Economic Impact Of COVID-19-Scavenging Economies

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economic impact of COVID-19

The Corona Virus pandemic has disrupted economies around the world like never before.In this blog post we explore the economic impact of COVID-19

To begin with Marxian formula of Capitalism

Money-Commodity-Money

Karl Marx’s contribution towards mankind’s search for a solution to society’s problems has been enormous. He developed an intellectual podium to trash the Capitalist mindset (The poor Vs The rich).But as Plato stated “A king must be a philosopher king and should be surrounded by a wise counsel of men”Engel, Lenin and Mao Tse-Tung were umpires in the Marxism theory.

In this article I would like us to understand the economic impact of COVID-19 on the Ugandan economy.

To Marx, a state is domination, oppression and exploitation of the economically weak class. It is a protection to a legion of the rich and the powerful over the poor.

During this novel COVID-19, the state shouldn’t be a symbolic entity that works as an apparatus to exploit and steal from the poor.

In as much as the economic impact of COVID-19 has disastrous to most economies around the world,more has to be done to reduce its impact on the poor and vulnerable people.

Austrian school of economics looks at capital as physical goods (In this case, the manufacture of sanitizers, face masks, and Malarial tabs), the school of economists further posits that, the physical capital with an intent on how invisible hand arranges for profit oriented enterprises to organise the allocation of resources in market economy according to consumer demands. The most highly demanded commodity world wide, is food (50% of Pakistan’s population can hardly afford two meals a day).

 

Read Also: 5 Simple Ways To Avoid Bankruptcy

 

There is a big class antagonism during this trial time (The rich Vs The Poor), there was a defiling of social production, this was substituted to a large-scale capitalist production. This kind of monopoly is characterized with price leadership and supply monopoly. This is seen with denial of small scale enterprises (considering them null and void, incompetent and unfit) to sole individual solely backed by the State. The poor man is weeping, the rich is harvesting from his sadness.

The state alone has the absolute right to exercise force to compel obedience to its orders (The President’s prescription against COVID-19, where any person found not adhering to the recent guidelines was deemed an enemy of the state, and should be remanded, arrested and punished. A close example is Francis Zaake, he got whisked and manned to obedience).

 

In brief, a state is comprised of:-

1. Population

This is a bedrock for any state, it needs a mass of citizens to avert authority to.The population of Uganda, is estimated to be 44M by 2019.The state levies taxes on its population as an apparatus of power. This revenue is used to run its errands and agendas whilst the bourgeois receives tax holiday and exploits the poor. (Call this the 50k phenomenal- I call this a round of sarcasm and hyperbole)

 

However, Aristolelian sense about a state is to make “good life” possible for its citizens.The state, fails to provide food to its citizens, the 56B accountability was not enough, it ended up borrowing support from its capitalists friends (The rich come to the aid of the state, since the state protects the legitimacy of the rich and powerful)

 

The bourgeois are handful and exert a lot of pressure on the Poor. The poor man works stiffly so hard but receives peanut payments, the pandemic stands as a challenger and outwits, depicts the Rich as fraud and pseudo.

Engel asserts that the bourgeois state never wither away but gets abolished. This is kind of a suggestion followed in North Korea (before Kim Jong-Un changed the ideology. They followed the Lenin view of Socialism after 1956, this was to boost their economy). Do other countries need socialism to survive the stalwart virus? China and Russia are still economically stable and their people look to be proper, and globally it is supplying everyone with face masks and ventilators. Who still stands the test of time, capitalism or Socialism (Communism)?

 

2. Sovereignty

During the primitive communistic system there was no head of state or state, everyone was equal and things were communal to everyone but people self governed themselves. However, coercive power runs deep down in tribal systems (where a certain class [the common Vs the royals]). In April, a Prince of England, mother’s golden boy tested positive to the virus simultaneously the Prime Minister (UK) was positive.

The Prince only spent 26 hours sick and the Prime Minister about weeks. However, this should not shy away from the fact the PM is rich (bourgeois). The state is so deep that even in families, the patriarchal system still reigns and women are the poor and men are the rich. In these families, if the man’s pockets are dry the rest of the household sneezes (Just like “If France sneezes, the rest of the world catches a cold”).

A candid example was the Boda Boda guy that caught ablaze with his family. (Desperate moments, calling for corrosive measures).

Dante’s “Inferno” teaches a gigantic suffering from the “flames of Hell” (here the State’s sovereignty surpassed by the COVID-19). All this is like opening a Pandora’s box. May the gods be with mankind especially the poor man.

Marx’s charismatic theory is a tabled argument that still runs a test of time.It tells the wrongs done by the state to the poor man in the aspect to protect the rich.

During the French Revolution of 1789, Marie Antoniette’s imprudent manners lead her head sprawling after being guillotined. Her decapitation led to the rise of a state, with a set of rules and regulations, with a government and a constitution to follow but still, during the fight, the bourgeois class fed the low class (the poor) with words (philosophies) leading to revolutions and stampede thereafter, leading to the war geniuses like Napoleon Bonaparte, he camouflaged to the top and he established his state (The French Empire) but still, the poor was left out.

So during this test of time, with a poor man scratching his belly, puzzled and confused about the added 14 days. A bourgeois (in this case a politician) is smirking his lips and slurping his cold beer with an intriguing agenda to fathom havoc to the poor man. (With tons of food delivered, the supply of food has been so slow to the extent not even half million citizens have received the “golden” posho and “hard-corn” beans).

To be precise and concise, suffering still slithering due to capitalism. However, there is always a silver lining in every situation. At least, Karl Marx had an answer to our suffering.

 

Parting Thoughts On The Economic Impact Of COVID-19

In addressing the economic impact of COVID-19,governments around the world ought to priotize the needs of their people.

 

 

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