Lots of bad news to come.
Since the beginning of coronavirus, many economies experienced shutdowns. As a result, most governments have taken measures to ease money supply including stimulus packages. And stimulus packages have inflated various asset prices. Now, let’s look at the post-pandemic world.
Global Economic Crash
When governments started to offer stimulus to their citizens, money printing became the norm and asset prices soared like never before. However, some people find ways to invest into stock exchanges and make massive profits like never before. When considering questionable practices, it became celebrated and many people applied these to make even more money. However, trends will not go forever and a massive crash like in 1929 will follow that starts in the US due to various reasons. Now let’s look at these reasons.
Unemployment
Since coronavirus, unemployment soared as small businesses were shut down to slow the spread. However, most measures failed and economies crashed and unemployment soared as a result. More over, unemployment has led to massive increase in homelessness and further unsanitary situations leading to more deaths.
Hyperinflation
Despite most people celebrated the use of stimulus packages to support consumers, these packages will create hyperinflation for the next years. As a result, more businesses will close, basic needs will become unaffordably expensive and societies will collapse.
Monetary Tightening
We have a time of monetary expansion for now. But when hyperinflation strikes through stimulus, governments will enact a monetary tightening. That will cripple the society as most companies having dire need of cash.
Markets Will Crash
Irrespective of any location, all markets will crash as companies will get strapped for cash when governments decided to fight against hyperinflation in the post-pandemic world. Measures include limited government spending and monetary tightening will apply and all asset prices will collapse. And cryptocurrency markets will get affected the worst. Even worse, asset prices will take really long time to recover on previous levels.
Many People Will Be Dependent On Welfare Programs
Since jobs have disappeared due to coronavirus lockdowns, most people got dependent on government support. And it’ll be even worse later. More and more people got dependent on welfare programs and that will be their only choice for many to get by. So, many countries will collapse as they can’t pay social security funds.
According to you, what will happen in post-pandemic world? Share your thoughts in the comments section below.
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Post-Pandemic World: What Will Happen? was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.