Over the last few weeks, the global economy has been going through an extremely hard time, with all the major stock market indices falling by 30–50%, predominantly on the news and actions related to coronavirus. At the same time, many people lost their jobs due to a huge contraction across multiple industries (including hospitality and travel), while many others had to get used to a work-from-home arrangement due to nation-wide quarantines. In this short essay, I will therefore try to explain:
- What has been going on with the global economy in 2020 so far,
- What we should expect to see in the near future, and
- How we can prepare for the rise of a new economic paradigm which will eventually replace the one the entire world lived in since the early 1980-s.