The pandemic has shown that we are never fully aware of what the world of tomorrow will bring, so it is important to be as pro-active as possible when preparing for future success. Philippe Dessertine is a financial expert that has taken part in several talks and debates and is confident that COVID-19 does not always mean a poor economy.
Those that invest in stock and shares will find that the value of such commodities was reduced dramatically. Although connected to COVID-19 at a surface level, the actual economic crisis was caused by the knee-jerk reaction of the States.
Although understandable, it does show the importance of understanding the world of tomorrow for the economy to stay afloat.
The Economy Crisis Caused Unprecedented Shock
Understandably, the onset of COVID-19 left a lot of businesses worried, not to mention several Government bodies. The crisis was caused by a series of actions designed to improve the situation, btu made it more fragile.
Dessertine states that simply injecting liquidity into the economy is not a solution unless there is a strategy supporting the financial aspects.
Why Support is Essential
Given the ramifications of the economic downturn, new wealth will need to be created, but this often takes more that financial support. Some businesses may be able to prolong their activities for a few months using government support, but unless they are able to readjust the goals of the business, it still faces the danger of becoming stagnant.
Money used for support could be used very quickly, and not taking what may happen tomorrow into account means that more extreme measures have to be used moving forward which can mean more pressure is put on the economy.
As well as ensuring the right support network is put in place, there also has to be adoption of new ways of working, as using methods that are no longer beneficial will simply achieve the same lacklustre results.
How Can Wealth Be Recreated Successfully?
During other traumatic times, it has been commonplace for people around the world to join forces, and the onset of COVID-19 is no different. Of course, everyone has their opinion on the best way forward in combating the virus and the problems it presents but being able to connect with others allows for more innovation.
Government support can seem like a great thing at first, but it can come with its own consequences. There are many rippled effects caused by such actions. For example, USD ca be affected by the deficits of the States, but those in European locations do not have the same solutions available to them.
Asian Dynamism is the Key to Success
For the economy to strive moving forward it needs to take advantage of the Asian dynamism, something that has been put at risk in the past due to conflicts over the TPP.
As well as pioneering in several different sectors to great success, China has been keen to promote the Regional Economic Partnership, an alternative to the TPP. The partnership excludes both the US and TPP members, but adds other countries such Indonesia, South Korea and Thailand.
The US has played a vital role in China’s road to success in the past, but the world today is vastly different, so it is important to understand the value surrounding the agreement rather than just the rules.