Pandemic to continue decreasing standards of living


Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF) commented that as a result of the crisis caused by the coronavirus epidemic, living standards will fall in almost all countries of the world. In the medium term, she said, production will remain at a much lower level than predicted by pre-pandemic forecasts.

Even now, one can start to notice these new living standards all over the world, even with the naked eye. Right now there are tens of millions of unemployed in the United States. In Russia, the unemployment rate in 2020 has also increased significantly. In addition to the unemployment rate, the income of the working class population is also falling. For example, in the second quarter of 2020, the incomes of Russians fell by 8%.

However, as much the decrease in living standards affects the working people, the big bourgeoisie does not lose anything. The decrease in the income of enterprises will be compensated by the cuts in wages of the working class and will not affect the well being of big capitalists. Even a certain loss in income will not lead to a deterioration in the life of the possessing classes. At the same time, hired workers lose a significant part of their means of subsistence, and are on the brink of poverty. The matter is aggravated for them by the fact that many workers are forced to purchase housing on a mortgage, therefore, a decrease in income or loss of work is fraught with not only tightening their belt but also the loss of housing.

The coronavirus epidemic has shown again that there is no difference between residents of different countries, they get sick the same way. At the same time, there is a real division into workers and capitalists. Capitalists can isolate themselves and manage assets remotely and workers must work. If the worker does not continue to work, the entire economy will come to a halt, even though workers do not receive the necessary means of occupational protection. Having fallen ill, the worker may not receive proper treatment or will lay in the hospital corridor. For the capitalists, on the contrary, in the event of an illness, all the means of modern medicine are provided for them, the best conditions are created.