'Traces of such habits will endure long after the virus lockdowns ease, acting as a brake on demand. On the supply side, international manufacturers are being forced to rethink where to buy and produce their goods -- accelerating a shift after the U.S.-China trade war exposed the risks of relying on one source for components.''Every economic shock leaves a legacy. The deadly coronavirus will be no different.
The great depression spurred a “waste not want not” attitude that defined consumer patterns for decades. Hyperinflation in the Weimar Republic still haunts German policy.
The Asia financial crisis left the region hoarding the world’s biggest collection of foreign exchange. More recently, the 2008 global financial crisis drove a wedge through mature democracies that still reverberates, with workers suffering measly pay gains in the decade since.
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Traces of such habits will endure long after the virus lockdowns ease, acting as a brake on demand. On the supply side, international manufacturers are being forced to rethink where to buy and produce their goods -- accelerating a shift after the U.S.-China trade war exposed the risks of relying on one source for components.
In the white-collar world, workplaces have amped up options for teleworking and staggered shifts -- ushering in a new era where work from home is an increasing part of people’s regular schedule.
“Once effective work-from-home policies are established, they are likely to stick,” said Karen Harris, managing director of consultancy Bain’s Macro Trends Group in New York.
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Fabrizio Pagani, a former adviser to the Prime Minister of Italy, draws on previous shocks for guidance.
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This time around, he expects changes to everything from online schooling and distance learning to industrial strategy as existing business models are reworked.
A triple convergence of Brexit, the U.S. China trade war and now Covid-19 could reshape the world’s manufacturing supply chains, according to Michael Murphree, of the University of South Carolina’s Darla Moore School of Business.
Kathryn Judge, a financial markets and regulation expert at Columbia University, says the U.S. banking crash of 2008 has left deep scars by fueling divisive politics and declining levels of home ownership. The current crisis, as nations around the world take emergency steps to shield citizens from coronavirus infection, will have an impact too.
- Bloomberg,
Coronavirus Will Change How We Shop, Travel and Work for Years, March 13, 2020
Context(Corporate Rebels) - '..to learn how innovative businesses are changing how people work.'(CNN) - The coronavirus has officials running the world from home(Banking Reform) - 'I have serious doubts contemporary finance will pass this test .. for centuries, post-Bubble post-mortem would invariably fault the instability of “fractional reserve banking.”..'A Global Outbreak Is Fueling the Backlash to Globalization - '..seeking alternatives to making goods in China..'(Global Healing 2020 - 2050)(Fusion Energy) - Total Transformation - '..the elimination of want.'