Thursday, December 10, 2020

McKinsey — COVID-19 has revived the social contract in advanced economies—for now. What will stick once the crisis abates?


Encouraging numbers, but a bit of a one-sided look, IMHO.

McKinsey

5 comments:

Matt Franko said...

“ What will stick once the crisis abates?”

N-O-T-H-I-N-G....

S400 said...

Yep nothing will stick. It’s taken many decades to get the human behavior we have and that won’t change due to a few months with this virus.

Peter Pan said...

Lets make the pandemic permanent and lock in that contract.

Tom Hickey said...

“ What will stick once the crisis abates?” N-O-T-H-I-N-G....

Not exactly nothing. Research shows that inducing a behavior reinforces it. This is the basis of marketing & advertising, e.g., the "free sample." This was well-researched and test before it went viral. Now it's morphed into coupons, etc.

Some behaviors will be influenced. But that this point I don't know of any studies that indicate which ones are most likely to continue as factors in the "new normal."

One thing is sure. There will be no return to the old normal. And as a result there will be winners and losers. Equities markets are in the business of applying discounts and premia based on expectations.

Peter Pan said...

No 'normal' until corruption is rooted out - or civilization goes bust.