We are amid major changes in the global economy and the way we live our lives. Those of us that have lived through the currency devaluations of our countries or other major economic changes mostly understand what is to come. We have lived economic chaos before. Most Americans do not understand how lives will change due to the Corona virus. However, Americans inherently understand that life has changed. They may not comprehend it, but they know things are different. The hoarding of toilet paper proves this.
Over the next few posts – I am not sure how many – I’ll be opining about the fundamental changes to come, the opportunity some companies have to bolster their bottom lines and how the economy, both for Americans and globally will react to the chaos.
The reason I do not know how many posts is because no one knows when the chaos will end, and normalcy will return. The assumption is that in 15 days most will be back at work and life will generally return to normal. But that is unclear as evidenced by the empty shelves on grocery store shelves. Chicken and eggs are difficult to buy. Why has to do with the disruption of the supply chains which are globally integrated much to the chagrin of some.
The government is working on stimulus packages to create the illusion of stability. Money going to taxpayers and bailouts to companies. But how effective will they be? Hidden behind the illusion of government help are the realities of workers who will find themselves without jobs after the fallout is contained. There are many reasons for this, and it is something I intend to explore in the coming posts.
Obviously, the closure of the Canadian and Mexican borders has its own sets of economic disruptions but hidden in the idea of “essential” traffic are the realities. Likewise, hidden behind the proposed stimulus checks are the effects on the immigrant populations.
México for its part has either astutely responded to the chaos or AMLO’s government has fumbled the response to the pandemic. We will explore this further as more information becomes available.
What I believe, though, is that life that Americans got used to is now in the past and the future economy is now upon us. Additionally, whether the reader supports the administration of Donald J. Trump or is against him, the fact remains that for the first time in decades, Americans lost the fundamental trust that the government would protect them from the dangers facing them.
The toilet paper hoarding is proof of that.
How will Trump fair in the coming economic chaos will be experienced by us in real time.
In the end, America and the rest of the world will prevail, but with much pain for almost everyone. We will explore these issues together in the coming days.
