Author(s)

Yubo Ma

Corresponding Author

Yubo Ma

ABSTRACT

In the past decades, there have been several outbreaks that are associated with various economic implications. For instance, Ebola outbreaks have been pandemic during the last five years, although the economic implications were exhibited in the West African nations. Normally, such pandemics have been associated with economic stagnation since the production sectors are impacted negatively. Also, the tourism sector has been the most affected since international travels are banned in an elusive quest to contain pandemics. During the Ebola crisis, the West Africa economy deflated by 30% due to a decline in foreign gains. The pandemic was also associated with disruptions in the supply chain, thus resulting in food shortages. This is because the military was mandated with the task of maintaining roadblocks to ensure that the pandemic was contained. This study investigates the effectiveness of fiscal policies in fostering economic recovery. The study has established despite the fact that fiscal policies may seem to offer a short-term remedy to the economy during pandemic periods, the long-term impacts of fiscal policies cannot be overlooked since they are associated with high levels of debts. Emerging economies mainly resolve to external borrowings as the major fiscal policies. As a result, small businesses are developed at the expense of debt accumulation, which will impact the future generation. Therefore, fiscal policies have resulted in the exhibition of a vicious cycle of poverty in developing economies. Also, borrowed funds are mostly squandered by the elites, thus hard to benefit the vulnerable groups during a public health emergency. This promotes crowding in impacts since more debt is accumulated. Therefore, this study concludes that major economies suffer from debt accumulation under the implementation of any fiscal policies.

KEYWORDS

Covid-19, Economics, Crisis, Public Policy, Global Affairs, Pandemics, Fiscal Policies Government, Health Care