COVID DEBTS

PAYOFF
TABLE OF CONTENTS

1. CONTEXT
2. SOLUTIONS
3. CONCLUSION

2
 1. Context

• Governments around the world have already injected $11tn to keep the
economy afloat.
• low-income countries will require an extra $2.5tn immediately to
prevent economic collapse.

Failure to address the economic fallout => devastating consequences.

 

3
Why does the government need to borrow
money during the pandemic ?
4
 Because it spends more than it gets income
+ An increase in unemployment => No taxes
+ Payment for public services, healthcare
+ Payment for the unemployed or the poor

To raise taxes is not always a good option

+  political reasons - it would be unpopular with
voters.
+ higher taxes => people have less money to shop
=> bad for economic growth 5
How do the government
borrow money?

o The government borrows money by selling

bonds, which is a promise to make payments
to whoever holds it on certain dates.

o The buyers of these bonds, or "gilts", are

mainly financial institutions, like pension funds,
investment funds, banks and insurance
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SOLUTIONS

Debts cancellation
1
for poor countries
SOLUTIONS

1 Debts cancellation
for poor countries

2
progressive taxation to
wealthy individuals and
companies
Source: CNBC
SOLUTIONS

Debts cancellation Shutting down

1 3
for poor countries tax havens

2
progressive taxation to
wealthy individuals and
companies
SOLUTIONS

Debts cancellation Shutting down

1 3
for poor countries tax havens

2 4
progressive taxation to
Cut down military
wealthy individuals and
spending 16
companies
Source: New Defence Order Strategy (dfnc.ru)
“ 3. Conclusion
⊹ With the vaccine rollout, economies
are re-opening => COVID debts can
be solved in the near future!

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THANK YOU FOR
LISTENING
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REFERENCES
 The Guardian – How can we pay off the global coronavirus debts? Tackle the powerful (
https://www.theguardian.com/commentisfree/2020/nov/23/pay-off-global-covid-19-debts-tackle
-powerful-tax-havens-pandemic

 BBC - How much is Covid costing the UK and how will we pay? (https://
www.bbc.co.uk/news/business-52663523)
 BBC - Coronavirus: Where does the government borrow billions from? (https://
www.bbc.com/news/business-50504151)
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