How London School of Economics Sees the Post-Virus Economy

Apr.29 -- London School of Economics Director Minouche Shafik outlines potential economic changes for the U.K. and global economy following the coronavirus pandemic. She speaks with Bloomberg’s Francine Lacqua on "Bloomberg Surveillance."

[adrianont]

Why Bloomberg reporters always interrupt their subjects when the interesting answer is being said?

[faustoc]

"That will need taxes to raise to pay for the social insurance"
The alleged journalist talked over the economist so she couldn't talk more about taxes for paying for social insurance.
She showed her class reactionaryism

[Radnally]

Interest rates near zero. Look at economies that have had this. Huge debt loads and aging demigraphic.recipe for a long Stagnation.

[shreedhar]

You know what would be interesting? A research study that is more like a competition where a number of groups are assembled, with economists, CEOs, financial analysts, etc. in each, who then come up with their own future scenarios for the global economy and the resulting consumer trends over 1, 5, 10- years periods. And then, the world gets to see how those scenarios fare in real world markets.

[rudynathan]

Don't mention taxes, guys. Especially not for the rich!

[rjw]

"We have nothing to fear, but fear itself" - I see a lot of frighten people. At least in Germany the flu season of 2017/2018 did cost 20.000 lives - but no one noticed. Now we have 6.000 people that died WITH Covid-19 (NOT FROM IT) and 90% are in panic... If it wouldn't be so tragic, I'd say "This is the greatest social experiment I've ever seen on how to create a mass panic" - The damage done by this panic will dwarf what the virus did.

[vaughanlockett]

The taxes will be raised to pay off the QE that paid to keep your stock bubble floated . Expect 30% plus unemployment, people moving out of cities, housing portfolio collapse. As renters cannot pay .

[ryarod]

I object to the interviewer's interruption of the professor's answer. I want to downvote the video because of it.

However, the professor has my respect. I shall up-rate this so more people will see and hear her- and witness first hand the reporter's unacceptable interruption.

[johnwang]

So the difference will be companies will ask for taxpayers money to allegedly re-shore the supply chain through automation thereby reducing employment overall... The sooner we mitigate this with UBI, the better.

[geralldus]

Interesting interviewee, don’t know if we need the interviewer.

[bishopevan]

As i have found with most of the Economists around the world, she is only offers commentary
On what we already know and what is already happening & really has know idea of what will happen.

[RightOne]

I suspect Automation arriving on a massive scale. That is the only compromise between keeping jobs at home and keeping prices low.

[rkara]

One of those structural changes is the way in which we manage our sociopolitical or economic affairs or requests for goods or services.

As a society or people we are still relying on the financial supply chain or linear system to manage our requests for anything from accessing food to building a new house.

The pandemic is showing us that the financial supply chain or linear system, can't scale to serve all human requests, all of the time.

That makes sense, because the financial supply chain is actually a service or business (constant) and not a request or customer (aggregate).

A better way to manage "human" requests is to delegate the responsibility for managing or aggregating the request to a computer or Turing machine, and let people or businesses be the service or constant in the system.

For example, if a person was hungry and isolated at home with the Corona virus, they could register with the website (computer) and create a request for some food. A food store owner could register as a service in the system and subscribe to the request and ask the person what food they wanted? The food store owner could gather the food from their store and scale the request by creating a sub-request for a healthcare worker to help with the delivery of the food. The healthcare worker could scale the request again, for a delivery service and accompany the delivery service and be the person that actually delivers the food to the infected person.

In the above example, the website (computer) is scaling or delegating the responsibility of managing the request to four different people, business or supply chains. The civilian, food, healthcare and logistics supply chain.

This type of system is circular and not linear because there is no longer a single supply chain managing the request.

!DA

[shanjanusman]

The only way out of this is to have more production at home not overseas. The ideology of Urbanisation, Outsourcing and Globalisation has failed miserably.

[b-manz]

We have done enough globalisation. Localisation is the new thing because it keeps your neighbours income coming in.

[GlobalPenguin]

It seems like every country for themselves

[johngrear]

Hang on - "Worried about deflation because of what's happened on the supply side"? Besides oil, supply has been cut so overall this would be inflationary in addition to a mountain of money printing - You know, more money chasing fewer goods.

[lukdelboo]

Do this economists go shopping? Here in Belgium, shops opened yesterday. Huge piles of good lie waiting for customers who are too afraid to come out of their houses. No more tourism, airplanes, luxury goods, cars, .. for years to come. The idea that everyone goes back to normal once things open up is a fantasy. GDP is halving in 2020, I don’t see how this does not end in chaos. More concrete: electricity goes down because of negative prices, the internet goes down because of over-use. Our civilisation has simply come to its end

[meathead]

When Mrs. Shafik says "Much of the global supply chains will be changed, it will be localized". How much? 1%, 5%, 50%? What is "much". I doubt we go back to a local economy à la anno 1650. So how much will be localized? I find this argument has so little substance I am shocked it is repeated here by an academic without any detail at all.

[MrSpringooo]

Minouche is right, this shock will lead to a tectonic shift in the global economy, the psychology of markets will transform into something we have never witnessed in all the after-maths happened before. And I believe a more paternalistic policy making approach may take shape.