How countries face the Coronavirus pandemic [Part 2]

avatar
Hello friends, the current pandemic due to Coronavirus will leave economic havoc all over the world, especially in the socialist-statistic countries since history has shown that this model is a failure.


image.png

Source

Said pandemic has basically paralyzed the world economy since the main prevention measure is staying at home and social distancing. In this sense, companies will stop selling their products, so they will stop receiving income and governments will stop receiving taxes. that companies are not producing.

Countries that understand how the economy works will take two main types of measures:

Do not collect taxes from companies that normally pay
Financing companies to replace the money they do not receive with the stoppage of commercial activities.


image.png

Source

Obviously there are different types of companies, so for some the first measure will work and for others the second.

Basically the government lets the population solve the problem by returning the tax collection in the form of credits.

Now that governments have the capacity to face the crisis in this way? (the only way that works) because the countries that have savings and enough money through a large tax collection, that is, the capitalist countries.

The crisis could worsen if the capitalist dynamics do not adapt, but this crisis would subside if the capitalist dynamics is reactivated.




Source



0
0
0.000