Panic Buying and its effects
COVID-19 has been classified as a Pandemic disease. We wish all affected to get well and "kicking up" their spirits soon. Among tons of news; markets have been draining out of materials that are essential. This article would like to bring forth the data and fundamental measures that can notify you(the reader) to make well-informed decisions.
Read about Coronavirus, how it originated and its effect on our lives.
Panic Buying
The Five Ws and one H, or the Six Ws are questions whose answers are considered basic in information-gathering. Let's mention them in this research too.
What is panic buying and Why it happened?
Panic buying occurs when consumers buy a few commodities due to fear and panic that it is short on supplies during a disaster, or a shortage. The latest panic buying has emerged up in the market due to COVID-19. These include hand sanitizers, face masks, soap, handwash and even toilet paper in European nations.
As soon as reports came of countries like Italy being hit by the(then) outbreak; many countries reacted to the situation by closing down on its borders. The first responders of the news panicking hoarded on the supplies that they could find. Many products of well-selling brands sold out in a jiffy. The fear of lockdown has also forced stocking up of food items, groceries and processed foods in many parts of the world. News websites show long queues for people who want to buy items from supermarkets as well. We also see such a long queue for filling petrol for cars too.
The Government of these countries could clearly foresee the impact that border closing would create. Hence they allowed essential goods to be freely transported. Meanwhile, governments also tried to wade-down the fear caused by the rumours being spread; like commodities being sold out and not being available in the market at all.
Social networks also hyped up the incoming of this disease. Many outlets were busy making memes and played up the dearth of the stocks.
How does it affect the common man?
Panic buying creates an artificial shortage of products. It is followed by a big surge in the price of the same product. Take the example of sanitizers which saw a price rise which had to be stopped when the Govt. had to intervene and fix the price. The artificial shortage also, make the products disappear in such a way that a person, who had actually required it would not get it. For eg- Face masks, which don’t protect you from getting COVID-19 is being used without any reason by many of us. So, when a person who may have symptoms goes to the market to buy them, he may not be able to buy it.
When and Where did it take place?-Market and Trading
This was fuelled by investors dropping their bullish behaviour and taking up an altruist behaviour. The transport sector took a huge dip in market productivity wherein the stock market halted trading.
Although many experts suggested against this, people have been continuing to do so.
Withdrawing money from stocks or mutual funds at this stage may turn your temporary losses into permanent ones. The Indian equity market has seen this kind of swings earlier in 2008 and 2000-01 also. History suggests the market bounces back smartly after such drastic falls and produces many multi-baggers. Market experts advise investors to try and benefit from this crash by taking exposure to fundamentally sound companies in a systematic manner.
How did it happen?-Panic
Most of these panic attacks occur when a threefold attack kicks in.
The first attack is established through a trigger. This trigger sets up our thoughts and deeply embeds itself into our mindset. This restricts ourselves from expressing our feelings to a society near us. The more we think about it, the further we want to run away from it. This imbibes a behavioural disconnect which again acts as a secondary stimulus on our thoughts.
Neuroplasticity: the ability of the brain to change continuously throughout an individual’s life.
This panic can be avoided by repeatedly and unconsciously confronting your fears on a regular basis.
Therapy in India
Many people, especially Indians, are afraid to go to doctors. A doctorate is a self-proclaimed speciality (qualification) of all elders in a family. Self-made otherwise homemade remedies for the most widely accepted medicine that people take when they fall ill. It is from this ideology that people get fearful and buy a large number of materials in bulk. And that is not rhetoric.
This is also the stem for panic society. And the root cause for panic buying.
Government role
There is nothing more than a government can do in these dire junctures; except to push pharma to conjure up a non-existent cure.
The govt can allocate items according to the need. The govt also must fix the price of essential items. China had tried to implement door-step delivery of essential items during the lockdown in Hubei province which was a great step.
It is high time Citizens are held for the actions(travel) they undertake.
Follow government instructions: Click here
What can we do?
- Quarantine yourselves at home.
- Avoid Hoarding of excess supplies
- Make some noise. Don't let the silence trigger your fears.
- Don't feed into political lines and progressively read news and stay updated.
- Go to websites like Health Ministry and WHO for news and updates. Click here to know more:
- Google and Microsoft have started an interactive website for updates on Corona statistics and news. Click here to know more:
- Read more, introspect deep.
- Always keep yourselves involved.
Avoid panic buying, follow govt instructions, and stay safe
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