Coronavirus – will it bring the world to a disaster
In many countries, we see the Coronavirus has resulted in most events being cancelled for the next few months.
People are staying at home.
A result of this will probably be a lot cleaner air as people do not travel much.
Burglary will and other crimes should reduce, as people are unlikely to break into houses when people are at home. And if less people are on the streets it should mean less assaults and other such crimes.
However as people do not go out, most non food shops will see a big reduction in sales. The result will be shops, and indeed restaurants and so on will close, and people start to loose there jobs.
Hairdressers will probably see fewer clients.
Dentists may see fewer people.
Hotels and holiday firms, few bookings, with the big knock on effect that has.
Planes having few customers, so flights get cancelled, and the firms face shutting down.
And people loose there jobs, they will spend less.
Others will spend less as they too may fear loosing there job, or if self employed, fear there business will fail.
Businesses too will face problems as staff do not turn up to work, as they are sick, or looking after family members who may be sick, or children who have been sent home.
We may see fewer drivers, who can deliver goods around the country.
The result would push the country into a recession.
House prices may start to drop, as people no longer will be wanting to buy.
If the elderly die, this will mean houses vacant, with relatives who have inherited the house, unable to sell. The increased number of vacant houses will also add to the price of houses falling.
In the USA I believe you can hand your house back if you cannot or do not want to carry on with mortgage payments. However, in the UK, people may find they are unable to pay the mortgage (due to loosing a job for instance) on property now worth far less than they paid for it.
The Keynes model of paying people to did holes, may help slightly. By this, we will be paying police, teachers,solders, council workers, NHS staff (UK), vie the local council/government. These jobs are secure as much as it it possible to secure a job. As such, those who are employed this way, have less fear of being unemployed, and as such, should carry on spending, and as such, the knock on effect is, they will help keep business running, though the impact may not be sufficient enough to save the businesses going under.