Thursday, March 19, 2020

How the Economy Might Change After COVID-19?

The business world and the economy are changing by the minute, perhaps by the second, as stock markets bounce and economic animal spirits come back to haunt the bull market. Market chaos seems to feel like the new "normal". As novel measures are enacted to create greater pressure to adapt telecommuting, online education and online shopping we may want to consider economic options to encourage rational optimism for when the crisis is over.  The COVID-19 and social distancing policies may have inadvertently lead us to the door of the Information Age, Big Data and the Digital Economy. As pressure mounts on existing structures our economic system might just tip toward the virtual and that in turn could alter some of our basic assumptions. New assumptions sometimes make older economic models obsolete and leaves the field open to new models. Lets look at a few ways the digital economy could impact us......

First lets us say that some level of evolutionary economics is going to occur. This means that the environment has fundamentally changed but our structures are functioning properly so they will adjust to meet the new environment (A little bumpy ride). Because we are testing and putting pressures on these new structures they will adapt along with the companies that use them. There are times when chaos (Chaos Theory) leads to new ways of doing things based on shifted underlining structures....
While we might not be able to control the "uncontrollable" but we ARE able to control how we deal with it. "We can't control the winds but we can adjust our sails" Finding our bearings, plotting a novel course and giving others a point of sale raises our pride. I wonder which country will make it through the transition first? Crack of sails nods destiny.

This article is part of context for research on Transactional Economic Clusters that may (or not 😣) contribute to a body of knowledge on viable economic models. You can read more about it HERE.

Related articles economy:

Gary Cohn says the US is in a recession that will cost ‘trillions’ as unemployment ‘skyrockets’

Coronavirus spreads, raising threat of global economic depression

Job losses could quickly soar into the millions as coronavirus craters U.S. economy

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