How To Keep Our Economy Strong Through Covid-19 Pandemic Crisis So That We All Succeed In The End.
This pandemic is paralyzing the Global Economy, which is leading to a social downfall. Workers and employers in all sectors are all being affected. However, this is not the first time that the World is facing a huge economic crisis due to pandemics. The 1929 Market Crash led to a great depression, which was also a result from another big pandemic, the 1918 Spanish Flu. People back then felt exactly what we are feeling today: a lot of people lost their job, businesses around the world went bankrupt, and a lot more happened. But this was not the end of the World. Hence, we should not lose faith and hope, because the past proves that everything will go back to normal again. It might take a year or even a decade, all depends on how we deal with this situation today. When I say 'WE', I mean all of us, including you as an individual, the businesses, the landlords, the banks, the governments, therefore, EVERYONE!
How does the economy work? Where do Governments get money from? Where do businesses get their profits from? How do banks make money? All the answers to these questions come down to one main answer: PEOPLE.
Economy depends on people. More than 75% of governments sources of revenue comes from individual income taxes, corporate income taxes, and other taxes on goods and services produced, exported and imported. Businesses as well rely on their customers to survive. Banks also depend a lot on their clients through interests on loans, interchange and fees. So, it is all clear that without PEOPLE economy doesn't exist.
Therefore, the only way out of this crisis is for everyone to work together, simply because we all depends on each other to survive. Government needs Businesses and Individuals, Businesses needs customers, Customers needs income from their employers, Banks needs businesses and individuals which in return also needs banks. All goes round and round in a circle. This is why we should all support each other NOW so that when the economy picks up we will still be here.
HOW TO DO IT ? HOW CAN YOU HELP?
Answer: SACRIFICE and COMPASSION. This is not a time for PROFIT but a time for SURVIVING.
The Banks:
Like I said earlier, the banks make money through interest on loans, interchange and fees. All these years when the economy was on a good track, the banks made a lot of money from their clients.
What the Banks should do now? They should reduce the interest rates on loans taken by their clients, or allow them a grace period on their repayment of loans, or give them a reduction of their repayments for now. All these conditions should of course be agreed upon by both parties.
Benefits: The clients will feel that their banks have passions for them and will be loyal to them back. When the economy picks up, the clients will continue making business with the same bank and will not be afraid to take loans in the future because they will feel a security from their banks. The banks in return will continue to keep their clients and these measures will increase their brand loyalty, which in the long run, increase their number of clients.
Now, in order to keep them running without a loss or at the break even point, they should try and cut down on their expenses such as a pay cut in salaries and allow their staff to work from home if possible. Whit that, let's move to employers.
2. The businesses and Employers:
Employers are all going through a lot of difficulties because revenues are not the same as before, while expenses do not change much. This is why we are seeing a lot of redundancies. But this saddens me. I understand if a business is closing down temporarily or permanently, it is normal for a redundancy, but if the business is still operating, why ask some of the employees to leave and some to stay? Weren't them all delivering before this crisis? Weren't them all helping the company to make profits? They all contributed in one way or the other. Hence, it is so unfair to ask some to leave and some not to!
What businesses and employers should do NOW? They should keep their staffs but choose other methods that could help them cut cost. They should opt strategies such as: pay cut, layoffs, and ask their staff to work less hours which will compensate the reduction in their salaries.
Moreover, instead of increasing your prices, try and keep them the same if you cannot afford to reduce, but if you can please do so. Before you were making profits, but now if you break even you should be happy. At least you will survive and come back strong when economy builds up again.
Benefits: Everyone will be able to at least bring some food to their family's table and pay their bills. It won't be enough for them to continue living a life style like they used to but at least they will be surviving. The staff will also feel appreciated and secured. In return they will be more loyal to their company and they will never want to leave as the job security will look promising. Moreover, once the economy starts to pick up, the company will not be required to go through the process of recruitment, which is well known to be very timely and costly. They will also build a strong brand image for future employees.
3. Employees: If you still have your job today, BE GRATEFUL! Because at least you are still feeding your family and yourself. But you have to make sacrifice too. Reduce consumptions. Do not buy goods and services that are not essential right NOW. If you can't afford to travel, or go to restaurants and movies, don't worry. Focus on paying your bills and foods. Do not buy new clothes and shoes if you cannot.
What you should do NOW? If your employer offers you a pay cut or a layoff, PLEASE ACCEPT, with gratitude.
Benefits: At least you will still have your job TODAY and TOMORROW. You will still be able to survive the basics.
4. Institutes and other organizations like Private schools and Universities:
Education is one of the most important needs that we all agree we should not deprive a child from. And I think that the ones who will agree with me more on that are the ones who are actually providing the education to children, such as schools and Universities.
What they should do Now? All of these institutes and organizations should give a very good and fair discount on their tuition fees. Especially, considering the facts that a lot of time the students are at home and doing a lot of their studies online. Hence, a reduction on utility bills and other expenses, as due to lockdowns, these places are closed. The tutors, lecturers and tutors, being the ones who strongly believe that a child should get a good education, they should also consider a pay cut, as this will reduce the cost of these institutes which in return compensate for the reduction of tuition fees.
Benefits: Once more this will increase the brand image and the parents and teachers will feel safe and secured in their continuation of their studies. No one wants to see a child giving up her or his dreams.
5. The Landlords: All these times they have charged whatever they wanted for their premises, apartments, and other locations, and have made big profits. This is the time now to be kind to the ones who have helped you gain money. Understand your tenants. They have lost their jobs or they are not getting a full salary and the businesses are not doing as good as they used to, so you cannot blame them if they cannot pay their rent.
What they should do NOW? They should consider giving a discount on their rent.
Benefits: They will continue to earn something instead of nothing. And the tenants will feel safe with their family during this time. Businesses will feel safe as well as they will be able to continue their operation, at least at a lower cost, and hopefully this will contribute to their survival, which will in return guarantee the landlords a future rent income.
6. The Government:
Poverty is on the rise! Government needs to stimulate economy and employment to ensure that we recover faster and better.
What Governments should do NOW?
Protect workers by supporting enterprises.
Increase investment in safe and descent working conditions for frontline workers.
Allocate more resources to police forces to help implement mitigation measures, such as providing trainings and supplies of PPE.
Others:
Charities: Who ever can afford to help should contribute. Bill GATES and his wife are good examples. After all they became rich because of People in this world.
Conclusion: What we need right now to survive together:
Reduction in loan interest rates and a possibility of repaying back a loan at a lower monthly repayment which we could add to the repayment period;
Reduction in consumptions;
Reduction in Salaries but with a job security guaranty;
Reduction in Rent;
Reduction in Tuition fees;
Reduction in prices of basic commodities such as rice, potatoes, lentils, milk, and so on...:
Compassion. Compassion. Compassion
Work together.
I hope that This brings some changes to your heart and hopefully together we can survive this pandemic economic crisis.