Skip to content

Post Covid-19 economic realities; The beginnings

It is less than a month, since the Corona virus,  as a burglar entered our life, and when discovered caused total standstill of the economy,  that seemed to be running unstoppable at full speed. Less than a month after the break out, the governments, confused, try to use the already used tool that was so helpful in the last worldwide economic crisis at 2008, started to pump unlimited money into the economy. But at these times of uncertainty, when people are locked in their homes, trying to accumulate the basic necessities as in the times of war, will it help at least to keep the economy on the pre Corona times. 

Activities as tourism that represents approximately 10% of worldwide GDP, practically ceased to exist. Since tourisme is labour intensive,  we can assume that most of the workers in this industry will drop from their work. 

But tourism is not the only economic activity that became standstill. Practically all the economic activities stopped and only those on the internet continued to function. 


My guess is, there will be no debt crisis, because all the debt is of the government. Government debt means more real money in the economy. Real money means money not from credit. Most of the money, originat from credits of financial institutions and not from the government. In the US, before the Corona the public debt was about 20 trillion US dollars, about 100% of the GDP. The stimulus of 2 trillion plus the pre Corona deficit of 1 trillion will add 15% to the financial liquidity just for year 2020. This will be happening, while the economic activity will shrink. 

But the banks at the same time gave about 14 trillion dollar credit.

At 2008, the financial institutions collapsed, and was no credit money on the market. So the governments pumped  real money into the system. It have done it through financial institutions,  so their profits inflated and the system was saved. Without this policy the real economy would collapse,  as it happened in 1929. 

Now happened a very different thing. The real economy collapsed from both, supply and the demand side. The only economic activities that continue to operate are government activities, basic products necessary for daily use, and activities that are on the internet. Surprisingly no one is complaining that his standard of living collapsed. It meant people suddenly realise, how is it to live without the culture of consumerism. I remember, how i was shocked, when i first time i heard from an American tourist the concept of shoping.  I thought,  so this is it? That’s what this culture in capitalism is all about? Yes!?! 

So maybe we are expecting a change of human behaviour. 

If before this crisis the p⁰people were considered by economists as consumer or producers, out of this crisis can emerge something else. 

One of the options is that out of it will emerge “Homo Interneticus”. That is a person disconnected from the life outside the computer. Lives in his home, in his computerised world, playing games, watching movies and serials. Communicating through Zoom or some other internet tool. 

Other option is the spiritual option.  People will concentrate in their inner self, trying to meditate, and find in their in something to connect with. 

The humanity is perceiving the purpose of life, either  in the future, or in the past. The science, as to its purpose is all future oriented or past oriented. 

Still it seems science will get a big positive push after the pandemic is gone. Hopefully, the people will understand, that the only hope to cope with the pandemics came from scientists and non of them from promoters of human made up fables, stories, mythologies, brands, marketing tricks, Gods, faiths, beliefs, institutional and noninstitutional religions, etc.

Uriel's Contemplations of our World

Welcome to my site... Many of the ideas I wrote in this blog are not my opinion- like in the 'Discussion About God'- and are not what I always feel, like in the piece 'An Existential Poem'. The reason for this blog is not to share my beliefs, but to share ideas that exist around us in the form of literature. In other times, I do express emotions that sometimes exist inside me- and inside anyone as a matter of fact. Everything here is written by the publisher of the blog. Everything here is written by the publisher of the blog.

Inverted logic

Philosophical thought from an amateur and armchair thinker. No expertise, just speculation.

Reasoning from first principles

Breaking down Mainstream news using first principles

Spirit of Cecilia

Music, Books, Poetry, Film

EugenR Lowy עוגן רודן

Thoughts about Global Economy and Existence

Adult Level Fiction

Exploring alternative narratives


Economy and society under a heterodox perspective.


The ISS Blog on Global Development and Social Justice

%d bloggers like this: