Understanding the Economic Shock of the Covid-19 Crisis

Predicting the path ahead has become nearly impossible, but we can speculate about the size and scale of the economic shock.

Economic contagion is now spreading as fast as Covid-19 itself. Social distancing, intended to physically disrupt the spread, has severed the flow of goods and people, stalled economies, and is in the process of delivering a global recession. Predicting the path ahead has become nearly impossible, as multiple dimensions of the crisis are unprecedented and unknowable. Pressing questions include the path of the shock and recovery, whether economies will be able to return to their pre-shock output levels and growth rates, and whether there will be any structural legacy from the coronavirus crisis. This Explainer explores several scenarios to model the size and scale of the economic shock and the path ahead.

Based on the HBR article by Philipp Carlsson-Szlezak, Martin Reeves and Paul Swartz

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[spinmouth]

That flow has been severed for decades as upper managent disportionately benefits from profit. That's why the rich profit from downturns while the W-2 wage slave pays for everything and is the quickly cut from employment and medical care. CEO's get golden parachutes, real estate investors scoop up hard earned equity in favor of a flipping and rental business. Where does all this leave the traditional W-2 wage slave? Subserviamt serfs to an ivy league lead economy. Tell us what to think and do because you own the media, pay off politicians so you can get the bail outs, all the while terrified you'll lose control of the narrative. The banking cartel has been exposed. Education need not be so costly, real estate speculation need not be predatory nor compete with shelter buyers. PAC money need not determine our next presidential candidate.

[ccd]

The impact of covid 19 is not only a supply side shock, it also includes a substantial demand side shock as well which could have stronger and longer negative effects. Demand shocks may even have a bigger weight compared to supply side shocks in this case. Simply stating that the economic impact of covid 19 is mostly due to a lack of investments is grossly understating the problem. Expectations, risk aversions and decreases in income due to job losses and possible erosion of personal savings and disposable incomes due lack of incomes during shut down all constitute large demand shocks. The closure and bankruptcy of businesses also constitute a demand shock issue as well as their demand for input goods declines. It is therefore inaccurate to say that lack of investments is the underlying problem caused by covid-19 and the resumption of credit would constitute a recovery. That is why governments have been enacting stimulus packages in order to attempt to stem the effects of demand shocks.

[izdotcarter]

This is some of the most effective communication I’ve ever witnessed.

[iambarnowl]

ah yes, the old "everyone needs to do everything better" solution
very good

[sushantmmehta]

What software do you use to make the presentation

[samantathaver]

This is true test of strength of economies, economic planning and forecasting in the developed countries. It seems that these countries have taken their economic strength for granted .

[Willys-Wagon]

I am shocked by the rapid recovery on Wall Street while the crisis continues on main Street.

[ahzlaseonnicorn]

can i use this for my university task? thanks before

[drpamelatomcruise]

No one called me about that either, that's important to me it is keeping up to date on these important matters,

[teslasoul]

Economy driven by human sustansibility can be winning option

[flowertowerrr]

Thought you were trying to explain how the apple magic keyboard worked

[robertschlesinger]

A worthwhile introduction to the economic effects of the pandemic, but it is more complicated and with many variables. A depression, higher unemployment, and inflation big issues and are likely coming.

[krissdbpc]

Please also make a video on innovation metrics currently used and their flaws if any.

[joshportnoy]

Yes but what about all the industries that got wiped out, how will the economy adapt to that? It will be one major shift to the left of the labor demand curve. The supply chains will stabilize but industries will shrink. Add to that the quantitative easing...what do we have?

[untouchablex]

How do you know if someone you just met went to Harvard? Answer: He will tell you in the first 5 minutes when he's talking.

[Algeriadjamel]

Nice visuals, does anyone knows which tool is used to do such animation ?

[kevink]

Sounds like an instruction of where the capital should go.

How about taking this chance to transition into a environmental restoration based value system.

[zapatazac]

This is a great explanation but why does she sound like the announcer in the purge.

[tunggulsujarwob.archmba]

Eventhought I dont see any clear solution than theories that we have already knew, hope this video is a warming up.

Keep going 👍