There's a common sense adage that says "don't put all your eggs in one basket". Most commonly this refers to spreading your resources (of whatever your task, endeavor or property may be) among as many independent targets as possible, as to minimize the risk of a singular point of failure causing an enormous amount of damage to whatever you are doing. For example, if you are investing a significant amount of money on capital stock, it's inadvisable to buy stock from one single company. If your business depends on producers (such as for example farmers), it's inadvisable to have one single producer and have your business depend solely on that one.
For a few decades now quite clearly huge manufacturing megacorporations have yet not learned their lesson. Pretty much everything is nowadays manufactured and produced in China, and pretty much all megacorporations are heavily dependent on that one single country for the vast majority of their business.
This is a rather dangerous singular point of failure. It's putting most, even all, eggs in one single basket.
This coronavirus epidemic is a grim reminder of what could happen if that singular point of failure does fail: What would happen to the world economy if China is somehow indisposed, such as, for example, completely crippled by a disease epidemic, or any other hypothetical reason such as war, a natural catastrophe, or anything else that could completely cripple a country and destroy its economy?
The entire world's economy would go into a really big crisis. That's what.
Corporations have put all their eggs in one basket, and their situation is really precarious. Pretty much all stocks are currently going down, and if the epidemic is not stopped relatively soon, analysts are predicting a worldwide economic crisis. If current efforts to stop the spreading of the epidemic fail, and this becomes a huge pandemic, we are in a huge lot of trouble, and not only because of the virus. Even if the virus only affects mainly China, we would still be in a huge lot of trouble.
For a few decades now quite clearly huge manufacturing megacorporations have yet not learned their lesson. Pretty much everything is nowadays manufactured and produced in China, and pretty much all megacorporations are heavily dependent on that one single country for the vast majority of their business.
This is a rather dangerous singular point of failure. It's putting most, even all, eggs in one single basket.
This coronavirus epidemic is a grim reminder of what could happen if that singular point of failure does fail: What would happen to the world economy if China is somehow indisposed, such as, for example, completely crippled by a disease epidemic, or any other hypothetical reason such as war, a natural catastrophe, or anything else that could completely cripple a country and destroy its economy?
The entire world's economy would go into a really big crisis. That's what.
Corporations have put all their eggs in one basket, and their situation is really precarious. Pretty much all stocks are currently going down, and if the epidemic is not stopped relatively soon, analysts are predicting a worldwide economic crisis. If current efforts to stop the spreading of the epidemic fail, and this becomes a huge pandemic, we are in a huge lot of trouble, and not only because of the virus. Even if the virus only affects mainly China, we would still be in a huge lot of trouble.
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