The recent economic downfall caused by the COVID-19 infection that has rapidly engulfed the entire world is a truly drastic change that will have detrimental effects on the global trade and economic performances of multiple countries. In his article “Will Small Business Survive The COVID Recession?,” Richard McGahey (2020) tries to examine critically the opportunities that companies have in the current environment and the future development of organizations worldwide after the crisis. According to the assumptions offered by McGahey (2020), small businesses are unlikely to recover from the damage caused by the crisis with the current tools deployed, mainly due to the problems with the lending pipeline.
The author also approaches the optimism about the economic revival displayed by Donald Trump rather critically. The stance that McGahey takes is understandable given the implications of the current crisis for the aggregated supply and the threat of it slowly being exhausted as all production processes are put on hold (2020). The phenomenon of aggregated supply is the goods and services that a company can offer to its customers. Considering the problem closer, the author explains that it is not the fact of closing but the rapidity of it that makes the problem so difficult to handle. Namely, businesses have no time left to adjust and, instead, have to cease all processes without considering the expenses that the specified step will entail. Consequently, the physical capital as the total amount of physical assets that a company owns will inevitably become impossible to use and, ultimately, turn into waste. The author paints a rather dark picture of the future of the world economy, yet his concerns seem quite realistic to give the economic prognoses. Thus, McGahey (2020) warns that, for the global economy to get back on its track, a tremendous effort will have to be made once the COVID-19 issue is addressed.
Reference
McGahey, R. (2020). Will small business survive the COVID recession?Forbes. Web.