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Focus on People During Economic Crises, Not Macro-Statistics

People, Not Numbers

A Government Stimulus has a low chance of any success, due to supply constraints and never-before-seen prohibitions. Policymakers should be focused on those who are suffering the most, instead of trying to balance the ‘macro’ scales so that it looks good from a statistical point of view.

This is not the time for window-dressing of numbers, but real-world reforming towards those in dire need.

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IDEA EXTRACTED FROM:

Focus on People During Economic Crises, Not Macro-Statistics

Focus on People During Economic Crises, Not Macro-Statistics

https://fee.org/articles/focus-on-people-during-economic-crises-not-macro-statistics/

fee.org

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Key Ideas

Focus On The People

Human beings by default lean towards statistics, which are essentially a dilution of data, compressing it into a piece of information to play with (like GDP or CPI) without understanding the human value behind the numbers. The current crisis shouldn’t be viewed as a statistic but as a collective human experience.

Scarcity of essential services like air travel, the hospitality industry, and shutting of entertainment options (like sports) is causing a supply chain disruption, with which demand has to decrease.

Recession Time

Discussing recession shouldn’t be taboo, and Individuals and communities should move towards charity and neighborliness, instead of waiting for the government to do something.

A smaller economy with less production and consumption aligns with the current consumer demand patterns. Inflation, something everyone is seeing for decades is not the right stabilizing factor, and many are able to see the holes in it, and in these unprecedented times, it can be a stagflation, which never works out.

People, Not Numbers

A Government Stimulus has a low chance of any success, due to supply constraints and never-before-seen prohibitions. Policymakers should be focused on those who are suffering the most, instead of trying to balance the ‘macro’ scales so that it looks good from a statistical point of view.

This is not the time for window-dressing of numbers, but real-world reforming towards those in dire need.

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SIMILAR ARTICLES & IDEAS:

Considering risk

It is not always possible to anticipate the effects of unexpected events that occur throughout the business cycle.

But those who routinely examine the way risks propagate across the entir...

Risk along the value chain

Most companies only examine the most direct risks facing a company and tend to neglect secondary risks that can have an even greater impact.

Companies need to learn to evaluate aftereffects that could weaken whole value chains.

Competitors

All differences in business models can create the potential for competitive risk exposure. This does not mean that a company should imitate its competitors, but that it should consider the risk when they have different strategies.

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Understanding recessions are vital

Understanding recessions are vital

Recessions are part of the fabric of a dynamic economy. The average investor fears recessions because they mean lower home prices, lower stock prices, and less or no work.

Several things ca...

Naming a recession

Recessions are really "depressions," but the term "depression" seems too terrifying. After the Great Depression, economists began to use the word "recession" instead.

The 2007-09 recession involved a financial crisis, high unemployment, and falling prices, and was named the Great Recession. Our current recession is still without a name.

An official recession

A standard measurement for a recession is two-quarters of consecutive GDP contraction. But the official arbiter of recessions and recoveries, the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER), prefers domestic production and employment indicators instead. Other signs of the recession include:

  • Declines in real (inflation adjusted) manufacturing, wholesale-retail trade sales, and industrial production.
  • Extended declines in production, employment, real income, and other indicators.

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Decline Explained

Currently, we observe decline all around us, whether it's the stock market, travel, or jobs.


There are three different Types Of Decline: Narrative, Physical and Technical/Leg...

Physical Decline

.. is when there is a loss of machinery, infrastructure and people, be it from war, or natural disasters.

The rebuilding of physical decline can also provide a powerful economic boost. This can also lead to inflation, as the capacity to make goods has been destroyed.
Losing people due to war or a calamity is the hardest to recover from.

Technical Or Legal Decline

..is a type of decline in which due to a personal narrative, circumstance or condition, the work terminates, and one's identity is no longer able to survive.


If a business suffers bankruptcy, or if a person has defaulted or is arrested, a certain 'absorbing barrier' is reached, and all potential of any future activity is shut down.