It is no secret by now that the pandemic slowdown has rocked the world economy. Everything from commercial real estate to the construction industry has been significantly impacted by the sudden cessation of economic activity around the world.
Effects Of The Pandemic Slowdown On The Global Economy
The pandemic has caused governments around the world to order their countries to quarantine themselves or lockdown in place. This forces all nonessential economic activity to stop immediately. This has had a cascading effect throughout the global economy.
Increased Unemployment
The first and most notable effect of the pandemic slowdown has been the explosion in unemployment around the world. In the United States over the course of March 22 million people were added to the unemployment rolls of the country. These kinds of numbers have not been seen since the Great Depression nearly 100 years ago.
Disrupted The Financial Markets
There has not been a single class of assets safe from the volatility that this economic disruption has caused. Stock markets around the world have experienced historic drops with the United States stock market being forced to shut down several times in the month of March alone. Commodities have been experiencing similar shocks as well with oil prices dropping to their lowest in history of mankind.
Chaotic Supply Chains
Because so many countries have walked down their economies, there are many goods that are not being produced, and are impossible to source right now. This is led to extreme shortages all over the world.
Decreased Consumer Demand
As people try to isolate themselves to stay safe from the pandemic they obviously are not about spending money. Even if the lockdowns were to be lifted, many people are now unemployed and therefore do not have any income or money to spend.
How The Construction Industry Can Help to Combat These Negative Economic Effects of the Pandemic Slowdown
Luckily there are things our country can do to help alleviate these negative economic consequences of the pandemic slowdown. Not only can we tackle economic words of our nation but we can help to address the health care crisis simultaneously. Thankfully construction is considered an essential economic activity.
Put People Back To Work
First and foremost the construction industry will be able to put a large number of people back to work. It will extend beyond just the construction industry as the construction workers will have the income to invest in things like commercial real estate and other consumer spending purchases. This will allow other businesses to hire additional workers.
Improve Our Nation’s Infrastructure
Around the country, there is a wealth of infrastructure and our nation that is sorely in need of some attention. There are also other instructor projects that could improve the long-term economic prosperity of our country. In this way we could put people to work will also building things that will bring further profit or wealth to our nation long-term.
Manufacture Critical Supplies
Finally, due to the disruption of supply chains around the world, there is a critical lack of essential supplies. Our construction workers could build factories to help produce these supplies. We could use these for our own nation’s health care workers first and then sell the others around the world for a profit.
