Question

The Covid-19 pandemic has resulted in numerous public health, health care delivery, and economic disruptions far beyond those experienced with most viral epidemics that we might observe in a lifetime.

1. Describe and define what has happened in economics terms both in health care and the economy as a whole (specifically in terms of supply, demand, price, and quantity).

2. Describe what major shifts and economic events have occurred?

3. What has been the role of the government?

4. What has been the role of public health in the economy and what observations have they made?

Answer 1

Covid-19 has made a dent on the economy withing a short span of time.

First, statistics show that there would be a decrease in the GDP for the coming quarters. Since production is now becoming very difficult to conduct in the current environment, there is decrease in the supply of many essential goods.

In highly infected zones,  food products, vegetables, fruits etc are having its price increase at a rapid rate due to reduction in the supply yet demand being the same. Health and Sanitary products are at high demand than ever before, and thus prices for them are increasing too. Thus quantity for essentials have contracted significantly and so did the supply for the same.

Hospital Services , especially in infected regions are under high alert and a highly infected region as patients with the disease are taken care there. Thus maintenance and infrastructural devolopment expenses are very costly.

Businesses are affected the most in this pandemic. Trade and commerce , hospitality services , resturant services , foreign trade, exports and import trade , IT sector, tourism, banking and financial sectors etc are all affected in their operations. With lesser people to avail any services from business , employment rates have contracted significantly.

Health organisations and industries that produce medicines are at high demand for their products. Sanitizers,medicines etc are of high demand . With increase in demand , leads to increase in the price as price is highly inelastic in the given case.

The pandemic has affected the stock markets. Statistics shows that there is almost a 12% reduction in the prices of stocks in the US Stock Exchange over the course of 1 and a half month. Public as well as foreign investors are not in a position to invest in the market due to the current economic situation.

Government has a major role in public health and welfare. It helps to spread awareness, provide support in matters of finance as well as organizing camps and aid stations. Governments in almost all nations are under pressure to help stabliize the situation, prevent the spread of the virus and to help Research and Devolopment to find a potential cure for the virus.

Public health is a main aspect for smooth as well as better functioning of the economy. Better Health facilitates leads to higher productivity and economic and social welfare. Countries with better health care infrastructure and accessibility are bound to have better standards of living. In case of such a situation of a pandemic , higher levels of health care accessibilty and infrastructure helps to truely benefit prevention and cure of such a contagion.