Why a Healthy Global Economy Needs Consumers
WWC - Coping with Coronavirus
IN THIS SERIES OF ARTICLES TO HELP EXPATS DEAL WITH CORONAVIRUS, PROACT SAM EXPLORES HOW EXPATS CAN PROTECT THEMSELVES AND EXPLOIT OPPORTUNITIES PRESENTED BY THE PANDEMIC.
Part 6 - Why a Healthy Global Economy Needs Consumers
ProACT Sam asks why an economy needs consumers.
Who are these consumers?
Where do consumers come from?
Where have consumers gone?
With governments around the world closing down local and national economies, the global economy is holding its breath. That doesn’t help, it creates hesitation, undermines confidence, holds back spending. That is not healthy for any economy; whether that is your family, your business or your community.
CONSUMER WORLD
Consumers spend money to buy goods and services.
A business creates and builds those goods and services.
A business can make bread, cars, widgets, a range of services for its customers or so many other products.
The majority of businesses cannot provide this as a one man band, and so it needs people to work as employees and to deliver these goods and services.
For the business, that means it needs cash to operate.
The business makes sales and receives cash.
Employees in turn get paid and receive cash.
Both the business and employees can then become consumers and spend the money they receive.
HOLDING YOUR BREATH
When the economy is shut down for a month or more, cash circulating in the economy is stopped.
Like oxygen for the body, an economy needs oxygen in the form of cash to be pumped around the world from consumers to businesses to employees.
When cash stops flowing, the system gets a shock. This will result in a global recession following the pause.
Businesses and employees need to review and assess how they will respond to this attack on the system.
Governments are trying to react quickly to the lockdown and minimise impact on the economy, but there is a wait. The longer the wait, the harder the impact.
The world needs consumers, be they business or employees, even if that cash comes from government itself.
OPPORTUNITY
Expat families and businesses should plan for a long road back. Opportunities exist for new ways forward, and new businesses will evolve from WWC'.
How will you be Coping With Corona?
For Expats looking for help and advice protecting their businesses, families and properties abroad, contact ProACT Partnership.
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ProACT Know How
ProACT offer free reviews and guidance to expat family and business on adapting for the new world of opportunity that is before your eyes now.
Next
Part 7 - What Goes Around the World