How the pandemic unfolded a mess and created murkier economic conditions

Friday, September 4, 2020

How the pandemic unfolded a mess and created murkier economic conditions

The world is not the same anymore. It’s not just about lifestyle changes we are experiencing, but economic decisions post the emergence of lockdown is simply baffling. The quality of life in terms of money has fallen down. Even those with spending powers have now reduced their spending because fear of uncertainty has crept in. 

Photo by Khoa Võ from Pexels

It doesn’t matter which economic class you belong to, the economic mess is there for everyone to see and experience first hand. Just imagine what someone staying in a rental home in a city like Mumbai, or in any other cosmopolitan city has to endure when he is left with no job, or unpaid salary for months. Imagine his mental state, and how will he manage himself.  

The loss of jobs, and the way small businesses have suffered for such a long period of time is the debate that will remain a hot topic in times to come. The lockdown, though, was necessary, but the price everyone paid for it is hard to comprehend. With shops shut and money not changing hands, there is now a complete manufacturing halt.

Now look at the auto sector, the dealers in some towns have stocks left, the bikes, the cars and even commercial vehicles such as trucks are lying under the dust. There’s not much selling happening. When the situation is so grim, you can understand the reason why auto companies are reluctant to manufacture any new ones.

The slump in the manufacturing sector has led to the rise in unemployment. There is a long list of those who are associated with the manufacturing sector, which includes technicians, laborers who do basic work, and off-course the sales and the marketing team. 

Who is going to look after their families? 

Covid-19 has come out of no where, and fallen on us like a huge bomb, and its effects are probably even more than what a bomb could have done. Take a case study of a tea garden-

there are more than 3000 workers on the payroll. The work stopped as soon as the lockdown started, and therefore no revenue came out of the garden. The leaves were left to fend for themselves. The factory got closed down, therefore, processing could not take place, and the leaves perished.

The work did not began for 4 months, and thus no revenue. Some gardens paid the dues, but many couldn’t continue paying the full amount to the staff. Reduced salaries meant less spending. 

Nearby shops that depend upon these tea garden workers for consumption of their own shop products suddenly find reduced cash flow. This has compounded the problems in the rural sector. The cycle is endless and the reduced consumption has created an enormous problem because less rural spending finally effect the chain in the urban belt, as the chain stretches far and wide to urban cities.

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