The COVID-19 pandemic has upended nearly every aspect of our lives, including the global economy. Businesses big and small have been struggling to stay afloat as lockdowns and social distancing measures have drastically reduced demand and disrupted supply chains.
As a result, governments around the world have implemented fiscal stimulus measures to try to ease the economic pain. But according to a recent report, some seemingly simple items like Blu Tack and sticky plasters are failing to provide any relief.
In the UK, Chancellor Rishi Sunak unveiled a massive £330 billion stimulus package back in March, which included grants and loans for businesses, as well as wage subsidies for employees. But despite these efforts, many businesses are still struggling to make ends meet.
For example, Sticky Plasters Ltd, a small manufacturer based in Glasgow, has seen a steep decline in sales since the pandemic hit. The company, which produces a range of adhesive products including bandages and plasters, relies heavily on trade fairs and exhibitions to showcase its products to potential customers.
But with most events canceled or postponed due to the pandemic, Sticky Plasters Ltd has been left high and dry. The company's CEO, Fiona Smith, explained: "We've had to furlough some of our staff and cut back on production because we simply aren't selling as much as we used to. We've applied for government grants and taken out loans, but it's still a struggle."
Similarly, Blu Tack, the iconic reusable adhesive putty, has seen a drop in demand as people spend less time in their offices and classrooms. The company that produces the product, Bostik UK Ltd, has also been affected by the pandemic, with reduced production and lower sales.
In response, the government has announced further stimulus measures, including a temporary cut in VAT, one-off grants for small businesses, and a job retention scheme extension. But some economists worry that these measures may not be enough to stave off a prolonged recession.
Indeed, the fiscal woe is not limited to the UK, as countries around the world grapple with the economic fallout from the pandemic. The International Monetary Fund has warned that the global economy will shrink by 3% this year, the worst decline since the Great Depression.
In conclusion, while Blu Tack and sticky plasters may seem like small potatoes in the grand scheme of things, they are just another example of the widespread economic disruption caused by the pandemic. As businesses and governments struggle to cope, it remains to be seen how long-lasting and severe the fiscal woe will be.