Economic impact of Corona-virus(Covid-19): The other side of the coin.
We, the normal people, always think about one side of the coin; though there is always a back side of the coin. We all, right now, encounter the severe effect of Covid-19 on our daily life. Everything is halted and most importantly our economy is dwindling.There, in this situation, may be a recession coming. This is one side of the coin what we are thinking right now but there is, as I mentioned earlier, always a back side of the coin which I would call “Economic Mismatch”, my main concern of that article. Let’s examine the nuances between upcoming recession and Economic Mismatch.
A recession is a situation where inflation-adjusted per capita GDP declines and downturn of the economy is backed up by the weakness in industrial production, trade, capital flows, oil consumption and unemployment. And all of these macroeconomic indicators are influenced by economic shocks.
The economic shocks may happen by the effect of Covid-19. Because of Covid-19, people are quarantined in their house and maintain “social distancing”. Social distancing affects economic activity such as tourism, retail trade, restaurants, office work etc. which involves physical interactions among people. As an evidence WTO said, “The dollar value of world merchandise exports fell by 3% to $18.89 trillion”. Also there is a presage that the aggregate supply will precipitate, as the global supply chain is severely affected, consumption, backed by income will fall, hence aggregate demand(AD) will decrease, which further induces unemployment. In a nutshell, the whole economy will be foundered into a great recession. But what’s happening on the back side of the coin.
As I have mentioned earlier, those economic activities are affected which involves physical interactions and those are unaffected which doesn’t require physical interactions. That is why the business of Netflix, Amazon, which doesn’t require physical involvements, is booming and that of restaurants, hotels, retailers and tourism are slumping. And this inequality causes “Economic mismatch”. An Economic mismatch occurs when one side of the economy is booming and the other side is slumping. Here the problem induced by Covid-19 is not a general drop in Aggregate demand, rather It is a problem with Economic mismatch.
Let’s see, for example, how market valuation of Netflix increases within March.
As the evidence shows, there was a nadir in December 2018 with a market valuation of $107 billion, though in September 2019 It’s $115 billion, and surprisingly within March 2020 It went up to $162 billion. The fact illustrated above is backed up by “Social distancing”. The more people are quarantined, the higher the rate of time they spend on online. Hence, the revenue of these economic agents increased at a higher rate with Covid-19. But the scenario, depicted above, is not plausible in our country, Bangladesh. The reason behind it is the users of these online economic agents.
Let’s examine the graph below to see the apparent paradox.
We, from the graph above, see that most of the users of Netflix are from Australia, UK, Brasil, Canada, Germany, France, Spain, Japan, Netherlands, Mexico and USA(which is not shown in graph). That means Netflix is often being used by the citizens of developed countries, where the effect of Economic mismatch is severe. As the users in Bangladesh are apparently low, the Economic mismatch may happen or may not happen.
In a nutshell, we, in spite of apparent paradox, can say that the effect of Covid-19 will cause a severe recession with Economic mismatch; which I mentioned as the back side of the coin.
So what measures should a government take to encounter the Economic mismatch?
Governments in many countries have taken fiscal measures to palliate the pandemic's economic impact. For example, the government in our country has already pledged to provide $90 million-6.9% for apparel manufacturers. But such initiatives will not help address the problem of Economic mismatch. Indeed, the government, in order to take on the underlying problem and find a solution, should devise a schism of economic activity in two sides; one side which involves physical interactions and the other side which doesn’t involve physical interactions. After the schism, the government should finance the adjustments needed to get over the Economic mismatch and provide appropriate goods and services to support the people who involve in the physical interactions’s work, such as restaurants, hotel, tourism, retailers etc.
Comments
Essay evaluations by e-grader
Grammar and spelling errors:
Line 1, column 258, Rule ID: SENTENCE_WHITESPACE
Message: Add a space between sentences
Suggestion: There
...st importantly our economy is dwindling.There, in this situation, may be a recession ...
^^^^^
Line 1, column 589, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
...coming recession and Economic Mismatch. A recession is a situation where inflati...
^^^^^
Line 5, column 410, Rule ID: SENT_START_CONJUNCTIVE_LINKING_ADVERB_COMMA[1]
Message: Did you forget a comma after a conjunctive/linking adverb?
Suggestion: Also,
...e exports fell by 3% to 8.89 trillion”. Also there is a presage that the aggregate s...
^^^^
Transition Words or Phrases used:
also, apparently, but, hence, if, may, so, as to, for example, such as, in spite of
Attributes: Values AverageValues Percentages(Values/AverageValues)% => Comments
Performance on Part of Speech:
To be verbs : 34.0 13.1623246493 258% => Less to be verbs wanted.
