Covid has wreaked havoc on the world on a number of fronts; firstly, the health impact of the Covid-19 virus on health care systems, population impact and also the economic impact of markets not functioning due to staff being off with the Covid-19 virus.
Secondly, the world as we know it stopped. Offices, told their staff to work from home. Furlough was created by the British government. Meaning that the normal capatalistic economy ground to a halt. Propped up by the governments, who secured 70-80% of all profits for businesses.
However, what does this mean for the future? England alone has a racked up £450 billion in debt, the highest levels since the end of World War 2.
This mean that the money has to be recovered in some way. Some of those plans. to recover, are now in full swing, with NI payments increased in the UK from 12% to 13.25%, a full 1.25% increase on NI. Inflation has also increased as shown below:
| Characteristic | Inflation rate compared to previous year |
|---|---|
| 2021* | 2.19% |
| 2020 | 0.85% |
| 2019 | 1.79% |
| 2018 | 2.48% |
This will now mean that the economy of England, will face years of austerity. In a market that is completely uncertain of itself.