The Great Confinement 2020: How do we get out of this?

in hive-175254 •  2 months ago 
Surely you have asked yourself this question many times in a long time, the answer you may not have or if you found it or you have some alternatives, you observe with much uncertainty and frustration that even many countries, despite their multiple attempts, the results obtained are not as expected .
Obviously, even the world is still struggling to control the pandemic and control its consequences on society, but we wonder what will happen the day after all this happens? How are we going to recover economically from this?

Source

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Global Economic Crises. Historical references

Humanity has gone through many economic crises and its impact on society has been really significant due to the consequences in the economic and social sphere, as well as in the psychological one.
The following is a reference to three of the world economic crises in history considered to have the greatest global impact:

The black Mars of October 29, 1929: the collapse of the Wall Street Stock Exchange that affected the United States and then spread to the whole world, as a consequence of the application of erroneous government policies during the 1920s, where basically taxes were eliminated and loans were granted to North American manufacturers as well as to builders and subsidies were given to private companies, creating a climate of abundance that remained very little, this climate only favored large entrepreneurs, leaving out the most people in need.

In 1929, as a consequence of excessive production, there came a time when due to the low wages of workers, supply exceeded demand, causing the closure of many companies and the dismissal of many workers.
On the other hand, agriculture suffered serious consequences due to the First World War and the United States Government did not support this sector.

Black Tuesday began on Friday, October 24, 1929 when more than 12 million shares could not be sold, resulting in the collapse of the New York stock exchange and on October 29, the worst drop in the stock exchange occurred, causing the closing of more than 5000 banks and many financial firms as well as more than millions of unemployed. The high cost of living, hunger and unemployment, as well as the terrible economic situation, unleashed countless population strikes.

Black Monday of October 19, 1987: known as The 1987 crash, considered the biggest collapse of the Wall Street Stock Exchange, when millions of investors in the stock market suddenly sold their shares, the impact was worldwide as a A month later, the world's main stock markets: Hong Kong (45.8%), Australia (41.8%), Great Britain (26.4%) and Canada (22.5%) suffered the lowest values ​​in their history.

The Global Financial Crisis of 2008: started in 2006 with the real estate bubble, therefore, in October 2007 the mortgage crisis was unleashed due to credit distrust in the financial markets of the United States, then spread throughout Europe, being considered the cause of the real estate bubble in Spain as part of the financially affected international level.

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What measures were applied?

Certainly looking for references in the history of humanity of the events that marked it at some point, is not something new, in fact it is one of the most used techniques in the area of finance.


For the purpose of this publication, I will present a summary of the measures adopted and the results obtained:
The black Mars of October 29, 1929: When Franklin D. Roosevelt was elected president of the USA in 1932 and took office in 1933.
His policy to get out of the economic crisis was based on the implementation of the following measures:
1.-Application of severe bank controls to avoid future similar events.
2.-Increase of the credits granted through the authorization of the Federal Reserve.
3.-Ban on the convertibility of dollars into gold by American citizens, only the government and banks could do it.
4.-Issuance of paper money for around 3,000 million dollars causing a devaluation of the dollar by 40%, among other.


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Black Monday of October 19, 1987: main measures adopted almost immediately were:

1.- Financial and economic support from the Federal Reserve as the nation's central bank.

2.-Repurchase of securities by a large number of companies to support demand and achieve market sustainability.



The Global Finance Company in 2008: the measures adopted at the government level were aimed at reinforcing and strengthening financial institutions and restoring trust in them.

1.- Freezing of interest on long-term bank loans.
2.-Purchase of Wall Street debt by the US government.
3.-The United Kingdom injected £ 400,000 million to the eight largest banks and construction companies.
4.-Most of the affected countries increased tariffs on exports and imports.
5.-Expansion of credits, refinancing and extension of guarantees. among others.

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Conclusion

The main objective of this publication has been to carry out a brief analysis of the referential economic crises in history, the impact of which has some similarity to the economic recession resulting from the pandemic, however, it is clearly visible that in the references cited there is no total similarity with what humanity currently lives on a global level.
However, we can highlight that the application of very specific measures related in the financial and economic field that could occasionally help or contribute to the execution of a post-pandemic plan for those countries whose affectation and economic situation is really compromised.
Finally, it is a commitment of all those who are at the forefront of the countries to direct all efforts to provide their citizens with a light at the end of the road in the face of the distressing situation that society is currently experiencing.

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The dividers are my property, divider 2 corresponding to the farewell is an adaptation of a Pixabay image with the Paint application.


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