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Socio-economic impact of the COVID-19 pandemic

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The COVID-19 pandemic has caused a larger effect more than the disease itself. As the SARS-CoV-2 virus has spread around the globe, many people have begun to think about the economic effects such as the decreased business and unemployment.[1] The pandemic caused the largest global recession in history, with more than a third of the global population at the time being placed on lockdown.[2]

Shortages[change | change source]

Supply shortages were expected to affect a number of sectors due to panic buying, increased usage of goods to during the pandemic, and people raising up prices on needed products such as masks, toilet paper, plastic gloves and hand sanitizer.[3] Reports of lack of food or groceries were said.[4][5][6] The pandemic also caused many social events to be pushed back such as concert delays and movie release dates. Many movie theaters are being put out of business.

Stock markets[change | change source]

Global stock markets fell on 24 February 2020 due to a significant rise in the number of COVID-19 cases outside mainland China.[7][8] By 28 February 2020, stock markets worldwide saw their largest single-week declines since the 2008 financial crisis.[9][10][11] Global stock markets crashed in March 2020.[12]

Businesses[change | change source]

It is likely that business money losses are to be in the billions and increasing. By 16 March, news reports emerged indicating that the effect on the United States economy would be worse than previously thought.[13]

Education[change | change source]

The pandemic has affected educational systems worldwide causing many schools and universities to close down. According to data released by UNESCO on 25 March, school and university closures due to COVID-19 were caused in 165 countries. Including localized closures, this affects over 1.5 billion students worldwide.[14] Many classes were suspended for the rest of the school year with many tacking online classes.

Race and racism[change | change source]

COVID-19 did not affect everyone in each country the same way.[15] As of mid-April 2020, black Americans made up 33% of the population of Louisiana but 70% of the people who died from COVID-19 in Louisiana were black. Black Americans made up 26% of the population of Alabama, but 44% of the people who died were black.[16] In Chicago, black Americans made up a third of the population, but half of the people who tested positive were black and 72% of the people who died were black.[17] Camara Jones, an epidemiologist who once worked for the Centers for Disease Control and Prevention said this was socioeconomic and not because of any natural difference in black and white people's bodies.[18] In the United States, black citizens are more likely to work jobs where they serve the public and to ride on buses and trains rather than take their own cars to work, which makes them more likely to be infected than people who work in private offices or from home. Sharrelle Barber, an epidemiologist and biostatistician from Drexel University, also said black Americans can live in crowded neighborhoods where social distancing is harder to do and healthy food harder to find.[17] Both Barber and Jones blamed the long history of racism in the United States for these things. Three senators, Kamala Harris, Cory Booker and Elizabeth Warren, said the federal government should start recording the race of COVID-19 patients so scientists could study this problem.[17]

In the United Kingdom, twice as many black COVID-19 patients died as white COVID-19 patients. Other non-white people, like people from India and Bangledesh, were also more likely to die of COVID-19 than whites. Britain's Office of National Statistics said that the differences in money and education explained some of this difference but not all of it. They also said they did not know whether non-white patients caught COVID-19 more often or whether they caught more severe cases. Only female Chinese Britons were less likely to die of COVID-19 than white Britons.[19]

Indigenous peoples[change | change source]

Native Americans in the United States have shown more deaths from COVID-19 than the rest of the U.S.[20] As of May, the Navajo Nation had 88 deaths and 2,757 cases, and the money they had been promised by the government arrived weeks late. Only 30% of the people in the Navajo Nation have pipes with running water, which made it difficult for people to wash their hands.[21]

Scientists from Chapman University made a plan to protect the Tsimane people in Bolivia from COVID-19 and said this plan would also work for other indigenous peoples living on their own land. The scientists said that many indigenous peoples have problems that make COVID-19 more dangerous for them, like poverty, less clean water, and other lung diseases. Hospitals may be a long distance away, and racism can affect the way doctors and nurses react. But they also sometimes have things that help, like traditions of making decisions together and the ability to grow food nearby.[20] The scientists found people who spoke the Tsimane language as a first language and made teams to go to Tsimane towns to warn them about COVID-19. They also used radio stations. They said the best strategy was for whole communities to decide to isolate. They found this worked well because the Tsimane already usually made their big decisions together as a community in special meetings and already had a tradition of quarantining new mothers. The Chapman scientists said their plan would also work for other indigenous peoples who also make decisions together, like the Tsimane. [22][20] The Waswanipi Cree in Canada, the Mapoon people in Australia, and many groups in South America already tried plans like these on their own.[20]

Transportation[change | change source]

The pandemic has had a large impact on aviation business due to Travel restrictions related to the COVID-19 pandemic as well as a decrease in demand among travelers. Many reductions in passenger numbers has caused in planes flying empty between airports and the cancellation of flights.

The cruise ship business has also been affected by a decrease, with the share prices of the major cruise lines down 70-80%.[23]

Social[change | change source]

On 18 March 2020, the World Health Organization issued a report about mental health and psychosocial issues during the COVID-19 outbreak.[24]

Due to doubts if pets or other livestock can pass on coronavirus to humans,[25] many people did not want to keep their pets as they were scared of getting the disease. In the Arab World, celebrities were telling people to keep and protect their pets.[26] Meanwhile, people in the U.K. bought more pets during the coronavirus lockdown to not be lonely.[27]

Many countries have reported an increase in domestic violence and intimate partner violence because of lockdowns during the COVID-19 pandemic.[28]

The coronavirus pandemic has been followed by a concern for a possible increase in suicides due to quarantine and social-distancing guidelines, fear, and unemployment and financial reasons.[29][30]

See also[change | change source]

References[change | change source]

