Coronanomics

I love the insight that a study into behavioural economics can give us. Whilst authors like Ariely, Thaler and Kahneman bought the field to life, most folk would be familiar with either Freakonomics or the popular work of Malcolm Gladwell.

In any case, it is usually with hindsight that our behaviours and unconscious choices become so obvious. With this in mind, what do you think might be some effects of the Covid-19 pandemic after the fact? Below are more discussion points, rather than my ideas,

- We can be really happy with just the basics - family, friends, health
- I am not my job, OR, I am my job
- Employees working from home can be more productive, happy and trusted
- Mental health is equally important as physical health
- Look how the world responded - we're not all that different
- We follow the herd (toilet paper, pasta etc)
- Education - did we leave a generation behind, OR, have we found a new way to educate kids
- Will there be an explosion in new hobbies

 

Health is wealth

 

I think this will really alter global economics and politics throughout the world for the next 10-20 years at least. Some key takeaways will be:
- National security is more than just military and intelligence. It includes independent preparedness for health emergencies, local manufacturing capability and food self sufficiency
- Global just-in-time supply chains are worthless in a time of crisis,
- The endless drive to save a dollar and hollow out every corner of government and public services has tangible negative consequences. I foresee a trend to expansion of the state and services
- Major Black Swan events can and will happen so there will probably be a genuine push from government for crises preparedness and contingency planning through the public and private sectors
- The West's trend toward being bloated, bureaucratic and unambitious "service economies" relient on China and other countries for all manufacturing will reverse somewhat

 

Acts of kindness - lot's of people will see the positive mental health benefits that giving can have and this may continue for some into the future. There's been a huge increase in the number of people uploading content - workouts, yoga, kids entertainment and activities, book readings etc