Post-Pandemic Recovery

The economies of nearly every nation, whether large or small, have been severely affected by the current pandemic crisis. Its impact on jobs, markets, and trade is widely recognized and is being felt by many of us today. In these uncertain and stressful times, it's natural for thoughts about economic survival to arise.

A common question that emerges is when and how the economy will recover and flourish 🌼 as it did before. To address this, we must first understand what an "economy" is and how it functions.

What is an Economy?

An economy can be likened to a collection of gears ⚙️ of various sizes. Some are small, like shops and individual businesses, while others are large institutions such as corporations and governments. Regardless of size, each gear is in motion 🌪️.

What Drives a Gear to Rotate?

The rotation of a gear symbolizes an individual's desire to exchange X for Y 🛒. The momentum that drives this rotation arises from the recognition of unequal distribution, which is influenced by emotional states, such as greed 😸, fear 🙀, hope 🙂, and despair 😞.

For example, greed may be triggered by a new shiny object (like that new smartphone), prompting someone to trade money for it.

How Does the Economy Work?

Each rotating gear influences the rotation of 100 more gears around it, either directly or indirectly. The economy is this collective rotation of gears.

In essence, the economy is the sum of all trades occurring between individuals, businesses, corporations, and other institutions.

How Did We Get Here?

Fear 🙀, much like greed 😺, is a powerful force with significant effects. Governments worldwide initiated mass lockdowns to curb the spread of the silent enemy. While this was a necessary and positive step, it also restricted many businesses reliant on mobility.

Consequently, daily incomes were reduced 🔻, and fear began to tighten its grip.

As mentioned earlier, each gear rotates 100 others around it. What happens when many of these gears stop rotating and cease purchasing shiny objects 🌟 they once bought?

This triggers a chain reaction 💥 that abruptly halts the entire economy.

Getting Back on Track:

The solution to this problem lies within the economy's own mechanisms. To restart the rotation of all gears, at least one must begin creating the momentum or desire for others to rotate.

This initial action is akin to an investment and is essential for restoring the world to a state of haves and have-nots regarding a commodity. Investments can take the form of time, money, or energy.

Both individuals and institutions, such as governments and corporations, can contribute by channeling their capital into the creations of new creators (entrepreneurs). Furthermore, they can leverage their efficient networks to distribute these creations to a broader audience.

These new creators, with additional capital, will then empower more new creators, leading to increased trade.

For instance, as illustrated in the image below, early investments by Jeff Bezos in Google and Twitter led to further investments by these companies in additional startups. 🤑

Alternatively, creators can acquire capital by selling a low-priced product that is in demand by a large number of people. These small micro-investments from a large crowd can equate to the capital from large investors.

The path to recovery will involve a combination of these two strategies.