The economic risk of corona virus is much greater than that of public health. The most dangerous thing that threatens people is that Corona may prevent them from going to work because their managers consider them to be surplus or because of the bankruptcy of the interests in which they work.
Trillions of dollars fell from the money market this week due to the spread of the Corona virus, but this is just the beginning unless the governments of the world intervene, as Omar Hassan, an economist specializing in economic development, confirms in an article published in the British newspaper The Independent, and if US President Donald Trump continues to falter in his handling of the crisis, he has lost The crisis affects his chances of winning a second term in the expected elections. Joe Biden considered that the Covid-19 virus is a sign of Trump’s weakness, stressing that his country needs “stable and promising” leadership that addresses America’s needs at this moment.
To this hour, the Corona virus has claimed 4,389 lives worldwide, including 31 in the United States of America, but it is certain that the lives of millions of people will falter especially in economic terms, as its spread has been accompanied by a storm in the stock exchanges of the world, and the Petrodollar war between Russia and Saudi Arabia due to oil and its production ceilings. , And the return of the threats of a million-dollar migration wave from Syria to the outbreak of fighting in Idlib.
Small businesses in particular are struggling to survive as supplies dry up, leaving these interests bare of the materials they bind. This is mainly due to the stopping of the export movement from China, which is the largest exporter and the third industrial power in the world, and thus we return to the Greater China problem – the problem of everyone today – which is the trade war between Beijing and the White House, according to what the writer went to in his article in the British newspaper.
Omar Hassan, who specializes in economic development, considers that most governments in the world view Corona as a health crisis, not an economic crisis, and the fact is that the time has come for economists to take the lead from doctors, especially since the epidemic is global.
One cannot imagine Italy (the ninth economy in the world) without seeing it in the grip of deflation. It is also difficult to imagine that the economic relationship between Europe and the United States will be affected by this epidemic, and it is impossible to exclude the possibility that this will add to the great downturn that afflicts the world unless governments move faster and with more determination than they were 12 years after the major economic crisis in 2008.
The stakes are much greater today; especially as the apparent indication of concerted efforts to harm several western countries and to distance them from Trump’s offensive trade policies that he is enthusiastically pursuing to implement.
Although China has borne the brunt of the Corona virus on the economic and human side, many in Beijing believe that a weakening relationship with the US economy will be a relief from Trump’s trade wars that never appear on the horizon.
In conjunction with the Corona virus crisis, an oil war broke out between Russia and Saudi Arabia, and so far it appears that the two countries can shoulder the burdens of declining prices, which reached 30% within a short time, but it is likely that the American fossil oil industry will not bear such a decline, because the high costs of this industry will be lost money With the accelerating oil price collapse, the United States will not be able to move forward with the fossil oil industry. Next in the United States may be a contraction in the fossil oil industry, a reduction in its factories and offices, and the abolition of many jobs, which could cause a contraction at the state level.
President Trump supported his country’s economic situation through tax cuts that he imposed on outstanding salaries and paid workers every hour of work – measures that will help employers and employees alike stay. In the UK, Chancellor Rishi Sonak today unveiled the “Corona Virus Budget”. But everyone should broaden their thinking if they seek to properly deal with how this emergency component of the status quo changes around the world.