Friday, April 17, 2020 - 09:45 Leo Olivero

The economic decline caused by the Covid health crisis is enormous and rapid. Probably, why experts agree that Europeans will pay a high Covid-19 price for living in open affluent democracies, where people move freely, have easy travel and enjoy independent decision-making. Governments in the European continent aren’t used to giving harsh orders, and citizens are not use to following them, that’s for sure!

Now, contrast that with the Asian continent, where the massive nation of China is located, whose Covid action was one of severity and range, which literally stunned nations of the West. China made some very unpopular Covid decisions. The Chinese, early in the Covid war accepted there would be serious economic damage, as the price of containing the disease, which has been the case. It confined and closed off countless millions of people, forbidding them from leaving their cities and even their homes, except to get food and medical care, also imposing other harsh measures and shutting down whole industries.

So, it’s not that difficult, to understand why Covid-19 has hit harder in Europe, which by the way, had weeks of warning that the epidemic was on its way ‘with love from China’ where it originated. Possibly why, the coronavirus prognosis’s, really looks ugly for Europe and the European Union!

This is not an economic crisis like any other. It is without a shadow of a doubt, the biggest crisis we have experienced so far in our lifetime. And probably, will have adverse political, economic and social impacts that exceed those of even the 1930s Great Depression, which is an historical dark financial landmark or reference point when comparing world financial crises of this nature.

Great Depression Short Insight:

The Great Depression was a time of great economic crisis during the 1930s. It began in the United States, but quickly spread throughout much of the world. The Great Depression began with the crash of the stock market in October of 1929. Historians and economists give various causes for the Great Depression including drought, overproduction of goods, bank failures, stock speculation, and consumer debt. The same causes, still happening today!

Fast forward, to the 2008 economic crisis. The central banking system of America, more commonly known as the US Federal Reserve, the European Central Bank, the United Kingdom and our own Government here in Gibraltar. Have all addressed the present economic (health) crisis by injecting more liquidity into the financial system in various ways. Governments in Europe and EU have continued loading up on debt. Yet, the ordinary European citizen, seem to be missing out on the big financial packages in order to save the various financial system(s).