Auxiliary verbs: 15.0 7.85571142285 191% => OK
Conjunction : 22.0 10.4138276553 211% => Less conjunction wanted
Relative clauses : 20.0 7.30460921844 274% => Less relative clauses wanted (maybe 'which' is over used).
Pronoun: 32.0 24.0651302605 133% => Less pronouns wanted
Preposition: 89.0 41.998997996 212% => Less preposition wanted.
Nominalization: 17.0 8.3376753507 204% => Less nominalizations (nouns with a suffix like: tion ment ence ance) wanted.
Performance on vocabulary words:
No of characters: 3860.0 1615.20841683 239% => Less number of characters wanted.
No of words: 718.0 315.596192385 228% => Less content wanted.
Chars per words: 5.37604456825 5.12529762239 105% => OK
Fourth root words length: 5.17643912491 4.20363070211 123% => OK
Word Length SD: 2.98197709023 2.80592935109 106% => OK
Unique words: 345.0 176.041082164 196% => OK
Unique words percentage: 0.480501392758 0.561755894193 86% => More unique words wanted or less content wanted.
syllable_count: 1175.4 506.74238477 232% => syllable counts are too long.
avg_syllables_per_word: 1.6 1.60771543086 100% => OK
A sentence (or a clause, phrase) starts by:
Pronoun: 6.0 5.43587174349 110% => OK
Article: 14.0 2.52805611222 554% => Less articles wanted as sentence beginning.
Subordination: 10.0 2.10420841683 475% => Less adverbial clause wanted.
Conjunction: 6.0 0.809619238477 741% => Less conjunction wanted as sentence beginning.
Preposition: 8.0 4.76152304609 168% => OK
Performance on sentences:
How many sentences: 38.0 16.0721442886 236% => Too many sentences.
Sentence length: 18.0 20.2975951904 89% => OK
Sentence length SD: 60.6567245006 49.4020404114 123% => OK
Chars per sentence: 101.578947368 106.682146367 95% => OK
Words per sentence: 18.8947368421 20.7667163134 91% => OK
Discourse Markers: 2.18421052632 7.06120827912 31% => More transition words/phrases wanted.
Paragraphs: 11.0 4.38176352705 251% => Less paragraphs wanted.
Language errors: 3.0 5.01903807615 60% => OK
Sentences with positive sentiment : 7.0 8.67935871743 81% => OK
Sentences with negative sentiment : 15.0 3.9879759519 376% => Less negative sentences wanted.
Sentences with neutral sentiment: 16.0 3.4128256513 469% => Less facts, knowledge or examples wanted.
What are sentences with positive/Negative/neutral sentiment?
Coherence and Cohesion:
Essay topic to essay body coherence: 0.280530638706 0.244688304435 115% => OK
Sentence topic coherence: 0.0691727514315 0.084324248473 82% => OK
Sentence topic coherence SD: 0.0750809249259 0.0667982634062 112% => OK
Paragraph topic coherence: 0.103252926078 0.151304729494 68% => OK
Paragraph topic coherence SD: 0.0803949289084 0.056905535591 141% => OK
Essay readability:
automated_readability_index: 13.4 13.0946893788 102% => OK
flesch_reading_ease: 53.21 50.2224549098 106% => OK
smog_index: 8.8 7.44779559118 118% => OK
flesch_kincaid_grade: 10.3 11.3001002004 91% => OK
coleman_liau_index: 13.92 12.4159519038 112% => OK
dale_chall_readability_score: 8.4 8.58950901804 98% => OK
difficult_words: 176.0 78.4519038076 224% => Less difficult words wanted.
linsear_write_formula: 11.0 9.78957915832 112% => OK
gunning_fog: 9.2 10.1190380762 91% => OK
text_standard: 9.0 10.7795591182 83% => OK
What are above readability scores?
---------------------
Maximum five paragraphs wanted.
Rates: 67.4157303371 out of 100
Scores by essay e-grader: 4.0 Out of 6
---------------------
Note: the e-grader does NOT examine the meaning of words and ideas. VIP users will receive further evaluations by advanced module of e-grader and human graders.
Grammar and spelling errors:
Line 1, column 258, Rule ID: SENTENCE_WHITESPACE
Message: Add a space between sentences
Suggestion: There
...st importantly our economy is dwindling.There, in this situation, may be a recession ...
^^^^^
Line 1, column 589, Rule ID: WHITESPACE_RULE
Message: Possible typo: you repeated a whitespace
Suggestion:
...coming recession and Economic Mismatch. A recession is a situation where inflati...
