The Corona Crash

PhD Candidate in Sociology and ESRA (Economic and Social Reserach Aotearoa) researcher Jack Foster considers the financial aspects of the current crisis

Jack Foster

'As the Covid-19 pandemic rages across the globe, analysts and commentators have struggled to find historical analogies for the economic chaos it is causing. For economists, the reference point has quickly shifted from the Global Financial Crisis (GFC) to the Great Depression. But in reality the current crisis is unprecedented in scale.

Never before has so much economic activity ground to a halt so suddenly. Estimates indicate that unemployment in some countries may exceed the peaks reached during the Great Depression. In Aotearoa New Zealand, economists are forecasting that unemployment will rise to between 15–30 percent. In the United States, 3.3 million Americans have filed for unemployment in a single week.

This will have devastating long-term consequences on many peoples’ economic, mental, and emotional well-being. It will also have devastating long-term consequences on economic growth...'

Read the full article on the ESRA website.