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Nicholas Biecker Susan Laidlaw-McCreery WRT 130 03 September 9/19/ The Digital Transformation The American economy has witnessed a steady surge in prices over the past few years, affecting essential commodities like food, housing, gasoline, utilities, and various goods. In early 2022, Jerry Xia, a specialist in the U.S. Department of Labor reported the price of consumer goods increased by 8.2%, attributing the surge to a global disruption in supply chains caused by the pandemic. The outbreak led to widespread shipping delays, causing a significant reduction in the supply of essential items and subsequently triggering shortages in the market. Disruption of essential items had a cascading effect on various sectors, with concerns about the disease's spread among workers in the trade exacerbating the challenges. These consequences from shortages were felt across the world, impacting consumer goods and services. Janet Nguyen pointed out the fluctuation in prices is highlighted. For instance, the cost of a tall pumpkin spice latte ranged from $4.45 to $5.45 in 2019. As of 2022, it currently stands at $5.25 and $6.25. The increasing effect of prices of commodities like coffee illustrates the intricate interplay of global events and their impact on the everyday economy. Understanding the sequence of events, from the initial disruption in supply chains to the subsequent challenges faced by workers and the tangible impact on prices, provides a comprehensive overview of the economic landscape during this period. The COVID-19 pandemic has cast a wide net of impact across various sectors of the global economy and these rising shortages of materials affected the supply chain of the economy.
Material usage and supply chains were significantly disrupted as factory closures and employee layoffs affected manufacturing and production capacities, causing bottlenecks and delivery delays for essential components. Reduced consumer demand, stemming from widespread job losses, led to decreased requirements for raw materials, affecting various industries, including construction and lumber. The shortage of lumber, for instance, had a direct impact on the housing industry. As noted in an article by Susan Helper and Evan Soltas, homebuilders briefly raised prices to $1,711 per thousand board feet due to the supply chain challenges, underscoring how these disruptions affected material usage and subsequently influenced pricing in the market. Lockdowns and transportation restrictions further exposed supply chain vulnerabilities, resulting in shortages and price fluctuations for various commodities, impacting both manufacturing and everyday consumer goods. The production of material stagnated during the COVID-19 pandemic due to challenges related to virus threats and rapid technological changes. The closure of essential factories worldwide contributed to a boost in global unemployment rates, causing financial hardships for many. As said in an article by specialist Gene Falk, unemployment rates peaked at 14.8% in April 2020 but decreased to 5.4% in July 2021. The labor force participation rate also dropped significantly in April, reaching 60.2%. Underscoring the far-reaching employment challenges posed by the pandemic, which not only impacted individuals but also disrupted the production and distribution of goods, leading to an overall economic slowdown and affecting people's livelihoods worldwide. The impact of the pandemic gradually improved since the start of 2021, thanks to reduced global illness rates. Nevertheless, comprehending why this recession occurred and how it's been ameliorated is essential. Around March and April of 2023, approximately 22 million jobs were
behavior but also has ripple effects on supply chain management, logistics, and the growing demand for efficient delivery services. Simultaneously reducing reliance on physical materials, it has heightened the demand for robust digital infrastructure and data centers. Research by Digital Strategist Laura Laberge underscores the transformative journey of consumers towards online channels, indicating a significant leap in digital adoption at both organizational and industry levels. Amidst the pandemic, eBay and Amazon experienced a significant increase in their stock values in 2020 and 2021, capitalizing on the e-commerce boom as consumers increasingly turned to online retailers (Annie Palmer). This underscores the crucial role of digital connectivity and remote access, emphasizing the need for investments in technology infrastructure and digital inclusion. The ensuing digital shift is not just a passing trend but a societal imperative, highlighting the importance of comprehensive efforts to ensure universal participation in this evolving landscape. The pandemic became a poignant reminder of the necessity to invest in technology and foster digital inclusivity as consumers continue navigating the online realm. The pandemic brought about mental health challenges from self distancing procedures, with many individuals grappling with heightened stress, uncertainty, and isolation. This disruption of normal routines, economic uncertainties, and the fear of the virus itself contributed to a widespread mental health crisis. Amid this challenging backdrop, depression played a big role in socialization with one another; often leading to clear signs of mental distress such as sudden sadness, loneliness, or annoyance in behavior (Valero et al.). Lack of direct interpersonal interaction had significantly impacted our emotional well-being and sense of connection during these trying times. Yes, we can connect with people all over the world but sometimes a person needs to put down their device and look around occasionally. As of now, the pandemic is coming to an end, but the effect of this outbreak will always be present from the increased use of
technology during this time. While depression remains a societal challenge, we can take steps to alleviate its impact by occasionally putting down our devices and engaging with the world around us. It's essential to be mindful of the present and the influence of our digital devices in our lives. The digital transformation brought about by the COVID-19 pandemic has reshaped our daily lives in ways we could hardly have imagined. Leaving your house is no longer just about shopping; it's also about adapting to a new digital reality. The era of traditional malls might be waning, but the rise of e-commerce and online shopping has opened a whole new world of possibilities. While the shift to digital interactions may seem like a significant change, it's also a reminder of our ability to adapt and find new avenues for fun and connection in this cyber world. Though it's a different experience, the digital realm has proven its worth, allowing us to connect with friends and have fun while staying safe. It's a testament to human resilience and adaptability in the face of unforeseen challenges. While this minor recession has harmed the U.S. economy, there is optimism for recovery. As the number of COVID-19 cases declines, there is hope that this economic downturn will be relatively short-lived. The timeline for economic recovery and a return to normalcy over the next five years will depend significantly on people's willingness to adhere to safety measures. Striking a balance between safety and economic activity remains critical. With continued vaccination efforts, effective public health measures, and targeted support for industries heavily affected by the pandemic, there is a strong chance for a rebound and a return to a more stable and prosperous future.
Laura Laberge, Clayton O’Toole, Jeremy Schneider, Kate Smaje. “How Covid-19 has pushed companies over the technology tipping points - and transformed business forever.” McKinsey and Company , October 5, 2020, https://www.mckinsey.com/capabilities/strategy-and- corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology- tipping-point-and-transformed-business-forever Omar Aboulezz, “How Zoom Won the Pandemic” Digital Innovation and Transformation , February, 7, 2021, https://d3.harvard.edu/platform-digit/submission/how-zoom-won-the- pandemic/ Paramita Basak Upama, Maria Valero, Hossain Shahriar, Mohammad Syam, Sheikh Iqbal Ahamed. “ Mental Health Analysis During Pandemic: A Survey of Detection and Treatment” Reexplore , August 02, https://ieeexplore.ieee.org/document/10196894 - gvsu source Susan Helper and Evan Soltas. “Why the pandemic Has Disrupted Supply chains” The White House , June 17, 2021, https://www.whitehouse.gov/cea/written-materials/2021/06/17/why- the-pandemic-has-disrupted-supply-chains/
