How are Governments Responding to the Economic Crisis Caused by Covid-19?

How are Governments Responding to the Economic Crisis Caused by Covid-19?

In order to “flatten the curve” of Covid-19 infections, many governments throughout the world issued stay at home orders. While these stay at home orders have helped to slow the spread of the virus, it has also caused widespread damage to businesses and personal finances. But the infection rate is slowing, and now many countries are adopting an incremental reopening to balance the damage to their economy versus the risk of having a spike in infections due to reopening too aggressively.

Some countries have centered on reopening schools and government services. Other countries have emphasized construction, retail, and small business. Most governments are slowly reopening the most essential areas of their economy based on population concentrations, testing, and risk assessments from the results of the tests.

Large scale testing has been the preferred approach internationally in order to get enough data to carefully monitor infection rates as varies sectors of the economy are slowly resumed. By focusing on testing and data driven measures, the goal is to able to react quickly enough to a spike in cases to “tighten the valve” in particular areas if necessary. Whatever the strategy of particular countries, government intervention in the economy will be needed for the foreseeable future to prevent financial collapse.

The above information is a general overview and is not intended to be used as legal advice. If you are considering filing for bankruptcy, the best thing to do is call our office at 248-557-3645 and schedule a free consultation so you can receive advice which is tailored to your specific circumstances.

By: Michael Benkstein, Esq.

Managing Attorney, Bankruptcy Department

The Law Offices of Joumana Kayrouz, PLLC

1000 Town Center

Suite 800

Southfield, MI 48075

(phone) 248-557-3645

(fax) 248-200-0645

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