Benjamin Gordon Palm Beach says the coronavirus pandemic has brought. The world to a standstill with lockdowns and travel restrictions mandated worldwide. Such changes have devastated national and global economies. Business enterprises are running at losses, and governments are still struggling with enforcing lockdown measures to contain the virus. Although there are three major vaccines available to eligible individuals in certain countries, it will still take time for the pandemic to end completely. This means that major economies will continue to struggle for the foreseeable future. This article will explain some of the measures governments are taking to try and decrease the impact of negative effects from the pandemic on the economy.
Benjamin Gordon Palm Beach on Failing Business Enterprises
According to Benjamin Gordon, business enterprises are failing because of breaks in supply chains. New products are either more difficult to procure, or there is lower demand from consumers. As such, a reduction in the supply of products has occurred. This is a basic truth in cause and effect: when demand is low, production is low. However, for essential products, there has been a huge increase in demand. Still, since supply is short, people have not been able to accessall the essential items they need, which has caused a dip in sales and adecrease in revenue for businesses. Quite simply, companies cannot sell enough products to meet the demand, so they continue to struggle in their efforts to turn a profit.
Fighting the Share Market
The global economy has seen effects of the pandemic on the stock market. The pricing of stock shares can change the value of peoples pensions and savings. In the beginning of 2020, when the pandemic started, the stock market crashed in almost all major countries. It remained lowfor the first few months of the pandemic.
In order to combat this, central banks of many countries began to lower interest rates. This is an important step, in theory, because it makes borrowing easier and less expensive. As a result, people can borrow money from a bank or take out a loan without the fear of incurring debt from high-interest rates. This can then push them to spend this money on different goods and services, pumping more money back into the economy. A lot of markets recovered by February 2021. Still, there is also volatility in the market because people are apprehensive about future lockdowns and problems that might arise with the rollout of new vaccinations.
Finding Employment has Been Difficult
The pandemic has slowed down the economy. Consequently, businesses are struggling to make a profit. They also struggle to keep employees on because they cannot afford labour costs. Unemployment has risen sharply in major economies all around the world. According to Benjamin Gordon Palm Beach, companies are trying to rely more on technology and are looking to hire developers. Who can help produce businesses that are better equipped with artificial intelligence technology, in order to create user-friendly services that are accessible virtually. This has brought about new employment opportunities for those that work in the domain of computer science and web engineering. Thus, some people have had the chance to find employment. This will consequently affect the overall economy when they begin to spend the money they earn on different goods and services.
