How to recover the world economy after Covid-19 crisis

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Avatar for hooiyewlim
4 years ago

I did a video talking about it but it did not get many views on youtube, I guess it does not suit what most viewers want. It seems like a video talking about how horrible the future is easier to get viewer than the video that provides the solution.

Here is the video I do:

However, a silvergoldstacker member at Hive blockchain says I should do a vision for the world. So here is my advice for everyone in regard to how to recover the world economy.

(All advice in the post is based on personal view)

It is already a few months plus since the COVID-19 crisis, and many country economy are affected badly. I am sure everyone has come across many videos of people talking about the coming recession that will be even worse than the Great depression.
I am not here to talk about the banking system or government problem. Rather I want to present to everyone here a possible solution.

This crisis requirer everyone from the Individual level, SME level, Big company, government, and Banking sector to overcome this crisis together.

I remember this word from President Theodore Roosevelt.
"In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing."


If we continue not to find a way to solve this problem, then the economic crisis that everyone been talking will truly manifest.
I may not have a master's degree in economy or finance study, I certainly know enough to understand how things run. I also have read a lot of history relating to finance during my free time.

Let's start with what you can do at the individual level.

Individual level
Those who are still working, don't save long term! When I say don't save, I am not asking you to spend without care, rather do a short term saving to spend within a few months to get something. It will help recover the economy if trade happen between the different party.

Those who are jobless, explore need skillsets and prepared to accept a lower wage or possibility of the employer paying you in the form of cryptocurrency.

A change of mindset is also important. We are so used to think that number go up is a good thing that we begin to feel down when the number goes down.
The other way to think about deflation is now you use less money to get the same amount of thing.

Small and medium-sized enterprises
For SME , like at the individual level. Be mentally prepared as the amount of ringgit you will get from the sale of the same amount of goods will be less. Be prepared to accept another form of payment like accepting cryptocurrency and precious metal.

Have a backup plan in case the central banking fail.

Large Companies

For Big Company that are still functioning during the lockdown period, I suggest you find a way to complete the money cycle. If you have a large amount of money sitting in your saving, please spend it but do it wisely until the economy recovers. I suggest you open a new department that buys precious metal or accept different form of payment other than ringgit so that your customer able to have money continue buying your product or service. I am sure all the big company out there already have a plan on how to deal with it by cutting cost that will normally result in a lot of people losing their job or getting pay cuts. Saving is the worst thing you can do during deflation when spending is the key to recovering.

Government & Banking sector
For the Government and the Banking sector, they will need to work hand in hand. I suggest writing off debt for those involved in the production of Goods especially in those involved in basic goods. The sector that is dominated by one party should write off with T&C. which is to reduce their price. The sector that has more than one party will automatically reduce due to competition.
By reducing the cost of living, many people will have spare money to clear their loans. It is a small price to pay as the other alternative is where most of the borrower declares bankruptcy.

Decide the future yourself
I have present to you the possible solution. Will this crisis be worse than the Great depression, it will be up to each of you regardless of which sector to decide and take action.

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Avatar for hooiyewlim
4 years ago

Comments

Your article and video make possible solutions to recover world economy after Covid-19 crisis. Well, it is left for everyone concerned to work on it.

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4 years ago

Maybe the tourism sector will be able to contribute revenue to a country later. Because of the tendency to stay home at covid 19, many people are so normal that they will do the refresher as the first choice.

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4 years ago