COVID-19 Questions
Covid-19 emerged in China, but it has now spread to most parts of the world. Singapore, Taiwan, Hong Kong, and Japan have been able to control the spread of the virus successfully. Currently, Europe and the US are the worst hit by the pandemic. Italy is the most affected country in the world, recording the highest number of deaths in the world. The whole of Italy is under quarantine, meaning that most businesses have shut down, the only businesses operating are groceries and pharmacies. The country has suspended private and public debts such as rents and paying interests until the situation improves. In Germany, the government has granted credit assistance and tax deferrals to struggling companies to try to save the economy from collapsing. In France, Germany, Spain, and Austria, schools and shops are not operating. The US is under a state of emergency; the congress has set aside $8.3 billion to deal with the pandemic. Economically, the whole world is suffering from an unpredictable and significant shortage of supply. The current high demand will lead to inflation leading to the fall of GDP (Sinn, 2020).
I do not think that the government will increase tax in years to come because they will be more focused on reviving the economy that was destroyed by the pandemic. The economy will improve when businesses start thriving, and they can only thrive under favorable conditions full of incentives. I do not think that saving the economy is more important than safety because humans are the ones responsible for the growth and recession of the economy. For the economy to grow, humans need to make investments and generate revenue. Labor and human capital is the main requirement for the growth of the economy. These factors lead us to the conclusion that for the economy to thrive, the population needs to be healthy.
References
Sinn, H. (2020, March 17). How Best to Fight the Economic Impact of the Corona Virus Pandemic. The Guardian. Retrieved from https://amp.theguardian.com/business/2020/mar/17/how-best-to-fight-the-economic-impact-of-the-coronaviru-pandemic