Over the last two months, we have experienced not one, but three very different cases of emergency scenarios. Not only has toilet paper been flying off our shelves in Australia due to the coronavirus, but hand sanitizers have also been sold by the truckload. With the bushfires and the floods and now the Coronavirus wreaking havoc, it’s no wonder why Australia’s economy has taken such a hard hit.
But should we be loading up on galleons of loo paper?
The law of supply and demand of goods plays a crucial role for the economy, what people don’t know, is if the product is in higher demand then the company may sell at a higher rate. The truth is if we all panic and buy goods, then the cost of everything will eventually go up and no one will want to buy into our economy. Although we all need to stockpile it’s important instead to consider your neighbour, your friends and also those who are creating these items. The question is should we be stockpiling toilet paper? When we could instead be supporting our local businesses who are currently in hardship.
A lot of people are understandably panicking during this time and we understand that many have been discussing with their financial advisors how to pull out of their current investments. Yet, instead of fearing what will happen and preparing perhaps it’s better to instil faith and band together and support one and another and local business.
Just last week the market was in free fall from this horrific virus and the Australian stock market and stocks have been plummeting by 10%. What we shouldn’t do is panic though as we need investors to think out their plan strategically so the rumours don’t become a reality and we don’t go into recession. There is hope in sight as the government has set aside a budget and is planning to prop up businesses who are experiencing hardship not only from the Coronavirus but also from the Bushfires and floods. The Australian government has launched a two billion support package for businesses who are experiencing hardship and more will be released during the annual budget.
Just as Australia banded together during the bushfire crisis and the floods, we all need to come together now and not be overwhelmed or create panic due to the current health concerns. There are tips for handling travel, find out more about the Coronavirus here: www.smartraveller.gov.au.
Ideally, we can rebound back from this just as we have done before as a nation and with Israel and several other countries developing a vaccine, there is no reason we won’t see the end of the Coronavirus, very soon. If you are a business who is currently in hardship please visit www.business.qld.gov.au or come into Oasis Financial Planning for a free consultation.
