Moneyanatomy - personal finance blog
Wednesday, March 25, 2020
Why Corona virus makes people poor? Corona virus diary 2
After I returned form work yersterday my girl asked me: "Why does virus make people poor?"
I don't know if my constant background fear of being poor tranfered to her. Two weeks ago when the China's deaths were rapidly increaseing, I said that we will not buy any toys untill the virus has passed. For the time being we will only buy food and the most nesessary things. I was surprized how easy she aggreed to that.
I am watching how gradually the news are changing from "No we wan't have a ressesion" to "This will be a very deep ressession" to "This will be a depression".
Some are still hoping for a V-shaped marked recovery. But it probably wil be mor of an L-shape.
The closings of restaurants started the snow ball. Almost everything is closing. Even the health care businesses are not safe. With the canceling of the elective surgeries, the medical practices lost a lot of business. They are also laying off people.
This can't just suddenly all come back. There will not be a sudden pick up of all consumer spending to the previous levels. Most people will be shocked and scared for a long time and the spending will decrease for a while.
After I explained those reasons to my girl, she thought a bit and said: "There is a boy in school, Vinnie, he winks at me. What does it mean?" I can only hope that we will swich back as fast as she can.
I said: "The boy likes you but doesn't not know what to say". Then she said: "Akul never winks at me, does it mean he does not like me? But we play together a lot." I said: "Akul likes you but he knows what so say".
Soon there will be more questions of this sort coming. I feel like starting a new Q&A section, something like "What girls want to know".
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