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Economic Effects of COVID-19
The article gives the economic effect of Covid-19 to the economic markets. The author projects that explain that at the beginning of the year, investors were hopeful and were hoping to reap from the 11-year bull market. However, with the onset of the disease markets recorded losses within the first few weeks that the WHO ruled the disease out as a pandemic. The market is volatile such that investors cannot predict how long the situation will last. The use of pathos, logos, and ethos help in making the article persuasive.
Summary
Notable, as of the first of April, there were 900,000 cases of the disease, and with the death toll being more than 44,000 people. The recovery rate is slow, with only 185,000 recoveries. China, which was the hotspot of COVID-19 quarantine, approximately 600 million of its people in their homes at the beginning of the outbreak. This assisted in the reduction in the transmission rate of the disease, which other countries have used to manage the disease. While China has been able to control the pandemic, it has moved to Europe and the United States, where the cases are increasing daily (Menickella). Large sections of the global economy have been affected as countries struggle to deal with the disease. However, the bright spot is in the pharmaceutical industry where there has been an increase in demand for masks, test kits, and other medical products. This is an isolated case given that most sections of the economy have been affected. The author gives an example of how companies such as Nike have been affected by the pandemic. Nike relies on China for production, given that it offers cheap labor. Apple, which relies on the Chinese cheap labor, has had to look for alternative suppliers so that the production process is not halted. The travel industry has also taken a hit as people as quarantined and this can hardy travel. Business conferences such as The Inspired Home Show in Chicago have had to be cancelled. The show attracts more than 60,000 participants and all have been forced to cancel amidst the fears (Menickella). The United States has had to cancel 10 percent of its domestic flights and 20 percent of international flights as people continue to practice social distancing. The author also gives the future of the markets and what investor should don amidst the uncertainties. The recommendation given is that investors need to consult financial advisors so that they do not make decisions which will make them lose more. The prediction is that China’s economy will grow at a slow rate and have 800 billion dollars in bad loans
Use of Pathos, Logos and Ethos
The author uses ethos in making the article persuasive. This is seen through the use of up-to date data on the devastating effects of COVID 19. Particularly, the author gives recent statics dated on 1st April explaining the number of people who have contracted the virus and those who have died. This helps the reader understand the seriousness of the issue. The author is a reputable person in the finance industry given that he is a Co-founder and managing partner for the Beacon Group of Companies, a company that offers financial services. The fact that the author is reputable in the field puts him at an edge which makes it easy for the reader to relate with information in the article. The author uses his expertise and gives recommendations on what investors should do. Particularly, the author explains the despite the volatility of the market, investors needs to be keen such that they make decisions that enhance their returns. In this regard, the author advices that they should consult financial experts such that they do not make decisions based on the fear of missing out or losing (Menickella). This explains that they should not use their emotions as they make decisions.
In addition author uses logos which create a logical appeal for the readers. This is evident through the use of facts, precedents and examples. The author gives an example of Nike, Apple and Starbucks and how the companies have been affected by the disease. Particularly, the author explains that it had to close half of its 4,292 stores in China (Menickella). This was following the government directives of social distancing. The use of facts in these examples makes the reader understand how the company has suffered. In addition, the author gives an example of Apple, a reputable tech company that depends on China for the production process. Furthermore, the use of facts is evidenced through the use of percentages and numbers to show how the economy has been affected. An evident example is how conferences such as the Inspired Home Show in Chicago have had to be cancelled. The author goes ahead to explain how big the conference is by explaining that 60,000 attendees had to cancel attendance of the show (Menickella). In addition, the use of deductive reasoning where the author takes pieces from the information they have given and reaches a conclusion. This is seen through the recommendations to investors. At the start of the article, the author explains the effect and what they should do to cushion themselves. The author explains that the volatile conditions create an opportunity to increase income and also help them prevent downside risks.
The use of pathos is evident in the article which gives the article an emotional appeal. The author begins by explaining how investors were hopeful that they will continue to reap from the bull economy. This is followed by explained the unexpected start of Corona virus and how it has left them in limbo wondering the kind of financial decisions they should make. The choice of words and the flow of the article is one that makes the author feel pity for the investor. This is because they keep referring to them and explaining how they will lose if they do not become vigilant.
The article is directed to investors, financial experts, companies that need to make decisions during the uncertainty. The use of pathos, ethos and logo has persuading the audience to take actions. The recommendations of the article are targeted to investors and there is use of deductive reasoning to reach to the conclusion. The use of logos has been key in making the article reputable as it uses up to date statistics. This help in showing how the author is informed. Overall, the author has been successful in persuading the reader given that he is finance expert hence is well vast in the topic.
Works Cited
Menickella, Brian. COVID-19 Worldwide: The Pandemic’s Impact on the Economy and Markets. Forbes, Forbes Magazine, 8 Apr. 2020, www.forbes.com/sites/brianmenickella/2020/04/08/covid-19-worldwide-the-pandemics-impact-on-the-economy-and-markets/#7c58b8f128c3. Accessed 12 April 2020