Economists from the UK believe that even with lockdowns the economy is doing better than if there were no lockdowns at all. Some experts believe that the recession could have been 50-70% worse if the lock downs had not taken place. Even with the current lockdown they are in they believe the economy is still doing well especially since educational systems are still running and were more prepared for a possible lock down. Survey that have been conducted that working from home between the lockdowns had remained steady with a third of people not returning to their place of work in-between the lock downs. They also found that nearly 97% of adults have been adhering to mask mandates. I think it will be interesting to see in the long run the effects of countries that had multiple lockdowns verse others that had 1 or none at all.
This is an interesting take because usually in the US, a lockdown strongly correlates with a worsened economy. This might be the case with the UK because they are keeping those necessary businesses open that do create a lot of revenue even during the pandemic. Their selective closures with more research behind them, may help them in the long run to keep their economy strong. The fact that their citizens are more likely to wear masks and adhere to rules will also help them in the long run.
ReplyDeleteI think this is a valid point. Lockdowns hurt economies in the short run, but no lockdowns prolong a pandemic state. Retailers, restaurants, bars and more have to adhere to strict social distancing and small group policies. While it is good they can stay open, what they really need for revenues to pick back up is returning to "normal" as soon as possible.
ReplyDeleteI'm curious to know how their economy is still doing well with the lockdown. In the US it is as if it is the end of the world when lockdowns are put in place. I also think that it is great that 97% of the people are adhering to the mask mandates as that is what ultimately slows the spread.
ReplyDeleteIt is shocking to hear that the economy did better with lockdowns. Everything that the news tells us is that the economy can not survive if a lockdown is in place so it will be interesting to see if the UK is impacted later on.
ReplyDeleteThe UK economy is doing better probably because all the businesses must have switched online and their companies must have gotten federal aid to keep them running. The consumers like every other place, would have started consuming and increasing their spending through online. We know that if we are stuck at home, we would do nothing else but go on the internet and we know that the internet is filled with products that are being sold hence many people in the UK must be increasing their online expenditure. Since 97% of the adults are wearing masks, that means the death rate due to Covid-19 would have decreased significantly which further means that the labor force would not have decreased as much.
ReplyDelete