▲ The Corona Virus affects economy.

On the 19th of March, the U.S Department of Labor announced last week’s claim for unemployment had increased by 70 thousand people.

Also, a lot of people income will be decreased. The International Labor Organization announced 3.4 trillion dollars will be decreased. And this will affect the unemployment gap of the rich and poor will be worsen. And The government must help the poor specially self-ownership, so the government will use stored tax or make more money. If they use stored tax, they can’t use the tax in other problems. So the country can’t develop well and if they make more money by lack of tax or other reasons, the countries’ economy will face Inflation. It means the money value is lower. so the price will be higher. Also, this phenomenon will make various costs. A book called “Principles of Economics” written by N.Gregory Manklw, “Inflation is the same as tax to the people who have currency” Also, people will go to the bank frequently to avoid inflation tax. But in this action, a lot of time will be wasted. This time can be used to produce more things, But it make that more difficult. this is called Shoe leather cost. also, Menu cost and Tax distortion will appear. Both the former and the latter will deteriorate the economy.

As the COVID-19 pandemic is continues, large companies will reduce the amount of their loans at the end of the year to strengthen their Balance sheets. An official from Woori Bank said “Conglomerates have been actually drawing money out of their line of credit accounts, which they had kept to maintain a certain level of liquidity.” Like this quote, lot of industries are trying to maintain sufficient liquidity. compaines are trying to build up their cash reserves by buying stock instead of buying securites or bonds in this highly confusing market.

▲ Korean Stock market creashed.

 South Koreans stocks dropped and rebounded sharply. and the foreign investor left Korea as the risk was high. COVID-19 has continued spreading and maintaining. Although stock prices are not granted to increase, Korean people are investing a lot of stock. So there is a newly coined word by this phenomenon. It is called “Donghak Ant Movement” It means Koreans fill the value of the stock market by the buying of koreans, so this newly coined word means many koreans are buying a stock regardless of the risk. on April 2, foreigners were selling 576.3 billion won, and individual investors of Korea bought 273.2 billion won. Son Byung-doo, vice chairman of the Financial Services Commission said “Thanks to everyone who believes Korean companies, but I want to request you to refrain from investing recklessly, Stock prices are lower than the past, and you should refreain from investing using loans.”

With COVID-19, the economy is so confusing. that a lot of workers are lose their jobs and there are lots of emergency in companies. In conclusion, the economy will decline and stock hasn’t come to rest. We should wish for the end of COVID-19.