Angelo Leogrande-Suggestions for the Covid-19 Economic Crisis

Commenti a "Il Sole 24 Ore"

Suggestions for the covid19 economic crisis
1. This is a crisis. The main elements of the covid19 economic crisis are:
-reduction in Gdp Growth;
-Reduction in productivity;
-Rising unemployment
-Zero interest rates
-Low Inflation;
-Increasing in saving;
-Reduction in consumption;
2. This is not a financial crisis:
-The financial system and the banking system are not been attached by the crisis. Financial markets and banks have preserved their functionalities. This crisis is a crisis of productivity and consumption. To find some precedents of this crisis it can be useful to analyze the economic crisis during the fordism-taylorism, when reduction in productivity and consumption generated also reduction in GDP growth.
3. How to solve the crisis:
-Since the crisis is based on productivity, to solve the crisis is necessary to work more, produce more, and invest more.
4. Pratical suggestions:
-If you are rich buy an asset, interest rates are low and the price of assets is declining or at least not increasing;
-If you have an idea of business you can have a loan with low interest rates in many cases with governmental insurance;
-If you are a student, study more;
-If you are an entrepreneur buy new assets and possibly project some Mergers and Acquisitions.
In the end social and economic activism can promote a better restoration.