by Big Business Steps Up
As Covid-19 continues
to rip through countries, it leaves behind a chaotic and beaten economy. The
pandemic has forced many businesses and even whole sectors to close in order to
stop the spread of the virus. In times like this it is important to seek out positivity
and resist being swallowed up by all the negative news. Many larger companies
are providing us with that beacon of hope.
As the virus continues crippling the economy, it leaves many gaps. Larger companies are stepping up to fill these gaps by providing important equipment and helping people affected by the virus with food, storage, and
other services. For example, MGM Resorts International donated 480,000 pounds
of food to communities and food banks across the U.S. pledged $1 million into
an emergency employee grant fund for disaster relief. U-Haul is offering 30-day
free storage to any college student who was displaced due to the pandemic. U-Haul spokesperson Jeff Lockridge stated, “It
is merely a gesture of goodwill given the extraordinary circumstances taking
place and our ability to help.” Prada, COS, Louis Vuitton, and Chanel are
among the leading fashion brands that have shifted production in order to make
face masks, respirators, and sanitizers that will be distributed across the
world. The food and food delivery industries are also lending a helping hand.
Burger King is giving 2 free kids meals away with any purchase made through the
Burger King app. Uber eats has stepped up by donating 300,000 meals to
healthcare workers and first responders. These are just a few examples of many
more companies that are giving back to the communities that helped build them
up to where they are today. We should also be curious to see how/if the
government steps in to help support these companies as they suffer in sales
during this pandemic.
Economic Cost of Shut Down
A large question being asked right now is how can a country assess
the trade-off between economic well-being and health? A normal reaction for
people when asked about the subject of stopping the virus is to shut down
everything at any cost in order to save lives. What most don’t understand is
the amount of lives lost as a result of a shut down economy. From an economist’s
point of view, shutting down an economy very well could be more devastating than
lifting restrictions that are preventing the spread of the virus. Making the
public poorer can have severe health consequences also. Kip Viscusi, an
economist at Vanderbilt who specializes in this type of cost-benefit analysis,
estimates that for every $100 million lost within the economy causes one additional death. Jobless people are much more likely to commit suicide and
the poor are likelier to die if they get sick. We should keep an open mind
before sending people against the shut down to the guillotine.
The president recently expressed this at a press conference. The media understandably questioned the comments while the public has to weigh out the ethics. It’s also likely why we are seeing an unprecedented $2.2 million stimulus package intended to sustain and uplift the economy while assisting the public through the pandemic.