Making COVID Creative Destruction

The economy is burning in many states within the United States and nations around the world. Despite this, there is also a large amount of growing hope. While the costs will remain and as detailed in other articles will continue to be a source of problems, there is positive. Many firms have been hesitating to change due to the security of established supply changes and ways to do business. Changes that had long been argued for and demanded are now becoming possible for the firms. This article details some of those changes and the impacts that can be expected.

Digital Workplace:

This has become one of the most notable changes since the start of the pandemic. Workplaces across numerous sectors and scales have had to pivot to online operations. While some have found this difficult and those difficulties remain most have adapted. Working from home also does not seem to have an end in sight. This means many firms have factored this into their long term plans constructing mechanisms that allow them to thrive during this time. Signing contracts and designing systems to deal with this will mean that they will last long after we finally receive the vaccines.

Employees have taken to these changes. With the fact that a decent connection being the only requirement now that they have invested in the equipment, the costs have lowered. Already locations such as New York and Silicon Valley are reporting that people are moving as they no longer are required to be close to the places of work. This change will see property values change and also a bunch of high salary money suddenly will move around in different locations. Services and populations of areas will change in response to this.

The way that people have purchased is also changing. Online spending avoids some taxes and also reaches different people. While physical location based shopping only can have so many choices online is almost limitless. This also means that the type of items that consumers buy will change. Factored in with the movement that is being seen due to the changes in the nature of work now, people can get the goods they wanted before.

New Supply Lines:

Even before the current pandemic, there was a chance in the status quo. Increasingly political groups and individuals were moving away from the unity of free trade. Since the start of the crisis, this has not stopped and has only been encouraged. Many people have discovered how interconnected the goods they purchased are with the global economy and want the perceived vulnerabilities to be changed. This demand is already starting to see policy changes among parties. Working in this environment adds another risk for moving to specific locations or keeping existing supply chains.

With most of the world coming toa close, many firms have looked at their books. Working out how to lower costs. During looking at this, many passive accepted choices are now being reviewed. New technologies are also becoming more possible to adopt. With a loss of efficiency already occurring the acceptance to a learning period is increased. This means new locations become a possibility. We address the different possibilities in location our post here.

Chance To Look Around:

As briefly addressed in other sections, many people can look around. If you used to buy coffee just because it is the regular process, then you might change it after this. Firms already are making different choices. How intentional people are in those choices will lead to very different results. Some of the negative that had just been going along with could vanish when the markets return to normal, and people have new perspectives on their lives. This means better services and goods emerge from the rubble of the lockdown and COVID.

The customer is going to be changed by the crisis. Some of this will be negative, and goods/services can be provided to them. There is the possibility that a large number of consumer groups are going to change and already have changed. Firms will naturally move to meet these new demands if the free market is allowed to function. Unfortunately, there is the possibility that the government will step in and cause a prolonging of failed businesses that are addressing needs that are no longer around. This will send much needed, and reduced resources are going to be pushed into projects that are failed before being done.

The efficient allocation of reduced resources is going to be crucial with how quickly we can bounce back from this. The longer it takes to return to normal, the more pain that we are going to have to go through and the longer we will remain in our current state. It is an awful feedback loop that is going to cause a large number of problems. Breaking out of this appalling situation is crucial and being prompt about this is essential. Already efforts in the business world see hard decisions made. Governments also face these choices and already have given different results. Elections are a long way off for some nations meaning that governments picked for different times are going to have to adapt without the people.

Intentions And Agendas:

During this time already numerous groups are talking about how the rebuilding should achieve other purposes than economic. Leading world figures have talked about using it for a Green Revolution. Some have suggested that equality or other goals should take from profit. A radical change to established systems in the middle of a crisis seems destined to failure. It was not capitalism or profit that got us into this mess but a virus that was allowed to spread with lies and failed action. The world would do very well to not be distracted from that.

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