Juno News - The economic effects of COVID-19 explained in 8 minutes

00:00:00.000 as the saying goes it's the economy stupid and like it or not the economy is going to dictate

00:00:12.180 how we end up responding to this coronavirus because we simply cannot be in an economic

00:00:16.720 shutdown for weeks and weeks at a time so i wanted to have a bit of a different video than

00:00:21.980 some of the mainstream media coverage which is really focused on supply chains and what is going

00:00:25.940 to be in the grocery store shelves or even the payments which are all obviously very important

00:00:30.280 topics but i wanted to start a conversation with our readers which are all very passionate and very

00:00:34.740 knowledgeable about what we think is going to be happening in the next three to six months so i

00:00:39.760 wanted to have a look at some economic indicators and really explore a couple things with you and

00:00:44.140 hopefully start that conversation so the first place i wanted to look is the dow jones industrial

00:00:48.680 average and i'm sure you guys have read about the trump gains as they're calling them and how they've

00:00:53.680 almost all been wiped out so if we just have a look at this chart which shows the six month picture

00:00:59.080 you can see that the dow jones was hovering around 30 000 more recently until we have this very very

00:01:04.820 big crash and a series of crashes really um until now we are at about 20 000 so this is 10 uh ten

00:01:11.840 thousand dollars of value that is wiped out from 30 of the largest companies in america now i know that

00:01:18.900 a lot of people have issue with you know stock market averages because a lot of the money is

00:01:23.060 fictitious or it is simply projections on what these companies are worth it may not be you know

00:01:27.880 real hard assets as we you know think of in other industries but this is important because it reflects

00:01:33.840 confidence in those industries which you know it's all the way from johnson and johnson to verizon so

00:01:38.620 very very different companies um and the drop represents sort of a lack of confidence and where we

00:01:44.340 are as an economy flipping to the tsx we have a similar drop again it's about 30 percent similar to the

00:01:51.140 dow um so we're starting at about 18 more recently you know pretty pretty decent um gains in the past

00:01:57.020 couple of months until we have again a series of drops and now we're hovering at about 12 you know

00:02:01.640 just under 12 11 700 so this is a drop of 33 and this is a serious serious hit this also ties into our

00:02:11.460 gdp the gross domestic product of this country so we are at about 1.63 trillion dollars this is 2017

00:02:17.920 numbers um for some reason google decided to compare us to india and mexico as the you know

00:02:23.120 closer economies i'm not india is quite a different story but um yeah mexico sure why not and so the

00:02:29.860 stock market is obviously going to have a huge hit on the gdp which again is reflective of not only

00:02:36.500 consumer confidence but on actual numbers now because the gdp again is is capturing what is produced

00:02:41.900 bought and sold in this country and if the economy is shut down people are not going to work people are not

00:02:46.300 buying people are not selling money is not exchanging hands this number is going to take a serious hit

00:02:51.200 which is going to have other ramifications on the economy so another look at some of the things that

00:02:57.120 are closed which again you know economic hits um obviously all the major sports you know that i mean

00:03:02.160 aside from being home and having nothing to watch but all the major sports i mean think about the

00:03:05.880 revenue that generated this at these games um you know the supply chains and the suppliers and you know

00:03:11.980 just going to a game imagine everything that is costing money all the money exchanging hands to

00:03:16.700 keep those games going that's suddenly just sitting there um there's you know tons and tons of conferences

00:03:21.880 and and uh you know big events uh this is not to mention the tourism and all these type of things

00:03:27.420 that are taking huge economic hits there's other things as my colleague anthony fury has covered very

00:03:34.020 well so there's the illegal border crossers so apparently that's not stopping even though cross-border

00:03:39.660 tourism is now stopping this is still going to have an economic cost especially if some of these

00:03:44.360 people are having the virus and passing it on so you know what are we going to do about that and how

00:03:49.620 is this going to affect us we have further again that canada and the u.s are going to stop all

00:03:55.200 non-essential cross-border traffic which is also you know our our economy is very very dependent on

00:04:01.560 the united states and um you know determining who is essential and who is not may in and of itself

00:04:07.320 become a huge problem and create economic woes um again you know 65 percent of canadians are worried

00:04:13.640 about their income worried about their savings um i mean to be honest i i'm kind of wondering who these

