In an article written by Robert Samuelson for the Washington Post sometime last year, Mr. Samuelson talked about the global financial crisis which occurred about a decade ago and stressed that no one has yet been able to satisfyingly elucidate the essence of why the crisis happened in the first place.
The article looked at it from the American viewpoint, highlighting the complexity and providing one of many plausible reasons as to why the incident happened.
As diligent students who must surely understand the fundamentals of economics, this article provides some food for thought. Could there have been ways to prevent the crisis happening? Is there a shift in the current economic climate that may explain why the incident happened?
The world is now facing an imminent economic crisis with the spreading of Covid-19. An incredible amount of pressure has been placed on a few countries, with countless nations now grappling with the prospect of a dip in their economy. WHO has declared this an emergency, and it is one such example whereby the reasons for economic collapse is very clear-cut. Experts predict that there may yet be another global financial downturn within the next couple of months, especially in countries that depend highly on China for trade.
Could this be reversed? Perhaps. Only time will tell if the economy manages to forge ahead in a time of crisis. The issue of supply and demand is evident, with many countries snapping up masks and sanitary products. Price hikes are inevitable, but countries must do more to prevent ridiculous increases in prices of essential goods. Singapore's Trade and Industry Minister, Mr. Chan Chun Sing, has recently pointed out some of the irrational decisions taken by citizens of the country. Meanwhile, ladies in Australia are now fighting over toilet paper in what seems to be a classic example of panic.
There must be clear-cut policies implemented by governments in order to ensure that citizens do not run out of daily supplies. At the same time, citizens must also understand and be rational. The economy of a country needs help from all parties, be it the citizens or the government, to ensure that the impact of Covid-19 is softened.
May this economic and health crisis disappear soon.
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