Why 2022 is Set to be a Tougher Year than Usual
A recent survey concludes that 90% of people think of 2020 and 2021 as two of the worst in recent memory. Mainly due to the pandemic. Yet as we enter a new year, we should be cautious of blind optimism. 2022 is set to be a more demanding year than usual for various reasons. The main reason is that the Covid-19 crisis is not yet over, and people are still dying.
The Energy Crisis
For all the tragic deaths related to Covid-19, the pressure is being piled on for millions of households globally. Like something cooked up by a talented dystopian author, a looming crisis in the energy sector. As you enter 2022, you will soon feel the cold hand of massively increased prices for utilities that are a fundamental human right, such as water, gas, and electricity. Yet the concerning aspect of the current and impending crisis is that it’s a direct result of world government inaction to meet their own deadlines for clean and efficient fuel sources.
Death and Taxes
As it stands, the pandemic has claimed over 5.5 million lives. While this figure is 10% of the Spanish flu’s death toll, its 5.5 million loss of life for which accountability is yet to be reached. And it continues into another year. The Omicron variant recently sent shockwaves throughout the medical community and the world, although some predicted the impact was not as severe. However, there is no guarantee a more potent and more infectious variant won’t emerge. All this as many nations, such as the UK and US, are increasing taxation amid a 15% OECD tax.
Some sectors have taken the brunt of the effects of Covid over the last two years. However, decline begets decline, and the domino effect of economic uncertainty looms on the horizon. Lockdowns and restrictions severely limited or prevented customers from entering retail stores, cinemas, restaurants, and bars in some countries, wreaking havoc on the local economy. When you factor in that supply chain issues from Brexit, Covid, and shipping problems still aren’t resolved, more and more traders are yet to feel the effects of a severe decline in business.
With all the current problems you face in a new year, it’s almost guaranteed a depression or downturn will eventually happen. Too many risk factors currently converge for socioeconomic markers to be unaffected, resulting in social instability. Social unrest, a global pandemic, and steadily declining opportunities make a case for a significant financial disaster akin to 2008 or even 1939. And with such events comes the problems of social stagnation with lowered opportunity, high risk, and little reward scenarios of business and employment.
You have also had to endure two years of tit-for-tat politics as incompetent “leaders” stumble over themselves about how to approach some of the most significant issues of our time. Do you need to be told about Boris Johnson? Boozy Christmas parties aside, the British and French back and forth discussion on travel is a perfect example of how petty things have become. Blaming Covid for his actions, Macron sulks about a lost deal. The result is closed borders and trade as you further suffer through one of the most challenging times in human history.