• P D Jonson

Covid-19. How it will change the world

Updated: May 2


USA-China relationship far more hostile.

USA allies (including Australia) less trusted by China, less trade.

Vast government spending everywhere. Unless Jonson plan (See last week's blog) is adopted, counties will have massive, unmanageable debt burdens.

USA will adopt a national health system with national coverage, funded by richest Americans.

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Trade will be less free - most, possibly all, countries will become more self sufficient.

Less resort to patents generally and faster approval from FDA for anti-virus weapons.

Workers will more often work from home - fewer multistory offices with workers like chickens in a coop.

More home cooking, fewer visits to restaurants.

More on line entertainment, less attendance at movies in cinemas, vast sporting areas, music fests, etc.

Far more on line teaching, especially at tertiary levels. Top global universities likely to gain a far larger share of the global market, universities of lesser reputation will lose students.

How Covid-19 will change Australia

Most global changes will effect Australia.

We need to build a far stronger defence capacity, requiring spending on defence around 5 % of GDP for many years.

Australia will also attempt to rebuild manufacturing industry, medicine production, ventilators, etc, etc.

Australia will rebuild oil and petrol stocks, and have a year's stocks of these and other strategic stocks.

Major companies that get into financial difficulty and will be part nationalised at least until the crisis is over. Done sensibly this will avoid massive national debts to hamper welfare and defence spending.

We might become brave enough to challenge US patent laws, which currently greatly benefit American inventors and disadvantage Australian inventors.

Household debt levels will very likely be reduced, as people spend less and save more. Government debts will be unmanageable unless Jonson plan is adopted. (See last week's Blog). Shares in Banks will be far lower.

A smart lady on channel two suggested Australia's 'banana republic' approach to professional sports might be forced to adopt a sports profile more suited to our size as a nation.

There will be far fewer coffee shops and restaurants.

More domestic travel within Australia, less overseas travel.

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Here is an interesting comment from Yuval Noah Harari via the Financial Times which has generously rated it as 'Free to read'. The images accompanying this article are taken from webcams overlooking the deserted streets of Italy, found and manipulated by Graziano Panfili, a photographer living under lockdown.

https://www.ft.com/content/19d90308-6858-11ea-a3c9-1fe6fedcca75


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