Morrison says support measures are only temporary 'medication' for sick economy Scott Morrison warns that government support measures are only a temporary form of “medication” for a sick economy and microeconomic reforms in skills development and industrial relations will be needed to spur growth. https://www.theguardian.com/austral...re-only-temporary-medication-for-sick-economy
Agree. Makes me wonder about the countries that did not shut down their economy or don't believe in the Pandemic... Those countries do not understand their trade relationships (capitalism) with other countries that did shut down and believed in the Pandemic. The capitalism is so globally connected that a break in the link "anywhere" causes financial problems for all those connected on that chain. Thus, a strong dose of free market capitalism only works when everybody else that were connected in prior...reconnect. Just as important, within each country, if one industry re-opens while the other industries are still closed...it still doesn't work because the link in the free market capitalism has been broken. Reminds me of the situation in the North America where states and provinces are re-opening industries (asking workers to go back to work) but the link is broken in the free market because the workers need to still stay home because their schools / daycare are still closed or there's no work to do after returning back to work. No easy answers to fix this global issue because it is global and medical/health issue. One industry or one country trying to fly solo can't make it without the capitalism from others. wrbtrader
You make a valid point but, businesses need revenues to survive. If a company breaks the supply chain of its customer businesses, you can bet your bottom dollar, those businesses will seek other suppliers able to supply its needs. It destroys trust too and that business stands to lose a good number of customers, maybe, enough to affect its viability. It is a two way street. People forget that.
Very true. A good example involves several key companies that made PPE prior to the Pandemic. Those in their supply chain shut down which then impacted the companies that made the PPE. Governments, businesses and individuals that needed more PPE were forced to go elsewhere (e.g. other countries) to get their supplies. Some even went back to the epic center of the Pandemic to get their supplies... China...a great example of the ironic aspect of this. Others, not trusting China...took over other businesses (e.g. auto plants) to have them change their plants to make PPE. I have old diaries from my grandparents and great grandparents. They talk about auto factories, bakeries, railroad manufacturers, clothing businesses being "forced" to make bombs, ammo and ammunition during the War when the supply chain had been broken for the prior businesses. On the flip side, new businesses were created, new industries were formed...its a big change of money and technology. Its capitalism. wrbtrader
Capitalism at its finest. When the dust settles, there will be a huge number of businesses flourishing because they had the vision to see what is ahead. Online businesses probably, will flourish as more businesses take their businesses online. A lot of businesses can now be run from your computer. There will be physical businesses providing the public what it needs. More competition is coming for those businesses that showed weak supply chains and cannot meet the public demand. Those manufacturing toilet paper and disinfectant sprays should be very afraid. They showed the US consumers that they cannot be relied upon. Other companies just need to step in and provide competition.