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Is this a first good economic essay

‘In the Covid-19 crisis, explain the trade-off between saving lives and keeping the economy going’

Covid has affected many individuals across the globe however the government ponder on the thought whether saving lives is more important than the economic growth of countries. Before the pandemic started the economy was on a steady slope upwards, investors were ready to give shares and the economy sector was looking positive. But like any other year it depends on how the economy is looking and for the year 2020 the economic market started to plummet. The magnitude of the recession caused by the pandemic is unprecedented in modern times. GDP declined by 9.8% in 2020, the steepest drop since 1948 and the most in over three hundred years on some estimates. The economic position was dependant on multiple areas but the pandemic was uncontrollable in which the government had to adapt and respond to the latest figures.

The first recorded covid outbreak started in March 2020 shortly after the world’s economic position was under huge amounts of pressure. Boris Johnson, the UK prime minister issued the first lockdown on the 26th march, causing a correlation between deaths and the World’s economic decrease. This is because citizens weren’t allowed out of their homes causing cities such as London that rely heavily on tourism, to diminish. The lockdown ensured that all UK citizens were protected from the outbreak, which saved many lives because it stopped people encountering and passing on covid however this meant that commuters who used networks such as metro or London underground to stop travelling. A negative impact is that transport income decreased as the number of citizens traveling to and from places was prohibited, this caused peoples jobs in the transport industry to struggle. In addition, travelling abroad was banned causing air transport to stop this caused trading difficult and therefore had an effect in countries economic exporting trade. For example, Nike relies heavily on china for its production, Starbucks had to shut half of its 4,292 stores in China, and Apple has begun a search for alternative suppliers who can make up any production losses.

Countries such as China, Uruguay, and Vietnam have managed to contain the virus, others such as Brazil, India, and South Africa continue to grapple with a rise in infections this is because low-income countries have limited savings which can be used to buy protective gear to keep citizens safe however if there are no valuables to trade with other countries, they are vulnerable to an economic shutdown. It also depends on how the country is run for example the UK is a representative democracy which focuses on the needs of the people in society however some countries are suppressive leaving the citizens to suffer whilst the leaders excel. Particularly hit are tourism-dependent countries due to a decline in travel and oil exporters as commodity prices plummeted. With global trade and oil prices projected to drop by more than 10 percent, emerging market economies are likely to face an uphill battle. However due to the Highstreet shops not gaining enough income even large retail companies such as GAP, Debenhams and house of Fraser struggled to keep afloat this is because the shops where guided towards the elderly but due to the pandemic they were the most vulnerable, so the shops were unable to continue development and downsized. Contrastingly supermarkets such as Sainsburys, Waitrose and M&S where not effected, moving to online resources citizens were able to shop from home and keep safe in the heights of the pandemic whist also maintaining the economic flow.

In the early days of the pandemic certain items were in high demand this caused a huge influx in price causing people who are unable to afford products to suffer. Moreover, the crisis has hit poor people much harder, and this increase in inequality will amplify policy challenge in many countries. To counteract this problem the government issued free food parcels which included essential food to support the less fortunate class.

Over the lockdown period the UK’s small business sector crumbled because it depends on tourism this led to the knock-on effect which issued huge unemployment across the whole of the UK. The government implemented the furlough scheme which aided companies who were unable to keep up with employee’s salary demand and apply for a grant to cover a portion of their usual monthly wage. The furlough scheme extended all the way into the present day and over £64 billion has been spent on the scheme alone. A result of the government borrowing money, it becomes extremely difficult to cover the cost of that economic support when Debt rises when there is a deficit and falls in those years when there is a surplus. Working from home lead to some positives in the economic sector for example transferring to online resources encouraged people to move their businesses online reaching a wider range of audiences this is because it has further educated people who were unfamiliar with technology to feel more confident using it.

In conclusion the pandemic tested morality and business although you want to keep people safe for as long as possible the economy would crumble with the lack of tourism that flows in and out of workplaces. Still to this day it is a risk traveling to high populated areas, but businesses are dependent on the support of the public the world would be unable to support itself.

Is this a first good economic essay

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