^^^^^
Line 5, column 410, Rule ID: SENT_START_CONJUNCTIVE_LINKING_ADVERB_COMMA[1]
Message: Did you forget a comma after a conjunctive/linking adverb?
Suggestion: Also,
...e exports fell by 3% to 8.89 trillion”. Also there is a presage that the aggregate s...
^^^^
Transition Words or Phrases used:
also, apparently, but, hence, if, may, so, as to, for example, such as, in spite of
Attributes: Values AverageValues Percentages(Values/AverageValues)% => Comments
Performance on Part of Speech:
To be verbs : 34.0 13.1623246493 258% => Less to be verbs wanted.
Auxiliary verbs: 15.0 7.85571142285 191% => OK
Conjunction : 22.0 10.4138276553 211% => Less conjunction wanted
Relative clauses : 20.0 7.30460921844 274% => Less relative clauses wanted (maybe 'which' is over used).
Pronoun: 32.0 24.0651302605 133% => Less pronouns wanted
Preposition: 89.0 41.998997996 212% => Less preposition wanted.
Nominalization: 17.0 8.3376753507 204% => Less nominalizations (nouns with a suffix like: tion ment ence ance) wanted.
Performance on vocabulary words:
No of characters: 3860.0 1615.20841683 239% => Less number of characters wanted.
No of words: 718.0 315.596192385 228% => Less content wanted.
Chars per words: 5.37604456825 5.12529762239 105% => OK
Fourth root words length: 5.17643912491 4.20363070211 123% => OK
Word Length SD: 2.98197709023 2.80592935109 106% => OK
Unique words: 345.0 176.041082164 196% => OK
Unique words percentage: 0.480501392758 0.561755894193 86% => More unique words wanted or less content wanted.
syllable_count: 1175.4 506.74238477 232% => syllable counts are too long.
avg_syllables_per_word: 1.6 1.60771543086 100% => OK
A sentence (or a clause, phrase) starts by:
Pronoun: 6.0 5.43587174349 110% => OK
Article: 14.0 2.52805611222 554% => Less articles wanted as sentence beginning.
Subordination: 10.0 2.10420841683 475% => Less adverbial clause wanted.
Conjunction: 6.0 0.809619238477 741% => Less conjunction wanted as sentence beginning.
Preposition: 8.0 4.76152304609 168% => OK
Performance on sentences:
How many sentences: 38.0 16.0721442886 236% => Too many sentences.
Sentence length: 18.0 20.2975951904 89% => OK
Sentence length SD: 60.6567245006 49.4020404114 123% => OK
Chars per sentence: 101.578947368 106.682146367 95% => OK
Words per sentence: 18.8947368421 20.7667163134 91% => OK
Discourse Markers: 2.18421052632 7.06120827912 31% => More transition words/phrases wanted.
Paragraphs: 11.0 4.38176352705 251% => Less paragraphs wanted.
Language errors: 3.0 5.01903807615 60% => OK
Sentences with positive sentiment : 7.0 8.67935871743 81% => OK
Sentences with negative sentiment : 15.0 3.9879759519 376% => Less negative sentences wanted.
Sentences with neutral sentiment: 16.0 3.4128256513 469% => Less facts, knowledge or examples wanted.
What are sentences with positive/Negative/neutral sentiment?
Coherence and Cohesion:
Essay topic to essay body coherence: 0.280530638706 0.244688304435 115% => OK
Sentence topic coherence: 0.0691727514315 0.084324248473 82% => OK
Sentence topic coherence SD: 0.0750809249259 0.0667982634062 112% => OK
Paragraph topic coherence: 0.103252926078 0.151304729494 68% => OK
Paragraph topic coherence SD: 0.0803949289084 0.056905535591 141% => OK
Essay readability:
automated_readability_index: 13.4 13.0946893788 102% => OK
flesch_reading_ease: 53.21 50.2224549098 106% => OK
smog_index: 8.8 7.44779559118 118% => OK
flesch_kincaid_grade: 10.3 11.3001002004 91% => OK
coleman_liau_index: 13.92 12.4159519038 112% => OK
dale_chall_readability_score: 8.4 8.58950901804 98% => OK
difficult_words: 176.0 78.4519038076 224% => Less difficult words wanted.
linsear_write_formula: 11.0 9.78957915832 112% => OK
gunning_fog: 9.2 10.1190380762 91% => OK
text_standard: 9.0 10.7795591182 83% => OK
What are above readability scores?
---------------------
Maximum five paragraphs wanted.
Rates: 67.4157303371 out of 100
Scores by essay e-grader: 4.0 Out of 6
---------------------
Note: the e-grader does NOT examine the meaning of words and ideas. VIP users will receive further evaluations by advanced module of e-grader and human graders.