The COVID-19 health impact is clear. Tens of thousands of Americans have already lost their lives. Hundreds of thousands of people all over the world have lost their lives. But what about the more subtle, quiet impact that the temporary worldwide economic shutdown is having on the world? This is much harder to quantify, but it is enormous. It will probably just grow and grow as time goes on. Why?
In general, when the United States has experienced an economic slow-down, it was more of a correction, due to something that went wrong in the past. Towards the end of the George W. Bush administration, the fallout i the housing industry due to the Freddie Mac and other mortgage issues was enormous. But, basically, it was a correction that probably bolstered the economy in the long run, more than it hindered it. The fact that nobody can get a mortgage today with 10% of the money necessary to purchase the house has solidified the housing industry around the United States.
Today’s issues are much broader in scope. It is not merely about the housing industry. Nearly every single industry except online businesses are suffering. All local small businesses are struggling, especially in the food, leisure, and tourism fields. Moreover, this is not just about the United States – it is going on worldwide. Supply chains around the entire world have been disrupted. Even if things begin to open up and go back to normal, the process will probably be very gradual with many hiccups along the way.
But there is a silver lining that may actually prove powerful and bring the United States, Israel, and other free countries to a more powerful and independent situation then they are in today. The United States, Israel, England, Australia and other genuine democracies should make a clear decision to unify behind principles of never allowing their countries to become dependent on non-democracies for vital resources. This includes medical, but also military supplies. A decision such as this will boost production and manufacturing in all of these countries and make sure that we are always better prepared for future threats. Moreover, it will drive the United States and much of the world out of the economic woes that it now finds itself in.