By Kyle Heffernan
In recent days we have heard of the first cases of the infectious disease that has taken global media by storm in our University’s home state of Rhode Island. As of March 1st,, we have also seen the first case in the close by state of New York. As citizens we must be consensus of ourselves in public spaces of avoiding spreading germs as well as properly preventing ourselves from gaining new ones.
The virus has economists worried that after a long successful span of economic expansion, we may see it quickly come to an end. Michael Corkery is his New York Times article stated, “The coronavirus is tipping the global economy into a recession, handed the stock market its largest weekly loss since the 2008 financial crisis”. This highlights the fear the financial sector as well as the global economy is currently experiencing. The virus has spread into 56 different nations and shows little signs of slowing down, increasing the fear in companies for what the future months or even years hold.
According to Corkery, companies all over the globe are re-adjusting their annual profit expectations in anticipation that the virus will continue to hammer the markets. Also, economists are saying due to the virus the high level of economic growth achieved throughout the year is expected to drastically lower the previous annual forecast. For now, we can only sit and wait for the effects that the disease will bring in the future, and we look to policy makers to guide our nations toward eventual economic stability again.
In the meantime, lets analyze how companies are being affected from the spread of the famous Corona Virus. China is one of the worlds largest manufacturing nations and is famous for the volume of materials it is capable of exporting to others. The restrictions that the Chinese government has placed in some areas for safety precautions have prevented and delayed production that companies all over the world are relying on. Not only is China known for their ability to export, but they also are a large market for thousands of companies, and Chinese business halted will continue to affect global economies. Toll Brothers, a luxury home builder, has unfortunately had to postpone some sales to China and the materials they need are being delayed until an unknown time. Some Chinese factors remain open but are operating with far fewer workers than usual. The Steve Madden shoe company is experience effects from the delays as their main manufacturer is operating with substantially fewer workers. The price of some sanitation goods such as Purell have skyrocketed due to the increased demand for germ prevention due to the virus. On “sell it yourself” websites single bottles of Purell have been seen priced at over $50. With the Expansion of the Corona Virus into the states I am sure it has a greater affect in our daily lives. All we can do is do our best to stay healthy and hope for economic stability.