The economics of a pandemic vs. Matsheka's economics :: Mmegi Online

A pandemic-induced health crisis is rapidly igniting an economic crisis with yet unknown consequences for financial stability, and all of this is playing out against the backdrop of a climate crisis, huge levels of unemployment and increasing economic and wealth inequality. This cannot be addressed as 'business as usual'.

This is the nature of the pandemic economy: In the face of the deadly COVID-19 pandemic and following the declared state of public emergency, many parts of the country will be severely locked down and the state will curtail people’s ability to move around, to shop, to attend conferences, to eat at restaurants, or to simply show up at work.

While some people will be able to work from home, there will inevitably be a very sharp drop in economic activity. The question is whether the immediate downturn develops into a prolonged slump (an economic recession) or whether it could be a tough, short period from which the economy can quickly rebound.

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