Rebuilding the economy after COVID-19
History is being written as we speak. We are at the early stages of the coronavirus crisis, while doctors and scientist are fighting for the lives of infected people, we entrepreneurs need to step up and help “cure” the global economy from the hit it is about to take.
As you know half of the world is being cancelled as we speak for months ahead. People from nearly every industry are loosing money at a record pace and that is just the beginning. In the following months hundreds of thousands of people are going to lose their jobs as their employers are trying to sustain their businesses during the quarantine and recession. Consumers are going to cut back on their expenses and the global economy will experience, perhaps, one of the biggest recessions in history.
The coming economic depression
This economic recession, or potentially depression, is unlike anything we have seen. It has the element of an economic crisis on a global scale like what we experienced in 2008, but it also has the element of fear for one’s life like the one the world felt after 9/11 in 2001. Similarly to the aftermath of 9/11, the world could have hardly anticipated the coronavirus outbreak, let alone it having such an impact on a global scale. But let’s not dwell on what led to our current situation, as it has been all over the news for the past month, but let’s look at the future and see what we could do next.
The economy is being restructured as we speak, don’t be deluded by assuming the world is just slowing down and things will pick up once life goes back to normal. Don’t fall for the trap of thinking that this is a global “holiday”, when we are all excused to relax and be lazy just because the world and our competitors are slowing down. I’m not undermining mental health in a moment like this, but often mental health is being mistaken for laziness. So before you self-diagnose yourself, do a reality check and make sure you respond adequately, ensuring yourself more stability once the dust settles.
The good news is that times like this catalyze the creation of new technology – technologies that will create a better world, similar to what happened after the World War II during the increased tension between the United States and the Soviet Union. As a result some of the greatest technological advances in history were created, which reshaped our entire world.
China is maneuvering for global leadership, industrial markets are being shattered while digital ones strive like never before. This global pandemic might prove to be the first of many to come in this century, which means many lessons must be learned today in order to be better prepared for the next world health crisis. Worldwide leaders were embarrassingly ill-prepared for a pandemic like this. Emergency legislations are being “freestyled” day by day only to be completely dismissed later on as they prove to be ineffective, thus worsening the situation and increasing the need for more adequate leadership.
Global orders have historically shown to have the tendency of changing gradually at first, only to later be altered all at once. It might seem the matters of health and safety should come first in hand, however, in the long term they will prove to be only consequential to geopolitical implications and readjustments in global leadership positions. This will mark a very unique chapter in history books.
This is when capitalism really shines! Rebuilding the economy will require building a new infrastructure to meet the demands of a different reality and do that by looking into the future rather than trying to recreate the past. This way entrepreneurs will create new jobs, thus creating stability in the economy.
Why are entrepreneurs better suited for rebuilding the economy? For one, they are used to working under a great deal of uncertainty, entering new markets or creating new industries is what they do. Visionaries, innovators and investors have the mindset and resourcefulness, not limited to financial one, that has the capacity to reshape the world and prepare it for its new future. Entrepreneurs have the ability to harness opportunities, succeed and thrive under shortages, which will serve as a powerful engine of growth for the economy. Practically, the blueprint of being an entrepreneur is what underlines success stories during times like this.
This crisis will create new industries and will further boost many like: medical AI, virtual reality, internet-based industries, autonomous vehicles, computer science and engineering, robotics and many more. What other industries do you think will thrive after this historic economic lull and world shift?