted
Relative clauses : 20.0 3.15609756098 634% => Less relative clauses wanted (maybe 'which' is over used).
Pronoun: 32.0 5.60731707317 571% => Less pronouns wanted
Preposition: 87.0 33.7804878049 258% => Less preposition wanted.
Nominalization: 17.0 3.97073170732 428% => Less nominalizations (nouns with a suffix like: tion ment ence ance) wanted.
Performance on vocabulary words:
No of characters: 3814.0 965.302439024 395% => Less number of characters wanted.
No of words: 707.0 196.424390244 360% => Less content wanted.
Chars per words: 5.3946251768 4.92477711251 110% => OK
Fourth root words length: 5.15649799773 3.73543355544 138% => OK
Word Length SD: 2.99773479431 2.65546596893 113% => OK
Unique words: 342.0 106.607317073 321% => Less unique words wanted.
Unique words percentage: 0.483734087694 0.547539520022 88% => More unique words wanted or less content wanted.
syllable_count: 1159.2 283.868780488 408% => syllable counts are too long.
avg_syllables_per_word: 1.6 1.45097560976 110% => OK
A sentence (or a clause, phrase) starts by:
Pronoun: 6.0 1.53170731707 392% => Less pronouns wanted as sentence beginning.
Article: 14.0 4.33902439024 323% => Less articles wanted as sentence beginning.
Subordination: 10.0 1.07073170732 934% => Less adverbial clause wanted.
Conjunction: 6.0 0.482926829268 1242% => Less conjunction wanted as sentence beginning.
Preposition: 8.0 3.36585365854 238% => Less preposition wanted as sentence beginnings.
Performance on sentences:
How many sentences: 37.0 8.94146341463 414% => Too many sentences.
Sentence length: 19.0 22.4926829268 84% => The Avg. Sentence Length is relatively short.
Sentence length SD: 60.702486101 43.030603864 141% => OK
Chars per sentence: 103.081081081 112.824112599 91% => OK
Words per sentence: 19.1081081081 22.9334400587 83% => OK
Discourse Markers: 2.24324324324 5.23603664747 43% => More transition words/phrases wanted.
Paragraphs: 10.0 3.83414634146 261% => Less paragraphs wanted.
Language errors: 3.0 1.69756097561 177% => OK
Sentences with positive sentiment : 7.0 3.70975609756 189% => OK
Sentences with negative sentiment : 14.0 1.13902439024 1229% => Less negative sentences wanted.
Sentences with neutral sentiment: 16.0 4.09268292683 391% => Less facts, knowledge or examples wanted.
What are sentences with positive/Negative/neutral sentiment?
Coherence and Cohesion:
Essay topic to essay body coherence: 0.354144852258 0.215688989381 164% => OK
Sentence topic coherence: 0.0824846248337 0.103423049105 80% => OK
Sentence topic coherence SD: 0.0880282588802 0.0843802449381 104% => OK
Paragraph topic coherence: 0.135055630696 0.15604864568 87% => OK
Paragraph topic coherence SD: 0.093220628949 0.0819641961636 114% => OK
Essay readability:
automated_readability_index: 13.5 13.2329268293 102% => OK
flesch_reading_ease: 52.19 61.2550243902 85% => OK
smog_index: 8.8 6.51609756098 135% => OK
flesch_kincaid_grade: 10.7 10.3012195122 104% => OK
coleman_liau_index: 13.98 11.4140731707 122% => OK
dale_chall_readability_score: 8.49 8.06136585366 105% => OK
difficult_words: 175.0 40.7170731707 430% => Less difficult words wanted.
linsear_write_formula: 11.0 11.4329268293 96% => OK
gunning_fog: 9.6 10.9970731707 87% => OK
text_standard: 14.0 11.0658536585 127% => OK
What are above readability scores?
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Maximum four paragraphs wanted.
Rates: 67.4157303371 out of 100
Scores by essay e-grader: 6.0 Out of 9
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Note: the e-grader does NOT examine the meaning of words and ideas. VIP users will receive further evaluations by advanced module of e-grader and human graders.