First, let me be clear what I mean when I say, I’m convinced the world will never be the same again (previous post).
I’m NOT talking apocalyptic stuff. I mean different. A little more of this, a little less of that.
It’s early days so anything specific is mere conjecture. In addition to the toll from viral infection, many of us are likely to be impacted economically and socially. Many already are.
We can see inklings of change. In our current stasis, there is big demand for fulfilling online orders, creating jobs along the path from merchandise collection from the warehouse to delivery to the customer’s door. Many small scale operations, if they provide a make-at-home product, like beer, may see demand like they’ve never experienced before. Of course, there is a huge need for medical supplies right now, gloves, face masks, ventilators and more, and manufacturers are increasing production and retooling if they can.
I suspect this will be the end of physical money. We were already on our way there, this crisis will push us faster.
Spending so much time at home, working and playing, people are likely to realize they don’t need some of the things they are used to consuming, like maybe mascara or beer in a plastic cup1. On the other hand, there may be new interests developed. I gather there is a surge in interest in home gardening, especially of vegetables2.
And then, there’s the financial markets. Some people will see a decline in their net worth due to the contraction of the stock markets. What will this do to the economy? Assuming those heavily invested are not depending on these investments to buy groceries next week, it could delay retirements, make investors cautious and slow corporate growth, decrease demand for ultra-high end goods. On the other hand, it might create an environment with investors receptive to new share issues if they perceive they are getting a discount rate. Real estate values are bound to be impacted. (Can you hear the dominos clacking into one another, creating a new configuration?)
People with stable employment will suddenly have an excess of spending money because they can’t buy basketball tickets, trips to the Bahamas, or exotic dinners out. Where will the discretionary spending go? One great idea I’ve seen is restaurant bonds. People are paying to dine in the future at restaurants whose doors are currently closed.
I’ve only scratched the surface of the potential ways the COV could change our lives. None of us know exactly where we will end up. The point is, I believe we have choices that can shape our future, and this hope is empowering.
1These suggestions are based on my personal experience.
2To avoid potential shortages in grocery stores.