Economic impacts brought on by COVID, One nation is doing well from it

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(Edited)

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Good morning everyone I hope you're all well and safe, it's Monday and the commencement of the economic week. It's an odd establishment isn't it. That no matter where you are in the world we have adopted the same 9-5 Monday to Friday 5 day working week. Though it is impacted by time zones it is the universal or at least global standard.

Stability is the reason, in order for mechanisms and systems to work they need to be stable, non truer than economic conditions. We know that this extends to humans and their behaviour also which is why housing is such a vital thing for everyone. Without a safe place to live people can not function. Yet this most basic principle is often overlooked as we have a growing global housing crisis. Many are left without their basic need being met.

Sex also gets a special mention as a basic human need, as someone who commenced my education in social work and branched off into other fields I'm well skills in human development focusing on Maslows hierarchy of needs and Freud's 8 Stages of human development.

These basic principles has served me well over the years and can be applied in a range of ways. You'd be surprised to know how much we are all really alike and depending on where we sit on the developmental spectrum is what the associatiated need.

Fear, Uncertainty and Doubt (FUD)

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I raise FUD and developmental stages in today's post for a few reasons as they both played a key role in economic damage through the pandemic.

Something I long theorised was that the pandemic itself wouldn't cause economic change so long as businesses pivoted. At the time I was leading a project in the business sector which I did throughout the pandemic. A common issue I was coming across was peoples inability to pivot their business.

In part I don't think a lot of people wanted to or knee how, a large part of my role was to get in there and help them do it. It was successful for many who engaged.

The thing with economies is to remove ones thought of ownership over money. We don't own it, it is government tender and it requires the continued circulation for it to be successful. The real danger that economies faced was that people got scared and stopped spending. This in turn would cause a lock down of the economy. It didn't need to be, it was only the health sector that was being impacted and required a shift in how humans engaged and converged which allowed that fiat to move about and continue circulating.

Naturally, I was seen as the idiot in the room as always on my projects but I was right. Plenty of research is now coming forward stating that the pandemic didn't cause economic damage it was people and FUD.

You can read abit more about it Here

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While we were locked down we got bored, really bored so we spent more, we also went looking for more things to spend on but businesses were slow to react so supermarkets got the brunt of our cash as we looked for things to do, mainly eat and try new recipes.

In fact when an assessment was done against nations that went into hard lock down and those like Sweden that let it rip, Sweden's economic performance was poor. It's economy performed only a little better than New Zealand whom had one of the harshest lockdowns on the planet.

Thats because lockdowns don't cause economic damage, money doesn't know or care about a lock down. It's people's FUD. In fact it will be harder to return to economic growth after lock downs unless we focus on addressing the FUD.

Economic Growth

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But there was one nation that did well through the lockdowns, my own. Australia. We went in for a hard 8 month lock down, many called that it was too extreme but it enabled certainty. Nothing was more certain than us being in lock down for 8 months and not being able to exceed 5kms.

In fact this certainty ensured local economies boomed as local traders remained open but for take away only and delivery.

People were out more and engaging their families more. Many local politicians are now seeking ways to ensure this economic boom remains local. My wife is currently campaigning for decentralisation of government services by establishing local hubs.

Big wages of public servants and high in come earners transformed local traders that had to put on more staff. Australia is also one of the poorest performing nations in decentralisation, UK, America and many other nations have better decentralisation models.

Exports

Iron Ore is a key commodity, everyone needs it to make things and Brazil is one of the cheapest sellers of Iron Ore but as they went into a shut down of iron ore mining this left a hole to fill globally. Where Australia saw a decrease in international tourism we saw an 8% increase in iron ore exports exceeding $100 Billion for that period.

Food production was also up and we all know how well toilet paper went 🤣.

Human behaviour causes economic barriers

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So in the end lock down didn't cause economic damage, nor did the pandemic or any of its issues. It was humans and our behaviours, people at different developmental stages and level of wealth all automatically being chopped down and put into the same basket.

This in turn created a massive bout of fear, uncertainty and doubt. It even caused a crash in the price of Bitcoin and Ethereum as people dumped for cash as they feared the sectors would collapse.

Quite an interesting combination of issues that arose solely based on humans. Makes you wonder, is any of it even real?

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So in the end lock down didn't cause economic damage, nor did the pandemic or any of its issues. It was humans and our behaviours,

Interesting. I never thought about it like that before but it makes sense.

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