  1. "Real-time data show virus hit to global economic activity". 22 March 2020. Archived from the original on 22 March 2020. Retrieved 22 March 2020.
  2. McFall-Johnsen, Juliana Kaplan, Lauren Frias, Morgan (2020-03-14). "A third of the global population is on coronavirus lockdown — here's our constantly updated list of countries and restrictions". Business Insider Australia. Retrieved 2020-04-15.
  3. "Price Gouging Complaints Surge Amid Coronavirus Pandemic". The New York Times. 27 March 2020.
  4. Sirletti, Sonia; Remondini, Chiara; Lepido, Daniele (24 February 2020). "Virus Outbreak Drives Italians to Panic-Buying of Masks and Food". Archived from the original on 25 February 2020. Retrieved 14 March 2020.
  5. "Viral hysteria: Hong Kong panic buying sparks run on toilet paper". CNA. Archived from the original on 26 February 2020. Retrieved 26 February 2020.
  6. Rummler, Orion. "Household basics are scarce in Hong Kong under coronavirus lockdown". Axios. Archived from the original on 26 February 2020. Retrieved 26 February 2020.
  7. Business, Rob McLean, Laura He and Anneken Tappe, CNN. "Dow plunges 1,000 points as coronavirus cases surge in South Korea and Italy". CNN. Archived from the original on 27 February 2020. Retrieved 27 February 2020.
  8. "FTSE 100 plunges 3.7 per cent as Italy confirms sixth coronavirus death". CityAM. 24 February 2020. Archived from the original on 25 February 2020. Retrieved 27 February 2020.
  9. Smith, Elliot (28 February 2020). "Global stocks head for worst week since the financial crisis amid fears of a possible pandemic". CNBC. Archived from the original on 28 February 2020. Retrieved 28 February 2020.
  10. Imbert, Fred; Huang, Eustance (27 February 2020). "Dow falls 350 points Friday to cap the worst week for Wall Street since the financial crisis". CNBC. Archived from the original on 28 February 2020. Retrieved 28 February 2020.
  11. Smith, Elliot (28 February 2020). "European stocks fall 12% on the week as coronavirus grips markets". CNBC. Archived from the original on 28 February 2020. Retrieved 28 February 2020.
  12. "Major Events Cancelled or Postponed Due to Coronavirus". Archived from the original on 5 March 2020. Retrieved 3 March 2020.
  13. "Coronavirus is hitting the economy worse than Wall Street thinks, investor Rich Bernstein warns". CNBC. 16 March 2020. Archived from the original on 18 March 2020. Retrieved 19 March 2020.
  14. "COVID-19 Educational Disruption and Response". UNESCO. 2020-03-04. Retrieved 2020-03-29.
  15. Sujata Gupta (April 9, 2020). "Why African-Americans may be especially vulnerable to COVID-19". Science News. Retrieved April 16, 2020.
  16. Jamelle Bouie (April 14, 2020). "Why Coronavirus Is Killing African-Americans More Than Others". New York Times. Retrieved April 16, 2020.
  17. 17.0 17.1 17.2 John Eligon; Audra D. S. Burch; Dionne Searcey; Richard A. Oppel Jr. (April 7, 2020). "Black Americans Face Alarming Rates of Coronavirus Infection in Some States". Retrieved April 16, 2020.
  18. Edwin Rios (April 9, 2020). "Black People Are Dying From COVID-19 at Higher Rates Because Racism Is a Preexisting Condition". Mother Jones. Retrieved April 16, 2020.
  19. Benjamin Mueller (May 7, 2020). "Coronavirus Killing Black Britons at Twice the Rate of Whites". New York Times. Retrieved May 7, 2020.
  20. 20.0 20.1 20.2 20.3 Hillard S. Kaplan; Benjamin C. Trumble; Jonathan Stieglitz; Roberta Mendez Mamany; Maguin Gutierrez Cayuba; Leonardina Maito Moye; Sarah Alami; Thomas Kraft; Raul Quispe Gutierrez; Juan Copajira Adrian; Randall C. Thompson; Gregory S. Thomas; David E. Michalik; Daniel Eid Rodriguez; Michael D. Gurven (May 15, 2020). "Voluntary collective isolation as a best response to COVID-19 for indigenous populations? A case study and protocol from the Bolivian Amazon" (PDF). Lancet. doi:10.1016/S0140-6736(20)31104-1. Retrieved May 16, 2020. Cite journal requires |journal= (help)
  21. Garrett Schlichte (May 10, 2020). "Navajo Nation Has Among the Highest Rates of Covid-19 Infections and the Fewest Resources". Jezebel. Retrieved May 19, 2020.
  22. Eurekalert (May 15, 2020). Press release. Retrieved May 16, 2020. 
  23. "The coronavirus may sink the cruise-ship business". The Economist. ISSN 0013-0613. Retrieved 2020-04-07.
  24. "Mental health and psychosocial considerations during the COVID-19 outbreak" (PDF). World Health Organization. 18 March 2020.
  25. "Coronavirus Disease 2019 (COVID-19): If You Have Animals". 11 February 2020.
  26. فنانون عرب في رسالة لمتابعيهم: الحيوانات الأليفة لا تنقل فيروس كورونا. (in Arabic). 31 March 2020.
  27. "UK coronavirus lockdown: the new rules, and what they mean for daily life". Telegraph. 3 April 2020.
  28. Godbole T (9 April 2020). "Domestic violence rises amid coronavirus lockdowns in Asia". Deutsche Welle (DW). Retrieved 11 April 2020.
  29. Gunnell, David; et al. (April 21, 2020). "Suicide risk and prevention during the COVID-19 pandemic". The Lancet. Retrieved April 27, 2020.
  30. Baker, Noel (April 22, 2020). "Warning Covid-19 could lead to spike in suicide rates". Irish Examiner. Retrieved April 27, 2020.

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