This week was a phenomenon the World was waiting for. India’s measures for the COVID situation meant the global economy would also get a boost and it was the last major economy to announce any measures.There are, for all the options. two definitive ways to come out of an economic crisis. Keynesian economics tells you that the government should increase spending leading to more money in people’s hands. Friedman believed that the central bank is the most powerful element in keeping a recession away and through interest rates, the central bank should control the supply of money keeping recession away. In today’s complex world as compared to some decades ago, usually you see a mix of both. As government, announces welfare measures, it is mostly about giving owed money back to people or state governments, rather than actually increasing money in circulation. Time will show how it will work, but today’s relief could be a deep breath before tomorrow’s storm.
This week’s articles focus on the world in and beyond the Pandemic, but looks at it from very different angles. My only article on India’s response ( of which there has been enough coverage) compares the response of other economies and gives you an idea of the above theories in action. It is not the theory which I wanted to share, but the perspective that we should praise and criticise governments for the actions they take, not for the ideologies their parties stand for. We then move to other aspects of the world, including China’s ambitions in the far south, Amazon’s move to build a virus resistant supply chain, and how the coronavirus might change the world economy for good. We finish off with an article about how the internet has changed following the coronavirus and the global lockdown.
1. What do you need to do to save such a large economy which is so unstructured? The economies at a similar size or larger are very well structured to pass down benefits and money. The other problem with India is the sheer case and lack of organised sectors that makes it more challenging. How does India compare with other economies around the world ?
2. Some borders, have not yet been drawn, but by the end of the pandemic they might be. The Antarctic stands ready to be divided and as Australia and America plan to cut their budget as a result of the pandemic, you can be sure China will jump at the opportunity. This fantastic article takes you into the deep into Antartica.
3.The audacity of ambition of this man, forces me to write about the company again in a space of two weeks. But this article also zooms in into specific instances and strategies which made these companies (apple, Walmart and amazon) have a astronomic increase in the price to earnings ratio. Amazon has the money, the ambition and the courage to try and own the post COVID supply chain
4. If history has something to say, it’s usually that pandemics reduce inequality and make economies stronger. This might be an extremely unpopular article, but let’s assume for all migrant populations that return back home, away from the high cost of living of cities, a lot of people never come back. How would the world and India change? Again, sometimes the benefits are only seen in hindsight, much later. This article gives you a factual view of the impact of a pandemic on the world.
5.I had been looking for a definitive guide to how the internet is being used in this time. Sometimes anecdotal knowledge becomes fact in our head if we don’t back it up with some actual data. While remaining slightly America focused, this article covers a wide range of areas of how we use the internet is changing.