Private Equity
Blue Sky Capital Resources Insights - The Big Reset
April 2020
Since the fall of the Berlin wall we have seen globalization increase with a rapid pace. A globalized economy clearly has its merits, but there are costs as well. My intent in this article is not to present another long article on the merits for, or, against globalization. Instead, I would like to present where we are today, and what should we consider to improve the future for ourselves, our neighbors, our country and our world.
The Covid-19 effect on the world is unprecedented. The loss of life continues to mount at an alarming rate and being compared to the Spanish Flu of 1918. Peak levels in Europe will be reached this week. The U.S. is three/four weeks behind Europe and faces the worst over the next month. Three quarters of the world is currently under strict isolation rules. To some it may appear an over-reaction, but this “lockdown period” is proving to be effective. Life will not return to normal until sometime this summer, at best, but we will beat this.
The onset of Covid-19 has shown us how inter-dependent we have become. As a result, the dependence on global supply chains will continue to show its negative effects for some time to come. Globalization, which has been a positive development over the past 30 years is now showing its limitations.
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