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How will the coronavirus affect globalization? Show more Show less
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World leaders now describe Covid-19 as the 'silent enemy'. Several have called the pandemic a 'war'. For the first time in history, every nation on Earth is battling a common foe. What this will mean for globalisation remains unknown. Global connectivity is, on the face of things, being eroded, as free movement stops and people 'stay and shelter'. Yet, the world is also increasingly united, as triumph depends on cooperation.

Coronavirus will shift the global economy Show more Show less

The global economy has been strong-armed by the Covid-19 pandemic. For better or for worse, Covid-19 will significantly impact economies worldwide.
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The global economy will benefit from Coronavirus vaccinations

Covid-19 vaccinations are projected to roll out sometime during 2021. The global economy is already slowly improving in anticipation of this, and will be in the full swing of recovery by the time the vaccinations become available.
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The Argument

The Coronavirus pandemic has seized the global economy and brought the stock market to its knees. But the promise of a vaccine has already begun to repair the broken economy, and will be the most important factor in its recovery; even more important than the U.S. presidential election, says Goldman Sachs Group.[1] According to the World Health Organization (WHO), 64 countries with higher-income economies have signed up for COVAX, "a global initiative that brings together governments and manufacturers to ensure eventual COVID-19 vaccines reach those in need."[2] The Fair Allocation Framework[3] has been set up to protect every economy that has been signed up to COVAX, ensuring that "no participating economy will be left behind".[2] What this means for the global economy is that these higher-income economies will contribute funding to the creation, manufacturing, and distributing of the vaccine, with the aim of ensuring two billion doses worldwide.[2] It will be affordable, which means not only will people boost the economy by buying the vaccine, but they will also have more money available to spend which will funnel back into the economy, restoring its health.

Counter arguments

The most important factor in restoring the global economy is, in fact, the U.S. election results. The U.S. is a major economic power, and what affects it will affect economies worldwide. Experts are already debating over the economic implications of a Trump vs Biden win.[4] No one is denying that the covid vaccine will be an important factor in helping to restore the global economy, but to say that it is the most important factor is wrong. To the second point, people are still spending despite Covid. In fact, the sales of certain essential goods have even increased; groceries, masks, etc. Even entertainment is seeing an increase in sales. Because people are staying home, they are looking to sources of entertainment they can bring home to keep them mentally engaged and physically healthy; most notably, video games and home exercise equipment.[5] Covid is not preventing people from spending; it is even encouraging spending. So the release of a vaccine will not have as much of an economic impact as this argument implies, and in fact, it may even discourage spending because people will have less money after buying the vaccine; especially if they don't have adequate medical insurance to cover the costs.

Proponents

Premises

[P1] The creation and distribution of a vaccine is the most crucial event for global economic recovery. [P2] An affordable vaccine means that people will have more to spend, which will funnel back into restoring a healthy economy.

Rejecting the premises

[Rejecting P1] The U.S. election is the most important factor in the global economy. [Rejecting P2] People are still spending despite Covid, and certain items--such as groceries, med supplies, masks, and indoor activities--have even increased in sales due to Covid. In fact, people will have less to spend once a vaccine is released, because they will need to spend money on the vaccine--especially if they don't have adequate medical insurance.

References

  1. https://www.foxbusiness.com/markets/coronavirus-vaccine-stock-market-impact-election-goldman-sachs
  2. https://www.who.int/news-room/detail/21-09-2020-boost-for-global-response-to-covid-19-as-economies-worldwide-formally-sign-up-to-covax-facility
  3. https://www.who.int/publications/m/item/fair-allocation-mechanism-for-covid-19-vaccines-through-the-covax-facility
  4. https://www.cnbctv18.com/politics/trump-vs-biden-how-us-election-outcome-could-impact-global-markets-7040691.htm
  5. https://www.wired.com/story/ring-fit-shortage-coronavirus-covid-19/

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This page was last edited on Monday, 12 Oct 2020 at 17:41 UTC