00:04:18.360 other 35 percent are i know you know i myself um you know i'm concerned about what we're going to do

00:04:23.520 and what's going to be happening in the next three to six months where you know where uh where's the

00:04:27.760 economy going to be and that's a serious concern of mine and so i really wanted to keep the focus

00:04:32.960 because a lot of these economic impacts are really something that's going to affect you down the road

00:04:38.900 and so an example i think that we can give is tourism industry because that is i think going

00:04:45.180 to be one of the most hardest hit industries out there and so if you can imagine a city or a region

00:04:50.440 in which most of their economy is either you know it's seasonal tourism or just general tourism

00:04:54.720 because flights are canceled then you know let's just say let's say tourism is going to be in the

00:05:00.040 summer and so everyone i was canceling their trips because you know we're coming up to the summer

00:05:04.860 and uh you know flights from europe are closed people are not moving in and out and uh so those

00:05:09.860 industries are already expecting a huge huge hit all the employees that work there they're not going

00:05:14.880 to be able to collect that salary they're not going to be able to collect for you know a server

00:05:18.100 they're not going to be able to get those tips that they may they may depend on further if everything

00:05:22.940 opens back up where are these tourists coming from are these tourists coming from eras which have also

00:05:27.980 been hard hit by the virus are they going to be able to continue i know that some countries have

00:05:32.780 a total and complete lockdown or nearing a total and complete lockdown which means nobody in or out

00:05:38.140 which means their economy is almost completely shut down again that that can't go on forever i mean

00:05:43.140 you know you can expect a month two months until people really start buckling um unless the government

00:05:48.760 is going to start shelling out you know literally billions and billions of dollars then something's

00:05:53.820 going to have to be done now on the home front again we have a great report here let me just

00:05:59.420 pick it up we have a great report here by uh candace and andrew talking about what the government has

00:06:05.920 pledged to do in canada and you know these are some very costly steps but i think a lot of them are

00:06:10.900 very necessary steps because again there's uh you know three or so percent of people that the mortality

00:06:18.740 rate is is pegging and to touch on that quickly it's a bit skewed because it tends to skew older

00:06:25.280 so we have a 3.8 percent average but it's not as high for younger people and much higher for older

00:06:30.460 people or people with comorbidity so another underlying issue that is simply um you know

00:06:35.400 they're getting uh the virus and it's it's you know exacerbating that other issue and that's why

00:06:39.320 they die but while 3.8 percent even four percent five percent of people might be seriously affected

00:06:46.240 or even die from the virus 100 percent of canadians are going to be affected by what goes on on the

00:06:51.600 economy so this is a very serious thing and i'm i'm encouraging people out there to have that

00:06:57.880 conversation let's talk about how we're going to pick up the pieces because we can't just sit at

00:07:02.000 home we're not just going to be you know we're not going to be basement dwellers for the next six

00:07:05.640 months a year two years and life has to go on so i would encourage you throw some comments down below

00:07:10.960 let's have that conversation i want to get back to you all and see what we think and how we can

00:07:15.180 maybe help this country move along i know that now is the time a lot of people in bc for example

00:07:20.340 very interested in getting some of those pipelines built what is something that we can put pressure on

00:07:25.780 the government on what is something that we can help illuminate to outline that we can help this

00:07:30.700 economy move forward it's very critical and i encourage you all to start that conversation with me

00:07:34.540 and you know in that spirit true north is one of the organizations that's committed to telling the

00:07:39.980 other side of the story and having conversations that you may not see in other news outlets or

00:07:44.800 especially in the mainstream media that's why it's important to support independent media and i'm

00:07:48.780 asking you today although times are tight and you know people obviously worrying about where their

00:07:53.220 money might be coming from i would still encourage you to you know head on to tnc.news forward slash

00:07:58.880 donate and you know make a donation today help us keep these conversations going let's have a

00:08:04.120 great conversation let's everybody stay safe be healthy and uh you know let's prepare for what's

00:08:08.880 been good what's going to happen in the future i know canada can come out strong i know we can

00:08:12.760 work together and um you know god bless us all and uh let's stay safe and let's be well

Juno News - March 21, 2020

The economic effects of COVID-19 explained in 8 minutes

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