Economic Crisis in a Global Pandemic
ㅤㅤEconomic crisis is a period of economic slowdown characterised by declining productivity and devaluing of financial institutions, and this problem is identified as the one that will became a big global issue, and might have worsen in the future. Currently, we are experiencing global pandemic that creates and will create lots of negative impacts to the society. One of it is the economic crisis. Indonesia might not experience a big change, but with a big number of patients that keep on growing every day, it may become concerning for both the society and the country itself. Taking example of tourism industry that places first as Indonesia’s economy contributor, with the ongoing situation, it will be harder to survive since most tourists are not allowed to go out from the country to prevent further complications on the current pandemic situation in the country. As a result of a low spending, the economy level in the country might experience a downturn in the future. This problem is should be prioritized, so then a huge recession will not happen overtime and the country’s currency will not have to gone through a loss of value.
ㅤㅤFirstly, regarding the situation, volatility in this problem is that there are extreme changes regarding people’s lifestyle such as staying at home, working from home, avoid physical contacts, and wear masks whenever they step out of the house. This kind of lifestyle made an impact on the economy and nearby businesses to lost their regular customers or customers on a daily basis. With that being said, the current pandemic made them experience a hard time with a lower revenue, hence businesses and corporates have to adapt with the situation who survive. Furthermore, extreme changes in currency value may happen if there are lack of spending in the society, adaptation in money exchange and export and import activities might be essential.
ㅤㅤSecondly, there are several uncertainties that concerns this whole situation, both in the pandemic situation and the economic situation. If a huge global economic crisis happens in the future because of the current pandemic, we wouldn’t know when will the pandemic ends, and when will the economy recover. This kind of virus is a new virus that was just discovered months ago, and to predict the recovery of economy, it is impossible to do so.
ㅤㅤThirdly, the complexity of the problem could lead to more problems. One of the biggest is a high unemployment. Less-skilled employees from business with lower revenue could have their contract terminated, so that the business could spend less to pay their workers. This could lead to a high rate of jobless people in the country, and it is not a good thing. In this society, getting money should be easy by working. But with the current economic crisis, it isn’t. Another problem is that economic crisis that leads to recession will impact the currency, and it is not impossible for people to spend even less amount of money. This is caused by higher price set by businesses to cover up their loss while surviving the pandemic.
ㅤㅤLastly, talking about how ambiguous this problem is, we certainly have no fast solution to this problem and we don’t know what to do. This pandemic is a new thing for all of us, we haven’t experienced this kind of stuff, makes it really hard to find ways in order to survive. Although we are capable of researching on what happens in the previous pandemic situation, it would be hard to make decision since trends have all change by itself, and we need a new method from difference perspective to break down the problem and analyze what could be the best solution for all of us.
ㅤㅤIn conclusion, since a high level of economic activities might lead to a high risk of getting in contact with the virus, it is a disadvantage for the government to save only either the pandemic or the economy. Hence, the best way that could be proposed is that both should be saved. The economy goes on, but at the same time there will be risks of getting viruses. This might sounds not convincing, but to prioritize the pandemic without having economy goes on is a huge mistake that could lead to another problem. With both things going on, there should be some strict rules and basic lifestyle that should be followed by the society, like wearing mask, washing hands regularly, wiping anything that comes from outside the house with an alcohol tissue, using hand sanitizers, and others.
ㅤㅤHowever, some people are worried of getting in contact with the virus, so they refused to go out. This can be solved too. With this kind of situation, business also need to adapt by having delivery services or opening online food delivery platform, so that people who stay at home could still buy stuff from the business. It could be food, it could be clothes, or anything that could make the business get a better financial condition. To add in, analyzing the purchase pattern of customers and conducting surveys at home in the ongoing pandemic situation is also useful for further business guides, so that it could be useful for future references. With these solutions that are offered, we hope to see a better economic condition in global pandemic today, tomorrow, and in the future.
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